More than 50 music managers including representatives of British stars like Dua Lipa, Arctic Monkeys, Biffy Clyro and Liam Gallagher, as well as artists represented by the Featured Artists Coalition (FAC), have signed a joint letter to British collection society PRS for Music urging it reconsider a proposed livestreamed event tariff.
Ticketed livestream concerts have been a life saver for the many artists and their teams unable to tour during the pandemic this year.
PRS for Music has now determined that ticketed or sponsored livestream events should be subject to a tariff of between 8% and 17% of gross revenues.
PRS intends to levy this so-called “temporary experimental and non-precedential rate structure” rate retrospectively.
The current tariff for normal “in-person” live shows is charged at 4.2% of gross revenues.
This tariff came into effect in May 2018, after a 1% increase was approved by the Copyright Tribunal after a three-year consultation between PRS members, licensees, stakeholders and live sector industry bodies.
In the joint letter, the managers and artists represented by the Music Managers Forum (MMF) and FAC state that “these seemingly arbitrary terms have been determined without consultation, and with an intention that they be applied retrospectively”, which they argue is “a decision that will add to the grave financial distress facing artists and their wider teams especially in the midst of a pandemic”.
“For the sake of all artists, songwriters and the wider industry, it is crucial that this new format is allowed to grow and thrive. Charging artists up to 4 times the live rate strangles rather than nurtures this innovation.”
MMF/FAC
They added: “Everyone agrees that songwriters must be compensated and livestreams licensed properly. Indeed, the vast majority of our members are songwriters or their representatives.
“But in a year when live shows have effectively shut down, and with more uncertainty ahead, livestreaming has presented artists with one of their few opportunities to perform and connect with their fans.
“For the sake of all artists, songwriters and the wider industry, it is crucial that this new format is allowed to grow and thrive. Charging artists up to 4 times the live rate strangles rather than nurtures this innovation.”
The proposed ‘experimental’ PRS rate structure would see tariffs imposed on a banded scale starting at 8% on livestream events grossing up to £50,000, and rising to 17% on livestream events grossing more than £450,000 from ticket sales.
The proposed (experimental) PRS rate structure is as follows:
In a comment provided to MBW, PRS for Music stated that “the proposed pilot licence scheme is still evolving” and that “it would not be right for us to provide further detail or comment at this stage while we await their assessment and feedback.”
“Of course our primary role is to protect our members’ rights and to ensure they are paid fairly for their work, which is more important than ever now.”
PRS for Music
Said the organization in a statement: “PRS for Music members, alongside many others across our sector, have been very badly impacted by the shutdown of live music this year.
“We welcome the many initiatives to move live concerts online and PRS for Music has designed an Online Live Concert licence which will allow the necessary rights to be licensed.
“The proposed pilot licence scheme is still evolving. As conversations with our partners are active and ongoing, it would not be right for us to provide further detail or comment at this stage while we await their assessment and feedback.
“Of course our primary role is to protect our members’ rights and to ensure they are paid fairly for their work, which is more important than ever now. We hope that these conversations will progress quickly.”
You can read their letter in full below and all the signees can be seen here:
Dear Andrea,
PRS’s proposed experimental tariff for livestream events is unworkable for artists.
A starting rate of 8% of gross ticket receipts – rising to 17% of gross ticket receipts – will make livestreaming unviable, for both the smallest emerging artists and the biggest superstar acts.
By comparison, the PRS tariff for a live in-person concert is 4/4.2% of gross ticket receipts (less VAT).
This is a staggering disconnect. A ticket is a ticket.
Even worse, these seemingly arbitrary terms have been determined without consultation, and with an intention that they be applied retrospectively – a decision that will add to the grave financial distress facing artists and their wider teams especially in the midst of a pandemic.
Everyone agrees that songwriters must be compensated and livestreams licensed properly. Indeed, the vast majority of our members are songwriters or their representatives.
But in a year when live shows have effectively shut down, and with more uncertainty ahead, livestreaming has presented artists with one of their few opportunities to perform and connect with their fans. The larger most-successful events involve significant production costs, and have provided a lifeline to crew and other industry workers. At the other end of the scale, livestreaming has been increasingly important for emerging artists and those operating in niche genres.
“For the sake of all artists, songwriters and the wider industry, it is crucial that this new format is allowed to grow and thrive. Charging artists up to 4 times the live rate strangles rather than nurtures this innovation.”
For the sake of all artists, songwriters and the wider industry, it is crucial that this new format is allowed to grow and thrive. Charging artists up to 4 times the live rate strangles rather than nurtures this innovation. For some of the smaller artists who have just covered their costs livestreaming, it will be impossible to find this additional money retrospectively.
Subsequently, we are asking that you reconsider PRS’ approach, and that you engage with us in a full and transparent consultation. This should also aim to provide certainty that PRS actually holds a mandate to license livestreaming events on a global basis.
Until that process is concluded, we are working on the basis that the current live tariff is the applicable rate to these ticketed events.
PRS wants to show global leadership, in our view this requires communication and a transparent, open and evidence-based consultation.
We look forward to both in due course.
Music Business Worldwide