Volume amps up on royalties row
MUSICIANS fear proposed new royalty charges infuriating nightclubs will hit them too as venues will open less and cut touring DJ budgets.
The Surfers Paradise nightclub lobby is threatening boycotts of Aussie artists from playlists because they say proposed changes will result in “crippling” hikes.
New entity OneMusic Australia’s proposed new fee is based solely on venue capacity – not attendance. Existing royalties are a mix.
Gold Coast artists say charging venues based on capacity whether full or not is
unsustainable and hurts everyone including venues, artists and labels long term.
DJ and Bomb Squad Records label owner Sketch Coleman said the fee needed to go up based on inflation.
“But if they try and squeeze too much blood out of the stone by forcing venues to pay per head for their licensed capacity rather than actual numbers, I can’t see that being sustainable.”
Mr Coleman, half of popular Bombs Away and a gig promoter, said he could see it from the artist and venue viewpoint: “It’s fair to raise the price in line with inflation because it hasn’t increased and the price per person could go up – but I don’t think it’s fair to charge if there is no one in the venue.
“As an artist I would not like to see our incomes peak for a year and then be demolished by the fact venues, especially small venues, can’t afford to open anymore.”
Mr Coleman said he didn’t think a threatened bar boycott on Aussie artists would be feasible but “as a dialogue opener it has been effective”.
Mr Coleman agreed the way nightclubs were charged needed to change as it was convoluted. OneMusic brings together three entities which levy charges including the Australian Performing Rights Association (APRA).
Instead of multiple fees on behalf of artists, labels and writers, OneMusic proposes a single fee covering the lot.
DJ Komes, a recent charttopper with Fried Chicken, said artists needed to work with venues: “We don’t just live off APRA but live off touring these venues.
“When costs go up the first thing that gets looked at is the budget for touring artists.”
The nightclub industry estimates a 500-capacity venue could see charges go from $150,000 to $300,000 annually. OneMusic Australia disputes that, saying the existing bill should be $320,000 and would drop to $300,000.
It’s understood the wildly different interpretations are due to big discrepancies in estimations of patron numbers.
APRA head of revenue Richard Mallett said the proposal is a “first cut”: “Industry feedback will be vital ... so we can start to work toward a scheme acceptable both to industry our music (creators)”.