I recently talked with the third small local venue in the past two weeks, that is being harassed by one or more of the powerful PRO's....
For those who don't know, the Performing Rights Organization's( or PRO) job is to collect performance royalties for the Artists in their repertoire. Now, I'm not an attorney, or an expert on entertainment law, which is partly the domain of the PROs. With that disclaimer being said, I do have some strong opinions about this subject.
The way I see it, some troubling issues with the way these organizations operate are-
1) There is no sampling, or accounting for what songs(or artists music), are being played in the local clubs, and bars. Bars and clubs that are being charged often large fees, to allow for local bands and Artists to perform. The PRO's collect a lot of money from the venues that can afford to pay, and distribute those royalties based on AirPlay, i.e. Clear Channel charts, etc.
So, they squeeze the small clubs, who now have less money to afford to pay local talent , and then give the lions share of that collected money to the biggest artists, i.e. Lady Gaga, Justin Beiber, Rolling Stones, and whomever is getting the most spins on radio.
2) This isn't a new thing, but with the decline of album sales(mechanical royalties), the performance royalties, and their advocate organizations are becoming increasingly aggressive. In many areas, and towns, this aggressiveness is weighing heavy on an already economically challenged local music scene. Clubs that used to be overlooked, even small hole-in-the-wall kind of places, are now being targeted and threatened by the large and powerful PRO's.
3) The expansion of DJ's and even karaoke(a subject for another blog...) has aggravated this as well, with the requirements of separate and additional licenses for both live performance and pre-recorded performance.
I have even heard tales of venues, where only original artists perform and they have still been required to pay for licenses.
Not really fair, is it?
How does any of this benefit the local music scene?
It doesn't take a degree in economics to predict what's happening to a lot of the smaller venues: they're simply closing their doors. And that's bad for everyone in the local music business. Don't misunderstand me, as a musician and writer myself, I am certainly an advocate for Artists royalties, and there's enough of a capitalist in me, to want musicians to be able to make a living in 'the biz'. It's only fair and right for artists to be paid for the music they create. But the way this is being enforced is anything but fair!
This is an case of siphoning money from local economies, and using that money to subsidize those who are already the most successful artists in the business.
Being a positive person, I would offer some suggestions that would help with these issues.
A) accurately account for the music being performed at venues. Otherwise this amounts to taxation without representation!
This may be difficult, but it's absolutely necessary for any kind of fairness. Not only would it help local business, but It would also
distribute the fees more fairly to the rights-holders.
Possibly offer bands, who play remakes or covers, some kind of blanket license to perform the music in artists repertoire of each of the PRO's.
That would create a way for small venues, who aren't full time music venues, to occasionally hire "licensed' bands and save money.
B) If there was more cooperation between the different PRO's, that would really make a difference, and creating standardized "blanket" licenses would go a long way in fostering cooperation, and allow local venues a much better business climate to operate in.
C) Make it easier for venues to get licenses, and understand the whys and hows. Its surprising how many people I talk to, in local venues, that don't understand this process. Perhaps some day the venues will organize and create an organization to represent themselves and provide collective bargaining; this would help even the playing field against the PROs.
D) The fees should be proportionate to the venues being charged, in size and gross revenues.
This is also necessary for fairness. A small bar who has an occasional band, is very different from a
full time music venue. A class 'C' venue is different from a class 'A' venue, and so on.
The Music business is tough enough as it is on small venues. Why can't we find more ways to focus on a creative mindset, and not the old competitive ones ?
There's plenty to go around, we all want to make money, so lets find ways to make that work for everybody.
EDIT 2-25-17 -- This post has become even more relevant today.
" The more men who get rich on the competative plane the worse for others; the more who get rich on the creative plane, the better for others"
Wallace Wattles
AITD
For those who don't know, the Performing Rights Organization's( or PRO) job is to collect performance royalties for the Artists in their repertoire. Now, I'm not an attorney, or an expert on entertainment law, which is partly the domain of the PROs. With that disclaimer being said, I do have some strong opinions about this subject.
The way I see it, some troubling issues with the way these organizations operate are-
1) There is no sampling, or accounting for what songs(or artists music), are being played in the local clubs, and bars. Bars and clubs that are being charged often large fees, to allow for local bands and Artists to perform. The PRO's collect a lot of money from the venues that can afford to pay, and distribute those royalties based on AirPlay, i.e. Clear Channel charts, etc.
So, they squeeze the small clubs, who now have less money to afford to pay local talent , and then give the lions share of that collected money to the biggest artists, i.e. Lady Gaga, Justin Beiber, Rolling Stones, and whomever is getting the most spins on radio.
2) This isn't a new thing, but with the decline of album sales(mechanical royalties), the performance royalties, and their advocate organizations are becoming increasingly aggressive. In many areas, and towns, this aggressiveness is weighing heavy on an already economically challenged local music scene. Clubs that used to be overlooked, even small hole-in-the-wall kind of places, are now being targeted and threatened by the large and powerful PRO's.
3) The expansion of DJ's and even karaoke(a subject for another blog...) has aggravated this as well, with the requirements of separate and additional licenses for both live performance and pre-recorded performance.
I have even heard tales of venues, where only original artists perform and they have still been required to pay for licenses.
Not really fair, is it?
How does any of this benefit the local music scene?
It doesn't take a degree in economics to predict what's happening to a lot of the smaller venues: they're simply closing their doors. And that's bad for everyone in the local music business. Don't misunderstand me, as a musician and writer myself, I am certainly an advocate for Artists royalties, and there's enough of a capitalist in me, to want musicians to be able to make a living in 'the biz'. It's only fair and right for artists to be paid for the music they create. But the way this is being enforced is anything but fair!
This is an case of siphoning money from local economies, and using that money to subsidize those who are already the most successful artists in the business.
Being a positive person, I would offer some suggestions that would help with these issues.
A) accurately account for the music being performed at venues. Otherwise this amounts to taxation without representation!
This may be difficult, but it's absolutely necessary for any kind of fairness. Not only would it help local business, but It would also
distribute the fees more fairly to the rights-holders.
Possibly offer bands, who play remakes or covers, some kind of blanket license to perform the music in artists repertoire of each of the PRO's.
That would create a way for small venues, who aren't full time music venues, to occasionally hire "licensed' bands and save money.
B) If there was more cooperation between the different PRO's, that would really make a difference, and creating standardized "blanket" licenses would go a long way in fostering cooperation, and allow local venues a much better business climate to operate in.
C) Make it easier for venues to get licenses, and understand the whys and hows. Its surprising how many people I talk to, in local venues, that don't understand this process. Perhaps some day the venues will organize and create an organization to represent themselves and provide collective bargaining; this would help even the playing field against the PROs.
D) The fees should be proportionate to the venues being charged, in size and gross revenues.
This is also necessary for fairness. A small bar who has an occasional band, is very different from a
full time music venue. A class 'C' venue is different from a class 'A' venue, and so on.
The Music business is tough enough as it is on small venues. Why can't we find more ways to focus on a creative mindset, and not the old competitive ones ?
There's plenty to go around, we all want to make money, so lets find ways to make that work for everybody.
EDIT 2-25-17 -- This post has become even more relevant today.
" The more men who get rich on the competative plane the worse for others; the more who get rich on the creative plane, the better for others"
Wallace Wattles
AITD