British copyright collection society PPL (Phonographic Performance Ltd) has released details of its new SFE tariff – which comes into force on 1 July 2019 with a significant increase in fees.
The organisation’s tariff increase will see fees go from 3.9p to 9p per person per hour by 2023.
The SFE tariff effects those who play recorded music in public at events such as DJ and club nights, and applies to venues, nightclubs, pubs, bars, cafés, restaurants and hotels.
PPL says its fees that are “too low to be an appropriate reflection of the value to businesses of using recorded music at SFE events”, however, businesses and associations have criticised the move. Kate Nicholls, chief executive of UK Hospitality (pictured) called the move “tone deaf”.
PPL, which collects and distributes royalty monies of behalf of performers and record companies for the use of their recorded music, plans to use the tariff in proportion to the size of audiences. it also revealed the introduction of two new smaller tariff bands, for SFE events with attendances of 1–25 and 26–50 persons, which PPL says, “in many cases”, will result in events paying less than under the current tariff.
The phased introduction of increased fees will take place over a five-year period from July 2019, based on an initial rate of 4p (£0.04) per person per hour (up slightly from the current average of 3p per person per hour). This will move to fees based on a rate of 9p per person per hour by 2023, subject to annual indexation (ie inflation).
This is a MASSIVE issue for us. On top of ridiculous rates hikes, we’re now faced with extortionate fee increases from a monopoly body. Last year, we paid £31,500 to PPL. This year, they want £104,000. We’re not going to pay this. We’ve cut DJs at all venues. Everyone loses. https://t.co/bXu2AO7wDM
— Jonathan Downey (@DowneyJD) March 19, 2019
A Government report has stated increasing costs are a major factor in the closure of music venues. We hope the recommendations for an extension on the business rates relief schemes are heeded, especially now that @ppluk recklessly intends a 130% fee hike. https://t.co/GZnVdiKfnp
— UKHospitality (@UKHofficial) March 20, 2019
Really should be tagging @PPLUK @PRSforMusic . Completely flawed, ridiculous ‘middle men’ that do nothing but skim off business in the name of musicians. Maybe should now be the focus of @BrigidSimmonds if you really want to help save local pubs @beerandpub
— jonny castles (@jonny_castles) March 22, 2019
@PPLUK Why are you trying to wreck the bar industry?
— Conor Charlton (@RanchoControl) March 21, 2019
— Daz Goodwin (@DazGoodwin) March 21, 2019