The Music Licensing Issue Facing the Global Fitness Industry
Our Industry’s Fight
Sales of music CD’s have dropped precipitously because of the advent of digital music downloads. This has caused global music companies to look for another way to replace this revenue. Therefore, they have targeted industries that currently pay license fees for the use of music (nightclubs and health clubs).
Fighting against the excessive greed of the record companies is expensive.
IHRSA has taken a leadership position in this battle, spending over $300,000 USD on the battles in Canada and Australia.
And, IHRSA established the Global Industry Fund so that Club Operators and Fitness Professionals across the Globe can help support the high costs of these battles. In order to stop this threat, club operators across the globe are invited to join together in this battle and contribute to the Global Industry Fund.
And, while the music licensing war is currently being waged outside the US, the IHRSA team is diligently researching and monitoring the issue to lessen its potential affect on the US industry.
Situational Review: Japan
Update 25 February 2011
FIA-J has finished the negotiation with JASRAC last December and a new licensing fee collection/payment system has been agreed upon. It has been announced officially and publicly in the homepage of JASRAC, although it's in Japanese.
Situational Review: Australia
Update 24 October 2011
JOINT STATEMENT ON MUSIC LICENCE FEES
PPCA and FITNESS AUSTRALIA
A new pricing scheme for PPCA licensed music used in fitness classes will come into effect next year following an agreement between peak bodies representing the music and fitness industries.
Under the new 5-year tarriff scheme, fitness centre operators can elect to pay licence fees at a flat rate applicable to all classes or at a two-tiered rate adjustable on the number of participants in each class.
The flat class rate per will be $1.50 in 2012 rising to $2.50 in 2014.
The Phonographic Performance Company of Australia (PPCA) representing artists and labels and Fitness Australia said in a joint statement: "We are pleased to announce this agreement which brings to an end a period of uncertainty for recordings artists and labels and fitness centre operators using PPCA licensed music in classes. It means that the case will not have to return for another potentially lengthy hearing before the Copyright Tribunal in order to settle a rate."
The new scheme comes into effect on 1st January 2012. For more information on the new PPCA Scheme, go to www.ppca.com.au.