FAC & MMF respond to PRS Small Online Live Concerts licence

Today, with no prior warning and without consultation with artists or their representatives, PRS for Music have announced a new licence for small-scale live-streamed gigs. 

Defining live-streaming as “a form of video exploitation”, this seeks to impose a flat fee equating to a minimum 9% tariff on events generating less than £500.  However, some artists promoting their own shows would be obliged to pay up to 100%+ of gross revenues to PRS - even if performing their own original compositions for free, leaving artists out of pocket, even if fundraising for charities during the pandemic.  Even at its lowest, this rate is more than double the tariff for “in-person” events.

This is despite PRS removing a fixed-fee from small venues shows in person and moving to a standard 4.2% of overall revenue only two years ago.

By PRS’s own admission, it is unclear if they have a legal mandate to licence online shows on a global basis. 

David Martin, CEO, FAC & Annabella Coldrick, Chief Executive, MMF commented:

“All of us want songwriters and composers to be paid fairly and efficiently for the use of their work, but this is not the way to go about it.  Once again, we would urge PRS for Music to stop acting unilaterally.  They need to urgently listen to the growing concerns of artists and their representatives during the pandemic, implement a waiver for performer-writers to opt-out of such fees, and commit to a full and transparent industry-wide consultation before issuing invoices to cash-strapped artists.”

Background

In November 2020, the FAC and the MMF became aware of PRS for Music proposals for a new tariff for live-streamed events - demanding that artists performing online shows pay between 8%-17% of gross revenues to the collecting society, compared to the 4.2% levied at normal “in-person” gigs and performances. 

Despite the global pandemic that has severely impacted the livelihoods of artists and music makers, the new increased rate was to be applied retrospectively. 

In one stroke, the majority of live-streamed performances would be made commercially untenable, turning off this valuable source of new revenue.

Backed by more than 150 leading artists, songwriters and managers, most of whom have invested heavily in ticketed live-streamed events, our organisations wrote to PRS for Music’s CEO, Andrea C Martin, urging a rethink, and requesting they engage in a full industry-wide consultation with the aim of reaching a fair and viable rate.  Frustratingly, we are still awaiting a written response and in the meantime we have seen the announcement today again without any engagement with artists and representatives who are actually doing these shows.

See here for the new tariff online small concerts tariff.

And here for some very basic modelling of the hit of the PRS flat fee on different levels of Gross ticket income from £0.00 to £500

Artists’ statements:

“PRS have not consulted their members with regard to this new licence, which seems to penalise independent artists, who largely perform their own material. It makes absolutely no sense for me as an artist to pay a licence to PRS, only to get it back (which can sometimes take years!) once PRS have deducted their admin fees.  We need clarification and amendments to this, so that artists are not out of pocket with their livestream shows" (Roxanne de Bastion, artists, songwriter and FAC Board Director)

“TOVA created the Arts Council funded show S!CK to tell the story of my mental health recovery and to perform music to our new fanbase at a time where live music, connection and contact is impossible. S!CK was made in the hope that the storytelling, both musically and visually, would allow people to reflect on their own issues and seek help should they need it. The show was also fundamentally made to offer people within creative industries (notably Siyan LTD where S!CK was filmed and produced) that have little or no work, a chance to showcase their expertise and receive payment for their hard work in a time where income is understandably hard to come by. In order for the band to continue to support both our fans, our creative partners and ourselves, we needed to be able to hold onto the net £400 of ticket sales we made for the show. This contributes to our PR, recording, promotion and every pound at this stage is vital to drive our career forward. For artists like us a waiver to the PRS license live stream fee is needed so we’re not losing the money we’ve managed to earn during these testing times.” (Jack, singer of TOVA) 

“Today's announcement suggests the PRS's long-term intention to set tariffs for even the smallest live streamed concerts at very best double the rate of pre-pandemic live gigs and shows a worrying lack of understanding that, for the majority of artists participating, live streamed concerts are self-funded and non-profitable, marketing events.  As such, a hit of >9% on gross revenue will make a lot of these events unviable inflicting a further blow on artists and managers in response to their genuine attempts to innovate and create opportunities in the face of the unprecedented shut-down of the live music industry. For myself and my artists, it raises serious concerns around our planned live-stream events with the prospect of a fresh gaping hole in pre-existing budgets.” (Chris Chadwick, manager of Puma Blue, Rosie Lowe & Guy Sigsworth)

“In a time of international crisis, it's been interesting to see how organisations choose to operate. The government told us to "retrain" (I'll get on that "stunt performer" course right away, Boris...), and now PRS are trying to tithe us for the exploitation of our own work via livestreaming. Not only do we have to write the songs, promote, market, engineer, film and perform the show - we have to pay them a cut. It would make more sense for me to pay my next door neighbour a percentage of proceeds (I'll keep it down, promise...)! Artists have always been great at adapting and innovating - but now, at a time when many of us have lost our incomes, we're being punished for it from the most unlikely places. By all means, PRS, advocate for songwriters who aren't performing their own material, but when I wrote and recorded every note - please let me get on with trying to survive as an independent artist in a pandemic.” (Laura Kidd, music producer, songwriter, solo artist & podcaster - She Makes War/Penfriend)