The Association Of Independent Festivals (AIF) has warned any move by PRS For Music to increase the fees paid by its members could have grave consequences for a number of grassroots festivals.
PRS For Music currently charges 3% of gross receipts under tariff LP to all concerts and festivals. A review of this tariff was launched last year and AIF is warning against the effect that a rise in the live tariff would have on grassroots events.
AIF is instead calling for a separate festival tariff that will take into account the unique nature, tight margins and high-risk nature of staging music festivals. Such a model already exists in Ireland with the ‘multi-venue’ Tariff MS.
“It is remarkable and absurd that festivals and concerts sit under a single tariff,” said AIF general manager Paul Reed. “With the global recorded industry in transition, independent festival promoters are taking risks on breaking artists and staging high-risk events on incredibly tight margins.
PRS For Music’s plans to increase this already inflexible and damaging tariff could mean the bankruptcy of many events that provide a valuable platform for both emerging and established artists.
“It is also prescient that PRS for Music has over 118,000 members and approached just under 32,000 of them as part of this consultation. They received just 48 responses from their members (0.15%), which is derisory. Songwriters therefore are not driving this process. Any increase would be a naked land grab by PRS, driven solely by their executives and some major music publishers.”
The organisation argues that the collection body is not taking into consideration that many festivals are actually multi-arts events or that not all people are attending them solely for the music. Some AIF members have only 12% music content onsite and are currently paying the equivalent of over 25% of their music programming budget to PRS as a result of the existing policy.
“There is a clear, unarguable need for a separate festival tariff,” added Reed. “This already exists for festivals in Ireland, a clear precedent and a workable model that PRS should consider and which would result in a solution that is fair, transparent and sustainable.”
PRS has yet to respond but, at last month’s AGM, PRS CEO Robert Ashcroft gave an update on the process, saying the live music market had changed dramatically in recent times. “We have to ensure that our tariff is brought up to date,” he said.
