Published
Fri, Jan 29, 2021, 16:00
- "It's a disaster," David Martin, CEO of the Featured Artists Coalition, told RA.
On January 27th, the UK's Performing Rights Society (PRS) detailed new taxes for livestream events generating up to £500.
The license fees have been met with criticism from the UK music industry, as they endanger a much-needed source of revenue for artists during the coronavirus pandemic, the Guardian reports. The fees will also affect artists who are raising money for charity.
"[PRS's decision] risks completely stagnating this new form of income for the sector," David Martin, CEO of the Featured Artists Coalition, told Resident Advisor. "Songwriters should be paid, we completely agree with that concept, but there is no point in having a tariff which has a perverse impact on one of the only revenue streams artists are able to utilise now, while we're locked down as a result of the pandemic."
He continues: "It's a zero-sum game. There is only so much revenue, so whatever PRS push for, it has to come from somewhere else in the industry. As a result of that, they have to engage the rest of the industry. Everyone who is impacted should have the ability to input their their perspective on any new proposals. It is unbelievably tone deaf that this rate is imposed without a consultation, especially as it is directed at small events, young artists, grassroots venues and the talent pipeline, those who are most affected by the pandemic. It's a disaster."
For online events taking place in the UK and generating less than £500, there are now flat fees in place. Those with revenue below £250 will pay £22.50 + VAT, while those earning between £250 and £500 will pay £45 + VAT. Only members of the PRS, or other international collection societies, will be subject to the charges.
PRS claims the decision will support songwriters and composers who do not directly participate in the online events. It also claimed that the flat fees on these events will be offset by the royalties earned.
In December 2020, PRS revealed further plans to tariff between eight and 17 percent of gross revenues on large-scale livestreams (compared to the 4.2 percent they take for live events usually). The levy would apply to events generating over £500, and would retrospectively impact events that took place in 2020. An open letter from Martin and Annabella Coldrick, chief executive of the Music Managers Forum, urged PRS to reconsider. Martin told RA that the conversation is still ongoing.
Nitin Sawhney, chairman of the PRS Foundation, tweeted on the issue earlier today.
This news comes during the UK's Independent Venue Week, leading to the withdrawal of some small-scale livestreams and criticism from IVW.
Photo credit: Heshan Perera