Music industry efforts to force Australian bars, restaurants, cafes and clubs to pay millions more for their music has been seriously challenged by Clubs Australia.

Starting December 1, the Phonographic Performance Company of Australia  (PPCA) wanted to boost tariffs it demanded from all venues wanting to play background music. The scheme would have increased some license fees from around $500 to as much as $36,000 per year. The Bendigo Club, for example, with a “bistro capacity” of about 50, would see its fees soar from $62.04 to a mind boggling $3,075.80, says the Advertiser.

Clubs Australia (the association that governs all registered clubs including RSLs) has decided to turn off tunes licensed by the record companies and play the music of artists that are not signed to major labels.

“Clubs Australia announced at its annual general meeting a new scheme that would allow clubs to bypass the license fee charged by record companies,” says the story, continuing:

“Clubs Australia will set up a program to source and distribute the music of artists not signed to major record labels and who are consequently exempt from the restaurant tariff.

“As part of the new scheme, local musicians will be given the opportunity to sell their music in clubs, while money earned from the sale of background music CDs will be used to establish a fund for talented Australian musicians.”

Two years ago, “the PPCA increased the fee for recorded music in nightclubs by 1400 per cent as well as announcing it is increasing the fee for music played in gyms by 5000 per cent,” says Clubs Australia chief executive officer David Costello saying, adding:

“The music labels are working their way through the dozens of music tariffs paid by small businesses.

“It seems only a matter of time before the PPCA increases fees for music on hold, jukeboxes, conference and pool rooms, squash courts and even swimming pools.”