New music licensing scheme- positive outcome for fitness class providers and music creators

Tuesday, 7 June 2011

The Australasian Performing Right Association (APRA) and Fitness Australia have negotiated a new agreement for the public performance of music in group fitness classes. The new scheme, effective 1 July 2011, will be phased in over a 2 year period for a 5 year licence term.

The new scheme is a positive outcome for copyright owners represented by APRA, and both fitness centres and fitness class providers represented by Fitness Australia. The new agreement, the result of 12 months of extensive consultations, balances the commercial imperatives of Fitness Centres with the need to provide equitable compensation to Australia’s songwriters and composers for use of their music.

“APRA has been working with the fitness industry to achieve a rate which is commercially viable for fitness centres and class providers, but also reflects the value of music and its creators in the current climate,” said Jennifer Gome, APRA|AMCOS Director of Licensing.

“For APRA’s 67,000+ members, making a living from their art can be tough. Songwriters and composers, like any other small business, need to be paid for their efforts – particularly when their music is being used in a commercial setting. We have developed a strong, collaborative relationship with Fitness Australia, and are very pleased with the final outcome.”

Lauretta Stace, CEO of Fitness Australia said: “The negotiations with APRA were conducted in a very professional and constructive manner, taking into account the commercial realities of operating a fitness centre business, whether  large or  small. This agreement represents an increased return to songwriters for the use of their music whilst keeping the licence fees payable by fitness centres at an affordable level. This enables the fitness industry to keep offering group fitness classes to their clients, which helps to improve the health and fitness of millions of Australians.”

About the new Fitness Class Licence Scheme

Fitness Class Operators must select Tariff A or Tariff B at the commencement of each year, to apply for the duration of that licence year.

  • Tariff  A- a single rate applicable to all classes or;
  • Tariff  B - a two tiered rate in accordance with the number of participants.
YEAR Tariff A
Single rate (incl.GST)		 Tariff B
Two Tiered Rate (incl. GST)
Year 1 $1.50 per class $0.90 per class with 10 or fewer participants or,
$2.10 per class with more than 10 participants
Year 2 $2.00 per class $1.20 per class with 10 or fewer participants or,
$2.80 per class with more than 10 participants;
Year 3 $2.50 per class $1.50 per class with 10 or fewer participants or,
$3.50 per class with more than 10 participants
Year 4      $2.50 + CPI per class Year 3 rates + CPI
Year 5 Year 4 rate + CPI per class Year 4 rates + CPI

 

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