Music venues face cost hike
Licensees could face massive price hikes of close to 300 per cent to run music events such as discos in their pubs.
The increase in tariffs will come as Phonographic Performance Ltd (PPL), which grants licences to allow pubs to play sound recordings, is to examine the way Specially Featured Entertainment (SFE) tariffs are calculated.
An SFE licence enables a pub to play recorded music as a main or special attraction, not just in the background, and covers discos and DJs.
Jon Collins, former chief executive of the Bar, Entertainment & Dance Association (BEDA) and now in charge at research consultancy CGA, has revealed exclusively to The Publican that PPL has indicated it may treble the costs already paid by licensees.
He said: "At BEDA we were approached formally by PPL representatives who said they were looking to revise tariffs and it is now apparent that they are angling for a two or threefold increase."
This comes as a blow to publicans who are already up in arms after PPL moved to raise the prices of background music by 500 per cent at the start of this year.
PPL has refuted the claims. Jill Drew, head of public relations at PPL, claimed: "This is a consultation process. Pricing hasn't even been discussed yet. The consultation isn't looking at pricing, it's looking at the structuring of tariffs."
Stephen Pyke, licensee at the Bay Horse, in Huddersfield, Yorkshire, said: "This will mean a lot of community pubs have to stop music altogether and could well close down. We can't afford to keep coming up against price hikes for things that are at the heart of pub culture."
Tony Payne, chief executive of the Federation of Licensed Victuallers' Associations, said: "If PPL does decide to put tariffs up, licensees will have to make a decision as to whether or not they'll carry on with the service and whether they are, in fact, unable to continue having that type of music on."
Simon Emeny, retail director at Fuller's, added: "I hope there is no truth in these rumours - certain companies and organisations seem to have a Viking-like approach to the pub trade. We cannot be continually plundered by companies who see us as an easy target for hiking up fees. It has to stop."
What do you think?
If you have any comments on this story email me at The Publican: ewright@cmpinformation.com
