PRS boss vows to simplify music royalty tariffs for pubs

Making sure you have the right licence for your use of music is a complicated matter in itself, let alone keeping on top of all the other issues surrounding running a pub. That’s why PRS for Music CEO Robert Ashcroft has vowed to simplify tariffs from music royalties collection agencies and make it easier for licensees to pay for their music.

In an exclusive interview with the Publican’s Morning Advertiser, he explained that PRS is working closely with fellow royalties collection company PPL to bring in the change.

“We’re [PRS and PPL] looking now at how we can harmonise the tariffs, harmonise our approach and work together to make it simpler,” he says.

Complications arise when some tariffs are set through a tribunal.

PRS sets its fees after consultation with the industry. However, if there are any disagreements, this is taken to the copyright tribunal.

Once a tariff has been set by tribunal, it is fixed, so PRS and/or PPL would have to go back to the tribunal to make any alterations.

“Our tariffs have been set by tribunals over the years and they’re not always compatible. It’s unnecessarily complicated and we do need to simplify it.

“It’s not easy to unwind tribunal judgements and it’s not easy to unwind history. It’s a challenge.”

He calls it “one of those ridiculous things” because the licences have different dates, the basis for calculating the tariffs is different, the agencies represent different rights, and jukebox licences are organised by the service provider.

Trade backlash​

The plans won’t mean that the fees will increase, but Ashcroft anticipates some backlash from the trade. He says that if a pub is paying for only one of the licences, when it should be paying for two, the licensee may see it as a rise in fees.

“We’re very comfortable with our tariff, but if you’re going to be licensing more than one right by bringing in PPL, you’re not going to be able to say ‘incorporate both rights but don’t change the tariff’,” Ashcroft explains.

He adds: “So it’s inevitable that there’s going to be a perception of an increased tariff.

“There are some that are paying one and not the other — they’re the ones that will say, ‘Gosh, you’ve just raised the tariff on us’. That’s the difficult part of it.”

Ashcroft adds: “Although those that are paying both will see that it’s just simpler.”

He is unsure exactly when the agencies will come up with a single tariff, but says: “What I can say is that there is a lot of goodwill and desire to get this right between PPL and ourselves.”

Online platforms​

There are also plans to change the way in which publicans pay for their licence. Ashcroft wants to introduce an online payment system.

“What I would like to see evolve is where we have the ability for you to go online and type in, ‘this is the kind of pub I am, this is what I do’, and then just be able to get your licence,” explains Ashcroft.

“To be able to just do it yourself on your PC or your phone is the modern way.”
Ashcroft’s technology background — he used to work for Sony where “I came up with a whole range of things hopelessly before their time” — will come in handy for such plans.

Building relationships​

PRS has seen stable revenue from the sector, because “pubs are making more money from music”, explains Ashcroft.

He also points to the changing culture of PRS: “The pub sector, more than any, knows where we came from. We were guys, years ago, who always used to employ ex-policemen to come round and force a PRS licence. The business has changed out of all recognition.”

Ashcroft came into his role three years ago and understands the reasons for moving towards a “sales mentality” six years ago.

“We realised that, actually, making the best use of music can help pubs drive turnover.

“When you’ve got a good product to sell, why don’t you treat it as sales?

“I know that you have to pay the licence fee as part of the law, but there is no point going around with a heavy-handed enforcement mentality when you’ve got something so valuable to present to people.”
The agencies’ role​

PRS collects royalties on behalf of songwriters, composers and music publishers. It licenses organisations to play, perform or make available copyrighted music. PPL, meanwhile, licenses recorded music played in public or broadcast, and distributes licence fees to the performer and rights holder members.