[Special]

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From Quarter 2 releases, ALL music will be PPCA FREE - meaning going forward you can use releases in their entirety. For Clubs that still wish to use PPCA music - it is business as usual and can continue using music as you always have.

I am not quite sure what to think. It will make life easier for those working at Fitness First and other gyms in Australia that are taking the stand against the PPCA proposed increase, by not using any PPCA music.

But it also means a lot more covers I assume. Good quality covers seem to go down fine in my classes, but the terrible ones are really bad.


LM also said

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The consequences of Clubs electing to go PPCA free for Instructors means certain tracks cannot be used. In the coming weeks Les Mills will be compiling a list of tracks from back-releases that can be used in these Clubs with the listing available on-line; we will keep you updated when this will be ready.

This is good. It sucks for those instructors that have to ignore a good chunk of their back catalogue, but anything to make the process simpler is good.

[mikesbytes]

Was there any mention of re-releasing tracks as covers?

[Mel]

I got this email aswell, an no......no mention of any back releases.

Part of me is still in disbelief that this really is going to be that bad. Surely the PPCA cannot win this case?

[Shane]

I'm with ya here Mel, SURELY they can't win!!

But dunno if that is just wishful thinking on my behalf?

[Mel]

I guess it's impossible to know everything that is being presented at the case, but I just cannot see how anyone in their right mind at the copyright tribunal can serious think the gyms in Australia can afford this?

The move towards royalty free music is certainly going to send a clear message though. But my concern is, if the PPCA lose the case, and we win, will Fitness First go back to using original music or are we stuck with covers forever? Will Les Mills allow us to have both copies of the music?

[Cary]

Quote from an email I received direct from LMAP:

"There has also been considerable discussion regarding the PPCA Tribunal case and the use of original music in your classes. At this stage, no decision has been handed down however, a number of Clubs have indicated an interest in using non-PPCA music. Les Mills supports individual Club's decisions and will endeavor to make any transition for Instructors easier throughout this time. The consequences of Clubs electing to go PPCA free for Instructors means certain tracks cannot be used. In the coming weeks Les Mills will be compiling a list of tracks from back-releases that can be used in these Clubs with the listing available on-line; we will keep you updated when this will be ready. From Quarter 2 releases, ALL music will be PPCA FREE - meaning going forward you can use releases in their entirety. For Clubs that still wish to use PPCA music - it is business as usual and can continue using music as you always have.

You will be kept informed of any changes,

<img style="margin-top: 20px;"> David Lewis
CEO Les Mills Asia Pacific"

[Shane]

Mel, on Mar 19 2010, 10:43 AM, said:

I guess it's impossible to know everything that is being presented at the case, but I just cannot see how anyone in their right mind at the copyright tribunal can serious think the gyms in Australia can afford this?

The move towards royalty free music is certainly going to send a clear message though. But my concern is, if the PPCA lose the case, and we win, will Fitness First go back to using original music or are we stuck with covers forever? Will Les Mills allow us to have both copies of the music?

I think the biggest problem here Mel is that the copyright tribunal does not care and won't take into account what Australian Gyms can afford, it seems its more about the copyright, the use of music and its value, financially speaking.

PPCA are really the fools here because they dont actually WIN either way. If they win their case, Australian Group Fitness will just stop using PPCA music and therefore PPCA will loose this stream of revenue entirely.

Now, even if they loose, Les Mills will move to non PPCA, so again, lost income.

There is really no scenario where winning this case gets them extra income..... cause as you say, no gym can really afford to pay those kinds of fees.

[Mel]

The reason I mentioned about whether gyms can afford it or not is because the PPCA claim that the fitness industry is a multi billion dollar industry. They are clearly stating that gyms are making significant profits and think that the copyright holder of the music should be paid out of these supposed profits.

From their website:

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The value of sound recordings

To support its proposed new rate, PPCA will argue there is overwhelming evidence that music in fitness classes provides valuable motivation, improves people’s workouts, creates structure for classes and adds atmosphere. As such, music plays a key role in attracting members to fitness centres (and hence, increasing fitness centre revenues).

A study of Australian fitness class participants will be presented showing that most people regard music as essential to fitness classes and could not imagine the classes without music. It follows that an absence of music in fitness classes would result in a significant drop in membership, and hence revenues, of fitness centres.

It’s estimated that 97 per cent of fitness classes use music and it is played for almost the whole duration of the class.

Since the advent of aerobics in the early 80s, the use of recorded music in fitness classes has continued to grow and is now an essential part of fitness classes. The sound recordings played in fitness classes are specifically selected so the pace and beat of the music fit the type of class and match the type of exercise being done.

Recording artists and record labels should be properly rewarded for the important contribution their music makes when it is played during fitness classes.

Growth and profits in the fitness industry

Australia is the 11th largest market in the global fitness industry with total sector revenues of over $1 billion per annum. There are an estimated 1150 fitness class providers in Australia.

According to industry reports, the fitness industry is experiencing strong growth of around 10 to 15 per cent per annum with many fitness centre chains growing above the industry growth rate.

The top five chains by number of locations in Australia include Curves, Contours, Fernwood Women’s Health Clubs and Fitness First. The Fitness First multi-national has more than 75 centres in Australia and over 200,000 active members.

Recent market research into over 100 fitness centres across Australia shows that the average cost of fitness centre membership is about $768 a year, the average price for a month membership is $64 and the average price for a casual visit is $14.

PPCA believes the fitness industry can absorb such an increase in the cost of recorded music which should be regarded as a normal business expense.

The 2008 Australian Fitness Industry Survey (AFIS) found that:

•51 per cent of fitness clubs reported membership numbers being up in the last 12 months - 26 per cent reported that numbers were up "significantly"
•Regional fitness clubs are operating as successfully as their metropolitan counterparts
•41 per cent of clubs report that they intend to raise fees in the next 12 months
•The highest reported fee was $1,500 a year
•Clubs spend an average of $17,543 on advertising each year.

http://www.ppca.com....iff-Review.html

[Shane]

I hadn't seen any of that !!

Its ALMOST funny the way they have manipulated those stats!

No talk of profit, only revenue.... I guess they want to present it with the right 'slant' on it....

[Mel]

Digusting isn't it. And I would like to see where the money goes that they supposedly get as a "non-profit organisation".

[Placebo]

Mel said:

Digusting isn't it. And I would like to see where the money goes that they supposedly get as a "non-profit organisation".

Where is always goes in cases like this...to the lawyers. And then there is the first class 'business' trips that high-up people in the PPCA may like to take.

[TennisElbow]

Personal computer hardware is a multi billion dollar industry but it works on extremely thin margins. The same goes for the fitness industry. The number of gyms that go out of business each year is a fairly good indicator of that.

Non-profit organisations such as the PPCA don't have to worry about profit margins which is why they concentrate only on revenue. It also makes for bigger numbers when they present their side of the case. The Pandora's Box they have opened with this case is not that their members will now lose money from group fitness (the artists get a percentage of what the PPCA earns via licence fees) but that it provides an example to a lot of other licensees (cafes, restaurants, etc) how to easily abolish the fees they currently pay. There's a lot more of them paying far more in total to the PPCA than fitness centres do.

It appears to me that there's a huge opportunity for someone to sell non-PPCA tracks to a lot of businesses.

[Mel]

I also wonder if there's potential to use lower key artists instead of cover music, and go directly to the artists and pay for licensing. The whole purpose of the PPCA was to make it simpler for businesses to use copyrighted music by paying one broadcasting fee. Imagine if businesses had to contact and pay licenses to all artists for all the songs played on the radio?

If Les Mills sourced artists that haven't joined the big record labels, they could write up agreements and pay for licensing and totally by pass the PPCA. This would actually give unknown artists more publicity than they'd ever get, and they'd get paid way more than the PPCA (or relevant organisation in each country) would ever give them.

As an example, my mum is a singer, and in her younger days did many notable performances in Australia, including on television and big events. For fun, she produced an album as a personal achievement, kinda to highlight the end of her career. She never publicised the album, nor aimed to sell it really. I'm sure there's many many other artists out there, that if Les mills approached them, they would happily sign up for a deal covering all broadcasting. The difficulty would be in sourcing theses artists.

[mikesbytes]

That's already happening, there are yoga and spin CD's (probably others) out there that are certified PPCA free.

At yoga this morning the yoga teacher was saying that it doesn't come into December but Fitness First was going early. I guess this is a way to send a message to PPCA.

I was racing tonight at my local Velodrome and some mus'os turned up that I knew and I discussed PPCA. They said that PPCA was run by lawyers who were just looking at profit. They also said they were producing some music for a restaurant so the can avoid the annual fee, I forget the figure they quoted.

[TennisElbow]

Mel, on Mar 20 2010, 07:43 PM, said:

If Les Mills sourced artists that haven't joined the big record labels, they could write up agreements and pay for licensing and totally by pass the PPCA. This would actually give unknown artists more publicity than they'd ever get, and they'd get paid way more than the PPCA (or relevant organisation in each country) would ever give them.

I've suggested this in the past. LMI could sweeten the deal by selling these songs on iTunes under their brand name. The instructor CDs would contain the specially remixed versions (edited to fit the chore rather than the other way around), the artists would get worldwide publicity and the chance of more sales than they'd probably get normally and participants would get new original music.

Everyone wins. Except lawyers. Everyone human wins to be more accurate.

[Mel]

mikesbytes, on Mar 20 2010, 11:46 AM, said:

I was racing tonight at my local Velodrome and some mus'os turned up that I knew and I discussed PPCA. They said that PPCA was run by lawyers who were just looking at profit. They also said they were producing some music for a restaurant so the can avoid the annual fee, I forget the figure they quoted.

I have no idea about the lawyer comment, but the board is made up of a lot of directors of the big record labels.

Have a little look at the info on the board members http://www.ppca.com....nformation.html
There's a few music artists aswell that I haven't mentioned.

PPCA Board Chairman

George Ash - Managing Director of Universal Music Australia (UMA)

PPCA Board Members

Ashley Sellers - CEO of the Inertia Group of Companies

Denis Handlin - Chairman and Chief Executive Officer of Sony Music Entertainment Australia and New Zealand

Ed St John - President & CEO of Warner Music Australasia

Mark Poston - Chairman and Senior Vice President of Marketing for EMI Australasia

Stephen Peach - Lawyer specialising in the areas of intellectual property and entertainment law

Non profit company my arse.

Tenniselbow, I think I remember your suggestion and didn't really think about it at the time. Definately an excellent proposal now. Maybe we should all write to LMI asking for this?

[TP]

Think of the positive side on this. Now we propably get more tracks where music is edited to suit choreography and not vice versa So goodbye to those unevenly balanced (left/right) choreographies in bodycombat.

This post has been edited by TP: 23 March 2010 - 09:43 AM

[Shane]

I actually hadn't thought of that, cause it will make choreography easier to learn (for me anyway).

Although it still won't make up for all the lost releases.... can you imagine never being able to do Jigga Jigga again?

I can't.....

[TP]

Well, even if the PPCA equivalent in Finland would cause similar situation here, I would still be teaching Jigga Jigga

[Placebo]

TP, on Mar 24 2010, 04:57 PM, said:

Well, even if the PPCA equivalent in Finland would cause similar situation here, I would still be teaching Jigga Jigga

While it may seem tempting, pretty sure the PPCA is going to be employing people to go to classes specifically to check this is not happening. I don't particularly wish to lose my employment over a song, yes, even if it is my favourite track (sob, sob).

TP, you'll just have to teach if for us - and teach it well!!