PRS issues new framework for livestreaming concerts

By Emmanuel Legrand

British rights society PRS For Music has unveiled its updated Online Live Concert (OLC) framework for ticketed livestream gigs and concerts, and it has already been criticised by the MMF UK (managers) and the Featured Artists Coalition (FAC) for being "damaging" to artists.

  An original licensing framework, announced in 2020, was met with rejected by artists, managers and promoters, forcing PRS for Music to engage in a consultation with stakeholders and propose new guidelines. In addition, over 2,000 people answered PRS's call-for-views on the topic.

  The OLC license is applicable for pop gigs originating in the UK which are ticketed, sponsored or require a mandatory donation to access.

Interim discount of 10%

  The new framework, which will be in force while material restrictions apply to physical live concerts, includes the following:

  > PRS for Music members performing their own work (where they control 100% of the rights) can now obtain a discretionary license, no matter how much revenue is generated from the events.

  > Small events generating up to £1,500 can now either obtain a fixed rate license or apply for a bespoke rate linked to specific event revenues.

  > PRS's commitment to not retroactively seek licenses from small-scale online live concerts has been extended to include all events which generated up to £1,500 in revenue that took place in 2020.

  > All Online Live Concert licenses will now allow viewing access for 72 hours, extended from 24 hours.

  > An interim discounted rate of 10% (+VAT) will be applied to online live concerts while the physical sector is facing material restrictions on its ability to operate. The rate will apply to online events that have taken place in the past 12 months.

Support the live sector

  Free events on platforms including YouTube and Facebook do not require an OLC license, as they are usually covered by the platform’s license with PRS.

  PRS is having ongoing discussions with the classical and theatrical sectors to determine "whether variances are necessary to reflect differences in the way these events operate and are already licensed." 

  PRS said the interim 10% discounted rate is "designed to support the live music sector during this difficult time, while ensuring members, who themselves saw an 80% decline in live royalties in 2020, are paid when their music is used." Once concerts resume normally, PRS will issue a permanent rate, which will be benchmarked against other online premium video and streaming services, "reflecting both the rights exploited and the market in which they operate."

Songwriters must be paid

  "We have had healthy debate on ticketed livestreamed events with key stakeholders across the industry representing venues, event promoters, digital platforms, and PRS members," said a PRS spokesperson. Importantly, everyone agrees that songwriters must get paid when their songs are played and used."

  The spokesperson added: "The discounted rate we are providing will ensure songwriters, composers and publishers are paid for their work, while allowing the emerging online live concert sector the freedom to innovate and grow.  As the rate is competitive with those charged in other countries, it will help ensure the UK remains a great place to host live online concerts.

  The MMF and FAC objected to the decision from PRS to apply the new 10% livestream tariff to events that took place in the last 12 months. In a joint statement, they said: “PRS For Music’s announcement today that livestreams will attract a backdated ‘interim tariff’ of 10% of gross revenue has the potential to be damaging for many artists who have livestreamed during the pandemic."

PRS urged to reconsider rates

  They added: "The proposed levy is considerably higher than the initial 8% tariff proposed by PRS in late 2020, and more than twice the rate for physical live shows. This rate completely disregards the feedback that PRS received in its ‘call for views’. The responses, which by PRS’s own admission were almost five times more in number than any other consultation they have carried out, make the case for a significantly discounted rate while Covid restrictions remain.”

  The two organisations "urge PRS to reconsider and come back with fair and reasonable proposals that the whole industry, including their own members, can benefit from."

  LIVE, the umbrella organisation that regroups the UK's live music sector, has criticised the live streaming tariffs decided by rights organisation PRS for Music as "unacceptable" and having a potential "chilling effect" on this new stream of revenue for artists.

  “LIVE fully supports creators being rewarded for their work, be they writers or performers," said the organisation. "But the proposed rate will have a chilling effect on live streaming, leading to the perverse outcome of streaming being uneconomical and therefore much less appealing for artists and promoters. That would be a poor outcome for the whole music ecosystem.”