fbpx

PROFILE

MY SUBSCRIPTION

LOGOUT

x

The latest industry news to your inbox.

    

I'd like to hear about marketing opportunities

    

I accept IQ Magazine's Terms and Conditions and Privacy Policy

PRS for Music introduces 10% rate for live streams

PRS for Music has announced a discounted 10% tariff on ‘online live concerts’ for as long as artists and venues face restrictions on in-person shows.

The changes to the online live concert (OLC) licence, which covers ticketed rock and pop events, will apply while “the physical sector is facing material restrictions on its ability to operate”, according to the UK performance rights organisation. The new OLC follows earlier proposals by PRS for a new licence for both large and small-scale virtual shows – the former of which would have been charged at up to 17% of gross ticket sales – which met with a fierce backlash from the UK live music industry.

The interim 10% rate was reached following a consultation with nearly 2,000 stakeholders (80% of whom were PRS members, such as songwriters and composers) and apply for as long as “restrictions apply to physical live concerts”, after which a new permanent rate will be benchmarked against “premium video and streaming services”, in recognition of the nature of livestreamed shows.

Elsewhere, the exemption for artists performing their own material will be carried over the small-scale online live concert licence, while organisers of shows grossing less than £1,500 may choose from either a fixed-rate licence or a bespoke rate linked to specific event revenues. All OLCs will also allow viewing access for 72 hours, up from 24.

Additionally, PRS has pledged not to seek fees retroactively from livestream events held in 2020 that generated less than £1,500.

“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”

A summary of the consultation, and FAQs about the new licence, can be found on the PRS website.

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

“Nearly 2,000 people answered our call-for-views on the topic, 80% of whom were PRS members. More than half (54%) of these songwriters said their work had been performed by someone else as part of a livestreamed concert. Songs are the heart of the music industry.

“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.

“Throughout 2020, nearly 8,000 songwriters joined PRS for Music, that’s 22 every single day, and over five million songs and compositions were registered. We will continue to do everything we can to protect the livelihoods of our members, ensuring that their music is valued, whilst at the same time, giving the market the freedom to evolve.”

This article will be updated with industry reaction to the interim OLC rate.

 


Get more stories like this in your inbox by signing up for IQ Index, IQ’s free email digest of essential live music industry news.

EMMA: PROs must consult artist reps on livestreaming rates

The European Music Managers Alliance (Emma) has called on the continent’s copyright collection societies to involve artists and their representatives in any discussions about how to set new licensing rates for livestreamed concerts.

The umbrella organisation, which represents Music Managers Forums in the UK, France, Finland, the Netherlands, Sweden, Norway and Poland, warns that if performance rights organisation (PRO) tariffs are levied at too steep a rate, this could kill off this growing format by making the majority of live streams financially unviable.

According to Emma, the actions of “certain PROs and major music publishers” – which have unilaterally decided live streams are akin to a music stream, rather than a live show, and so subject to much higher digital audio tariff – “are threatening the viability of ticketed livestreams across Europe”. The estimated size of these digital audio-based payments is “is so high that it would make the majority of livestreams unviable”, the association warns.

Emma’s intervention follows controversy over the decision by PRS for Music, the UK PRO, to impose without consultation a new tariff of up to 17% on livestreamed shows, in a move criticised by the UK Music Managers Forum, among others. PRS today (16 February) announced a consultation, or “call for views”, on the tariff, which runs until 12 March.

“Set licensing rates too high, and the costs of producing livestream shows simply won’t stack up”

Emma says while it agrees songwriters must be fairly compensated when their songs are performed in a live stream, European PROs should instead apply their standard live tariffs to ticketed livestreamed events until a new livestream rate is agreed with artists and managers.

“Everyone wants live shows to return as soon as it’s safe for audiences to come back. In the meantime, livestreaming has provided one of the few alternatives for artists to perform before an audience, build a fanbase, and generate revenues through ticket sales,” comments Emma chair Per Kviman (MMF Sweden).

“Emma is urging PROs across Europe to be sensitive to these facts, and that the imposition of any new licensing tariffs should involve full and open consultation – including with artists and their representatives.

“Get the balance right, and we could nurture a vibrant new format that complements live events and provides artists and songwriters with a valuable source of revenue. But set licensing rates too high, and the costs of producing livestream shows simply won’t stack up.”

 


Get more stories like this in your inbox by signing up for IQ Index, IQ’s free email digest of essential live music industry news.

PRS backs down over controversial livestream tariff

Citing feedback from its members, UK performance rights organisation PRS for Music has amended its controversial tariff for small-scale livestreamed shows to exempt artists performing their own material.

The new ‘small-scale Online Live Concert licence’ – which levies a minimum 9% fee on events generating less than £500 – has been sharply criticised by the industry for punishing grassroots venues, artists and promoters, and has reportedly already led to a number of cancellations.

These small-scale events will now be covered by a free licence, available “throughout the period the live sector is forced to close due to the Covid-19 crisis where the qualifying member is the performer”.

According to PRS, the benefits of the new mechanism are that it “allows performing writers the latitude to test the online concert market to find a model which works for them”, as well as to allow writer-performers to “more easily hold a concert in support of others in the industry, such as charity gigs”.

“The change announced today we hope addresses many of the concerns expressed to us”

PRS says it will also be “accelerating its ongoing dialogue” with the industry about a fair interim rate for other live streams, including large shows, while physical live concerts are not possible. “We are committed to agreeing a discounted rate for larger concerts as soon as possible to make these licences available to the market,” reads a statement.

“We are committed to making sure that our songwriters, composers and publishers are well supported, so it is essential that all our members share in the value being generated by online livestreamed concerts when their songs are performed,” says Michelle Escoffery, president of the PRS Members’ Council.

“The change announced today we hope addresses many of the concerns expressed to us over the last few days. PRS will continue to listen to the views of our members in these most difficult of times.”

Mark Davyd, CEO of Music Venue Trust, comments: “We warmly welcome this logical revision to the previously announced tariff which has already seen hundreds of live events lost, costing performers and songwriters vital opportunities to generate desperately needed income during this crisis. The announcement of the online small-scale tariff last week, without prior consultation or discussion, was ill conceived and poorly executed. It is good to see PRS for Music acknowledging their error by immediately removing this charge.

“We note that once again the statement is issued to press without consultation or discussion with the sector most impacted by it. A long-term solution that ensures that songwriters whose work is performed in the grassroots sector are recognised and rewarded is achievable. It requires PRS for Music to enter into serious discussions in good faith, prepared to listen and prepared to consider evidence that can result in positive, forward-facing solutions for all stakeholders.

“We look forward to a full and inclusive consultation on these matters in the days and weeks ahead”

“Grassroots music venues want to pay the right songwriters an appropriate fee for the use of their material. The creation of songs is the beating heart of what our sector is about. Let’s work together to fix a broken system that recognises and rewards that.”

I a joint statement, David Martin, CEO of the Featured Artists Coalition, and Annabella Coldrick, CEO of the Music Managers Forum, add: “We are pleased that PRS for Music have listened to calls from artists, managers and others across the industry. It is a welcome step forward that writer-performers playing their own material will be exempted from paying for a licence at small-scale livestream shows.

“We also welcome that PRS will now begin dialogue with artists, managers and other key stakeholders about the licensing of larger livestream events, and commit to agreeing a discounted rate while ‘in-person’ shows remain closed. Decisions around collection and distribution of revenue impact cross-sections of the music industry and cannot be taken on a unilateral basis. Therefore, we look forward to a full and inclusive consultation on these matters in the days and weeks ahead.”

Qualifying members can obtain a free PRS licence for small-scale online ticketed events by emailing applications@prsformusic.com.

 


Get more stories like this in your inbox by signing up for IQ Index, IQ’s free email digest of essential live music industry news.

UK orgs react to new PRS tariff for small live streams

Key organisations from the UK’s music industry have criticised PRS for Music for its new “ill-conceived” licence for small-scale livestreamed gigs, following last year’s backlash about the proposed tariff for larger livestreamed events.

The UK performance rights organisation has today launched a new licensing portal for music creators, venues and promoters wanting to stage livestream small-scale events, which will impose a flat fee equating to a minimum 9% tariff on events generating less than £500.

The blanket rate for a show that generates less than £250 is £22.50, and £45 for an event that generates between £250 and £500.

The move follows the last year’s proposal that larger livestream events should be subject to a tariff of between 8% and 17% of gross revenues, compared to 4.2% charged at normal in-person live shows.

This prompted Music Managers Forum (MMF) and Featured Artists Coalition (FAC) to send a joint letter – countersigned by more than 50 artist managers – to PRS for Music CEO Andrea Martin last month urging her to reconsider the move.

“[PRS] need to commit to a full and transparent industry-wide consultation before issuing invoices to cash-strapped artists”

PRS says it will not be actively pursuing licences for livestreamed events that took place prior to the launch of the new portal, which would have qualified for the fixed fee licence.

Commenting on the new licence for small-scale livestreamed concerts, David Martin, CEO at FAC, and Annabella Coldrick, chief executive at MMF, say: “All of us want songwriters and composers to be paid fairly and efficiently for the use of their work, but this is not the way to go about it. Once again, we would urge PRS for Music to stop acting unilaterally.

“They need to urgently listen to the growing concerns of artists and their representatives during the pandemic, implement a waiver for performer-writers to opt-out of such fees, and commit to a full and transparent industry-wide consultation before issuing invoices to cash-strapped artists.”

“Unilaterally announcing ill-conceived new tariffs in a crisis is not such a discussion”

Mark Davyd, CEO at Music Venue Trust, added: “The live music industry, including grassroots music venues, artists and promoters, is in crisis mode and pulling together. The team at MVT have been in regular correspondence with PRS for Music throughout this crisis on how we can work together to ensure everyone emerges from this crisis and we can get back to work. At no time during those conversations has anybody suggested that a new tariff for streaming would be created. We have not been consulted on this, advised of it, or even notified of it prior to a press release being issued.

“The principal beneficiaries of paid streaming during this crisis have been artists. The beneficiaries of charitable streaming, online broadcasts by artists to raise money for causes, have included venues, crew, artists, and the wider community, including healthcare workers, food banks and homeless charities.

“It is unclear from this press statement whether PRS for Music wishes to clampdown on artists paying themselves or on artists supporting charities, but we would strongly suggest that neither should have been advanced to the stage of an announcement of a Tariff without understanding the most basic economics of what streaming is actually doing during this crisis.

“We remain available to discuss the realities of streaming during this crisis with PRS for Music if they wish to have an informed discussion on it. Unilaterally announcing ill-conceived new tariffs in a crisis is not such a discussion.”

“[PRS] is continuing to work to agree a range of licensing options for larger events, including a proposed discount”

Andrea Martin, CEO, PRS for Music, says: “We recognise the importance of providing simple licensing solutions wherever possible and the licensing portal for small-scale online events is an example of this. We are continuing to work hard to agree a range of licensing options for providers of larger events, including a proposed discounted rate during the pandemic.

“This is a part of the market which has seen exponential growth and is itself constantly evolving, meeting the expectations for worldwide blanket licences is alone no small feat, but we are committed to finding solutions which ensure members can be paid fairly when their works are performed.”

John Truelove, writer director, PRS Members’ Council, says: “Composers and songwriters have faced monumental challenges this past year. So, the huge surge in the online live concert market beyond anyone’s expectations, is positive news all round. It is great that so many artists are performing online concerts to stay connected with fans, to earn a living, and to promote new releases.

“Anyone wanting to hold small online ticketed gigs can now get a PRS licence in a simple and straightforward way. This will create even more opportunities for artists, musicians and writers to thrive together while ensuring that songwriters and composers are being properly paid when their music is performed.”

PRS is proposing to apply temporary discounted rates on livestream licensing for bigger events until the live sector can reopen – though these are yet to be determined.

 


Get more stories like this in your inbox by signing up for IQ Index, IQ’s free email digest of essential live music industry news.

Managers, artists slam proposed UK livestream tariff

The Music Managers Forum (MMF) and Featured Artists Coalition (FAC) have written to PRS for Music, the UK performance rights organisation, to protest a proposed new tariff for livestreamed concerts, which the associations criticise as “unworkable” and punitive to artists.

The MMF/FAC letter, which can be read in full here, is countersigned by more than 50 artist managers, including representatives for Dua Lipa, Biffy Clyro, Liam Gallagher, Bicep, Fontaines DC, Gorillaz and Yungblud, as well as a group of FAC member artists and songwriters.

The proposed tariff for live streams, described by PRS as a “temporary experimental and non-precedential rate structure”, has been devised without any consultation with industry. It would see a fee of up to 17% of gross ticket sales levied on livestreamed events, and would apply retrospectively to events which have already happened.

Even for the smallest events (those grossing under £50,000), the tariff would be 8% – double the 4% generally charged on a physical concert under the existing tariff ‘LP’.

PRS experimental livestream tariff

The proposed tariff, particularly at the top royalty rate, compares unfavourably to the rates charged in several other European countries: The Netherlands’ Buma, for example, has a 7% tariff for live streams, while Germany’s Gema licenses live streams under its existing VR-OD 10 tariff, which is charged at a flat rate up to a maximum of €1,200. (By contrast, 17% of £450,000 is £76,500.)

“A starting rate 8%, rising to 17%, will make livestreaming unviable, for [all] artists”

The letter, addressed to PRS for Music chief executive Andrea Martin, says that while the associations accept that songwriters must be compensated fairly for use of their work in live streams, the 8–17% rate will make livestreaming – a format which has “presented artists with one of their few opportunities to perform and connect with their fans” this year – financially “unviable, for both the smallest emerging artists and the biggest superstar acts”.

“The larger, most-successful events involve significant production costs, and have provided a lifeline to crew and other industry workers,” write MMF’s Annabella Coldrick and FAC’s David Martin. “At the other end of the scale, livestreaming has been increasingly important for emerging artists and those operating in niche genres. For the sake of all artists, songwriters and the wider industry, it is crucial that this new format is allowed to grow and thrive.

“Charging artists up to four times the live [LP] rate strangles, rather than nurtures, this innovation. For some of the smaller artists who have just covered their costs livestreaming, it will be impossible to find this additional money retrospectively.”

According to the MMF and FAC, PRS has so far declined to enter into consultation about the proposed tariff, and it’s for this reason the bodies are making their position public. Additionally, they are inviting more managers and artists to add their signatures to the letter to demand a “full and transparent consultation”.

“The proposed online live concert pilot licence scheme is still evolving”

This consultation, the letter concludes, “should also aim to provide certainty that PRS actually holds a mandate to license livestreaming events on a global basis.

“Until that process is concluded, we are working on the basis that the current live tariff is the applicable rate to these ticketed events.”

Responding, a PRS for Music spokesperson says: “PRS For Music members, alongside many others across our sector, have been very badly impacted by the shutdown of live music this year. We welcome the many initiatives to move live concerts online and PRS For Music has designed an online live concert licence, which will allow the necessary rights to be licensed.

“The proposed pilot licence scheme is still evolving. As conversations with our partners are active and ongoing, it would not be right for us to provide further detail or comment at this stage while we await their assessment and feedback.

“Of course, our primary role is to protect our members’ rights and to ensure they are paid fairly for their work, which is more important than ever now. We hope that these conversation will progress quickly.”

 


Get more stories like this in your inbox by signing up for IQ Index, IQ’s free email digest of essential live music industry news.

“A rescue umbrella”: New funding offers biz financial boost

As the coronavirus does its best to ensure venues remain shuttered for as long as possible, a range of organisations are stepping in to ease the financial pressures faced by live entertainment businesses worldwide.

In Europe’s largest live music market, Germany, the government has dedicated €50 billion to its creative and cultural industries. The financial aid consists of grants for small companies and the self-employed to cover overhead costs such as renting venues and studio space, and loans for business premises and leasing instalments.

A further €10bn will be provided to facilitate access to social security for self-employed workers for a six-month period, including unemployment insurance and expenses for housing.

Culture minister Monika Grütters calls the aid package a “rescue umbrella for the cultural, creative and media sector”. All cultural institutions in Germany remain closed until 19 April.

“The cultural sector, in particular, is characterised by a high proportion of self-employed people who now have problems with their livelihoods,” says Grütters. “These multilevel protection measures show that the Federal government is determined to do everything possible to counter the devastating consequences of the Covid-19 pandemic in the cultural and creative fields. We won’t let anyone down.”

The funding is part of a wider €750m aid package, approved by the German parliament on Friday, to protect the country’s economy from the effects of coronavirus.

“A high proportion of self-employed people now have problems with their livelihoods”

Other aid set to benefit the creative industries includes short-term work benefits, tax liquidity aids and €550 billion worth of loans, available from state business development bank KfW, with no upper limit set on credit offerings.

The government in Switzerland has also recently announced a targeted package for the cultural sector, totalling CHF280m (€264.6m). The funding has been welcomed by Swiss promoters’ association SMPA and the wider cultural and events sector.

The financial support comes after the Swiss government unveiled a CHF20bn (€18.8bn) emergency loan programme for companies affected by the coronavirus outbreak at the end of last week. After a quick initial uptake in loans, the government is already in talks to increase the available funds.

In the Netherlands, the government is working with industry representatives to potentially bring in legislation to allow event organisers to refund ticketholders with vouchers to spend on future events, rather than cash refunds.

Dutch promoters’ association VVEM recently sent a letter to the government estimating the damage done to the industry by Covid-19 could be as much as €1.5bn over the summer months, and asking for more concrete support with regards to finance and cooperation from local governments.

Rights societies have also been playing their part, with the German music licensing society (GEMA)’s €40m crisis fund for song writers and the UK’s PRS for Music offering grants of up to £1,000 to each of its members.

“We know we need to get money into the pockets of our members quickly and efficiently”

Recent support for the sector in Australia has come from Apra Amcos (Australasian Performing Right Association and Australasian Mechanical Copyright Owners Society), which is bringing forward its live performance royalty payout from November to May.

Members will receive a full year’s worth of royalties using data from last year’s reports.

“The Covid-19 crisis has hit every segment of Australia and New Zealand’s music sector,” comments Apra Amcos chief executive, Dean Ormston.

“From our songwriter, composer and publisher members to the venues, events and festivals and the managers, crew and SMEs of the industry, the impact of necessary government regulations has been immediate and devastating.

“We know we need to get money into the pockets of our members quickly and efficiently.”

The news comes as Australia’s three biggest live companies, Live Nation Australasia, TEG and Frontier Touring/Chugg Entertainment, form a music promoters’ taskforce to call for government aid for small- and medium-sized businesses during the coronavirus shutdown.

“As industry leaders we want to ensure the survival of the many small and medium-sized businesses that support our industry, so that we can continue to make a significant contribution to the Australian economy when we eventually emerge from this crisis,” reads a letter from the taskforce.

“As industry leaders we want to ensure the survival of the many small and medium-sized businesses that support our industry”

Performing rights organisations in France have contributed to the National Centre for Music’s €11.5m emergency fund for the entertainment sector, with Sacem, Adami and Spedidam, each adding €500,000 to the centre’s initial €10m funding package.

Industry body Prodiss had previously deemed the government’s targeted funding for the music and performing arts sectors – which totals €15m – “completely divorced from reality”, although it welcomes the government’s wider €45bn aid package for businesses.

The French government has also dedicated €22 million to support the “intermittents du spectacle”, or freelancers working in the entertainment industry.

Funding for the UK’s cultural sectors has come from a range of places, including significant funding from Arts Council England, which has dedicated a £160 million package for cultural organisations, freelancers and individual artists, £5m from the Help Musicians’ coronavirus financial hardship fund, plus a £500,000 boost from the Royal Society of Musicians of Great Britain, and £1m from the Musicians’ Union’s coronavirus fund.

New Zealand music industry charity MusicHelps has launched MusicHelpsLive, an appeal to support those facing hardship due to the Covid-19 outbreak. The charity aims to raise NZ$2m (€1m) for workers in the live industry.

 


Get more stories like this in your inbox by signing up for IQ Index, IQ’s free email digest of essential live music industry news.

PRS for Music relaunches Major Live Concert Service

UK performance rights organisation (PRO) PRS for Music has announced the launch of its upgraded Major Live Concert Service under the new brand MLCS™ by PRS.

MLCS™ by PRS is an online tool that shows local tariffs across global territories.  The aim of the service is to aid arena and stadium-level PRS members performing overseas to negotiate “full and fair royalty settlements”.

The tool offers a pre-tour royalty calculation service, details of headliner and support splits in each country – allowing for accurate forecasts of royalty streams throughout the tour – and provides a post-tour royalty reconciliation feature.

Upgrades to the service include fixed payment terms and further reduced administration fees, as well as a range of new technological solutions and streamlines processes.

Special administrative rates have been implemented for the MLCS™ programme, including local rates of 8.5% in some key territories. PRS for Music now charges an administration fee of £125 per set-list per event for members using the service.

“We acknowledge representing the world’s top talent comes with expectations, and we need to be in a position to offer a service that meets those requirements”

The PRO also states it is working on eradicating “promoter kickbacks” in some territories, and that it provides “full transparency to artists on all aspects of the royalty collection and distribution process” as part of the service.

“We acknowledge representing the world’s top talent comes with expectations, and we need to be in a position to offer a service that meets those requirements to be given the privilege of continuing to collect their concert royalties,” states Sami Valkonen, director of international, PRS for Music.

“We’ve taken on board feedback from several of our key member representatives and are committed to making MLCS™ a proposition that further solidifies PRS as the go-to provider of major concert tour copyright management.”

In 2018, £21 million was collected across 60 countries on behalf of nearly 200 PRS for Music members via the service. The tool was used for Ed Sheeran’s record-breaking ÷ tour and world tours by Bruno Mars, Rogers Waters, U2 and the Rolling Stones.

 


Get more stories like this in your inbox by signing up for IQ Index, IQ’s free email digest of essential live music industry news.

PRS for Music reports record music royalties

UK performance rights organisation (PRO) PRS for Music has announced it collected a record £746 million on behalf of its members in 2018, a 4.4% increase from the previous year.

Overall costs for the company rose from £86.2m in 2017 to £93.8m in 2018. The company says the rise is due to investment costs related to the launch of the PPL PRS Ltd joint venture, which serves as a one-stop shop for public performance licensing in the UK.

The company also distributed a slightly lower £603.6m to its songwriter, composer and music publisher members. The company attributes the 0.2% reduction in distributions on “processing delays at our joint venture partners”.

The body collected royalties from 11.2 trillion music performances, including streaming, downloads, radio and TV plays, in addition to live music events.

According to PRS, live revenues are up 13% to £39.9m, boosted by big British festivals and high-profile UK tours. The PRO now receives 4% of the ticket price for live concerts and other music events – festivals excluded – following the implementation of a new live performance tariff in June 2018.

“The way in which we all consume music has changed dramatically over this period, but the popularity of UK music endures; long may it continue”

International collections continue to prove the most profitable revenue stream, bringing in £280.6m in 2018, a 9.1% increase from the year before. Income from digital services also saw a boost, growing by 17% to £145.7m.

However, PRS collections from broadcasters including the BBC, Sky and Global Radio were down 5.1% to £127.7m.

“Royalties from international digital continue to underpin our growth, areas in which we have invested systematically over the past ten years,” says PRS chief executive, Robert Ashcroft.

“The way in which we all consume music has changed dramatically over this period, switching from ownership to access, but the popularity of UK music endures; long may it continue,” adds Ashcroft, who steps down from his role at the end of the year.

Ashcroft also commends the recently passed European Copyright Directive, which he calls “the most significant change in copyright law in nearly twenty years”. The directive compels online content sharing service providers, such as social networking sites and YouTube, to combat the sharing of copyrighted works and seek licenses from the music industry to host their content.

In relation to the passage of the Copyright Directive, Ashcroft has discussed the possibility of receiving royalty revenue from online gaming platforms. A virtual Marshmello concert hosted in popular free-to-play game Fortnite was “attended” by ten million people earlier this year and Weezer used the game to premier their new album Black last month.

 


Get more stories like this in your inbox by signing up for IQ Index, IQ’s free digest of essential live music industry news, via email or Messenger.

Mixed picture as UK biz reveals 2018/19 gender pay gap

For the second year running, the UK live music business has revealed its gender pay gap (GPG) statistics, showing a mixed picture in which strides are being made towards gender equality, but where female employees are still vastly outnumbered by their male colleagues at an executive level.

All companies in mainland Britain with more than 250 employees were given until 5 April 2019 to report their gender pay gap – defined as the “difference in the average hourly wage of all men and women across a workforce” – for the previous 12 months to the government equalities office. Companies also published data on bonuses and the breakdown of employees’ genders by pay quartile. (Read last year’s results here.)

While it should be noted that GPG measures the difference between men’s and women’s average earnings across a whole business – rather than the pay received by male and female employees for doing the same job – all companies surveyed by IQ reiterated their goal of narrowing the gap ahead of next year’s survey and beyond.

See below for how nine of the UK’s largest live music businesses stacked up in 2018/19.

“We are committed to narrowing the gap over time in our business”

Live Nation (Live Nation (Music) UK Ltd)

Pay gap (mean): 80% (+18%)
Pay gap (median): 23% (-8%)

Live Nation UK’s mean GPG is the widest of the nine companies featured, growing 18%, to 80% (though its median gap narrowed), in 2018 – a reflection, says president Denis Desmond, of the under-representation of women in the wider music industry, especially in the upper echelons.

Writing in LN’s 2018 gender pay gap report, Desmond says the company is “committed to increasing women and diversity in our workforce and being an inclusive environment where everyone can succeed”.

“Women are under-represented in the music business. The gender pay gap is reflective of this, particularly with more men in the revenue-generating roles at the higher end of the salary scale,” he comments.

“This is something we want to see change. Real change requires a dual and sustainable approach; increasing awareness of the career opportunities available and ensuring we do all we can to develop and retain the women already making the industry such an important contributor to the wider UK economy.

“We are committed to bringing more women into our workforce through promoting all types of career options, and particularly helping influence young people to consider our industry. Alongside this we are creating more apprenticeships and internships designed to give people real skills needed to enter this business for a long-term and fulfilling career.”

Desmond reveals Live Nation recently conducted a “job levelling review across the UK” as part of an overhaul of its approach to reward and compensation decisions, in a bid to boost fairness. “Our robust policies and training programmes ensure that we are continually working to ensure no bias exists in our recruitment processes and ensuring we provide full support to all employees in balancing their family lives with the unique demands of the music business,” he continues.

“We see gender pay gap reporting as an opportunity to increase awareness of these challenges and are committed to narrowing the gap over time in our business.”

“Progress is being made, with 75% of all appointments at head of department level and above awarded to female candidates”

AEG/The O2 (Anschutz Sports Holdings Ltd)

Pay gap (mean): 43.6% (+0.3%)
Pay gap (median): 36.8% (-4.4%)

AEG declined to comment on its 2018 gender pay gap, though it made its report available on Monday 8 April.

While its mean GPG widened slightly, its median gap fell by 4.4%, and there are a slightly more women in two pay quartiles – the top (28%, +2%) and lower quartiles (66%, +1%) – compared to 2017. The percentage of women who received bonus pay was flat at 22%, compared to 7% more men (39%).

“Despite having a fairly even split of male to female employees overall, our gender pay gap is significant and we have more work to do to remove this,” writes AEG Europe president Alex Hill. “This gap is created by a higher proportion of women than men in our lower-paid roles and more men than women in our higher-paid roles.

“Our gender pay gap is not acceptable and we must make even greater effort to work towards gender pay neutrality across our business.”

However, he adds, “[p]rogress is being made, highlighted by our figures showing that 75% of all appointments at head of department level and above were awarded to female candidates, and since April 2018, seven of the top 20 roles are now occupied by female employees.”

“SMG Europe is confident that its gender pay gap does not stem from paying men and women differently for the same or equivalent work”

SMG Europe (SMG Europe Holdings Ltd)

Pay gap (mean): 16.6% (+4.6%)
Pay gap (median): 6% (+2%)

Arena operator SMG Europe’s pay gap slightly widened in 2018, although the proportion of female employees actually increased in every pay quartile. Its results, an SMG spokesperson tells IQ, are skewed by the nearly 20% more women in the lower quartile compared to 2017/18.

“We have undertaken significant resourcing activity in the past 12 months [6 April 2017–5 April 2018]. with 650 new colleagues joining our team,” they say. “The majority of new colleagues are casually engaged team members, of which 66.5% are female and 33.5% male. The recruitment gender ratios were consistent with gender ratio of applicants – ie no positive or other discrimination.

“As of April 2018, a total of 82% of our population comprised casual roles, compared to 77.7% the previous year.  All our casually engaged colleagues, who make up the majority of our workforce, are paid at the same hourly rate for the same role, regardless of gender. The shift in our gender pay gap year-on-year is explained by the higher proportion of casually engaged individuals, of which there are proportionately more females this year, which is explained, as noted above, by the higher percentage of female applicants than our existing complement across our casually employed team.

“Our 2018 report also illustrates that women occupy 47% of the highest paid roles, compared to 43.3% the previous year, demonstrating that we have improved the proportion of women occupying the highest paid roles within the organisation.

“SMG Europe is confident that its gender pay gap does not stem from paying men and women differently for the same or equivalent work. Rather its gender pay gap is the result of the roles in which men and women work within the organisation and the salaries that these roles attract.”

“Whilst we are happy that this is going in the right direction, reducing the GPG remains a key priority for Global”

Global (Global Radio Services Ltd)

Pay gap (mean): 32.7% (-2.7%)
Pay gap (median): 19.4% (-1.1%)

Global, the UK’s second-largest festival operator, says it remains “committed” to closing its gender pay gap, which narrowed by 2.7% on a mean basis in 2018.

“Our workforce is balanced and fluctuates each month somewhere between 45%/55% female and male employees; however, we recognise that not having enough women in senior leadership roles is a significant factor in driving our GPG,” reads the company’s 2018 gender pay gap report. “In 2018, we are pleased that we have made some improvement across all measures, and reduced the GPG to 32.7%. Whilst we are happy that this is going in the right direction, it remains a key priority for Global, and creating a diverse and fair culture continues to be incredibly important.

“However, we recognise that this is a long-term strategy that takes time and focus, and that we won’t look different overnight. We have identified a number of initiatives existing and new, that will help us to continue to improve.”

These initiatives include its Global Apprenticeship scheme, launched in September 2018, which welcomed 17 apprentices and graduates into programming, digital, video, marketing, technology and commercial roles – of which 53% were female and from a BAME (black, Asian or minority ethnic) background – and a six-month leadership programme, whose alumni include 20 female middle managers who will be supported “in growing their careers at Global”.

“Our gender pay gap reflects the broader societal challenges of getting more women into the technology sector”

Ticketmaster (Ticketmaster UK Ltd)

Pay gap (mean): 44% (+8%)
Pay gap (median): 23% (+0%)

Ticketmaster’s mean GPG widened to 44%, while its median difference remains at 23%, the same gap as in 2017/18.

According to Mark Yovich, president of Ticketmaster International, its pay gap reflects the dearth of women working in the technology sector – and, if the figure was adjusted to remove employees working on the tech side, the GPG is 4% in favour of female staff.

“Ticketmaster is a vibrant, diverse place to work. We believe that diversity adds value to our workforce and delivers a better service to our fans,” he writes in TM’s 2018 pay gap report.

“As a technology-led business, our gender pay gap reflects the broader societal challenges of getting more women into the technology sector. There is an acute skills shortage in this area, with women accounting for just 25% of all UK STEM [science, technology, engineering and mathematics] graduates. Only 16% of leadership positions in the technology industry are held by women [source: NCWIT]. Illustrating this challenge, if you remove our technology employees, our mean gender pay gap is minus 4%.

“Of course, we want to see more women in the technology industry and have been working with several organisations who provide opportunities for women to get into tech, including Women Who Code, codebar, Code First: Girls, and have an official partnership with Code Your Future. We host and support these groups with funding and regular meet-ups in our offices. We launched our own female employee resource group, WE Nation, in 2015 which continues to roll strong through our business in both the UK and across our international markets.

To ensure fairness, we have systemised our approach to reward and compensation decisions, including conducting a job levelling review across the UK. Our robust policies and training programmes ensure that we are continually working to ensure no bias exists in our recruitment processes.

“We see gender pay gap reporting as an opportunity to drive awareness about the challenges in our industry. We will continue to support women at all levels in our business. We are committed to increasing women and diversity in our workforce and being an inclusive environment where everyone can succeed.”

“Women are under-represented in the live music industry, and the GPG reflects this”

Academy Music Group (Academy Music Group Ltd)

Pay gap (mean): 21% (-3%)
Pay gap (median): 6% (+5%)

Live Nation-owned venue operator Academy Music Group (AMG) narrowed its mean pay gap to 21% in 2018, though its median GPG widened 5%.

Denis Desmond says AMG, whose venues include O2 Brixton Academy and Shepherds Bush Empire, is focusing on elevating more women into management positions.

“A key area of focus for us is achieving greater representation of women into venue management roles, which are our most senior positions and therefore attract higher rates of pay and bonuses,” he writes. “For venues, the median figure reflects our pay equity in the large volume of roles we regularly hire for where we have greater gender balance.”

“We are training managers to ensure no bias exists in our selection processes and ensuring we provide full support to all employees in balancing their family lives with the unique demands of the music business,” he continues, adding that, like Live Nation, AMG is “committed to narrowing the gap over time in our own business.”

“We are optimistic that plans to … attract, recognise and develop talent will have a real effect on improving gender pay equality at NEC Group”

NEC Group (National Exhibition Centre Ltd (The))

Pay gap (mean): 11.4% (+1.3%)
Pay gap (median): 9.7% (+2.6%)

NEC Group, which operates five arenas and convention centres in Birmingham, as of April 2018 had 1,861 employees and casual workers, of which 838 were men and 1,023 women. Its median pay gap, which widened 2.6% in 2018, nevertheless bests the UK average of 17.9%, says chief operating officer John Hornby.

Its most recent figures reflect the smaller proportion of men in lower pay quartiles compared to 2017.

“Overall the group’s profile is characterised by high numbers of employees working full and part time in the company’s catering, retail and hospitality operations, and smaller numbers of specialist technical, catering, supervisory and managerial roles,” reads the company’s 2018 GPG report. “The gender pay gap for the group presents a balanced picture, but there is still more to be done to ensure consistent improvement.

“In the past year, further investment has gone into developing our learning and development offer for all staff; for example, the New Leader programme and Experienced Leader programme, targeting those in leadership roles and those for whom a leadership role is the next career step. Since 2014 the team has trained over 260 new managers, with roughly an even male and female candidate profile.”

Hornby also highlights NEC Group’s talent programme, whose fifth cohort of 19 promotions is roughly gender equal, and its apprenticeship scheme.

“We are optimistic that some of these long-term plans to both attract, recognise and develop talent will have a real effect on improving gender pay equality within the NEC Group,” he concludes.

“Even though we’re ahead of most of our music industry peers … we’re not complacent about it – we know we’ve got more to do”

DHP Family (DHP Family Ltd)

Pay gap (mean): 11.6% (-2.1%)
Pay gap (median): 5% (+1.5%)

Nottingham-based promoter and venue operator DHP Family reported a 2% fall on its already low mean gap compared to last year’s figures, and the company says it does “not have an issue with equal pay. Our gender pay gap derives from fewer female employees within our venue management teams. This is a trend within our industry, whereby there are many more male venue managers across all levels, in particular the more senior the positions.”

While its mean pay gap is well below the national average, its bonus gap (the difference in bonus pay between men and women) remains high, at 48.5%, despite the percentage of women eligible doubling in 2018/19. “We are continuing to work on female representation for bonus eligible roles, and our initiatives to attract and retain females within our venue management and senior management teams are slowly reducing this difference,” according to its 2018 report.

“We’re fully committed to reducing our gender pay gap and I’m pleased to see we’ve made further progress this year,” DHP Family owner George Akins tells IQ.

“Even though we’re ahead of most of our music industry peers and the UK national average, we’re not complacent about it; we know we’ve got more to do and we’ve introduced a number of initiatives that will help in the years ahead.”

“We are making positive steps, but we know there is more we can do”

PRS for Music (PRS for Music Ltd)

Pay gap (mean): 16.8% (-0.4%)
Pay gap (median): 9.7% (-1.8%)

Pamela Harding, human resources director at performance rights organisation PRS, welcomes its narrowing pay gap but says there is still more to be done.

She comments: “Although we have seen a slight improvement, we have a continuing gender pay gap as there are fewer women in senior positions than men at PRS for Music. We believe that real progress is achieved through influencing business culture, and in 2018 we commenced our programme to recognise drivers of unconscious bias to better support our efforts to promote diversity and act inclusively. We also continued to take positive action with our new ‘Dignity at Work’ policy and by working with industry experts in diversity and inclusion.

“We are making positive steps, but we know there is more we can do. As we look further ahead, we remain committed to engaging all levels of our business to encourage, support and exemplify our core values and celebrate our differences.”

 


Get more stories like this in your inbox by signing up for IQ Index, IQ’s free digest of essential live music industry news, via email or Messenger.

PPL PRS MD Suzanne Smith steps down

British collection societies PRS for Music and PPL have announced that Suzanne Smith has stepped down as managing director of their public-performance joint venture, PPL PRS Ltd.

Smith, formerly of credit reference agency Experian, joined the company in April 2017, overseeing its initial launch in Leicester, the creation of TheMusicLicence, which represents both companies’ rights for public performance, and the launch of the business in February 2018.

PPL CEO Peter Leathem says: “Suzanne, with her drive and energy, has been invaluable in building the foundations of PPL PRS Ltd over the last two years. We are grateful to her for the commitment and dedication she has shown to this initiative to simplify access to the licences businesses need when they play or perform music, and wish her every success in the future.”

“We are indebted to Suzanne for her leadership both before and after the launch of the business and look forward to building on the foundations she has created,” adds PRS for Music chief executive Robert Ashcroft, “to communicating the value that music brings to businesses and to growing the royalty revenues on which our respective memberships depend.”

Christine Geissmar, PPL’s chief operating officer of PPL, has taken over as interim MD until a replacement is found.

 


Get more stories like this in your inbox by signing up for IQ Index, IQ’s free email digest of essential live music industry news.