NEWS ¬ EDDIE TOBIN
LICENSEES URGED TO HOLD BACK PPL PAYMENTS
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cots licensees are being urged to hold back their PPL fees in protest against proposed licence hikes. PPL, the organisation that collects royalties on behalf of performers and record companies, is proposing to charge pubs and clubs that put on Specially Featured Entertainment (SFE) exorbitant fees and this includes DJ’s. The proposed price rises, which would see an average pub currently paying £30 for a 4-hour SFE, now having to pay £380 for its PPL license, excluding the cost of the DJ. While club owners, with a 5-hour SFE, and a 2,500 capacity, would see their fee increase from £129 to more than £4,000. It will affect pubs, clubs, hotels, and cafés, in fact anywhere that does more than use background music. It could spell the death knell for DJ’s, who get most of their income from the licensed trade, but it could mean a boon for live music bands. Live music doesn’t come under the PPL remit. The PPl have said that they don’t consider the fees currently paid a “fair reflection” of the value of the licence, but industry insiders say that it is merely a way of clawing back cash following a decrease in income from traditional channels. Although the fees are only at the consultation process, organisations such as the British Beer and Pub Association and Noctis, have already said they are “not feasible”. BBPA chief executive Brigid Simmonds said, “These proposed increases for playing music are unacceptable and off the scale. They would be a huge burden.” The BBPA estimates that a small pub company with six venues running two to three events a week could face huge fee increases. If between 250 to 400 people attended each event, a current bill of £22,300 could become £220,000 annually. Donald Macleod, MD of CPL, which owns The Garage and The Tunnel nightclubs in Glasgow, is incensed. He told DRAM, “We should organise a boycott of the PPL. These prices increases are insane. Do they not know what is going on in the licensed trade at the moment? This could cause bars goes out of business and jobs being lost. He urged, “We all need to get together on this. We need to speak to our politicians and we need to respond vigorously to the consultation. A campaign to oppose these prices needs to be organised. We should all hold back our fees.” He continued, “That might seem drastic, but it would certainly make PPL sit up and take notice of our concerns. If we don’t take action we will see more bars and clubs going out of business and jobs being lost." Eddie Tobin agrees, “We should run a ‘Hold back the money campaign’. This is an insane increase.The price increases being suggested are a disgrace and they could sound the death knell for the pub and clubbing scene in Scotland." Licensing law specialist Stephen McGowan, of Lindsays, says “PPL
lost a significant case last year in which they were forced to issue refunds to the licensed sector of around £20m, so they may be trying to mitigate that loss. The licensed industry has been bled dry over the last few years and established operators are going bust. This new fee increase will put people out of business. Ministers like Andrew Griffiths, who has acknowledged Government had let the industry down, need to step up”. PPL has defended the consultation. But even it admitted in its 2010 accounts, “The economy continues to play a part in our ability to collect licensing income and 2010 proved particularly difficult in some markets; such as the retail and pub industry where business closures resulted in less venues playing music.” ¬
WKD’S SEATS AHEAD 2011 is the tenth anniversary of the highly-successful and much-loved “Have you got a WKD side?” campaign and the brand is marking the event with new TV ads which will keep WKD top of mind as summer draws to a close. Another key part of this year’s £30m WKD marketing support package is an innovative on-pack promotion starting this month. Under the campaign theme of ‘Win A Chair’, the activity offers seat-related prizes ranging from racing motorised sofas through to flight vouchers and tickets for the cinema and comedy gigs. The humorous instant-win initiative is set to reward 250,000 lucky winners with a £12m prize pool and will feature on peel-andreveal labels on 6.5 million 275ml WKD bottles. Consumers peel away the special neck labels to reveal unique promotional codes. The activity will boost sales for stockists and will reward WKD consumers who’ll love the opportunity to bag great prizes. WKD free point of sale hotline: 0800 917 3450. Sales enquiries SHS Sales & Marketing: 01452 378 500. DRAM AUGUST 11
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