The Boston Globe has what seems like an even-handed story on the PROs' efforts to collect performance royalties from small venues like coffee houses that host open mike nights or jam sessions. Most people have no idea that when they see an amateur musician play a cover of "Big Yellow Taxi" at some random bar in front of 17 people, a tiny ka-ching is supposed to happen in the bank account of Joni Mitchell. It doesn't work that precisely of course, but the systems developed over the years by BMI, ASCAP and SESAC to survey and pro-rate and account are astonishingly effective. At the beginning of the chain however, the PROs have to register venues and sign them up for an annual blanket license giving them permission to play any song in the catalog. According to the story:
With the music industry in steep decline, PROs are ramping up their pursuit of the little guys, who acknowledge that songwriters are entitled to compensation but are angry and frustrated at what they see as unfair targeting of small businesses and nonprofits that make no money from the music they present.
The reporter should have added the word "directly" to that last sentence. It's patently untrue that they don't convert music into revenue. If they didn't have the open mic night, not so many folks would be there drinking their coffee and beer. Radio doesn't make money directly off music either, but by god that's why people tune in. I can see why a small operator could be miffed that they have to pay THREE PROs to cover all their bases. The minimum of $200 to $400 seems quite reasonable at a dollar per day roughly, while three times that could definitely give a small biz person pause about having the occasional jam session or open mike. I also have a bit of trouble with the industry's definition of public performance including jamming gatherings where the listeners and players are the same people. I'm not aware yet of PROs raiding private homes and garages where pickers congregate. But if you've got a cash register in your place, and you pay the electric bill and the water bill, then getting bent out of shape about being asked to pay for that customer-attracting music seems to just betray ignorance of the basics of music commerce and the law.
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