Cheaper music licencing for Australian retailers

Music collection societies APRA AMCOS and PPCA have worked with the Australian Retailers Association (ARA) to come up with a new licence scheme for ARA members. ARA represents 5,000 national and independent businesses.

The Australian Retailers Association Music Licence Scheme comes into effect from July 1. It will see a flat annual fee of $550 per store for retail premises under 500 m2 in size. Retailers can use a range of background music devices including radio, television, CDs, smartphones and streaming devices (depending on the streaming provider’s terms), providing access to millions of songs and recordings within the repertoire of APRA AMCOS and PPCA.

Previously these stores needed to take out a range of individual licences with APRA AMCOS and PPCA depending on how they used music.

ARA’s Executive Director Russell Zimmerman hailed the scheme as an opportunity for members to see substantial savings in their music licence fees. A joint statement from the parties involved pointed out it will mean less paperwork, a consolidated cost for busy retailer owners and makes compliance with copyright law much easier.

Zimmermann emphasised, “Music is a big part of our retail experience. Research shows that music, especially recordings by well known artists, is an important factor in creating the ideal in-store atmosphere for the consumer, encourages longer browsing time and can positively influence the behaviour of customers.”

APRA AMCOS Director of Public Performance Licensing Jennifer Gome said, “Simplifying music licences is something our music customers have listed as a high priority. This new licence will save time and resources for businesses”.

PPCA General Manager Lynne Small added, “'We are delighted to partner with the ARA and APRA AMCOS to create this joint licence for ARA members, which will reduce their administration while making available millions of recordings to improve the experience of their clients”.

ARA also reminded members of StorePlay, another service which makes it easier for retailers to stay on the right side of copyright laws. It provides customised playlists to retailers via their iOS device, with royalties and licensing fees included in the monthly subscription fee. StorePlay, the world’s first app-based music subscription service for businesses, was created in Australia. It was the brainchild of DJ Dean Cherny who launched it in December 2012 through his company Marketing Melodies.

Studies show that loud music makes people move through stores without lowering sales volume. Slow music slows them down but makes them buy more (especially impulsive buyers).

Classical music inspires people to buy more expensive items, except for clothes retailers which use trendy up-tempo music from new artists. Coffee lounges go for “lounge” sounds, and grocery stores aim for Top 40.

Usually, store music tends to be slow-tempo in the mornings when there is less people and customers tend to be older, and speeds up through the day.

Music-on-hold keeps customers longer on the line before they impatiently hang up, especially if they like the songs.