According to Australia's Copyright Tribunal, fitness classes have not been paying enough money for the music they play while attendees sweat into their leotards. To fix the problem, the Tribunal yesterday announced a new rate for fitness center music, and it's 1,500 percent higher than the previous rate.

It could have been (much) worse for gyms—rightsholders wanted a 4,000 percent increase—but many fitness centers are already pledging not to pay. They'd rather play bad cover versions than cough up the cash for the original recordings.

Dance, dance. Revolution?

Currently, fitness clubs in Australia pay 96.8¢ per class to artists and recording companies for the music they play in workout classes. That amount will now increase to either AU$15 per class or AU$1 per attendee. According to trade group Fitness Australia, this will increase music costs for an average 1,500 member club from AU$1,510 a year to AU$23,400 a year, though the original amount was arguably a ridiculously good deal, given how crucial music is to such classes.

This was exactly the argument that the Phonographic Performance Company of Australia (PPCA) made to the Copyright Tribunal while lobbying for a higher rate, and it presented plenty of research to prove it. One study examined by the Tribunal looked into alternatives to recorded music and it concluded that the only viable options were no music at all or the use of "beat machines."

The popularity of the beat machine is then summed up: "even limited use of it would cause considerable migration from fitness classes."

Given the importance of music to fitness classes, rightsholders wanted more cash—lots more. Their initial proposal was "a rate of AU$4.54 per member of a fitness center per month or AU$.99 per visit by a casual attendee at such a center. This fee was not related to participation in fitness classes." Get that? AU$4.54 for every club member, every month—whether or not that person ever enrolled in a class.

PPCA would also settle for AU$20 per fitness class, or very grudgingly for AU$1.50 per person per class.

The Tribunal agreed that the music was far too cheap, but was not impressed with PPCA's initial proposal, since it recouped money from those who weren't listening to the music. "It would be unreasonable to require Fitness Centers to pay a license fee to PPCA for use of protected music in classes based upon the membership fees of persons who do not attend those classes," wrote the Tribunal in one of the most boring government documents I have ever had the misfortune to read.

Instead, the Tribunal agreed to AU$15 per class or AU$1 per person per class. The Copyright Tribunal recognized the large percentage increase built into its decision, saying, "The Tribunal is aware of the fact that these amounts are considerably higher than the amounts payable under the present license arrangements. However, this application to the Tribunal has permitted the first comprehensive examination of the use of music in fitness classes. Without it the classes would not function in the manner in which they are presently conducted and which fitness class attendees have come to expect."

This new amount didn't make Fitness Australia happy. "The international record companies, who are represented by the PPCA, have shot themselves in the foot by demanding outrageously high copyright licensing fees from the fitness industry, the majority of which go straight into record company coffers. To mitigate the impact of such a decision, Fitness Australia members are already beginning to use music in their gyms that is free of PPCA copyright," said Lauretta Stace, Fitness Australia Chief Executive Officer.

Bring on the covers

PPCA is a collection society, but it only has authority over certain works that have a connection to Australia (just how close a connection was a subject of debate). Fitness clubs, keen to stretch their profits, are trying to find ways around the ruling. One popular strategy already appears to be the use of cover songs that fall outside the PPCA's remit, and PPCA is furious at the plan.

In a statement yesterday, PPCA blasted the huge Fitness First chain. The group says that the decision to use covers instead of the original tracks is a case of sour grapes. Now, aerobics fans will be subject to "second-rate" tunes in all of the chain's classes.

"Fitness First has treated both its members and recording artists with utter contempt," said PPCA boss Stephen Peach. "We’ve seen a groundswell of discontent from gym members and fitness instructors who’ve been ordered to use cover music and who are even being encouraged to dob in colleagues who try to use real music in classes... We are confident that many fitness centres will choose to continue to use real music and that they will have a strong business advantage over those that take what we think would be a very short-sighted decision to switch to low quality cover versions."