The Fitness Industry Association (FIA) and Phonographic Performance Limited (PPL) have reached an agreement to reform PPL's Exercise tariff - which covers the use of PPL-recorded music as an accompaniment to fitness classes.
Coming into force in May 2013, the reforms will impact both the way the tariff operates and the charges applied.
In future, the sole responsibility for holding a valid PPL licence for group exercise classes in fitness centres will be on the operators of those facilities.
Fitness instructors will only be required to hold a valid PPL licence for any classes that they hold in premises other than fitness facilities - such as hired halls, community spaces and offices.
The new tariff, entitled Exercise To Music, will see PPL fees eventually rising over a five year period. The tariff fee will start at 95p per class, rising to £1.25 in May 2014, £1.50 in May 2015, £1.75 in May 2016 and £1.88 per class in 2017. Indexation will apply from May 2018 at the earliest.
The FIA is currently in discussions with PPL about the detailed implementation of the tariff, which will see the FIA undertake an active role in its administration and the collection of PPL licence fees. The FIA's prominent role in the operation of the tariff will enable it to provide a discount on the fees payable under the tariff to its members.
David Stalker, CEO, FIA said: "This marks the result of four years of discussions between the FIA, a working group of experts drawn from across the sector and PPL. We're now working closely with PPL to establish the process for collecting the fees due from FIA members under the new tariff."
Adrian Message, director of audit and risk management at Fitness First, said there was "no good time to pay additional fees", but that the deal is better than it would have been without the industry's input.
Message - who was part of the FIA's working group - said: "Working in partnership with the FIA and a broad range of operators, the Music Licencing Working Group has ensured that our sector has minimal increased costs compared with what the fees could well have been."
Tim Foster, Virgin Active's Club Performance Director, added: "You only have to look outside our sector to the entertainment industry to know that this is a good conclusion.
"Over the years bars, pubs and nightclubs that play recorded music have been required to pay significant fees for their music licences; fees that would not be sustainable in the health and fitness sector. We could never have achieved this conclusion without a coordinated approach to negotiation which has seen a fair settlement achieved."
Click here to read more opinions and comments from FIA's working group members.
