New Tariff Could Kill Canadian Fitness Industry

Do you listen to music while you workout? If you’re like most gym goers than I can bet your answer is yes. Whether running on a treadmill with your MP3 player or listening to the gym’s music as you complete your bicep curls, those lyrics you hear are coming from somewhere. While you may download free music for your iPod, fitness centers pay fees for the ability to broadcast music to members. And now a new tariff being proposed could put the Canadian fitness industry in crisis. Last year, the Neighboring Rights Collective of Canada (NRCC) put forward a proposal for a new tariff placed on music used in fitness facilities across Canada. The increase would see facilities pay out 5% of gross monthly revenue, and $3 per fitness class taught. According to the Fitness Industry Council of Canada, with these tariff increases a medium sized club would pay out close to $50,000 a year just to the NRCC. While 5% of gross monthly revenue may not seem like a lot to payout, what most people don’t realize is after operating costs most gyms in Canada only make 5% profit. If implemented, this tariff would have a crippling effect on the Canadian Fitness industry, resulting in numerous closures and sky-rocketing membership prices.

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