From Music Business Worldwide · · 1m 40s
UK Copyright Tribunal Supports PRS for Music in Cinema Licensing
UK’s Copyright Tribunal approves higher music royalties for cinemas after 20-year dispute with UKCA.
In brief
UK’s Copyright Tribunal approves higher music royalties for cinemas after 20-year dispute with UKCA. UK’s Copyright Tribunal upheld PRS for Music’s request for increased cinema music royalties, raising rates from 7.33p to 7.9p per admission and boosting annual minimum fees from £75 to £131.50 per screen. Originally…
Tribunal Ruling
The UK’s Copyright Tribunal ruled in favor of PRS for Music in its dispute with the UK Cinema Association over cinema music licensing.
Tariff C Changes
The Tribunal approved increased royalty rates for cinemas, effective from July 1, 2024, including 7.9p per admission up from 7.33p.
New Royalty Calculation
Royalties will now be calculated solely on customer admissions, replacing a dual-metric system that allowed cinemas to pay as a percentage of ticket revenue.
Industry Growth Argument
PRS argued the previous tariff, last negotiated over 20 years ago, no longer reflected the realities of today’s cinema industry with music’s share of film runtimes growing.
Music Share Increase
Music’s share of UK film runtimes grew by 22% between 2005 and 2022, with PRS reporting a more recent figure of 17%.
Royalty Shortfall
PRS calculated that the outdated tariff cost its members GBP £7 million in distributable royalties between 2005 and 2022.
New Tariff Rates
The revised tariff sets a rate of 7.9p per admission, up from 7.33p, with annual minimum fees rising from £75 to £131.50 per screen.
Next Steps
PRS plans to finalize the updated tariff with the UKCA and adjust interim royalty payments while the case remains unresolved.
The one thing
UK’s Copyright Tribunal upheld PRS for Music’s request for increased cinema music royalties, raising rates from 7.33p to 7.9p per admission and boosting annual minimum fees from £75 to £131.50 per screen.
