Thursday, November 1, 2018

Release of Fair and Simple Music Licence Plan for Nightclubs

OneMusic Australia has today released the second draft of a combined licence scheme for Australia’s nightclub industry to drastically cut red-tape for nightclub operations.

This specific licence scheme will apply to venues who have recorded music for dance use.

Following the successful roll out of similar schemes to simplify music licensing in New Zealand and the UK, OneMusic Australia is planned to launch mid-2019.

Substantial consultation has taken place with the sector over many months to arrive at this second draft scheme based on a fair outcome for both nightclubs and music creators.

Since the first proposed scheme was issued 12 months ago, OneMusic has listened to nightclub industry concerns about pegging licence fees to capacity and has instead replaced this with capacity tiers. The scheme continues to allow venue operators to tailor their licence so as to apply to only the areas of the venue necessary for each day of operation (for example, a reduced capacity tier applies on nights when only one of two levels or rooms are open and playing recorded music for dance use).

Under the licence scheme, OneMusic now offers a bonus of four music-use nights at no-charge for venues hosting 56 or more nights of music a year.

The majority of nightclubs that currently have an APRA AMCOS and a PPCA licence and have correctly reported figures to both PPCA and APRA AMCOS will see savings of around 8% compared to current music licence fees.

There is a calculator for nightclubs that you can use to obtain basic estimates on future licence fees.

Nightclubs which have a door charge/paid ticket entry will now have the option of their annual licence fees being based on actual nightly attendance. These venues need to keep accurate attendance figures and provide a verifiable annual attendance statement.

In releasing the new proposal, both PPCA and APRA AMCOS applaud the nightclub sector for the enthusiasm and support they show in showcasing recorded and live music to entertain their patrons.

The two peak organisations behind OneMusic Australia will continue to ensure appropriate licences are in place when their members’ and licensors’ products are used commercially. This process is authorised by the Copyright Act (1968).

Licence fees collected from nightclubs are distributed to music creators using a variety of information sources including actual use captured by music recognition technology in some clubs and data reported to ARIA by active DJs across the country (which ARIA uses to create the weekly ARIA Club Chart).

These live and featured music venues help to generate an estimated $15.7 billion1 in national economic benefit – lifting profitability and employment.

There are over 100,000 members of APRA AMCOS and over 40,000 PPCA record labels servicing everyday consumers’ ever-evolving music tastes. OneMusic Australia’s music licences cover the world’s repertoire of recording artists and music composers.

Media enquiries:

Real-life licence fee comparisons follow.

Anne Blair 0404 293 163 OR Mick Walsh 0402 274 623 comms@apra.com.au

1 The Economic & Cultural Value Of Live Music In Australia 2014. University of Tasmania


Case Studies

The following examples use real life data and examine current licensees of both APRA AMCOS and PPCA. The input data is based on most recent figures provided to APRA AMCOS and PPCA. CPI adjustments that will occur before OneMusic as well as GST has been applied for more accurate comparisons.

Music use in nightclubs is varied. In these case studies we have excluded fees payable for featured music (a DJ on some nights, for instance) or for background music (in private rooms, for instance) or for telephone on hold and have concentrated comparisons solely on recorded music for dance use fees.

Case Study One: Nightclub in Darlinghurst, Sydney, NSW.

Total capacity 940 (across two areas of 350 capacity and 590 capacity). Both areas operate 104 nights a year with 80,000 annual attendees in total.

Current PPCA nightclub fee $132,621.22 PLUS Current APRA AMCOS nightclub fee
$71,664.38 = Combined fees $204,285.60.

Proposed OneMusic fee would be either $201,600.00 (calculated by capacity tier) or
$170,200.00 (calculated by attendance).

Case Study: Nightclub in Surfers Paradise, Queensland.

Total capacity 300. Operates 150 nights a year with 23,400 annual attendees in total.

Current PPCA nightclub fee $61,047.00 PLUS Current APRA AMCOS nightclub fee
$20,962.26 = Combined fees $82,004.26.

Proposed OneMusic fee would be either $84,826.00 (calculated by capacity tier) or
$58,968.00 (calculated by attendance).

Case Study: Nightclub in Perth’s CBD, Western Australia.

Total capacity 225. Operates 100 nights a year with 18,512 total attendees annually.

Current PPCA nightclub fee $30,523.00 PLUS Current APRA AMCOS nightclub fee
$15,939.19 = Combined fees $46,462.69.

Proposed OneMusic fee would be either $57,216.00 (calculated by capacity tier) or
$46,650.24 (calculated by attendance).