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It is common practice today for businesses to invest considerable time and financial resources in their choice of music, and the system through which it is delivered. Furthermore many businesses use music to provide an atmosphere that is ambient, or entertaining, for patrons whilst they dine or shop, to attract customers into their store, to purchase particular products and to entertain those clients that are waiting to be served.
APRA’s existing rates for the use of background music in business were introduced in 1978. Since this time the annual licence fee has only increased in accordance with the movements in the Consumer Price Index each year. APRA sought to review its background music scheme to take account of the value of the music, and the variety of contexts in which music is now used by businesses.
How has the review process taken place?
In 2002, APRA commenced a review of its background music licence fees. We consulted with over 35 industry groups and associations, representing small and large businesses, seeking input and feedback on new licence schemes that would apply to all industries, including the hospitality and fitness sectors.
In November 2003, APRA referred a new licence scheme and rate structure for the public performance of background music to the Copyright Tribunal. However, successful negotiations with associations representing the fitness, hotel, club and restaurant sectors, led to APRA implementing new rates for the use of background music by these industry groups throughout 2006.
APRA continued its Copyright Tribunal reference for the background music licence scheme for retail and general business use, and the matter was heard in February 2006. The Copyright Tribunal handed down its determination on 29th September 2006, approving the proposed terms of the new agreement. The new rates are to be phased in over a 3 year period, commencing from 1 January 2007. Under the new licence scheme, APRA’s annual rates for background music will vary depending on the premise size of the business and the devices used. The rates are set out below.
Background Music Licence Scheme Rates
| 1 January 2007 to 31 December 2007
|
| m2 |
Up to 150 |
150-499 |
500-999 |
1000-1999 |
2000-4999 |
+ 1000 |
| Tier 1 |
$ 54.12 |
$ 57.79 |
$ 68.79 |
$ 87.12 |
$ 134.79 |
$ 68.79 |
| Tier 2 |
$ 84.80 |
$ 92.13 |
$ 114.13 |
$ 158.13 |
$ 231.47 |
$ 92.13 |
| Tier 3 |
$ 106.80 |
$ 132.47 |
$ 172.80 |
$ 238.80 |
$ 359.80 |
$ 106.80 |
| Tier 4 |
$ 158.13 |
$ 213.13 |
$ 290.13 |
$ 414.80 |
$ 634.80 |
$ 158.13 |
| 1 January 2008 to 31 December 2008 |
| m2 |
Up to 150 |
150-499 |
500-999 |
1000-1999 |
2000-4999 |
+ 1000 |
| Tier 1 |
$ 60.06 |
$ 67.39 |
$ 89.39 |
$ 126.06 |
$ 221.39 |
$ 89.39 |
| Tier 2 |
$ 97.40 |
$ 112.07 |
$ 156.07 |
$ 244.07 |
$ 390.73 |
$ 112.07 |
| Tier 3 |
$ 141.40 |
$ 192.73 |
$ 273.40 |
$ 405.40 |
$ 647.40 |
$ 141.40 |
| Tier 4 |
$ 244.07 |
$ 354.07 |
$ 508.07 |
$ 757.40 |
$1,197.40 |
$ 244.07 |
| 1 January 2009 to 31 December 2009 |
| m2 |
Up to 150 |
150-499 |
500-999 |
1000-1999 |
2000-4999 |
+ 1000 |
| Tier 1 |
$ 66.00 |
$ 77.00 |
$ 110.00 |
$ 165.00 |
$ 308.00 |
$ 110.00 |
| Tier 2 |
$ 110.00 |
$ 132.00 |
$ 198.00 |
$ 330.00 |
$ 550.00 |
$ 132.00 |
| Tier 3 |
$ 176.00 |
$ 253.00 |
$ 374.00 |
$ 572.00 |
$ 935.00 |
$ 176.00 |
| Tier 4 |
$ 330.00 |
$ 495.00 |
$ 726.00 |
$1,100.00 |
$1,760.00 |
$ 330.00 |
Tier 1 = 1 Device only, radio and/or TV
Tier 2 = 1 Device only, CD/DVD, Video
Tier 3 = 1-4 Devices and/or multi channel devices of up to 4 streams and/or a jukebox
Tier 4 = 5 or more Devices and/or multi channel device of 5 or more streams and/or jukebox |
Where can I find more information on the review?
If you have any questions on the review process or how this will affect your business you can contact APRA's Client Services Department on 1300 852 388 or email licence@apra.com.au
Please note that a copy of the full judgement is available at: www.austlii.edu.au
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