UK Cinema Association vs. PRS For Music: The Battle Over Music Tariffs in UK Cinemas
The UK Cinema Association (UKCA) and PRS For Music are set to go to court in London over a dispute regarding the tariffs cinemas in the UK must pay for playing music. UK cinemas pay PRS for the right to play music in their venues, both as background music and as part of film soundtracks. PRS collects royalties on behalf of music rights holders globally. Cinemas in Europe, Canada, and South America also follow similar terms, but not the US. Since 2005, cinemas could choose to pay based on box office revenues or a pence-per-admission figure. UKCA wants to maintain this dual system, while PRS seeks to remove the 1% option and increase the pence-per-admission figure. This change could lead to a 42% increase in the amount cinemas pay for music rights, affecting smaller operators the most.
The dispute between UKCA and PRS has been ongoing for years, with UKCA arguing that the proposed changes to the tariffs would disproportionately impact smaller cinema operators. PRS has suggested an increase in the pence-per-admission figure and the removal of the 1% option, leading to a significant rise in the amount cinemas pay for music rights. UKCA believes that the current system, which allows cinemas to choose between two payment measures, is necessary to accommodate the diverse business models and ticket prices across the country. The case has already incurred substantial legal fees for UKCA, but they believe it is essential to challenge PRS' proposed changes.
PRS has offered a 25% discount on royalties for cinemas with fewer than 60,000 admissions per year to support smaller operators. However, UKCA argues that this discount is insufficient, especially for cinemas with low ticket prices. PRS claims that the proposed increase in tariffs is modest and necessary to reflect the increased use of music in films since 2005. UKCA disputes this claim and believes that PRS' proposals would lead to a significant increase in costs for cinemas without substantial benefits.
The issue between UKCA and PRS has been escalating for nearly two decades, with annual tariff renewals and negotiations. PRS proposed changes to the tariff in 2019, which UKCA rejected. The pandemic further complicated the situation, but PRS remained flexible in terms of payment arrangements. In 2022, PRS presented another proposal that UKCA found unreasonable, leading to the current legal dispute. UKCA established a 'fighting fund' to cover legal costs, with the majority of its members contributing to support the case. The outcome of the court case will determine the future of music tariffs for UK cinemas, with both parties hoping for a fair resolution that reflects the value of music in films while ensuring fair compensation for songwriters and composers.