Hotels, pubs, taverns, bars and casinos
The Hotels, Pubs, Taverns, Bars and Casinos Scheme (HPTBC Scheme) has been developed by OneMusic Australia for the hospitality, gaming and liquor sector (such as pubs and casinos).
This Rate Setting Guide describes how OneMusic Australia sets the rates under the HPTBC Scheme. For more information about how OneMusic Australia fixes rates and determines rate structures more generally, please see the Rate Setting Guide - General Background available HERE.
Licensees under this scheme range from small, single-location premises (for example, a family-owned country pub) to large, multi-location operators (for example, the ALH Group).
This scheme provides coverage for the use of our music in these licensing categories:
- Background Music for Location
- Background Music for Dining
- Featured Recorded Music
- Recorded Music for Dance Use
- Live Music Performance
- Recorded Music Performance
- Standalone Functions
- Website Use
- Digital Copy/Delivery
- All Inclusive
1. Background Music for Location
Background Music for Location is music that is played that is not given prominence or used as a feature of a licensee’s location. It includes music contained in television programs and films – for instance, when programs are played via a television.
Background music has been a feature of APRA’s public performance music licensing since the 1930s and is typically recorded music that is delivered via a sound system at the premises (CDs, Digital Music Services, etc.), but can also be from televisions, radios, and commercial background music suppliers.
Rate Structure:
The rate structure for Background Music under the HPTBC Scheme comprises six (6) tier options based on the number of televisions and/or music systems at the location – Sapphire, Diamond, Platinum, Gold, Silver and Bronze. Bronze, at the lowest rate, is limited to a single television and a single radio. Sapphire, at the highest rate, is available to those locations with 10 or more televisions, any number of music systems, and additional rights for publicly performing music from a digital music service.[1]
Coverage for music video screens is also accommodated for in the higher value tiers - Sapphire, Diamond, and Platinum.
The rate structure for each tier of use is a flat fee, with the rate depending on:
- the number of audible televisions used at the licensed location;
- the number of music systems and Music Video Screens, if any, used at the licensed location; and
- the device and/or source of music used.
The number of audible televisions and the number of music systems at a location are indicators of the value of music to the licensee. The use of multiple audible screens or music systems assumes a larger premises and therefore more customers. For example, a separate sports bar showing different content on screens to the main bar, or multiple bars, each playing different music.
The device or source of music is another indicator of the value of the music to the licensee. The less sophisticated the device or source, such as radio, the lesser assumed value of the use. For instance, it can be assumed that a licensee who chooses radio as the source for its Background Music is indicating less of an interest in the selection of musical works and the value to its business, compared to a licensee who uses a customised or even professionally curated digital playlist via a Music System.
Rate:
While the genesis of the rates was based on the rate for the use of APRA musical works as background music prior to the introduction of OneMusic Australia, which was the rate determined by the Copyright Tribunal in 2006 (adjusted for CPI)[2], the rates and the structure – including an uplift on those rates for sound recording rights - were agreed with the peak industry body, the Australian Hotels Association, as a result of commercial negotiations in the lead up to the launch of OneMusic Australia.
Background Music for Location under the HPTBC Scheme has been specifically developed to also allow licensees to add cover to copy music or to stream it from a digital music service in the event they are using devices or sources covered by relevant tiers (Sapphire, Diamond, Platinum and Gold). More information about the rate and rate structure for Digital Copy/Delivery is available HERE.
A deduction applies to all tiers for each location that is open fewer than 150 days per year.
2. Background Music for Dining
Background Music for Dining means music that is not given prominence or used as a feature of a restaurant. Background Music for Dining includes music played from radios, CD players, smartphones, tablets, TV screens, and other devices that are used in a restaurant’s dining area.
Rate Structure:
The rate structure for Background Music for Dining under the HPTBC Scheme comprises three (3) tier options based on the source of the music used at the location – Dining Package A, Dining Package B and Dining Package C.
Dining Package C, at the lowest rate, is limited to music played from a terrestrial or digital broadcast through TV and/or radio. Gold, at the highest rate, includes music played from an online stream or a music download via a personal digital music service or other online source.
The rate structure for each tier is a flat fee, with the rate depending on the Dining Area Capacity.
The Dining Area Capacity means the seating capacity of each of the Dining Areas.
A Dining Area is an area within the premises that is open to the public with seating for at least seven people. The primary function of the Dining Area is the sale of food.
Rate:
The rate is the same as under the Dining licence. More information about the rate and rate structure for Background Music for Dining under the Dining licence is available HERE.
3. Featured Recorded Music
Featured Recorded Music is recorded music played prominently (for example, a DJ playing music, or karaoke).
Rate Structure:
The rate structure for Featured Recorded Music is a flat fee, with the fee depending on the number of persons admitted to each FRM Area for each day of operation (24-hour period) per year.
FRM Area is the specific area within the venue where Featured Recorded Music performance can be heard.
Rate:
This rate was negotiated with the Australian Hotels Association, using the Recorded Music for Dance Use licence fee as a guide.
4. Recorded Music for Dance Use
Recorded Music for Dance Use means recorded music played specifically for the purpose of dancing such as in a nightclub or dance area within the premises.
Rate Structure:
The rate structure for Recorded Music for Dance use is an amount per person admitted to each RMFD Area for each day of operation (24 hour period) per year.
RMFD Area is the separate area within the venue where recorded music is played for the purpose of dancing.
Rate:
The rate is the same as under the Recorded Music for Dance Use licence. More information about the rate and rate structure for Recorded Music for Dance Use is available HERE.
5. Live Music Performance
A Live Music Performance is a performance where singers, musicians, or performers perform music live and no sound recordings are used (for example, a live band with acoustic guitars, drums, and keyboards).
Rate Structure:
The rate structure of Live Music Performance is a percentage of revenue, with the percentage rate depending on the method of payment to the live artist performer.
If the live artist performer is paid a fee to perform directly by the venue, including any monies paid to the performer from the box office for that Live Music Performance, the rate is 2.2% of Gross Expenditure on live artist performers for all relevant Live Music Performances.
If the live artist performer is paid only by a third party, such as a booking agent, the rate is 1.65% of gross sums paid for admission for all live music performances.
Gross Expenditure means all monies and the monetary value of all benefits receivable directly or indirectly by the live artist performer including all salaries, wages, profit shares, allowances, accommodation, traveling, and other expenses whether receivable by the Performer or an agent.
Rate:
The percentages 1.65% and 2.2% have been applied by APRA for decades.
6. Recorded Music Performance
A Recorded Music Performance is a live music performance which incorporates some recorded music that the performer hasn’t recorded himself or herself (for example, a hip hop show, or a drag show).
Where the entry fee for a Recorded Music Performance is more than $40, the premises will instead be licensed under the Events Scheme. More information about the Events Scheme is available HERE.
Rate Structure:
The rate structure for Recorded Music Performance is the sum of a fee for the PPCA Sound Recordings and a fee for the APRA Works and AMCOS Works.
The fee for the PPCA Sound Recordings is an amount per person admitted to each Recorded Music Performance multiplied by the number of admissions.
The fee for the APRA Works and AMCOS Works is a flat fee, with the rate depending on the method of payment to the live artist performer.
If the live artist performer is paid a fee to perform directly by the venue, including any monies paid to the performer from the box office for that Live Music Performance, the rate is 2.2% of Gross Expenditure on live artist performers for all relevant Recorded Music Performances.
If the live artist performer is paid only by a third party, such as a booking agent, the rate is 1.65% of gross sums paid for admission for relevant Recorded Music Performances.
Gross Expenditure means all monies and the monetary value of all benefits receivable directly or indirectly by the live artist performer including all salaries, wages, profit shares, allowances, accommodation, traveling, and other expenses whether receivable by the performer or an agent.
Rate:
This rate was benchmarked to the rates for Live Music Performance. PPCA has charged a per person rate for the use for decades.
7. Standalone Functions
The Standalone Functions licence category is for conference or meeting rooms regularly available for hire. Areas that are usually used as bars open to the public for normal day-to-day trading but occasionally hired for functions are not considered standalone function areas.
Rate Structure:
The rate structure for Standalone Functions is a flat fee, determined by calculating the applicable day rate by each 100 persons of the Standalone Function Area Capacity for each day the standalone function area is being used for one or more standalone functions, subject to a minimum annual fee.
The Standalone Function Area Capacity is the maximum capacity of each area made available for hire at the venue as advertised or offered to potential hirers.
Rate:
The day rate is the same as under the Function, Convention and Conference Centres licence. More information about the rate and rate structure for Standalone Functions under the Function, Convention and Conference Centres licence is available HERE.
8. Website Use
The use of OneMusic Australia’s music as background streams on websites is a licensing category that appears in a number of OneMusic Australia’s schemes, including the HPTBC Scheme. The fixed annual rate for Website Use is able to be ‘added on’ to a Background Music for Location licence.
More information about the rate and rate structure for Website Use is available HERE.
9. Digital Copy/Delivery
Digital Copy/Delivery covers the right to reproduce (copy) and publicly perform music from a digital music service and appears in a number of OneMusic Australia’s schemes, including the HPTBC Scheme. The fixed annual rate for Digital Copy/Delivery is able to be ‘added on’ to a Background Music for Location licence.
More information about Digital Copy/Delivery is available HERE.
10. All inclusive
The all inclusive package (excluding recorded music for dance use and standalone functions), for venues that host primarily live music several nights per week, can represent a discount on the relevant components when added together, and was negotiated with the Australian Hotels Association to reduce administration for such licensees.
[1] The right to reproduce (copy) and publicly perform music from a digital music service in a business setting (Digital Copy/Delivery). More information about Digital Copy/Delivery is available HERE.
[2] Reference by Australasian Performing Right Association Ltd [2006] ACopyT 3 at 27.