Cinemas
The Cinemas scheme has been developed by OneMusic Australia (OneMusic) for permanent cinemas and similar locations which offer regular screenings of films.
One-off or casual film screenings and film festivals are covered by OneMusic’s Film Screenings licence; for which the Rate Setting Guide is available HERE.
This Rate Setting Guide describes how OneMusic sets the rates under the Cinemas scheme. For more information about how OneMusic 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, an independent or Art House cinema) to large, multi-location operators (for example, Hoyts) and are licensed to screen films to the extent they contain music, including permission to play OneMusic’s music in previews, advertisements, in a theatre foyer or other common areas, and via telephone music on hold.
This scheme provides coverage for the use of OneMusic’s music in these licensing categories:
- Music for Cinemas
- Featured Music Performances
- Telephone on Hold
1. Music for Cinemas
Music for Cinemas includes both Music in Cinematograph Films and Background Music.
Music in Cinematograph Films means musical works performed in Cinemas by means of the exhibition of cinematograph films.
Background Music means any music used at the location, including music contained in television programs and films, that is not given prominence or used as a feature of that location. Background Music includes music played in a Cinema’s Common Area, including in a bar or concession stand area, and when music is contained in cinema promo reels that may be playing on television screens in those areas.
Rate Structure:
The rate structure for Music for Cinemas under the Cinemas scheme comprises two (2) tier options based on the rights required.
Option A applies to each location where a licence is required for the use of PPCA Sound Recordings as Background Music. Option B applies to each location where no licence is required for the use of PPCA Sound Recordings as Background Music.
The rate structure for Option A comprises quarterly fees depending on:
- for APRA Works used as Music in cinematograph films and as Background Music, the Gross Box Office Receipts;
- for PPCA Sound Recordings used as Music in cinematograph films, the number of screens at the location and the annual screenings; and
- for PPCA Sound Recordings used as Background Music, the size of the Common Area in m2.
The rate structure for Option B comprises quarterly fees depending on:
- for APRA Works used as Music in Cinematograph Films and as Background Music, the Gross Box Office Receipts; and
- for PPCA Sound Recordings used as Music in Cinematograph Films, the number of screens at the location and the annual screenings.
Common Area means the total size of the area or areas of the location where Background Music is audible, including foyers and other common areas.
Gross Box Office Receipts means the total amount paid for admission to screenings of cinematograph films at all Cinema locations (including the value of all tickets sold or redeemed), excluding government taxes or other charges, such as GST.
Rate:
The APRA rate structure was agreed in commercial negotiations with representatives of the cinema industry including their peak industry body, Motion Picture Distributors Association of Australia, and their legal representatives, in 2006.
The PPCA rate structure for Music in cinematograph films is the rate that was charged by PPCA prior to the commencement of OneMusic and has been in place since at least 2000.
The PPCA rate structure for Background Music is the OneMusic rate for Background Music used by the Places of Interest Activity and Amusement licence, for which the Rate Setting Guide is available HERE, but subject to a 50% deduction on account of the APRA ‘cinema rate’ also covering such Background Music use.
2. Featured Music Performances
Under the Cinemas scheme, the Featured Music Performances licence category is for performance of music (recorded or otherwise) at the Cinema that is given prominence as a feature of that Cinema or any part of that Cinema. Featured Music includes performances, including live performances or karaoke, that have been advertised to the public as having music as a feature such as ‘Live DJ Every Friday’, ‘Live Music Thursday’, or where music is advertised as part of a specific event or series of events.
Featured Music Performance does not include performances where there is a specific Entry Fee or where Gross Expenditure on Live Artist Performers is greater than $4,000. The Cinema may need to obtain a separate Event licence (available HERE) from OneMusic for such performances.
A Live Artist Performer is any performer participating in the performance of music including featured and back-up singers, musicians, DJs, electronic music artists, dancers etc.
Gross Expenditure means the total of all salaries, wages, profit shares, allowances and accommodation, travel and other expenses (excluding GST), of the Live Artist Performer or their agent, manager, assistant, or associate.
Rate Structure:
The Featured Music Performances rate is a fixed amount for each day Featured Music is performed at the cinema, with two price tiers depending on the size of the Common Area in m2.
A daily set fee was considered the most appropriate rate structure given that there is unlikely to be a box office (as entry will typically be free), reporting of attendance numbers would be difficult to monitor, and it would be difficult to impose reporting obligations on licensees.
Rate:
The licence fee was benchmarked against the licence fees for Featured Recorded Music under the Hotels, Pubs, Taverns, Bars and Casinos Licence Scheme, which is $0.264 per person admitted. In an area of 2,000m2 and assuming one person per m2, the per person rate under this licence is $0.00638 for each day Featured Music is performed at the Cinema.
3. Telephone on Hold
Telephone on Hold music under the Cinemas scheme involves the same rates and rate structure as under the Workplace Music and Telephone on Hold scheme.