Cinemas

Find out how this licence fee was set

C1.2	Tariff	APRA: Music in Films and Background Music	PPCA Music in Films	PPCA: Background Music	Featured Music Performances
	Formulation	Greater of: a) % of Gross Box Office Receipts; and b) $18.02 per Quarter (minima)	Per screen, per quarter	Quarterly rate per common area size (m2)	Per day, by common area size (m2)
(i)	Processes/methodologies	APRA’s cinema licence fee has been % of Gross Box Office revenue for cinemas since at least 1990s, likely even 1950s. Arms-length commercial negotiations occurred between APRA/MPDAA (on behalf of cinema operators) occurred in 2006. Industry consultation released in February and June 2018.	APRA’s cinema licence fee has been % of Gross Box Office revenue for cinemas since at least 1990s, likely even 1950s. Arms-length commercial negotiations occurred between APRA/MPDAA (on behalf of cinema operators) occurred in 2006. Industry consultation released in February and June 2018.	Taken from Places of Interest, Activities and Amusement (PIAA) rate (subject to partial rights discount)	Taken from PIAA rate (subject to partial rights discount).
	Underlying data used	APRA generally uses a mix of relevant data sources to determine licence rates and impact on a particular business. This includes common sources of music, shifts in demand and changes in technology.
	Summary of Analyses/Evaluations	None	None	None	None
(ii)	Tribunal Decisions	No	No	No	No
(iii)	Use of ACCC Guidelines: Hypothetical Bargain	No	No	No	No
	Use of ACCC Guidelines: Survey Evidence	No	No	No	No
	Use of ACCC Guidelines: Benchmarks	No	No	Yes. Taken from PIAA rate.	Yes. Taken from PIAA rate.
(iv)	Direct Licensing	No	No	No - cinemas cannot control music used in films.	No - cinemas cannot control music used in films.
(v)	Other Matters	None	None	None	None