Cover Charges Set To Climb

Local News, By angy, 11th July, 2007

Think you’re paying enough to go clubbing already? Well get ready to pay more with the news that industry body Phonographic Performance Company of Australia (PPCA) has won its legal fight to raise music licensing fees for recorded music, meaning that both nightclubs and dance music will have to pay more per punter for every night or event where recorded music is played. This will surely pass onto higher club entry and ticket prices; but is it a loss for clubbers or a win for producers?

Following a ruling by the Copyright Tribunal of Australia yesterday, the fees paid by venues that play recorded music will rise from its former flat rate of seven cents per patron per song, to a rate that can go as high as $3.07 per person depending on the scale of the event. Breaking it down, clubs will now pay a licence fee of $1.05 a person based on the club’s capacity, which means that a club that holds 1000 people for instance will pay $1100, even if the venue is only half filled for the evening.

The rate paid by dance party organisers will now rise from 20 cents to $3.07 cents per person, with a ‘dance party’ defined as a one off or occasional event and not held regularly at a nightclub’s premises. The Tribunal claimed that in its decision that it had found a rate of reparation for artists that delivers the fair market price for the privilege of playing the recorded music.

“If it be the fact that the market rate is 30 times the rate that has hitherto been charged… that is no reason why it should not now charge that rate.”

Marcus Bourget, Chair of Mardi Gras, was disappointed to hear about the decision. “We’re a not for profit organisation, but unfortunately we won’t be able to get an exemption for this. It means that for a 10,000 person party, it’s an extra $30,000 that we’ll have to cover”.

For organisations like Mardi Gras, it means even more of a balancing act. Mardi Gras already struggles to remain competitively priced, given that they have a parade that they have to pay for.

“It means juggling to keep ticket prices competitive but also provide the production values that people want,” says Marcus. “We don’t get opportunities like other promoters to make that revenue back. For instance, our coat check is run by a charity, so we don’t get any of that money.”