Cinemas tariff consultation

PRS for Music will launch its revised public performance tariff for cinemas (Tariff C) on 1 July 2024. The new tariff replaces the previous version which had been in operation for several years and was first published in 2005.

Tariff C will apply to the public performance of PRS repertoire at the following venues that show feature films, film trailers, idents, commercial adverts, and background music within the foyer:

• cinemas, art centres or other fixed premises at which the commercial exhibition of films regularly takes place on not fewer than three days weekly for a period of not less than four months during the year
• drive-ins, and temporary ‘pop up’ cinemas currently charged under our General Purposes tariff “Tariff GP.”

• Films and simulcasts metric: The new Tariff C has been simplified and now applies a single Pence Per Admission (PPA) metric to charge for the use of music in feature films and simulcasts. 
• Booking Fees: Tariff C will factor booking fees where the fee is included within the purchase price of the ticket. 
• Cinematic presentations of live music events e.g., concerts: The cost of the licence will be calculated using a PPA metric applying a seven times weighting vs the films and simulcasts PPA rate as opposed to 3% of net box office receipts. 
• Prompt Payment Discount (PPD): This will be phased out over the next two and half years; ending in January 2027. 
• Annual Review: Full or half yearly usage reviews will be available to exhibitors.
• Carers Complimentary Tickets: We will no longer charge a royalty for admissions from the UK Cinema Association (UKCA) CEA Card scheme where the carer(s) who accompanies a paying adult or child receives complementary entry. The CEA Card enables a disabled cinema guest to receive a complimentary ticket for someone to go with them when they visit a participating cinema.

1. Films and Simulcast Events
   
   Actual Admission with Booking Fees: 9.13 pence per actual admission
   
   Actual Admission without Booking Fees: 8.33 pence per actual admission
   
   
2. Cinematic Presentations of Live Music Events (CPLM)
   
   Actual Admission with Booking Fees 42.45 pence per actual admission
   
   Actual Admission without Booking Fees: 41.65 pence per actual admission
   
   

1. Outgoing tariff – 1 January 2024 to 30 June 2024 reconciliation
   You will be contacted by PPL PRS to provide a declaration of your actual admissions and net box office receipts to reconcile the 1 January to 30 June 2024 accounting period. The prompt payment discount for any reconciliation for this period will be calculated at 4% of your invoice total.  


2. New tariff - 1 July 2024 to 31 December 2024 estimated admissions
   You will be contacted again in Q3 2024 to provide an estimate of your admissions from 1 July to 31 December.  PPL PRS will apply the ‘without booking fees’ films and/or CPLM PPA rates to the appropriate declared admissions. You are required to start providing a breakdown of your actual admissions with and without a booking fee at your annual review from January 2025 onwards. PPL PRS will calculate the balance due and apply a retrospective royalty to the booking fee uplift.  The prompt payment discount will be applied at 3% for this period.

1. 1 July to 31 December 2024 admissions reconciliation
   You will be contacted to provide your actual admissions to reconcile for the previous six-month accounting period, with or without booking fees.
2. 2025 estimated admissions
   You will be offered a choice of two options to report your estimated admissions to PPL PRS. 

• Annual declaration – A single estimate of annual admissions per site covering the period between 1 January to 31 December, to be provided by 31 January.
• Biannual declarations – Two admission estimates declared per year. The first covering the period between 1 January to 30 June, to be provided by 31 January; and a second declaration covering the period between 1 July to 31 December, to be provided by 30 June.

The prompt payment discount will be applied under the following guidelines.

• For the January renewal, box office receipts/admissions declarations and payment must be received by PPL PRS no later than 31 January.
• For the July renewal, box office receipts/admissions declarations and payment must be received by PPL PRS no later than 31 July.

Actual admissions for the purpose of the new Tariff C means all admissions (per person) to the cinema screen(s) of the exhibitor during the licence year. This also includes admissions via complimentary tickets, employee passes and subscription cards or similar.  Admissions from the UKCA CEA Card are excluded from actual admissions.

The prompt payment discount will be phased out over the next two and half years and will cease to exist from 1 January 2027. The following discounts will be applied up until 2027.

• 1 July 2025 to 31 December 2024 (3% discount)
• 1 January 2026 – 31 December 2025 (2% discount)
• 1 January 2026 – 31 December 2026 (1% discount)

We recognise the value of cultural outlets such as cinemas to our communities and are always mindful to avoid overburdening smaller enterprises. Therefore, the low admission discount thresholds and percentage discounts have been retained from the outgoing tariff.

The monetary sums in the tariff will be adjusted annually for inflation with effect from 1st January each year. The adjustment will apply to the rates applicable to the previous tariff year, and will be made in line with the Consumer Prices Index inflation rate (to the nearest two-decimal places of a whole percentage point, unadjusted, as published by the Office for National Statistics) in the preceding tariff year to the previous August.

The new Tariff C (July 2024 version) includes two individual rates for tickets sold with or without the inclusion of a booking fee (9.13p including booking fee and 8.33p excluding booking fee). Where an exhibitor declares the number of tickets sold with/without a booking fee, they will be charged the lower PPA rate (8.33p) on all tickets excluding a booking fee. If the exhibitor is unable to separate and declare tickets sold with or without booking fees, PRS will charge the higher PPA rate (9.13p) for all admissions.