Pubs could pay more to play music after consultation
The music licensing company PPL said the current specially featured entertainment (SFE) tariff does not set fees high enough to reflect the value of using recorded music at events.
However, the trade bodies UKHospitality and The British Beer & Pub Association cautioned that an increase would mean additional pressure on venues and their capability to offer recorded music to punters.
PPL said today (4 July) they would like to introduce a new tariff to better meet the rights of the company’s music industry members.
The SFE tariff relates to special events like DJ nights and has been implemented for around 30 years.
A consultation paper outlining PPL’s principles was sent to licensees hosting SFE events in nightclubs, pubs and bars, cafes and restaurants, and hotels.
Extra pressure on pubs
UKHospitality chief executive Kate Nicholls said the potential increase means extra pressure on pubs.
“We see no reason why there should be a need to fundamentally change the SFE tariff and increase costs for businesses already struggling against a swathe of taxes.
“It is clear that if PPL’s current thinking were to be implemented it would result in massive increases in licence fees, inevitably leading to higher prices for customers and significantly reducing the ability of establishments across the UK to play recorded music, when mixed by DJs or for dancing.
“UKHospitality will be liaising with our members and other stakeholders to robustly respond to these proposals, to avoid additional costs that would drive music out of venues and ultimately close some hospitality businesses.”
BBPA chief executive Brigid Simmonds said the idea would be disappointing for the industry.
“We are extremely disappointed that PPL are proposing such eye-watering increases to their Specially Featured Entertainment (SFE) tariff which covers pubs, clubs and other venues that put on discos and DJ events for customers.
"The consultation proposes a possible 480% increase - from 3.8p per person per hour to 22p per person per hour. This would be on top of proposed structural changes that could more than double this figure, will simply not be viable for many licensees at a time when pubs are already facing major cost pressures in terms of increasing taxes and other regulatory costs.
The BBPA said they welcomed discussions on calculations of the tariff yet believed any impact on venues must be considered before increasing costs is proposed.
“As PPL note in the consultation document, the SFE tariff is already increased annually by the Retail Price Index (RPI). Of course, RPI itself is now a discredited measure of inflation, but the use of this measure will have seen the SFE tariff increase by over 50% since 2003.
This is compared to a 38% increase in the Consumer Price Index, the official measure of inflation, during this period," Simmonds added.
'Fairly rewarded'
PPL chief executive Peter Leathem said the company welcomed responses from licensees in reviewing the tariff.
“Through licensing the use of recorded music at SFE events, we are keen to see our repertoire continue to support and drive entertainment within the hospitality sector, he said.
“In an environment where recorded music forms a very significant part of the business proposition, it is important that those who invested their time and talent in creating such music are fairly rewarded.
“We therefore welcome responses from our licensees in order to help us finalise our views on a potential new SFE tariff.”
The deadline for responses to the paper is 28 September 2018.
