The Copyright Tribunal has ruled in favour of PRS For Music in its dispute with the UK Cinema Association (UKCA) over the licence for music used in cinemas.
The UK collective rights management organisation argued that the previous tariff, which was last negotiated over 20 years ago, no longer reflected the realities of today’s cinema industry, with the Tribunal accepting that films are using more music now than in 2005.
PRS says the updated cinema tariff – which includes an increased royalty rate – will make the licensing process more straightforward for cinema operators while delivering enhanced value for songwriters, composers and rightsholders.
The revised tariff introduces a simplified cinema royalty structure, with fees based on admissions rather than ticket revenue. The rate increases from 7.33p to 7.9p per cinemagoer, while the annual minimum fee per screen rises from £75 to £131.50. Both charges will rise annually in line with inflation from January 1, 2025. Royalties for concert screenings will also increase from 3% to 4% of ticket and booking fee revenue.
It will replace the previous dual-tariff system, which permitted cinemas to pay a percentage of ticket revenue instead.
The PRS team have worked tirelessly over many years to secure terms which better reflect the enhanced use of music in films
Dan Gopal, PRS For Music
The new terms will take effect once the updated tariff has been finalised in consultation with UKCA and approved at a further Tribunal hearing. The higher royalty rates will apply to relevant music use dating back to July 1, 2024, and will rise at the start of each year in line with inflation.
“We welcome the Tribunal’s decision which recognises the increased value of music in the overall cinema experience," said PRS For Music chief commercial officer Dan Gopal. "The PRS team have worked tirelessly over many years to secure terms which better reflect the enhanced use of music in films and the significant contribution of our members’ work to the enjoyment of the filmgoing experience.
"This judgement validates those efforts, and will, alongside the recently announced reduction in PRS’ cinema admin rates, ensure that songwriters, composers and their publishers receive more royalties when their works are used in cinemas.”
PRS says it will work with the UKCA over the coming weeks to help members move to the new terms and adjust the interim royalty payments made while the case was under way.
