UKHospitality has today warned that proposed increases on recorded music tariffs under consultation would have a significant effect on the hospitality sector.
The trade body has submitted a response to Phonographic Performance Limited’s (PPL) consultation on proposed changes to the Specially Featured Entertainment (SFE) tariff applicable to pubs, bars, nightclubs and hotels. Proposed increases in the fee itself could see PPL bills increasing by as much as 470%+ for many venues.
UKHospitality Chief Executive Kate Nicholls said: “Under some of the proposed changes, venues could expect to shoulder a three-figure percentage increase on the basic per person fee level at a minimum. Additionally, PPL is also proposing a change in structure that is based on a venue’s capacity, rather than actual attendance. This means that pubs, bars or nightclubs could be charged for a full venue even if they are over half empty, which could raise costs even higher.
“Significant fee increases will be crippling for many businesses. The proposed change in fee structure would not just hit large nightclubs and bars, it will also spell trouble for pubs who want to host a weekly disco or other businesses wishing to play specially featured music.
“We have been liaising with PPL and raising our concerns, and we are hopeful that we can continue to work with them to avoid a significant cost increase for the sector.”