shopkeeper on computer online

Small retail and convenience shops will be affected most under the new music licensing proposal

New retail music tariffs from PRS for Music will cost indies more than £1.2m, according to the ACS.

PRS

Under the new proposal, any business that previously had a reduced rate for a small audible area with a single radio or television will incur a £51.50 annual increase to their rates.

The proposal will also see changes to tariff bands and some of the largest stores, between 3,000-4,000 sq m and 5,000-7,000 sq m, will see a reduction in their rates.

The ACS says the changes will cost convenience retailers £1.26m more each year and small shops under 100 sq m will bear the majority of the cost.

“The proposed changes from PRS for Music will disproportionately affect smaller retailers,” said ACS chairman James Lowman.

“We do not believe that removing the reduced rate for the smallest retailers is appropriate, especially at a time when all convenience stores are experiencing cost increases in many other areas of their businesses.”

The ACS is calling for PRS for Music to reinstate the reduced rate for small audible areas, maintain five bands between 0-500 sq m instead of moving to three larger bands and to graduate the cost increases between bands more fairly.

“PRS’ planned tariffs will cut costs for many larger stores whilst squeezing more from small stores, and this is something that needs to be urgently addressed,” said Lowman.

Head of licence simplification & tariff development at PRS for Music Steve Hills said, “We would like to thank everyone who has taken part in our Retail Tariff consultation, the purpose of which is to engage with our customers and trade bodies and participate in an ongoing dialogue about simplifying our retail tariff.”

“We will be reviewing all responses received, which includes comments and suggestions received from smaller retailers, and will be publishing the results before we make any decisions regarding our current retail tariff.”