Performing Rights Fee Calculator

The performing rights fee is calculated based on three main factors: the venue capacity, the frequency of events per month, and the rate per attendee. The formula typically multiplies the venue capacity by the rate per attendee, then multiplies the result by the number of events per month to determine the monthly fee. To calculate the annual fee, the monthly fee is multiplied by 12. This ensures that the licensing cost reflects the scale and frequency of music usage at the venue.

Yes, performing rights organisations (PROs) like ASCAP, BMI, and SESAC often provide guidelines or negotiated rates per attendee. These rates can vary depending on the type of event, the genre of music, and the venue's location. For example, smaller venues may negotiate lower rates, while larger venues or high-profile events may incur higher rates. It's important to consult with your PRO to establish a rate that aligns with industry standards and your specific circumstances.

Venue capacity is a critical factor because it represents the maximum potential audience for an event. Larger venues with higher capacities typically pay more in licensing fees since they have the potential to reach more attendees, which increases the value of the music being performed. Even if an event doesn't sell out, the licensing fee is often based on the full capacity to account for the venue's maximum usage potential.

If your event frequency increases or decreases during the year, you should update your licensing agreement with the performing rights organisation. Most PROs allow adjustments to reflect the actual number of events hosted. Failing to update your agreement could result in either overpaying or underpaying, which might lead to compliance issues or unexpected fees. Regularly reviewing your event schedule and recalculating fees can help you stay accurate.

Yes, free events are still subject to performing rights fees if music is publicly performed. The licensing requirement is based on the public nature of the performance, not whether attendees pay an entry fee. Even charity events or open mic nights must account for these fees to ensure compliance with copyright laws. Be sure to include all events, regardless of ticketing, in your calculations.

To optimise licensing costs, consider bundling your license with a subscription model offered by some PROs, which may provide discounts for venues with consistent event schedules. Additionally, accurately track your event frequency and venue capacity to avoid overestimating fees. Diversifying your event offerings, such as hosting smaller events or off-peak performances, can also help balance costs while maximising audience engagement.

Underreporting venue capacity or event frequency can lead to significant legal and financial consequences. Performing rights organisations conduct audits to ensure compliance, and discrepancies may result in fines, back payments, or even legal action. It's crucial to provide accurate data and maintain transparency to avoid these risks and maintain a positive relationship with the PROs.

Regional variations can impact performing rights fees due to differences in local market conditions, licensing regulations, and PRO policies. For example, urban areas with higher demand for live music may have higher rates per attendee, while rural areas may see lower rates. Additionally, some countries have different copyright laws and licensing structures, which can influence the calculation methodology. Always consult with your local PRO to understand the specific requirements in your region.