The cost of enjoying music in the workplace: Silence is golden and an awful lot cheaper than the radio

legal_updates

For one of our clients last year's licence cost £175 but for this year it has shot up to £477. So check it before you pay yours!

Author: Dennis Chapman
Published:
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This article is 9 years old.

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The Performing Rights Society (PRS) grant annual licences to establishments that play radio/TV music in their workplaces – dealer showrooms, garage workshops, staff canteens etc. However, you are encouraged to read any new licence renewals bills carefully.

For one of our clients last year’s licence cost £175 but for this year it has shot up to £477.  So check it before you pay yours!

That said don’t try to work out how they come to any price payable because they have so many possible tariffs you’ll need to hire Carol Vorderman to understand and to calculate.  Here’s one of their many examples:

3.1.1.1 A proportionate reduction will be made in calculating, under section 3.1.1, the royalties for any shift which has fewer than 25 employees to whom the music is audible.

Example calculation:

Shift 1 – music for 250 days, for 4 hours each day, for 115 employees:
250 days x 8 half hours x 5 units of employees x �0.0833 = �833.00
(no proportionate reduction)

Shift 2 – music for 250 days, for 4 hours each day, for 16 employees:
250 days x 8 half hours x 16/25 of 1 unit of employees x �0.0833
(proportionate reduction; see paragraph 3.1.1) = �106.62

Total royalty (before VAT) �939.62

Dennis Chapman

In remembrance of Dennis Chapman 1951 -2015

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