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Gema, promoters agree on increased live music tariff

Germany's new concert tariff, effective 1 Jan 2018, will now be levied on net ticket sales, and rises to 8% for events with a capacity of more than 15,000

By Jon Chapple on 02 Oct 2017

Georg Oeller, Gema

Gema board member Georg Oeller, who was involved in the negotiations


German performance rights organisation (PRO) Gema has agreed a new concert tariff rate with promoters’ associations, bringing to a close three years of negotiations.

Effective 1 January 2018, tariffs will be levied on net, as opposed to gross, ticket sales, with other services included in the ticket price – such as, for example, fees for camping at festivals – also included for the first time.

The new rate will be 5.75% of net receipts for events under 2,000 people (it is currently 5% on gross receipts), 7.6% for 2,000–15,000-capacity shows (currently 7.2%) and 8% for events with a capacity of 15,000+ (currently 7.65%).

Gema tariff rates, 2018

The changes follow a round of negotiations between Gema (Gesellschaft für musikalische Aufführungs- und mechanische Vervielfältigungsrechte, Society for Musical Performance and Mechanical Reproduction Rights), which has more than 70,000 members, and the BDV and VDKD, which between them represent the majority of Germany’s concert promoters.

Gema board member Georg Oeller says the new tariff structure represents an “important step forward for the work of Gema. Particularly in the rapidly evolving market of ticket sales, including secondary ticketing, [these new rates are] of great importance for the evaluation of appropriate remuneration for musicians.”

In the UK, a similarly long period of negotiations is approaching its end, as PRS for Music moves towards replacing the current flat rate of 3% on gross box-office receipts.

 


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