Festival ticket prices set to rise again?

Proposed royalties hike, VAT increase to blame

Photographer: Sara Bowrey05 July 2010

Festival-goers are already set to be hit in the pocket when VAT rises to 20% in January but organisers fear that the PRS’ plans to increase the enforced levy on tickets could mean higher prices, reports the Guardian.

Currently, the PRS take a 3% rate from all ticket sales, but following a consultation in June the company is suggesting a new royalty payment structure that runs inline with Europe as well as looking at adding its levy to sponsorship, merchandise and guest tickets.

Executive director licensing at PRS for Music, Jeremy Fabinyi, said: "It is right that we continually review our charges and approach, ensuring there is a fair balance between music users and creators.

“The live music industry has changed considerably in the last 20 years and this consultation will be open to everyone, to discuss whether the current tariff structure is relevant for today's live scene in the UK."

The plans have already seen a backlash from festival organisers with Reading, Leeds and Latitude chief Melvin Benn saying that it would “unquestionably” mean that ticket prices rise.

Alison Wenham, chairman of the Association of Independent Festivals (AIF), said: "We are asking for an extension so that AIF members and indeed all festival promoters have a chance to openly discuss the proposed tariff changes in a spirit of co-operation commensurate with our common goal of preserving and stimulating growth throughout the UK live music sector, and preserving the balance between entrepreneurial risk and fair reward.”

Do you think that ticket prices are already too high? If these plans come into place, will you be priced out of a festival? Or do think that it’s time to look at the pricing of festivals and their impact?


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