SOCAN Tariff 23: Hotel In‑Room Fees 2025–2027

Summary#

This notice from the Copyright Board sets the fees that hotels and motels must pay for in-room pay-per-view movies and music for the period 2025–2027. It fixes rates at 1.25%, 0.3125%, and 5.5% of different kinds of guest fees or provider revenue, and spells out reporting and payment rules.

What it does#

• Establishes SOCAN Tariff 23 – Hotel and Motel In-Room Services (2025-2027) for the communication of works in SOCAN’s repertoire to hotel and motel rooms.
• Sets royalty rates:
  • 1.25% of the fees guests pay to view audiovisual works other than mature audience films.
  • 0.3125% of the fees guests pay to view mature audience films that contain music or other works covered by SOCAN.
  • 5.5% of the revenues of a provider that offers a musical service to rooms.
• Defines a “mature audience film” as a work whose main content is sexual activity and that is separately marketed as adult entertainment.
• Requires payments and reports:
  • Payments due no later than 60 days after the end of each quarter.
  • Reports must show fees collected, titles shown, which films contain SOCAN‑licensed works, and identifiers for music recordings.
• Lists what the tariff does not cover:
  • Music carried with a TV signal for private/domestic use.
  • Music delivered by online services (including online music, audiovisual, user-generated content, allied audiovisual, or game services).
  • Pay audio services, Internet access services, and video game services.
• Gives SOCAN the right to audit a user’s records (with notice, during business hours).
• Charges interest on late payments at 1% above the Bank Rate (published by the Bank of Canada), calculated daily and non‑compounding.
• States that amounts are exclusive of any taxes or levies.

Who's affected#

• Hotel and motel operators that offer in-room audiovisual pay‑per‑view or in-room music services will be directly affected.
• Companies that provide the in-room movie or music platforms to hotels and motels.
• Guests could see effects indirectly if operators change prices to cover the royalties.
• The tariff does not apply to many streaming and internet services, so typical guest use of services like personal streaming apps is likely not covered by this tariff.

Why it matters#

• It fixes how much hotels and service providers must pay for music and movie content in rooms for 2025–2027, so businesses can budget for those costs.
• It may affect the price of pay‑per‑view movies or in-room music subscriptions that guests see on their bills.
• It clarifies which services are excluded, meaning many online streaming services and internet access in rooms are not subject to these fees.
• Reporting, audit rights, and interest rules create administrative and financial responsibilities for affected providers.