SOCAN tariff for cinemas 2025-2027

Summary#

This Canada Gazette item publishes the Copyright Board’s tariff for music in cinemas called SOCAN Tariff 6 – Motion Picture Theatres (2025-2027). It sets how much movie theatres must pay SOCAN based on ticket sales for the years 2025-2027, and explains reporting, recordkeeping, and audit rules.

What it does#

• Sets annual royalty rates on a theatre’s ticket revenue for 2025-2027:
  • 2025: 0.094% of general admission revenue (minimum $200.00 per theatre).
  • 2026: 0.096% of general admission revenue (minimum $200.00 per theatre).
  • 2027: 0.098% of general admission revenue (minimum $200.00 per theatre).
• Defines how theatres calculate “general admission revenue” (tickets sold by four categories: adult, child, senior, and other) and clarifies a “semi-annual period” runs January to June and July to December.
• Requires theatres to file a report and pay fees no later than 30 days after each semi-annual period, showing tickets sold by category, average non‑premium ticket prices, and the revenue.
• Requires theatres to keep records for six years so SOCAN can verify the reports.
• Allows SOCAN to audit theatres’ records during that six‑year period. If an audit shows an understatement greater than 10%, the theatre must pay the reasonable audit costs (except where the error was SOCAN’s).
• Sets interest on late payments at a rate equal to 1% above the Bank Rate, calculated daily and not compounded.
• Says the tariff does not cover standalone concerts or music performances when films are not an integral part of the program.
• Notes an explicit payment deadline for amounts covered by the tariff: Friday, November 20, 2026.

Who's affected#

• Movie theatres and any establishments that exhibit films in public will be directly affected — they must report ticket sales and pay the tariff.
• SOCAN (the Society of Composers, Authors and Music Publishers of Canada) is the collecting organization named.
• Small or independent venues may be especially affected because of the $200.00 minimum fee per theatre each year.
• It is not clear from the notice whether any niche exhibition types (e.g., pop-up screenings, festival-only venues) are treated differently; the tariff applies to places exhibiting motion pictures.

Why it matters#

• The tariff determines a predictable, small percentage fee theatres pay for the right to publicly perform music in films. The rate rises slightly each year from 0.094% to 0.098%.
• The $200.00 minimum means tiny venues will pay a fixed baseline even if their ticket revenue is low.
• The reporting and six‑year recordkeeping requirement creates an administrative task for theatre operators and a potential audit risk; underreporting over 10% can trigger audit-cost charges.
• Late payments carry interest at 1% above the Bank Rate, so missing deadlines can add cost.
• If you run, manage, or plan a theatre, or attend special film events, this affects how much the venue pays and how they track ticket sales.