KTV-goers in China will probably have to pay more as the country's KTV clubs will be charged 12 yuan, or US$1.5 per room per day as a music and music video copyright fee. Concerning the new charge, the National Copyright Administration is soliciting reactions and complaints from the public until September 20th.
The National Copyright Administration announced early last week that China's KTV clubs will have to pay music and video copyright owners a fee amounting to 12 yuan per room per day. How are KTV clubs in Beijing reacting to the new charge?
Lv Hao is from Tango, a famous KTV bar in the capital.
"Of course, we hope the fee can be as little as possible. But the announced charge is still acceptable to us."
While Guan Wei, the PR manager of Melody, a major KTV chain operating in Beijing, says the fee is a bit too high.
"I think the fee is bit too high. We have three bars in Beijing and three outside Beijing. If one bar should hand in over 400 thousand, do the math, that's all together over 2 million a year just for the IPR fee."
Before, China's KTV clubs handed in 50 to 60 thousand yuan per year to the Music Copyright Society of China to pay for the use of copyrighted music. Now, as they also charge for the use of music videos, the new rules surely put more pressure on KTVs.
Customers are worried that KTV operators might shift part of the cost onto them, making singing in KTV bars more costly.
Although Tango and Melody have not planned any price rises for the near future, Guan Wei says a price hike will be the only solution if they can't make ends meet.
"If KTV clubs find it hard for them to cope with the burden, increasing prices will become an unavoidable trend."
Actually shortly after the introduction of the new charge, Cashbox, the industry leader jacked its prices up by 50 percent, though they deny the price hike was related to the fee.
Most consumers think they aren't the ones who should pay for the IPR fee. Still, a few say a reasonable price rise is acceptable.
"I think KTV clubs should pay for the copyright fee."
"Their shifting part of the fee onto customers is OK. But all? No!"
The National Copyright Administration is now collecting opinions about the new fee from the public until September 20th. And the details of when the fee will be charged and how the money collected will be allocated will be released alongside the final version of the charge.
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Director: Liu Chi