Studios Give Toddlers A Break With New Video Licensing Fee

MPAA-member companies announced Nov. 17 they’ve decided to charge daycare centers with fewer than 100 preschoolers only $1 per year in license fees for the right to show rented movies.

The announcement came in response to recent criticism leveled against Hollywood by Sen. Dianne Feinstein (D- Calif.) after she learned the studios were charging as much as $275 per year in public performance licensing fees to daycare centers.

Feinstein called the practice “unfair and mean spirited” since many pre-schools are “operating with tremendously limited resources.” The California Democrat threatened to offer legislation granting an exemption to daycare centers for the free use of videos.

The $l-per-year charge will be assessed against daycare centers with 100 moppets or less. A similar $1 per year fee is also charged for nursing homes of 100 or fewer residents, he noted.

For preschool establishments of more than 100 children, the license fee will remain at about a penny per day per preschooler, according to the MPAA. It’s still conceivable, however, that a daycare center with 101 children could easily be charged in excess of $200 per year.

The new policy will be in effect for 10 years.

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