The dance scene in danger: Why many dance schools are facing closure
For many dance schools in Germany, 2025 could be the year of disaster. GEMA fees - the costs for the use of music - are rising drastically and are causing the business models of many dance schools to falter. The new regulation, which applies from this year, no longer calculates the fees based on the number of square meters of dance floor, but on the net turnover of the dance school. This means that many businesses will see a massive increase in fees, while a few - mostly smaller, rural dance schools - will benefit from the change. But what happens to the others?
The increase in GEMA fees: A hard blow for many dance schools
The new GEMA fees from 2025 could bankrupt many dance schools. The new fee agreement is no longer based on the size of the dance school, but on the turnover that a dance school generates through courses and events. A full 4.46 percent of this turnover must now be paid as GEMA fees - in many cases this is two to three times what dance schools previously paid. This is a massive burden, especially for dance schools that are already struggling with financial problems after the coronavirus years.
"It's hitting us hard," says Uwe Mundt, owner of the Mundt dance school in Langen. "The fees have more than doubled and I can't just pass that on to my customers. Dancing shouldn't be a luxury!" The owners of other dance schools, such as Tanzschule Weiss in Offenbach, are also feeling the financial pressure. The GEMA bill for 2025 - based on the net income for 2023 - has more than doubled here too. Many owners are wondering how they can even cope with this problem without making their courses drastically more expensive.
GEMA or the fight for survival: What's left for dance schools?
The economic pressure is enormous and the future of many dance schools is in jeopardy. Because if a dance school is no longer profitable with the increased GEMA fees, it could close down. Especially after the difficult years of the pandemic, during which many schools had to close temporarily, this additional blow is fatal. For some dance schools, such as the Bäulke dance school based in Giessen, the situation has not yet changed drastically, as they can manage their fees better thanks to the flat-rate contract. However, there is also a problem here: any expansion of the business model, be it through new courses or events, could drive up GEMA fees even further - a clear brake on growth.
The question remains: How much longer can dance schools survive with these conditions? Given the competition from fitness studios, which also offer dance classes, and the constant adaptation to new trends such as TikTok challenges, it could be difficult for many dance schools to remain competitive.
Why do dance schools have to suffer so much?
GEMA has a clear mandate - it protects the rights of music creators and ensures that they are fairly remunerated for their work. However, the way in which this is now being passed on to dance schools seems questionable. Instead of designing the system in such a way that it is sustainable for everyone involved, the burden is being unevenly distributed. Dance schools, which are already on the brink of collapse after the coronavirus years, are now facing another financial blow.
An unsustainable system - Why dance schools urgently need a fairer way
GEMA has the right approach to protect the rights of artists, but the way fees are calculated is simply unrealistic for many small businesses. It is time that more sense of proportion was shown here too. Dancing is one of the last social activities that connects people and brings joy - if this culture dies because small dance schools can no longer exist, everyone will have lost out. There is an urgent need for a new, fairer approach that does not rob dance schools of their last breath.
Are you struggling with rising GEMA fees? Let our experts advise you now and find solutions for your dance school!
to the lawyerAt a fixed price of 119 EURO (gross)
