Live music could have a renaissance, while DJs could be shown the door, when copyright payments paid by entertainment venues rise by 1,400 per cent.
After legal appeals against a decision to increase copyright payments from seven cents per person to $1.05 by 2012 were lost last week, pubs and clubs are thinking of ways to circumvent the price hike, Fairfax newspapers say.
The Australian Hotels Association (AHA) says it will force venues to think outside the square.
"In many cases, given the low returns for these sort of facilities, they will seriously have to consider whether they play music for dancing or offer dancing," AHA director of national affairs Bill Healey said.
"We've got to think right outside the square. But the one thing we have said is there's not the money in the market for the managers of venues to pay these rates."
Co-owner of Sydney nightclub Ruby Rabbit, Phil Cawood, agreed.
"It may completely change the industry," he said.
"Music cycles last about seven to 10 years. We're on the pale end of the DJ boom - live music may be the next big thing."
Federal Arts Minister Peter Garrett, however, supported the copyright increase, saying: "At last working musicians and songwriters will receive a fair return for their work."
