Cafes, bars and nightclubs could all be targeted in a royalties review aimed at boosting fees collected for music played in public.

A shake-up of music industry charges is due this year and gyms and fitness clubs fear they may face a huge rise in the fees they pay.

In Australia, the record industry body is demanding big increases for music played in aerobic lessons and other fitness classes.

Phonographic Performances NZ managing director Kristin Bowman yesterday told the Herald the body planned to review public performance rates for music played in businesses after next month.

PPNZ licenses public performance and broadcasting rights for a number of artists, musicians and distributors, including the "big four": Sony, Warner, Universal and EMI.

Ms Bowman said no decision had yet been made on the businesses that could be singled out for review, but determining factors would include the length of time since the last review, how the nature of the business had changed, and how music was used in the particular business.

About a quarter of fees collected are returned to New Zealand artists and cafes, bars, nightclubs and gyms are all possible candidates for review.

PPNZ's Australian equivalent, Phonographic Performances Company of Australia (PPCA), has caused a panic in the fitness industry by going to court seeking a 4000 per cent rise in copyright charges. The move has left Fitness New Zealand chief executive Richard Beddie convinced the changes will be carried out here, if approved by the Australian Copyright Tribunal.

PPCA spokeswoman Felicity Moffitt told the Herald yesterday that the Australian agency was "in consultation" with the restaurant industry over music industry fees,

Ms Bowman said any changes in Australia would not necessarily happen here, and any local review would look at "all circumstances of the case".