I have not read the laws but mostly likely this applied to commercial use already for years and they wanted it applied to private use.
However, it's a racket. To give an example, the happy birthday song is illegal to 'broadcast without permission of copyright holders'. But, the restaurant owner can buy a license from a copyright group for a fee.
Second example; Imagine being a school and dealing with students who submit assignments with copyrighted content. It's illegal to accept such submissions without approval. So, all schools usually have to pay for a license from copyright groups (Music, photography, video, etc).
Here's a really good article on it from Australia: http://insidestory.org.au/the-copyright-cops/ (Most, if not all copyright groups in Australia are Hollywood-based).
Here's a copyright group website: http://www.musicrights.com.au/fact-sheets/usingmusicinschool...
> How do I know if I am doing the right thing at school?
> To make using music in schools easier, there are a number of licences in place between copyright owners and schools. These are set out at the end of this Guide. A reference to (Licence # ) is a reference to the licence applicable in each instance.