The Phonographic Performance Company of Australia (PPCA) will have its day in court next week when it argues an increase in the 1% cap on royalties paid by radio for use of recordings.
Since 1969, commercial radio stations in Australia have been required to pay artists and labels no more than 1% of their gross annual revenue for the right to broadcast music.
A cap for the non-commercial ABC was set at .5c in 1969 and has never been adjusted for inflation. In 1975, the ABC launched it youth music station 2JJ in Sydney and in 1980 expanded it to FM and national as the Triple J Network.
“It is unfathomable to think that there is no other copyright in Australia that is the subject of a statutory price cap,” says PPCA CEO Dan Rosen. “ After 40 years of protection, all we ask is for the chance to negotiate a commercial rate with the radio sector, so that Australian artists and labels are finally fairly rewarded for their contribution to commercial radio profitability, which has continued to rise steeply on an annual basis. It is a challenge that needs to be fought, on behalf of all Australian artists and record labels”.
George Ash, the head of Universal Music Australia and Chairman of PPCA added, “Commercial radio uses music to attract around nine million people every week across Australia. This enables them to drive significant revenues and whilst we are proud of our part in helping the radio industry raise revenue and drive profitability, this relationship with the industry is unfairly capped by an antiquated and unjust piece of legislation.”
“It is imperative artists and labels are fairly rewarded for their contribution to radio’s profitability and the lifting of this legislative cap will allow both industries to find a fair and positive long term commercial relationship where artists are rewarded justly for their creative works”.
PPCA will argue that the current caps are well below those in similar territories such as the UK and New Zealand and unfairly limits the amounts paid to artists and labels.
More next week.
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