PPCA Welcomes Federal Government’s Support For Investigation Into Radio Caps On Artists’ Licence Fees

Josh Pyke

The Phonographic Performance Company of Australia (PPCA) has welcomed the Federal Government’s support for further investigation into the removal of current caps on licence fees radio broadcasters pay for the use of artists’ sound recordings.

• PPCA Responds To Copyright Tribunal's Ruling On New Radio Broadcast Licence Rate

Royalty payments from songs played on the radio are quite low in Australia. National commercial radio stations currently pay 0.4% of broadcast revenue in sound recording royalties—a stark contrast to the 3 to 7.5% payments in comparable markets such as Canada, the UK, and Germany.

The said radio caps were introduced and legislated in 1968. PPCA argues that the caps restrict the Copyright Tribunal’s ability to determine fair market rates for sound recording royalties, with artists losing out on millions in potential royalty payments.

As PPCA notes, Australia is the only country in the world to still feature such restrictions. However, the long-standing caps could be coming to an end as six independent reviews have recommended their removal.

An independent study conducted by Mandala found that removing the caps could see Australian artists receive an additional $4.8 million in royalties and an incredible 78% increase in income from songs played on the radio.

PPCA Chair and ARIA Award-winning artist Josh Pyke described removing the cap as the “right thing” for Australian artists, adding that Australian artists and right holders “deserve the right to negotiate” away from the cap.

“Removing the 1% cap is simply the right thing to do,” Pyke said. “It’s impossible to defend an artificial cap set as a short-term measure over 40 years ago. Artists and rights holders deserve the right to negotiate free of this artificial constraint.”

ARIA and PPCA CEO Annabelle Herd outlined the evidence base of removing the caps and how artists would benefit.

“The evidence base for removing these caps is already overwhelming. A cost-benefit analysis will confirm what Australian artists have long known: that a billion-dollar radio industry, built on the back of their music, can afford to pay a fair rate for the recordings it relies on,” Herd said.

“We sincerely thank Senator David Pocock for his continued championship of Australian music and for bringing this issue before the Parliament. We also thank Senator Sarah Hanson-Young and Dr Sophie Scamps MP for their strong support.”