PPCA welcomes Federal Government support for further investigation into Radio Caps
The Phonographic Performance Company of Australia (PPCA )welcomes the Federal Government's support for a cost-benefit analysis into removing the current caps on licence fees paid by radio broadcasters for the use of sound recordings.
The radio caps, legislated over 55 years ago, restrict the Copyright Tribunal's ability to determine fair market rates for sound recording royalties. Australia remains the only country in the world with restrictions of this kind, and six independent reviews have recommended their removal.
An independent study by Mandala found that removing the caps could deliver an additional $4.8 million in royalties to Australian artists, with those played on radio seeing up to a 78% increase in income. Commercial radio stations in Australia currently pay just 0.4% of broadcast revenue in sound recording royalties, compared to 3–7.5% in comparable markets like Canada, the UK and Germany; while maintaining some of the highest revenue per capita globally.
PPCA Chair and ARIA Award-winning artist Josh Pyke said: “Removing the 1% cap is simply the right thing to do. 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 said: “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.
“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.”
For more information, please contact:
Andrew Knowles
M: 0449 510 357
E: andrew@skmediagroup.com.au