The Copyright Tribunal is currently hearing the latest dispute between the PPCA and the radio industry about how much commercial and ABC radio stations should pay in royalties to the record companies that own rights to the songs that are broadcast.
The hearing began this week and is listed to continue until 15th May.
Documents presented to the tribunal are currently confidential, with only a series of Orders about how the matter will be conducted being made public at this stage.
The dispute is not new.
The PPCA, on behalf of record companies and the artists they work with, claims that the 0.4% of radio industry revenue collectively paid by commercial radio companies and the ABC is not enough and that more money would mean more promotion and development of Australian recording artists. The community radio sector has a separate agreement with the PPCA that is not in dispute.
The radio industry says that the PPCA’s argument is too simplistic. The PPCA case does not acknowledge that additional fees are also paid to record companies and artists through the other two collecting societies, APRA and AMCOS. It also argues that the industry is further constrained by regulations that require a minimum amount of Australian music to be played.
Commercial Radio also argues that it is crucial in promoting Australian artists. The amount spent on events, promotion and collaborations is not taken into account in the 0.4% figures of the PPCA, according to the radio industry’s previous submissions on the topic over many years.
The PPCA, in preparation for its latest case comissioned research company Mandala to examine the economic impact of removing the 1% cap enshrined in legislation and confirmed in previous cases. Click the digram to enlarge it.
The chart shows the additional percentage paid to APRA/AMCOS in the bottom arrow that points to APRA, but does not break out that additional amount of money further. The main focus of the chart shows the 0.4% that goes to the PPCA then follows the money trail through the distribution channels that indicate that 67% of money paid by radio stations through the PPCA goes to international artists and recording companies.
Tracing the chart further shows how the Australian component of the rights pay outs is distributed to Australian performing artists and record labels. ARIA monitors the amount of Australian music tracks released each year to track commercial radio compliance with the quota.
Apart from this previously released public document, other court documents and submissions are not publicly available while the case is being heard.
CRA’s argument has been previously articulated in earlier court cases. Click the diagram to view an earlier submission.
In its 2023 submission the commerical radio industry said: “The big 3 record labels behind the PPCA (Sony, Universal and Warner) control around 70% of the industry and have global revenues of around $A40 billion – 40 times that of the entire Australian radio industry.” PPCA lists is licensors here.
When the Copyright Act was first gazetted in 1968 there were no music streaming services and the media landscape was very different. If the rules are changed, new players like Spotify and Youtube will need to be taken into account. Will there be an Australian quota imposed on those and other music streaming services? Or, to level the playing field, will the quota for radio stations be removed to align them with Spotify and Youtube?
The debate about quotas has been a regular issue of contention between the two industries for years, as we have reported each time the copyright agreements come up for renegotiation. We will await the outcome of the latest dispute as it plays out in court with high legal costs for each of the parties involved.
See some of our previous reports below.
Ciaran Davis’s opening statement to the hearing into Fair Pay for Radio Play Bill
PPCA mounts court case for more copyright fees: CRA disputes claims
Commercial Radio argues against lifting music copyright fees cap
PPCA submission on broadcast fees cap selective and misleading: Warner
With a foot in each camp, Wheatley takes sides in the PPCA dispute
All is forgiven as Radio and Music industries enter new collaborative era #RadioAlive2018
What’s Kyle’s pay have to do with the price of tea in China – or the fees paid to record companies?