Australian recording artists and record companies have countered the commercial radio industry’s position on the issue of copyright price cap reform in a submission to the parliamentary enquiry which is looking into the issue.

The coalition of artists and record companies have joined forces to seek the removal of what they call “an anachronistic statutory price cap on the fees paid by the commercial radio industry [which] has protected [it] from paying a fair market rate for the recordings used to attract and retain listeners.”

The coalition, working with Phonographic Performance Company of Australia (PPCA), says commercial radio has grown fat on subsidisation from the price cap.

PPCA Chief Executive, Stephen Peach says: “The main beneficiaries have been the proprietors of FM radio, which is now a $540 million a year business. The entire Australian commercial radio sector is now a $770 million a year industry.

“Radio, particularly the FM sector, in Australia is a mature, highly profitable industry that does not need a subsidy or legislative price protection for one of its key business inputs – recordings… Australian artists and copyright owners are seeking a fair price for their work and for the law to be updated so that it is consistent with all other comparable countries.”

The PPCA ”has welcomed the Federal Government’s decision to review the Copyright Act to determine whether or not the retention of the cap is warranted.”

The Attorney-General’s Department has issued a discussion paper on this issue and has sought responses from interested parties. PPCA lodged their detailed submission on 18 March and CRA lodged theirs this week.

In Australia, commercial radio’s annual broadcast licence fee payment is $2.75 million. The PPCA says international market rates are between 2-3%.