As part of his copyright reforms announcment, the Attorney-General Philip Ruddock has signaled the removal of the statutory cap on licence fees paid by radio broadcasters for using sound recordings, explaining: “There is no reason why a statute should determine what the rate should be for music played on the radio.”
The Phonographic Performance Company of Australia (PPCA), which represents Australian recording artists and record labels, has welcomed the new reforms.
PPCA chief executive Stephen Peach said “We have felt strongly for some time that artists and labels were not receiving a fair return from commercial radio.”
Joan Warner, CEO of Commercial Radio Australia expressed surprise at the move saying: “This could lead to spiraling payments by radio stations to record companies, and we are especially surprised as we were told by the Government only a couple of months ago that it was not inclined to change the cap at this time.”
“It is of significant concern that the Federal Government has chosen to take the side of the multi-billion dollar global record industry over Australian radio stations at a time when costs are rising and revenues are unstable for the local industry, particularly for radio broadcasters in regional areas.”
“In addition, commercial radio stations have commenced planning for the digital rollout, at considerable expense, of superior radio services to all Australians using digital radio technology.”
“It is also common knowledge that the advertising market for radio has been softer and unstable, and, as a result of Government policy, there are more radio stations than ever before competing for a shrinking advertising dollar.”
“The commercial radio industry, as part of the consultation on the statutory cap, has provided the Government with a significant amount of detailed argument and rationale for retaining the cap. It appears the Government has, at this point, chosen to ignore the needs and concerns of the Australian radio industry”
“However, we are pleased to note that there will be further consultation on the legislation. We will be seeking meetings with relevant Ministers, as well as with local Liberal and National Party members, during the consultation period to restate the case for the Australian radio industry.”