PPCA urges government to move quickly in radio cap fees review

By AdNews | 24 June 2024
 
Annabelle Herd, ARIA CEO.

The Phonographic Performance Company of Australia (PPCA) has welcomed a report from the Senate Standing Committee on Legal and Constitutional Affairs into the Copyright Legislation Amendment (Fair Pay for Radio Pay) Bill 2023, which recommends that the federal government conducts a cost-benefit analysis examining the impacts of removing the current caps on licence fees for the broadcast of sound recordings on radio.

The Bill amends the Copyright Act 1968 to remove restrictions limiting the Copyright Tribunal’s ability to determine the amount payable by commercial and ABC radio to artists and record labels for the broadcast of sound recordings.

These restrictions are often referred to as caps, or radio caps.

PPCA recently released a report by Mandala looking at the economic impacts of removing the caps which, according to this Committee Report, “shows clearly that increases to licence fees unequivocally strengthen much needed income streams to Australian artists”.

The Mandala report said that Australian artists could receive up to a 78% increase in radio royalties and record labels would have more revenue to invest in developing local artists if the caps are removed.

PPCA CEO, Annabelle Herd, said the PPCA are pleased that the Committee has recognised that this is a real issue for Australian artists and labels that warrants further consideration, but the recommendation to require yet another review is frustrating.

"How many reviews will it take to remove these deeply unfair provisions and put Australian artists on a level playing field with all other copyright holders and with profitable commercial radio networks that rely on music to bring in revenue of over $1 billion annually?" she said.

"All six reviews completed to date have found that the caps should be removed so PPCA can negotiate in a fair and free market."

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