PPCA and CRA welcome committee report suggesting removing radio caps warrants investigation


Annabelle Herd: “How many reviews will it take to remove these deeply unfair provisions?”

Phonographic Performance Company of Australia (PPCA) has welcomed today’s Report from the Senate Standing Committee on Legal and Constitutional Affairs on the Copyright Legislation Amendment (Fair Pay for Radio Pay) Bill 2023, while still urging the Government to move quickly on implementing the recommendation for further research.

The Report 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.

While PPCA says it will fully participate in the review, PPCA has already 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”.

This report states 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 says the recommendation to require 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.

“Most importantly, we sincerely thank Senator David Pocock for championing Australian music and bringing this issue before the Parliament.

“With Australian artists doing it tough at the moment, it’s never been more important to get the policy settings right for our homegrown talent, and Senator Pocock quite rightly saw this as a cost-neutral way to get artists paid fairly. We also want to thank Senator Hanson-Young and the Greens for being great supporters of Australian music and for supporting this Bill.”

Commercial Radio & Audio (CRA) chair Ciaran Davis has also welcomed the recommendation, stating it is good news for the 260 radio stations across Australia that CRA represents.

“This Bill would have had dire consequences for our industry,” he said.

“Commercial radio provides an essential service to communities across Australia, delivering local content, news and information in a challenging economic and regulatory environment.

“CRA expects that the cap debate can now be put to rest, to allow radio to sustain itself as a critical part of Australia’s media landscape and cultural identity.

“If there is to be further analysis, the focus needs to be on where the money is going, as we remain concerned that multinational record giants are profiting at the expense of Australian artists and industries.”

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