Royalties ruling: Radio’s promo power diminished but no need for new scheme
Radio play is less valuable to musicians, but there's far more music being played.
The findings of the two-year copyright battle between collection body PPCA and Commercial Radio and Audio (CRA) have been made public, with the increase in royalties payable to the record industry representing in part the decreased promotional value of radio.
As reported by Mumbrella last month, the PPCA achieved a 38% increase in the total licence fee collectively payable by commercial radio broadcasters to rightsholders for the use of Australian music on radio. The rate was previously set at 0.4% of gross industry revenue, and has been increased to 0.55%.
On current revenue that amounts to around $1.5 million in additional payments each year, to be divided among the songwriters and publishing holders, an increase the PPCA told Mumbrella “we would have never achieved through negotiation”.
