Radio industry makes desperate plea to keep fees to play music capped

The radio industry’s peak body and some of the nation’s biggest on-air stars have pleaded that unless fees to play music remain capped, the industry risks job losses.

Thousands of employees, executives and broadcasters from the nation’s biggest commercial radio companies – Nine Radio, Nova, ARN, SEN and ACE – have written to a Senate committee pleading for urgent action to be taken to ensure that fees for playing music on their stations are not increased.

A letter by the radio industry’s peak body, Commercial Radio & Audio, seen by The Australian, was sent last week to the Senate legal and constitutional affairs committee. It includes thousands of names and some of the biggest broadcasters in the industry, notably 2GB mornings host Ray Hadley, urging that the commercial radio industry be protected from fee hikes.

Copyright legislation first introduced in 1969 limits the amount that Australian radio broadcasters are required to pay artists and labels to 1 per cent of the station’s gross annual ­revenue.

“Radio is already paying a fair amount to play the music required to meet the legislated quotas,” the industry letter says. “Every year we pay almost $40m in fees to APRA (Australasian Performing Right Association) and PPCA (Phonographic Performance Company of Australia).

“If the 1 per cent cap on PPCA were scrapped, it would threaten the sustainability of our stations.

“We believe the solution lies not in scrapping the 1 per cent cap but instead taking a close look at how those fees are distributed.”

The PPCA is seeking a review of the 1 per cent cap. The CRA letter has formed its supplementary submission to the committee.

CRA chief executive Ford Ennals told The Australian: “While the Australian radio industry is thriving, we are not the ones with deep pockets in this fight when compared to the multinational record labels.

“Global music labels are trying to impose unsustainable financial demands that could lead to the closure of stations, the loss of local jobs and ultimately a reduced amount of Australian music being played.”

Commercial Radio Australia chief executive officer Ford Ennals.

The commercial radio industry employs more than 4300 workers; about 38 per cent are based in regional areas.

PPCA and the Australian Recording Industry Association chief executive Annabelle Herd, have argued that the “1 per cent cap should be removed”.

“We are not asking to dictate a fee, nor would we be able to, even without the cap,” Ms Herd said. “We are simply asking for the right to have a fair conversation about a rate, which is currently restricted by a 55-year-old piece of legislation originally intended to last no longer than five years.

“In a nation that prides itself on giving everyone a fair go, recording artists deserve fair pay.”

Ms Herd said in the 2021-22 fin­ancial year, 85.4 per cent of PPCA distributions were paid to individuals and entities based in Australia. “We genuinely believe commercial radio has an important part to play in the careers of Australian artists; we value its role and believe we should be working together,” she said. “This is why a fair market rate for sound recordings only seems fair. ”

More than 500 Australian artists have signed an open letter calling for recording artists and industry professionals to receive fair pay for the use of their music.

Originally published as Radio industry makes desperate plea to keep fees to play music capped