Government Delays Commercial Radio’s Emerging Artist Act

June 1, 2024 79 5 5

australian music

The Australian music industry is grappling with neglect from commercial radio, and now the Federal Government has further complicated the situation by delaying a decision on artists’ royalty earnings.

Recent discussions have focused on proposed legislation before the Federal Parliament aimed at revising the caps on revenue that radio stations are required to pay recording artists for broadcasting their music. The committee’s recent recommendation is to conduct a ‘cost-benefit analysis’ to assess the impact of modifying the cap. Essentially, this recommendation amounts to suggesting yet another review, reflecting a tendency for indecisive governmental action.

Commercial Radio Australia supports the decision to maintain the current cap, arguing that increasing it—set at 1% of annual revenue—or eliminating it entirely would impose prohibitive costs on radio stations. They contend that this would make it economically unviable to broadcast music, potentially reducing the amount of music played and limiting opportunities for artists.

On the other hand, the Phonographic Performance Company of Australia (PPCA), which manages the collection and distribution of royalties from broadcast outlets to musicians, argues that removing the cap could substantially benefit the Australian music industry. The PPCA suggests that scrapping the cap would double the number of Australian artists played on the radio and increase royalties paid to these artists by an average of up to 78%.

This ongoing debate highlights a critical conflict within the industry: balancing the financial constraints faced by broadcasters with the need to provide fair and adequate compensation to artists. The lack of decisive action from the government not only prolongs uncertainty but also underscores the broader issue of how to effectively support and sustain local talent within the Australian music scene.

The supporting document from the Phonographic Performance Company of Australia (PPCA), researched by Mandala, is available for review here. The report details how the $3.4 million collected from radio stations for broadcasting music in the 2022/23 financial year was distributed (p.12). Australian artists received a modest $600,000, while record companies garnered $500,000, and international artists were allocated $2.3 million.

The report also highlights that approximately 80% of music played on Australian radio comes from international artists, which explains the current distribution of royalties.

The question remains: Would scrapping the cap truly alter this distribution? It seems unlikely. As long as commercial radio programmers view Australian music as secondary to international content, disputes over royalty allocations will not address the fundamental issue. Radio must prioritize local music in its programming rather than treating it as an afterthought.

are they doing enough?

The report also highlights that approximately 80% of music played on Australian radio comes from international artists, which explains the current distribution of royalties.

The claim that commercial radio would change its approach if the cap were removed is met with skepticism. Given the historical track record of commercial radio’s support for Australian music, such claims seem questionable. A review of the past 50 years of Australian music reveals a pattern of neglect.

For instance, the likelihood of hearing a Cold Chisel song on a classic hits radio station today is quite high. Recently, a local station played “Flame Trees” as the first song of the day. Cold Chisel, celebrating its 50th anniversary in 2024, enjoys significant airtime, reflecting its enduring popularity.

However, when Cold Chisel first emerged, commercial radio largely ignored them. The band’s rise in popularity in pubs and live venues eventually compelled radio stations to take notice. The ABC’s Triple J supported Cold Chisel from the beginning, but commercial stations only began playing their music after the release of their third album, East, which had achieved gold record status (35,000 copies).

Similarly, other classic Australian bands such as Midnight Oil and Hunters and Collectors also faced significant delays in receiving commercial radio airtime. Midnight Oil’s breakthrough came with their fourth album, 10,9,8,7,6,5,4,3,2,1(1982), while Hunters and Collectors gained recognition only after the release of “Do You See What I See” from their fifth album, What’s a Few Men? (1987).

Written by: Joel Devereux

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