Australia’s Copyright Tribunal Orders Significant Increase in Radio Music Royalty Rates
Broadcast royalty for recorded music to rise by nearly 38 per cent as industry debate intensifies over statutory caps and fair compensation
Australia’s music industry will benefit from a substantial rise in royalties paid by commercial radio broadcasters for the use of recorded sound recordings, as the Copyright Tribunal of Australia has set a new licence rate significantly higher than the longstanding figure.
The tribunal determined that broadcasters must pay 0.55 per cent of gross industry revenue for rights to play recorded music, up from the previous 0.4 per cent, marking around a 37.5 per cent increase in the royalty rate that applies retroactively to July 2023. This represents the first major adjustment in royalty arrangements for recorded sound broadcasts in over a quarter of a century and aims to reflect shifts in the promotional value of radio and the broader use of recordings in the modern media environment.
Music industry bodies, including the Phonographic Performance Company of Australia, welcomed the ruling as a step toward more equitable compensation for artists and rights holders, though they have reiterated long-standing concerns about the statutory 1 per cent cap on radio royalty rates embedded in the Copyright Act.
The tribunal’s decision explicitly referenced the cap’s influence on past negotiations and its constraining effect on royalty outcomes, prompting continued calls from industry leaders for legislative reform to remove the cap altogether and allow fair market negotiations.
Broadcasters and their representatives have argued that the statutory cap has historically supported the sustainability of commercial radio, particularly for regional and local stations, and caution that further increases could have adverse impacts on the sector’s business model.
Nevertheless, proponents of higher royalties maintain that the current rate remains low compared with international practice and that the adjustment recognises the diminished promotional role of traditional radio in an era of streaming and digital discovery.
With stakeholder engagement now likely to turn to government and parliament for broader policy reform, the ruling is expected to shape debates over the future balance between fair remuneration for artists and the commercial viability of radio broadcasting in Australia.
The tribunal determined that broadcasters must pay 0.55 per cent of gross industry revenue for rights to play recorded music, up from the previous 0.4 per cent, marking around a 37.5 per cent increase in the royalty rate that applies retroactively to July 2023. This represents the first major adjustment in royalty arrangements for recorded sound broadcasts in over a quarter of a century and aims to reflect shifts in the promotional value of radio and the broader use of recordings in the modern media environment.
Music industry bodies, including the Phonographic Performance Company of Australia, welcomed the ruling as a step toward more equitable compensation for artists and rights holders, though they have reiterated long-standing concerns about the statutory 1 per cent cap on radio royalty rates embedded in the Copyright Act.
The tribunal’s decision explicitly referenced the cap’s influence on past negotiations and its constraining effect on royalty outcomes, prompting continued calls from industry leaders for legislative reform to remove the cap altogether and allow fair market negotiations.
Broadcasters and their representatives have argued that the statutory cap has historically supported the sustainability of commercial radio, particularly for regional and local stations, and caution that further increases could have adverse impacts on the sector’s business model.
Nevertheless, proponents of higher royalties maintain that the current rate remains low compared with international practice and that the adjustment recognises the diminished promotional role of traditional radio in an era of streaming and digital discovery.
With stakeholder engagement now likely to turn to government and parliament for broader policy reform, the ruling is expected to shape debates over the future balance between fair remuneration for artists and the commercial viability of radio broadcasting in Australia.
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