Australia Will See 38% Increase in Radio Royalty Rates After Copyright Tribunal Ruling
Australia’s radio royalty landscape is shifting, with a significant rise in the fees music rights holders will receive from commercial radio broadcasters.
In a decision that could reshape how recorded music is valued on airwaves, the Copyright Tribunal of Australia has set a new royalty rate for the broadcast of sound recordings by commercial radio stations. The rate will rise from 0.4% to 0.55% of gross industry revenue, representing an effective 38% increase compared with the longstanding status quo. The change is backdated to July 1, 2023, meaning royalties already accruing under the new rate will be redistributed to rights holders for much of the past year.
The ruling comes after years of stalled negotiations between the Phonographic Performance Company of Australia (PPCA) — representing labels and recording artists — and the broadcaster industry group Commercial Radio & Audio (CRA). An industry agreement over radio royalties had been in place since 1999 but expired in 2003 and continued on a month-by-month basis until its termination in 2023, prompting PPCA to take the dispute to the Tribunal.
Under the previous 0.4% rate, royalties from radio broadcasts generated around AUD 4 million annually for recorded music rightsholders. At the new 0.55% rate, that figure would equate to roughly AUD 5.5 million — still modest on a global scale but a meaningful increase for artists and labels in Australia’s competitive music marketplace.
The Tribunal’s decision reflects broader trends in music consumption. In its findings, adjudicators noted that “radio’s promotional value” and ability to drive sales has materially declined in the age of streaming platforms and social media, reducing the historical justification for lower royalty rates.
While the increase marks progress, it also highlights persistent concerns over Australia’s statutory 1% cap on broadcast sound recording royalty rates. Both PPCA and industry analysts say this cap constrains how high royalties can realistically go and leaves Australian artists underpaid compared with peers in markets without such a limit. PPCA has indicated it will continue advocating for legislative reform to remove this cap and push for rates more aligned with international standards.
CRA, for its part, welcomed the Tribunal’s affirmation that the 0.55% rate reflects the present value of the broadcast right and noted its rejection of PPCA’s proposed sliding scale royalty model.
As Australia enters a new chapter in broadcast royalties, the decision stands as a notable win for rights holders — and a potential catalyst for broader copyright and royalty reform in the digital music era.
