Radio Fair Play

A potential 78% increase in income for artists played on the radio has been revealed in an economic study compiled by the economics advisory firm Mandala into the impact of removing caps on sound recording royalties paid by radio.

Key findings from the study include:

• Removing the caps could lead to an additional $4.8 million paid to Australian artists in royalties in 2024-25
• Artists played on radio could see up to $19,100 in additional income per year, or a 78% increase in income
• Top commercial radio stations would maintain profit margins of 15% if they paid the same rate for sound recordings as they do for musical works; the broader radio industry margin would be slightly reduced from 13% to 11%
• Paying sound recording royalties at the same rate as musical works would account for less than 0.3% of the ABC’s total annual budget
• If caps are removed, increased reinvestment from record labels could see double the number of new local artists played on radio for the first time

The full report can be found here. 

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