Around 200 local radio stations to cease online broadcast in music licence stoush
Nearly 200 local commercial regional radio stations will cease online simulcasts of shows over the internet by midnight today after being asked to pay for a separate licence fee, says Commercial Radio Australia (CRA).
The extra fee is a result of the Federal Court ruling in February last year that internet simulcasts of radio programs fall outside the definition of a “broadcast” under the Copyright Act and are therefore not covered by existing licences to commercial radio networks.
After the ruling the Copyright Tribunal ordered broadcasters to apply for an interim simulcast licence by the end of today.
CRA’s CEO Joan Warner told Mumbrella: “This is a major issue for the radio industry, it’s an issue where record companies want stations to pay twice if listeners choose to listen online to an exact simulcast of a broadcast, nothing is changed, there’s no additional advertising, there’s no different advertising, it’s an exact simulcast.
“The whole industry is concerned by the potential cost of the scheme that the record companies are proposing to pursue legally.”
The suit was taken to the High Court by the Phonographic Performance Company of Australia (PPCA) – acting on behalf of artists and music labels – who demanded the second fee.
In its judgment, the court concluded that when a radio station provides a simulcast of its standard AM, FM or digital broadcast, it is a separate communication to the public when examined under the definition of “broadcast” under the Copyright Act 1969 .
The Copyright Tribunal ordered broadcasters to apply for an interim simulcast licence by midnight tonight to enable them to legally continue to simulcast their broadcast online.
But if the PPCA is successful in getting its scheme endorsed the CRA fears “fees may be back dated to the start of the interim licence and the financial liability amassed by radio stations would be cost prohibitive, particularly for regional stations”.
“The interim scheme isn’t the issue, the issue is what are we going to be hit with once the record companies pursue this as they have been doing aggressively through every legal avenue,” Warner explained.
“We don’t pay an extra fee when people listen on a car radio or on an FM chip in a phone or in a clock radio. So the industry as a whole believes its not fair that we pay an extra, and higher fee just because some listeners find it convenient to listen online.
“Some local stations did not simulcast because of this issue, they were concerned months ago about the liability,” Warner said.
Grant Broadcasters, chose to cease providing an online simulcast in September last year.
Local commercial metropolitan radio stations are reviewing their position on a weekly basis and also may switch off in the future.
Record companies contacted by Mumbrella were unable to provide comment at the time of publication.
Miranda Ward
The CRA needs to launch an advertising campaign about this streaming issue to be aired on radio stations across Australia as well as setting up a website like CBAA did for their ‘Commit To Community Radio’ when their community digital radio stations were under threat of going off the air and set up a online petition.
The PPCA’S claims about internet radio isn’t a broadcast are wrong/incorrect/misleading in this day and age. the Federal Government needs to step in and tackle on about this streaming issue. Internet Radio (Including ABC/SBS/Community-Narrowcast/Online Only stations) are dying unless action is taken right away. Broadcasters are upset, annoyed and frustrated by this PPCA decision.
i Strongly Urge your readers of this article to write to your Local Member Or Parliament and the Communications minister Malcolm Turnbull to express your concerns.
The furture of radio is digital/online and they can’t be left behind
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As a commentator pointed out on the Radio Today website, according to the logic of commercial radio Australia I should be able to create my own online radio station playing Hamish and Andy sketches all day and pay 1% of my revenue to SCA for it.
This is as crazy as Joan Warner lobbying for DAB+ chips in mobile phones so we can listen to Coles radio all day….
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So SCA 80 odd apps are now silent? That’s going to out some pressure on their digital business model.
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Maybe a way to offset this cost is to generate ad revenues. We are the fastest growing Radio Streaming Provider in the world and we have Sponsors both National and International for your streaming with our player and on our free iPhone and Android phones we give you. This will help offset the cost, plus our Cirrus player has multiple features that can be monetized to generate additional revenues. If anyone in this group is interested in learning more, please contact me directly, indicated Promo Code SPEC231 to get my Special Free Offer. My email is GLEE@securenetsystems.net
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Bugger thats how I listen to radio while walking
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Spotify.
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Single play = single pay. If I choose to listen online that is my choice.
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Well, nothing is stopping the radio stations from closing down, applying for a web licence, and operating as a web broadcaster instead?!
It is incorrect to claim that by webcasting a concurrent or previously broadcast program there is “no additional advertising”. A webcast is NOT a radio broadcast and the ads ARE repeated on the webcast.
If you buy a BBQ for the back of your house and another for the back of your holiday house: do you expect the shop to only charge you for one?!
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Interesting argument there Brenton.
I just bought a Matador 4-burner from Bunnings for the back patio. So I assume that using your logic, if I also use that BBQ for the local footy club sausage sizzle fund raiser for the kiddies, then I had better whip back to Bunnings and slip ’em another $400. Methinks not.
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I listen to radio because of the convenience and superior quolity of doing so thru my iPhone as I’m sure many people do. This will now mean less listeners. Instead of attacking the radio stations why don’t they go after the real winners out of all this THE CARRIER making a fortune out of data.
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