26 May 2010

Higher radio royalties ordered

6:01 am on 26 May 2010

Two radio station companies have been ordered to almost double the royalties they pay artists for playing their music.

A licencing agreement between MediaWorks Radio and the Radio Network, and the Phonographic Performances organisation which distributes payments to artists, expired in 2007.

It has been under negotiation at the Copyright Tribunal.

Under the new agreement, the companies will pay eventually 3% of their gross advertising revenue to artists.

Under the previous agreement, 1.75% of their gross advertising revenue was paid to artists.

With the new licence: 2.6% will be paid for the first year, from November 2007. The rate then rises to 3% until the agreement expires in 2014.