Government to raise royalties radio pays to record industry: Member for Cowper

“There is increasing speculation the Rudd Government plans to raise the current one per cent cap on fees that regional radio stations pay the record industry for broadcasting music:” says Luke Hartsuyker, (Nat) Federal Member for Cowper. He went on to say, “Radio stations pay these fees for playing ‘protected’ music – most of which is Australian. At the same time stations are also required by the Government regulator to play a certain amount of ‘protected’ music. It would be very unfair if radio stations were regulated to play a certain amount of music and the cap on the cost of playing that music was lifted. An increase in the fees would particularly hurt regional radio stations who are currently struggling from falling revenues and increased government regulation.”

Luke Hartsuyker is right on two things. Firstly, that an increase in fees would hurt regional stations and secondly that speculation that a rate rise will occur is increasing – because he’s just increased it.

So far the rest of the nation’s media seem oblivious to this conspiracy being hatched between government and the record industry in Canberra. However Mr Hartsuyker has raised the alarm with the good burghers of Cowper, the electorate occupying the NSW north coast with Coffs Harbour at its heart.

“I am particularly concerned that the Rudd Government will side with the multi-national record labels at the expense of our local radio stations. I understand the record labels keep over 60 per cent of the fees,” says Mr Hartsuyker in his media release.

Is a fee rise really on the cards? What have you heard? And if so, is a rate rise warranted? What affect would it have on station profits in your region?

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