Where do my fees actually go?

Where do music licence fees in Australia go?

OneMusic Australia licence fees go to music creators, minus a small admin cost. A huge team looks at millions of lines of data that come from radio air play, box office reports, songs played on streaming services and TV, song lists from concerts and many more. They match the funds as best they can to the people who own the song.

Where do music licence fees in Australia go?

We care about ensuring the licence fees you pay are distributed (paid out) to the rights holders in the most accurate and cost effective way possible.

OneMusic distributes the fees it collects to APRA AMCOS and PPCA, the bodies behind the licensing initiative. Both entities are the same in that, after the deduction of administration and operational costs, all fees collected are distributed to members, licensors or affiliates according to a range of direct data for film screenings, sample data and other data sources for other uses of music. All fees quoted include GST.

Although separate companies, in the financial year 2018/2019 APRA AMCOS’ and PPCA’s costs to revenue ratio was similar at approximately 14%. This means that around 86 cents in the dollar earned in licence fees collected by APRA AMCOS and PPCA is being paid to each organisation’s rights holders. Those costs compare very favourably to organisations providing the same service overseas.

Under OneMusic, APRA AMCOS and PPCA maintain their own distribution practices and policies, and are available online.

Both APRA AMCOS and PPCA seek to achieve a delicate balance in their distribution practices - a balance between accuracy on the one hand and minimising the administration of our licensees and our costs of processing that would be required in track by track music use reports.

The following represent the main sources of music data the two organisations use to make their distributions to music creators.

  • Individual commercial radio and television stations reporting the music they broadcast;
  • Digital download services, digital streaming services and record labels reporting the tracks or CDs they stream, sell and their sales volumes;
  • Services using Music Recognition Technology like digital fingerprinting and audio-recognition to match performances/broadcasts to their databases;
  • Data from music providers who supply programmed curated music for specific industries, such as fitness;
  • Background music suppliers who provide us with music reports from their clients’ playlists; and
  • Set lists of musical works performed by artists and musicians at live/dance events and festivals supplied to APRA by event promoters.

Are song licensing fees different?

Licensing fees for the use of songs in public are different in every country and different by industry. If you purchase a blanket licence from a music rights organisation to use their catalogue of music your fee would be different to the brand that wants to use one single song in a television advertisement.