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Australian Artists buggered by the PPCA
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Australian Artists buggered by the PPCA
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Posted by
Will
on July 30, 2004 at 06:19
From the herald sun
Rockers rolled on cash
Patrick O'Neil
30jul04
CHART-topping Australian rockers are being robbed of their royalties because industry heavyweights claim they can't find the musicians.
Among the "lost artists" missing out on their share are Spiderbait, Tim Finn, Tex Perkins and Russell Crowe's wife Danielle Spencer.
Lost artists get no piece of the $11 million pie collected each year by the industry from radio stations, nightclubs and bars playing recorded music.
Many of the missing artists keep high profiles, and are losing significant earnings.
Spiderbait nine weeks ago was No. 1 on the charts and the Herald Sun found the band's contact details on the internet in 30 seconds.
Tim Finn will release a new album in a month, Tex Perkins played in Melbourne less than two months ago, and Danielle Spencer regularly features in magazines.
The Phonographic Performance Company of Australia charges 38,000 nightclubs, bars and cafes 7c a person a night for the right to play recorded music.
The PPCA has moved to increase the fee to $1 a person.
Out of the $11 million collected each year only $1.5 million goes to artists.
But unless artists register with the PPCA, the cash goes to their record companies, including Sony, BMG, EMI, Warner and Universal.
Six of the nine PPCA directors are senior record executives working for major labels.
The PPCA describes itself as a non-profit company.
Last year, artists directly received $683,000 of their share. An industry insider said PPCA distribution was deliberately unfair.
"The fewer artists that register with PPCA, the better the result for the record companies, who can pocket their nice little swag of booty for as long as they see fit," he said.
A PPCA statement said the amount pocketed by artists was low because some artists had not registered.
"Not all of the artists entitled to receive a direct payment had elected to register with PPCA," the statement said.
Music industry analyst Phil Tripp said artists did not realise they were not getting their share.
"How lost are those people?" Mr Tripp asked.
"It is in their interests not to pay out artists, because then that money is called profit.
"There are still a huge number of recording artists who were never told by their record labels, on signing deals, they were entitled to PPCA earnings without deduction."
The PPCA takes about $3 million for administration, $5 million goes to overseas artists, $1.5 million goes directly to record companies, and the rest is put aside for artists.
The PPCA refused to reveal how much money individual artists were entitled to.
The group is pushing to charge nightclubs and bars $1 a person each night.
Nightclub and Bar Association head David Butten said the increase would bring struggling clubs to their knees.
"It is a legal protection racket," Mr Butten said.
About 2.5 per cent of PPCA money goes to the Performers Trust Foundation, which administers grants encouraging the performing arts.
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