PPCA Annual Report 2017 CONTENTS
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PPCA ANNUAL REPORT 2017 CONTENTS 3 HIGHLIGHTS 4 CHAIRMAN’S REPORT 5 SUMMARY 6 ThE COmpaNY 7 BOARD MEMBERS 9 MANagEMENT REPORT 16 FAQ’S 17 CASE STUDY 18 PERFORMERS’ TRUST FOUNDATION 20 TOP 50 MOST PLayED ARTisTS 21 MOST PLayED ARTisTS 2014–2016 22 SPEciaL PURPOSE FINANciaL REPORT 44 PERFORMERS’ TRUST BALANCE SHEET 45 TaRiff CATEGORIES PPCA AnnuAl rePort 2017 2 HIGHLIGHTS PPCA REVENUES AND REgisTERED ARTisTS AND GROUPS CONTINUED TO INCREasE IN 2016-2017, maiNTaiNING OUR UNBROKEN SUccEssiON OF impROVEMENTS siNCE 1990. THE DisTRIBUTabLE SURPLUS ALSO INCREasED ON THE PREVIOUS YEAR. > InCome uP 7% to $50,392,599 > DIstrIbutIon surPlus uP 13% to $43,421,147 > Over 60,000 busInesses licenseD for the Public PerformAnCe of sounD reCordings the PPCA trust APProveD 22 APPlICAtIons for funDIng: > 16 rel AteD to further eDucatIon AnD reseArChh > 6 to festIvAls, lIve musIC AnD local ArtIsts PPCA AnnuAl rePort 2017 3 CHAIRMAN’S REPORT IT IS MY GREAT PLEASURE TO ONCE AGAIN, ON BEHALF OF THE PPCA BOARD, REPORT ON A SUCCESSFUL YEAR FOR THE ORGANISATION. DURING THE PERIOD WE HAVE SEEN CONTINUED INCREASES IN ARTIST AND LABEL REGISTRATIONS, THE BREADTH OF OUR LICENCE COVERAGE, AND OUR OVERALL REVENUE. The period has not been without • Continuing the communication a final scheme being settled. its difficulties, in particular the with our artists, licensors and PPCA is seeking to have the challenge of settling an appropriate licensees via email, newsletters, outcome of the interim decision licence scheme for the use web and social media reviewed, and is currently of recordings by subscription sponsorships and attendance awaiting the final decision of television. at various conferences and the Tribunal in respect of ordering events. PPCA also continues to a scheme. Some key points of the year communicate with businesses • The successful implementation include: on the benefits of playing music of a licence scheme for the • The distribution of just over and promoting awareness of the use of recordings in internet $37.9M to licensor labels and appropriate licences by liaising simulcasts by commercial radio registered Australian artists in with peak industry bodies. broadcasters. December 2016. • Our participation, together with • Continuing to work with APRA • Growth in revenues to $50.4M ARIA and APRA, in a successful in preparation for the launch of driven by improved income ‘Parliamentary Friends of Music” OneMusic Australia. from webcasting and streaming event. services. This was our best ever • Extensive advocacy on the Finally, I would like to extend my annual revenue result. important issues of copyright thanks to the Board and staff of • Continued support of Australian protection and reform, including PPCA for their efforts during the artists through relationships lobbying for the removal of the year. I look forward to continuing with, amongst others, the Safe Harbour section from the to work with you all in 2018. Australia Council (the PPCA Grant proposed amendment Bill, and Scheme), the Australian Music submissions to the Productivity Prize, and Support Act Limited Commission Review of the (the music industry benevolent Australian intellectual - property scheme). landscape. George Ash • Continuing the encouragement • Progressing the Copyright November 2017 of developing artists through our Tribunal matter on the use sponsorship of the Breakthrough of recordings by subscription Artist Awards at both the AIR and television. A further decision was ARIA Awards. handed down in July 2016 without PPCA AnnuAl rePort 2017 4 SUmmaRY 50 45 40 35 GROSS REVENUE (MILLIONS) 30 25 20 15 10 5 0 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 45 40 35 30 DISTRIBUTION (MILLIONS) 25 20 15 10 5 0 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 PPCA AnnuAl rePort 2017 5 THE COMPANY Registered Office Executive Secretariat Directors January 2017 Level 4. 11-17 Buckingham Street, Dan Rosen George Ash Surry Hills, NSW 2010 Chief Executive Officer Denis Handlin, AO A.C.N. 000 680 704 Lynne Small Niko Nordström A.B.N. 43 000 680 704 General Manager Josh Pyke Bankers: Karla Skarda Commonwealth Bank Head of General Licensing Lindy Morrison, OAM of Australia Linda Courtney Bill Cullen Solicitors: Distribution Manager David Vodicka Gilbert + Tobin Adrian Di Giacomo Tim McGee Auditors: Communications Manager Pitcher Partners Stephen Conway Sydney Manager - Business Technologies Rohini Sivakumar Corporate Counsel - Commercial Rachel Porter Corporate Counsel - Enforcement/ Litigation PPCA AnnuAl rePort 2017 6 BOARD MEMBERS george Ash Jenner (manager of Pink Floyd, The in particular the independent record PPCA board Chairman Clash, Billy Bragg etc.), before going labels,obtain a fair and equitable George Ash became a member of on to co-manage New Zealand act return for the public performance the PPCA Board in August 2003. OMC (How Bizarre) who went on of their works is paramount. to a number one single and gold George is also the President, album in the US. He returned to Denis handlin, Ao Australasia of Universal Music Australia in 1999, and established PPCA board member Australia (UMA), a division of the One Louder, and has since had Denis is the Chairman & CEO of Universal Music Group. gold plus success with Alex Lloyd, Sony Music Entertainment Australia George, Amiel, Sarah Blasko, Kate Prior to George’s current position & New Zealand and President, Asia. Miller-Heidke, End Of Fashion and with Universal Music Australia, He commenced his career with Paul Kelly. he held positions as Managing the company in 1970 and has been Director, UMA, Managing Director, leading it since 1984. Universal Music NZ, Managing David vodicka Director, MCA Geffen NZ and held PPCA licensor representative Denis has a deep involvement in the key management roles at BMG & board member music industry. He has served on NZ. George has also held roles in David Vodicka is the owner of the committees of several industry Polygram Manufacturing and in the Rubber Records and the principal associations and has held various retail sector. of entertainment law firm Media positions including Chairman of Arts Lawyers and has had extensive the Phonographic Performance George’s passion for the music experience with over 20 years Company of Australia (PPCA) and industry began as a musician and practice representing musicians, of the Australian Record Industry has spanned 25 years including artists, composers, and recording Association. He is the current holding a variety of roles in key and publishing entities. He has Chairman of ARIA, a position he has industry bodies within the NZ dealt in all facets of law affecting held over many years since the early Industry before relocating to the creative industries, and has had 90s including for 10 consecutive Australia in his current role in 2001. considerable hands on experience in years from 1999 - 2008. the music recording and publishing In November 2012, Denis was bill Cullen fields as director of independent label Rubber Records and music elected to the position of Vice PPCA board member Chairman of the International Bill is the Managing Director of publisher Rubber Music Publishing. He is a passionate advocate for local Federation of the Phonographic One Louder Entertainment, the Industry (IFPI) Asia Regional Board management home to Paul Kelly, music and creative industries and presently is chairman of the board and in November 2014, Denis was Sarah Blasko, Kate Miller-Heidke, elected as Chairman of the IFPI Asia and Ball Park Music. of AIR (the Australian Independent Record labels association) and is Pacific Board. He has been involved in the music a current board member of ARIA In May 1996, Denis became the business since leaving school, (Australia Recording Industry first Australian and the first Sony and did a long stretch working Association). Music Entertainment executive to with Grant Thomas Management, He believes that the new digital be honoured with the CEO Special working with acts such as Crowded Recognition Award presented by House and The Rockmelons. A five era provides specific challenges for the recording industry and that Sony Corporation’s Chairman and year stint in London followed, where CEO Norio Ohga. he worked with the legendary Pete ensuring that PPCA’s members, and PPCA AnnuAl rePort 2017 7 BOARD MEMBERS Denis is the co-founder of the Sony artists and industry copyright and Denis has been married to his wife Foundation which was established reform matters. Jan for longer than he has been in 1998 and has raised $28 million leading Sony Music. They have been for youth based causes. He is also In May 2017, Denis accepted as married for 40 years this year and very proud to be Patron of the Youth a Foundation co-founder and on have six children. off the Streets Scholarship Program behalf of the Sony Foundation a special award at the Sony Annual since its inaugural year in 2004. He niko nordström Management conference in Tokyo. is also an inaugural board member President of Warner music This was presented by CEO and of the Ricky Stuart Foundation Australasia President of Sony Corporation, Kaz established in 2012 to raise funds Niko Nordström was appointed Hirai, recognising the Foundation’s to establish awareness and services President of Warner Music outstanding contribution achieved for autism. Australasia on 1 April 2017 and is from fundraising events to the based in Warner Music Australia’s In the Australia Day 2005 Honours benefit of the community and Sydney office. Niko previously served List, Denis was made a Member charitable causes through its as Managing Director of Warner of the Order of Australia receiving programs, employee engagement, Music Finland (commencing in “AM” in recognition of his service collaboration with business 2007), and additionally held the role to the music industry, particularly partners, Sony Music artists and of Vice President of Warner Music through the promotion of Australian ambassadors.