Radio bosses are prepared to take a tough line if their claim to the Copyright Tribunal fails
Radio bosses are tuning up to buy music rights directly from record companies if a claim to the Copyright Tribunal falls over.
The Radio Broadcasters Association (RBA) says that is what will happen if a long-delayed tribunal case goes against them and upholds price rises by Phonographic Performances New Zealand (PPNZ).
The RBA - essentially The Radio Network and MediaWorks Radio - says if the record companies do not meet the terms of a voluntary agreement with the Commerce Commission "allowing real competition", they will take the case back to the commission.
Deliberations by the tribunal and the commission underline a clash between the radio industry duopoly and a monopoly held by PPNZ, which is dominated by the big four multinational record companies and controls radio rights to most music.
The row over radio royalties harks back to last year when the radio industry challenged PPNZ price rises that might cost $9 million a year in a case heard by the Copyright Tribunal. The tribunal's decision has yet to released.
Which corporates deserve the cash? Take your pick.
But as PPNZ aims at reviews of its copyright fees for gyms, bars cafes and retailers, the bigger question is how much this single body can set prices, and whether that is about to change.
Last week the Commerce Commission issued a statement: "An investigation has resulted in a voluntary change of rules in the music copyright industry that will allow for competition to occur, to the benefit of those who purchase licences for copyrighted music.
"As a result of the investigation, PPNZ and the four New Zealand major recording companies (Sony, Warner, EMI and Universal) have agreed to express their royalty agreements as being non-exclusive.
"That will allow direct negotiation between potential purchasers and the four companies. It will also have the effect of opening up about 70 per cent of the market to competitive negotiation."
Music lawyer Chris Hocquard said that on the basis of a similar change that occurred in Australia, the ability for people to negotiate directly with record companies would result in a small change.
He said in many cases it would be too difficult to deal with individual record companies. With radio it makes little sense. What was a radio company to do, he asked, play music from a certain record company?
PPNZ managing director Kristin Bowman was intent that the voluntary agreement and the Commerce Commission statement did not signal any big changes. She said copyright holders (such as record companies) had always been able to negotiate directly with buyers and rejected suggestions that music right holders in large record companies dominated PPNZ.
PPNZ says it includes 61 labels and more than 900 New Zealand musicians and publicity has promoted the impact on local bands. But the majority of the money PPNZ earns goes to international record companies, not local ones.
AS PREDICTED ...
MediaWorks is creating a music based channel for Freeview, the digital free-to-air platform. It will be called C4-2 and will be an adjunct to C4, which started as a music channel but has been drifting away from the music genre.
It will begin at the start of May, which is NZ Music Month, on Freeview Channel 9. It will not be shown on Sky TV.
MediaWorks is obliged to create the channel as part of its commitment to Freeview, but it was a tough call given its financial woes.
As mentioned, the music channel option makes good sense for a company facing tough times, with a large supply of low and no-cost content, and it is saving more money by not having presenters.
FREE MUSIC
MediaWorks has secured a cheap deal on music rights as the record industry works to ensure it retains a low-cost promotional body on free-to-air TV.
The deal gives MediaWorks time to get advertisers on board. The no-charge deal on some music means the videos can act as free promotions. C4-2 is aiming at 30 per cent local content. Music lawyer Hocquard said he had concerns about the terms of the deal which implies airplay for music had a promotional value.
Hocquard did not specify his concerns but radio stations made a similar claim when trying to undermine PPNZ price rises on licences for radio play.
IMPECCABLE TAILORING
In his early days, and even to the present day, Paul Holmes has been derided as the face of commercial broadcasting - someone whose success signalled New Zealand was headed for hell in a hand-cart.
I can remember interviewing Holmes in 1993 when he talked about the unwillingness of the cultural brigade to embrace his form of in-your-face (and occasionally brilliant) broadcasting.
Holmes has moved on from his shock-jock days, but it would be churlish to not allow him a "yah boo sucks" to his old critics after a generous mention by one of Britain's highest profile cultural figures, historian Simon Schama.
Schama spoke to Holmes on TV One's Q & A a while back in a segment about the potential merger between Australia and New Zealand.
In a later and erudite article on the BBC website, Schama praises Holmes' "sharp tailoring at a time when most of us are still wearing pyjamas".
He said Holmes reminded him of a Latin teacher who had an uncanny knack of spotting when his mind was wandering. As for Holmes, now that he has decided he will not stand for the Auckland mayoralty, he seems to have settled into his role as Q & A inquisitor.
TV3's competitor The Nation has yet to establish numbers that will make it a threat. Holmes was culturally polite in the style of Schama, saying that the arrival of the new show is good for attracting viewers to this style of programme.
He made no mention of tailoring for TV3 presenters Duncan Garner and Stephen Parker.
SMITH EXITS
Fairfax New Zealand group head of digital Stephen Smith left the company last week. Smith, a former deputy chief executive at TVNZ, could not be reached for comment.
Fairfax New Zealand chief executive Allen Williams said that he was pursuing other interests. Smith is the latest in a run of senior executives to leave the company since the merger with Rural Press. Among the last survivors from the early days when Fairfax bought titles from INL is Sandra King, the group advertising and marketing manager.
PERIGO ON SUNRISE
Lindsay Perigo, the former TV One interviewer who dismissed TVNZ news and current affairs as "braindead", is not surprised that Sunrise was sunk.
"Such a bland mix of political correctness and infantilism fronted by and aimed at air-heads was never going to make it," Perigo said.
"There are actually adults out there who'd appreciate real current affairs. If TV3 had the courage to provide it, it would turn its own fortunes around."
TUG OF LOVE
APN News & Media and Fairfax are in a tug-of-love over Waikato Times editor Bryce Johns.
APN announced it had appointed Johns as editor of the Herald on Sunday and he would serve out three months notice at Fairfax's Waikato Times.
However, Fairfax is claiming a standard restraint of trade that could delay his start, with questions apparently over whether the restraint applies to his moving to a Sunday paper.
Johns said he was in negotiations with Fairfax, but he was still hopeful to join the HoS in May.
Johns replaces Shayne Currie, who was appointed one of two deputy editors at the Herald.
Currie oversees the Monday to Friday editions of the paper, and his appointment has brought a racier look to the Herald front page.
Meanwhile, there have been other staff changes at the HoS with journalist Matt Nippert ending a 12-month contract to work at the National Business Review. He starts in August.
