If you're a recording artist, producer, or run a business that plays music, there's a good chance you've heard whispers about PPCA in green rooms, studio sessions, or licensing emails. Yet for something that's been part of Australia's music landscape since 1969, the Phonographic Performance Company of Australia remains frustratingly mysterious to many in the creative community. Whether you're tracking down royalties for your latest EP or trying to understand why your café needs multiple music licenses, understanding PPCA isn't just bureaucratic box-ticking—it’s about ensuring creatives get paid for their work in an industry where revenue streams are already complicated enough.
The Phonographic Performance Company of Australia Limited (PPCA) is Australia's national, non-profit copyright collecting society that acts as the middleman between businesses that play recorded music and the people who own the rights to those recordings. Established in 1969 by major record companies, PPCA has evolved from a relatively simple licensing agent into a sophisticated organisation representing thousands of record labels and Australian recording artists.
Think of PPCA as the tour manager for sound recordings. When your track gets played in a pub, spun on commercial radio, or streamed through a shopping centre's sound system, someone needs to collect the royalties and distribute them to the rightful owners. That's PPCA's gig.
PPCA's primary functions include:
PPCA grants licenses that permit businesses to legally play protected sound recordings and music videos in public spaces or broadcast them to audiences. These blanket licenses cover the repertoire of thousands of record labels through a single agreement, eliminating the need for businesses to negotiate individually with every rights holder. As of 2023, PPCA (through its joint OneMusic Australia initiative) licenses approximately 202,000 businesses and events across Australia and New Zealand.
Every time a cafe plays Spotify, a gym blasts workout tracks, or a radio station broadcasts the latest hits, license fees are owed to copyright owners. PPCA collects these fees and distributes the net proceeds to record labels and registered Australian recording artists according to their Distribution Policy. For the year ended 30 June 2012, PPCA's income exceeded $36 million, with over $29 million distributed to rights holders.
PPCA represents 3,215+ licensors including major record companies (Sony Music Entertainment, Universal Music, and Warner Music), independent labels, and individual copyright owners. Additionally, 4,801 registered artists participate in PPCA's Direct Artist Distribution Scheme (ADDS) as of 2021, allowing featured Australian artists to receive royalties directly rather than solely through their labels.
The organisation operates under the Copyright Act 1968 (Cth) and is overseen by the Australian Competition and Consumer Commission (ACCC), which authorises PPCA's collective licensing arrangements subject to specific conditions ensuring fair dealing and transparency. PPCA maintains a non-profit structure with a Board of Directors comprising eight members: three nominated by major shareholders (who hold shares without dividend entitlements), three representing registered artists, and two representing non-shareholding licensors.
Understanding PPCA's licensing system is crucial whether you're a venue owner, event organiser, or recording artist trying to track where your royalties originate. The system operates through blanket licensing—essentially a comprehensive backstage pass for businesses to access thousands of sound recordings without negotiating individual permissions.
A single PPCA license covers the repertoire of thousands of record labels, providing simplicity and legal certainty for businesses. As of 2012, PPCA licensed over 55,000 businesses and individuals to play protected sound recordings and music videos in public on a non-exclusive basis. This number expanded significantly after the 2019 launch of OneMusic Australia, the joint licensing initiative with APRA AMCOS.
PPCA currently operates 36 separate tariff categories tailored to different venue types and usage patterns. These tariffs account for variables like venue size, music usage (background versus featured), and business type. Organisations that typically require PPCA licenses include:
Here's where it gets interesting: PPCA's licensing schemes are non-exclusive, meaning businesses can bypass PPCA and negotiate directly with record companies or labels at any time. This arrangement operates under ACCC conditions requiring all PPCA licensors to maintain a Direct Licensing Policy outlining circumstances where they'll consider direct agreements.
Direct licensing might appeal to businesses with specific, limited music needs or those seeking custom terms. However, the overwhelming majority find PPCA's blanket licensing more practical and cost-effective than negotiating hundreds of individual agreements with record labels.
PPCA issues licenses across multiple sectors including:
For radio broadcasters specifically, the Copyright Act imposes a statutory cap limiting annual PPCA license fees to no more than 1% of gross annual revenue. This cap means PPCA's collections from commercial radio (approximately $4 million annually from 273 stations as of 2019) represent only 0.4% of their combined gross revenue—well below the legal maximum.
This is where the rhythm section of PPCA's operations comes into play—the distribution of collected royalties to rights holders. Unlike some collecting societies that use sampling or statistical methods, PPCA employs a track-by-track allocation system based on actual usage data.
PPCA allocates and distributes its entire financial year surplus within six months of the period's end. Administrative costs of approximately 14% are deducted before distribution to member organisations. This 14% covers operational expenses including licensing administration, data processing, compliance, legal costs, and staff salaries.
Distribution calculations rely on:
This data-driven approach ensures that the artists and labels whose recordings receive the most airplay and public performance receive proportionally larger distributions.
PPCA operates the Direct Artist Distribution Scheme (ADDS), an ex gratia arrangement established in the early 1990s that fundamentally changed how Australian recording artists receive royalties. Under ADDS:
For Australian recordings:
For non-Australian recordings:
This structure recognises that while record labels typically own copyright in sound recordings, featured performers contribute essential creative input deserving direct compensation. The registration deadline of August 31st each year allows PPCA to process data and make distributions annually in December.
Consider a hypothetical Australian track receiving significant commercial radio airplay. If PPCA collects $10,000 in license fees attributable to that recording:
If the artist hadn't registered with PPCA, the label would receive the full $8,600.
This question deserves a headline spot because it's the source of endless confusion in Australia's music industry. Many creative professionals and business owners struggle to understand why they need multiple licenses to play a single song. The answer lies in the layered nature of music copyright.
When a commercial recording exists, multiple distinct copyrights protect different elements:
| Copyright Type | What It Covers | Who Typically Owns It | Administered By | Copyright Duration |
|---|---|---|---|---|
| sound recording | The actual audio recording—the specific performance captured | Record label or recording artist | PPCA | 70 years after first publication |
| Musical Work | The written composition and melodies—the underlying song structure | Composer/songwriter or music publisher | APRA | 70 years after author's death |
| Lyrics | The written words of the song | Lyricist | APRA | 70 years after author's death |
PPCA licenses the copyright in the sound recording—the actual recorded audio you hear when playing a track. This is the master recording, the final mixed and mastered product that took hours in the studio to perfect. Whether it's the original 1965 recording of "Friday On My Mind" by The Easybeats or Ben Lee's 2008 cover version, each represents a distinct sound recording with separate copyright ownership.
PPCA collects royalties for:
The Australasian Performing Right Association (APRA) handles public performance, broadcasting, and communication rights in musical works and lyrics for composers, songwriters, and music publishers. APRA represents over 119,000 members as of 2024. Its sibling organisation, AMCOS (Australasian Mechanical Copyright Owners Society), handles reproduction (copying) rights for musical works.
Using our previous example, for "Friday On My Mind":
A café playing commercial recorded music must obtain licenses for all copyright layers to comply with Australian law. Prior to 2019, this meant separate applications, separate invoices, and double the administrative hassle—particularly challenging for small businesses already juggling countless responsibilities.
This dual-licensing requirement stems from the Copyright Act 1968 recognising that creating music involves multiple creative contributions deserving separate protection and remuneration. The songwriter who crafted the melody and lyrics contributes differently from the recording artist who performed and the producer who captured that performance in the studio.
On 1 July 2019, APRA AMCOS and PPCA launched OneMusic Australia, a joint licensing initiative that fundamentally simplified music licensing for Australian businesses. This collaboration represents the most significant shift in Australia's music licensing landscape in decades.
Before OneMusic's launch, businesses requiring public performance licenses needed to:
For small businesses like independent cafes, boutique fitness studios, or local pubs, this dual-licensing system created confusion, administrative burden, and occasional non-compliance—not from intentional infringement, but from genuine bewilderment about legal requirements.
OneMusic Australia now provides businesses with a single license covering both sound recording rights (PPCA) and musical work/lyric rights (APRA AMCOS). The initiative:
Simplifies the licensing process:
Maintains equitable distribution:
Expands coverage: As of 2023, OneMusic and its media licensing administered approximately 202,000 businesses and events in Australia and New Zealand—representing significant growth from PPCA's standalone licensing numbers.
Importantly, OneMusic is purely a licensing convenience—it doesn't alter the underlying copyright structure or distribution mechanisms. PPCA still distributes royalties to record labels and registered artists according to its established Distribution Policy. The fundamental distinction between sound recording rights and musical work rights remains intact.
For recording artists and rights holders, the backstage operations continue as before: PPCA still processes usage data, calculates distributions, and pays royalties directly to registered participants in ADDS. The main difference is that license fees now arrive through OneMusic's unified collection system rather than separate PPCA invoicing.
Whether you're a recording artist, producer, DJ, or creative entrepreneur, understanding PPCA's role in your revenue ecosystem matters for building a sustainable career in Australia's music industry.
Registration is crucial: If you're a featured Australian artist on recordings receiving public performance or broadcast, registering with PPCA's Direct Artist Distribution Scheme (ADDS) is non-negotiable. Without registration, your 50% share of PPCA distributions flows to your record label instead.
The registration deadline is August 31st each year, with distributions paid in December. Missing this deadline means forfeiting a year's worth of royalties that could represent significant income—particularly if your tracks receive commercial radio airplay, feature in retail playlists, or soundtrack gym sessions across Australia.
Understand your agreements: Review your recording contracts to understand sound recording copyright ownership. Some contracts grant labels full ownership, while others involve profit-sharing arrangements or reversion clauses. Your PPCA entitlements depend on these contractual terms.
Track your usage: While PPCA relies on broadcaster logs and venue data, maintaining your own records of where your music is played, broadcast, or performed publicly helps verify distributions and identify potential discrepancies.
Input Agreements: To receive PPCA distributions, copyright owners must sign an Input Agreement authorising PPCA to license public performance and specified communication rights on a non-exclusive basis, collect fees, and distribute royalties according to the Distribution Policy.
Direct licensing flexibility: As a PPCA licensor, you maintain the right to negotiate direct licenses with businesses that prefer custom arrangements. The ACCC requires maintaining a Direct Licensing Policy outlining circumstances where you'll consider such agreements.
Administrative efficiency: PPCA's blanket licensing system handles the complex administrative burden of tracking usage across thousands of venues and broadcasters, processing payments, and pursuing unlicensed users—infrastructure that would be cost-prohibitive for most independent labels to replicate.
Compliance isn't optional:Using recorded music in your business without proper licensing constitutes copyright infringement. PPCA has a 100% success rate in court proceedings against unlicensed businesses, and statutory damages can significantly exceed what lawful licensing would have cost.
OneMusic simplifies compliance: Rather than navigating multiple collecting societies, OneMusic Australia provides a single point of contact for most music licensing needs. Visit their website to determine which license category applies to your business and obtain appropriate coverage.
Budget for music licensing: If music enhances your customer experience—whether background ambience in a retail store or featured entertainment in a venue—budget for licensing costs as a legitimate business expense. The alternative (silence or copyright-free music only) may negatively impact your business atmosphere.
Understanding PPCA matters for professionals servicing creative industry clients. PPCA royalties represent legitimate income requiring proper accounting treatment, while licensing fees represent deductible business expenses for music users.
Tax implications: PPCA distributions to artists and labels constitute assessable income for Australian taxation purposes. Ensure clients maintain proper records of PPCA payments and include them in annual tax returns.
Business expense claims: For clients operating music-using businesses, OneMusic Australia license fees qualify as tax-deductible business expenses related to providing customer experience and amenity.
Recordkeeping requirements: Advise clients to retain PPCA distribution statements, licensing agreements, and payment records for the Australian Taxation Office's required five-year period (or longer for certain circumstances).
As we move through 2026, PPCA continues adapting to Australia's evolving music landscape. The organisation faces ongoing challenges including streaming service licensing complexities, ensuring fair remuneration in an increasingly digital environment, and balancing accessibility for small businesses with adequate compensation for rights holders.
The Copyright Act's statutory limitations—particularly the 1% cap on radio broadcaster fees—remain contentious issues affecting PPCA's revenue potential. While commercial radio pays only 0.4% of gross revenue in PPCA fees (well below the statutory maximum), the cap prevents PPCA from negotiating higher rates even as radio stations generate substantial revenue from music-driven content.
International licensing agreements and cross-border royalty collection present ongoing complexities as Australian music reaches global audiences through streaming platforms. PPCA works with international collecting societies to ensure Australian rights holders receive royalties from overseas usage, though tracking and collection mechanisms vary significantly between jurisdictions.
The organisation's commitment to transparency, demonstrated through annual compliance reports with the Code of Conduct for Copyright Collecting Societies, helps maintain trust with both rights holders and licensees. PPCA's track-by-track distribution methodology, based on actual usage data rather than statistical sampling, ensures accurate royalty allocation—though this precision requires substantial data processing infrastructure.
For creative professionals navigating Australia's music industry, PPCA remains an essential piece of the revenue puzzle. While it's just one of multiple royalty streams (alongside streaming platforms, live performance, merchandise, and sync licensing), PPCA distributions can represent significant income—particularly for artists whose recordings achieve commercial radio success or feature prominently in public spaces.
The key is understanding how the system works, ensuring proper registration, and recognising that PPCA serves as infrastructure connecting those who create recordings with those who use them. It's not perfect, and debates around fee structures, distribution methodologies, and licensing requirements will continue. But as a mechanism for collecting and distributing royalties at scale, PPCA fulfils an essential function that would be nearly impossible for individual artists and labels to replicate independently.
How do I register with PPCA to receive artist royalties?
Featured Australian recording artists can register with PPCA's Direct Artist Distribution Scheme (ADDS) through the PPCA website, regardless of whether they've retained copyright in their recordings. The registration process requires providing details about recordings you've performed on, including track titles, release dates, and label information. The deadline for registration is August 31st each year to qualify for December distributions. Registration is free, and once completed, you'll automatically receive distributions for eligible recordings receiving public performance or broadcast in Australia.
Do I need a PPCA license if I only play music from Spotify or YouTube in my business?
Yes. Playing music from streaming platforms like Spotify, YouTube, or Apple Music in a business setting requires proper licensing, regardless of whether you hold personal subscriptions. Consumer streaming subscriptions are licensed for private, domestic use only—not commercial or public performance. Using these services in cafes, retail stores, gyms, waiting rooms, or other business environments without a OneMusic Australia license (which includes PPCA coverage) constitutes copyright infringement, even if you're paying for premium streaming accounts.
What's the difference between being a PPCA licensor versus a registered artist?
A PPCA licensor is a copyright owner (typically a record label or independent artist who owns their masters) who has signed an Input Agreement authorising PPCA to license their sound recordings and collect fees on their behalf. Licensors receive their share of distributions based on actual ownership of recording copyrights. A registered artist participates in PPCA's Direct Artist Distribution Scheme (ADDS), receiving 50% of income allocated to Australian recordings they've performed on, regardless of copyright ownership. Many artists are neither licensors nor registered artists if they've signed traditional recording contracts transferring copyright to labels and haven't registered with ADDS.
How does PPCA calculate how much each artist or label receives?
PPCA uses a track-by-track allocation system based on actual usage data collected from broadcasters and licensees. Major radio and television broadcasters provide comprehensive airplay logs detailing every track played, including timing, duration, and frequency. PPCA matches this data against their database of sound recordings (which includes information about copyright owners and registered artists), then calculates each track's proportional share of the total license fees collected. After deducting approximately 14% for administrative costs, PPCA distributes the remaining funds according to each recording's actual usage—tracks with higher airplay or public performance receive proportionally larger distributions.
Can foreign artists receive PPCA royalties for their recordings played in Australia?
Foreign artists don't participate directly in PPCA's Direct Artist Distribution Scheme (ADDS), which is specifically designed for Australian artists. However, foreign record labels and copyright owners can register as PPCA licensors to receive their share of distributions when their recordings are used in Australia. Additionally, PPCA has reciprocal agreements with collecting societies in other countries, allowing Australian artists to receive royalties from overseas usage and facilitating international royalty collection. Foreign artists should check whether their home country's collecting society has an agreement with PPCA to ensure they receive royalties from Australian usage of their recordings.
Ready to crank your finances up to 11? Whether you're tracking PPCA royalties, managing income from multiple creative streams, or navigating the tax implications of your music career, Amplify 11 understands the unique financial rhythm of creative professionals. Let's chat about how we can amplify your profits and simplify your paperwork – contact us today.
Featured Australian recording artists can register with PPCA's Direct Artist Distribution Scheme (ADDS) through the PPCA website. The registration process requires details about the recordings you’ve performed on, including track titles, release dates, and label information. The registration deadline is August 31st each year to qualify for December distributions, and registration is free.
Yes. Playing music from streaming platforms like Spotify, YouTube, or Apple Music in a business setting requires proper licensing. Consumer streaming subscriptions are for private, domestic use only. Using these platforms in a business environment without a OneMusic Australia license (which includes PPCA coverage) constitutes copyright infringement.
A PPCA licensor is typically a record label or an independent artist who owns their masters and has signed an Input Agreement with PPCA to license their recordings. A registered artist, on the other hand, participates in PPCA's Direct Artist Distribution Scheme (ADDS) and receives 50% of the income allocated to Australian recordings they’ve performed on, regardless of copyright ownership.
PPCA uses a track-by-track allocation system based on actual usage data collected from broadcasters and major licensees. After deducting approximately 14% for administrative costs, the remaining funds are distributed according to each recording’s actual usage. This means tracks with higher airplay or public performance receive a proportionally larger share of the license fees collected.
Foreign artists do not participate directly in PPCA's Direct Artist Distribution Scheme (ADDS), which is designed for Australian artists. However, foreign record labels and copyright owners can register as PPCA licensors to receive their share of distributions. Additionally, reciprocal agreements with international collecting societies help ensure that royalties are collected from overseas usage.
Sign up to receive relevant advice for your business.
