annual report 2008 - linking business to music makers annual report 20… · 8 management report...
TRANSCRIPT
HighlightsPPCA revenues, distributions, licences and registered artists and groups continued to increase in 2007-2008, maintaining our unbroken succession of improvements since 1990.
• Incomeup19.23%to$20,043,667
• Distributionsurplusup14.46%to$14,497,874
• Publicperformancelicencesup7.64%to50,974
ThePPCATrustapproved22applicationsforfunding:
• 16relatedtofurthereducationandresearch
• 6tofestivals,livemusicandlocalartists
2 Chairman’s Report
5 The Company
6 Board Members
8 Management Report
10 Communications
12 Performers’ Trust Foundation
13 2008 Most Broadcast Recordings and Artists
14 Top 100 Most Broadcast Recordings
16 50 Most Broadcast Artists
17 Most Broadcast Artists 2005–2007
18 Special Purpose Financial Report
39 Performers’ Trust Balance Sheet
40 Tariff Categories
Contents
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IntroductionOhbehalfofthePPCABoard,it’swithgreatsatisfactionthatIreportonanothersuccessfulyearforPPCAandhighlightsomeofthisyear’smilestonesandachievements.Firstandforemost,I’dliketonotethatthispastyearwasPPCA’s18thconsecutiveyearofgrowth.
Details on finances IncomefortheyearendingJune2008wasatarecordhighofjustover$20m,representinganincreaseofaround19%onthepreviousfinancialyear.Thisincreasewasdrivenprincipallybyincreasedpublicperformancerevenues,resultingfromtariffratereviewsandthesupportingenforcementprogram.Attheendoftheyear,activelicencesstoodatalmost51,000,representingan8%increaseonJune2007.
Thedistributablesurplus,at$14.5m,representsa14.5%increaseonthepreviousyearandwillbedistributedtolabelsandregisteredAustralianartistsduringDecember2008.
NightclubsInthe2007reportwenotedtheCopyrightTribunaldecisioninrelationtothenightclubanddancepartytariffs.TheAustralianHotelsAssociation(AHA)subsequentlyappealedthatdecision.InMarch2008,theFederalCourtheardanddismissedtheirappealtooverturntheTribunal’sNovember2007order,therebyconfirmingtheoriginalruling.Thiswillseeartistsandlabelsfinallygettingabetterdealfortheirworkasthenightclubratesphaseupto$1.05perperson,pernightoverthecomingyears. FitnessOurreviewofthefitnessclasstariff,initiatedin2006,hasbeenthesubjectofmucheffortover
thepastyear.Currently,fitnesscentrespayamere$0.96perclassforuseofrecordedmusicwhichPPCAbelievesgreatlyundervaluesthecontributionmusicmakestotheselucrativebusinesses.Afterextensiveindependenteconomicresearch,PPCAhasproposedanewrateof$4.54permemberpermonthor$0.99percasualvisit.
TheCopyrightTribunalwillconsidertheevidencefrombothPPCAandthefitnessindustryinahearingcurrentlyscheduledforMarch2009.Wehopetobeabletoreporttheresultofthatdeterminationinournextreport.
EnforcementToprotecttheinterestsofourartistsandlabels,andtokeepthefaithwithourcompliantlicenseeswhoacknowledgetheirstatutoryobligations,PPCAoperatesanation-wideinspectionandenforcementprogram.PPCAtakesactionwhenbusinessowners,despitePPCA’srepeatedefforts,refusetotakeoutthenecessarylicencestoplayrecordedmusic.SincethenewnightclubanddancepartytariffscameintoplaceinDecember,severalnightclubshavefailedtopaytheirnewfees.PPCAispursuingthesebusinessesandanumberhavehadtheirlicencesterminatedandsubsequentlyundergoneinspectionforinfringement.OnesuchVictoriannightclubhasagreedtopayalllicencefeesowedandaccrued,plusadditionalcharges.Underthisnewenforcementinitiative,PPCAhascollectedoutstandingnightclubtarifflicencefeesfrommorethan50venues.
Sponsorships by PPCAPPCAcontinuestosponsormusiccausesincludingSupportActLimited,TheSongRoomandTheAustralianMusicPrize(AMP).
InFebruary,PPCApresentedSydneybandTheMessHallwiththeprizeof$25,000atthe2007AMP.Wehavesweetenedthepotforthe2008/09AMP,byincreasingtheprizecontributionto$30,000.PPCAhasalsobecomeinvolvedinanothergrassrootsmusiccompetitionthisyear–theNationalCampusBandCompetition(NCBC).AsaleadsponsoroftheNCBC,PPCAhasthechancetoreachyoungartistsbeforethey‘makeit’,whilepromotingthePPCAbrandintheindustry.
ACCC/Arts LawPPCA’sACCCreauthorisationprocesswassuccessfullyconcludedinSeptember2007.Verypleasingly,notonlywerePPCA’straditionalactivitiesre-authorised,butalsotheauthorisationwasextendedtoarangeofnewandadditionalactivitiesincludingmusicvideolicensing,contentsimulcastingandwebcasting.Thisre-authorisationofPPCA’sactivitieshasrequiredsomeadditionalworkforlicensorswhoarenowrequiredtodevelopandmakeavailabletheirownpolicyondirectlicensing.Tomakethiseasierforlicensors,PPCAhaspartneredwithTheArtsLawCentreofAustralia(ArtsLaw),anindependentlegalbodythatprovideslegaladviceandservicestotheartscommunity.ArtsLawhasalreadyhelpedmorethan20licensorspreparetheirowndirectlicensingpolicies.
New Licence SchemesDuring2007/08,PPCAdevelopedsomenewlicensingschemestomeetthechangingneedsofthemarket.ThisyearPPCAofferedforthefirsttime,onaninterimbasisfora12-monthperiod,blanketnon-interactivewebcastinglicences.Welookforwardtorollingtheselicencesoutacrossthesector,andgainingabetterunderstandingofthisnewmarket.
Chairman’sReport
Thisyearalsosawthelaunchofspecificmusicvideobroadcastlicenceschemesforbothfree-to-airandsubscriptiontelevisionservices.Theselicences,whichhavebeenofferedtoallfree-to-airandpayTVoperatorsviatheirrespectiveindustryassociations,provideanoptionforthosetelecasterstoobtaina‘one-stop’licenceforthebroadcastofmusicvideos.Whilstnonehaveyetavailedthemselvesofthisopportunity,wearepleasedtohavebeenabletoofferthisserviceandlookforwardtoincreasedinterestfromthesector.
1% CapFollowingthechangeoffederalgovernmentinNovember2007,PPCArecommenceditslobbyingfortheremovaloftheanomalous1%caponradiobroadcastlicencefees.PPCA’ssubmissionshavereceivedagoodhearingfromthegovernmentandwehopetoseesubstantialprogressonthislongstandingissueduringthe08/09financialyear.
PeopleAnniversariesI’mpleasedtonotethat,duringthecourseoftheyear,PPCA’sLicensingManager,MaxineChisholm,reachedthetwenty-yearservicemilestone–thefirstPPCAemployeetodoso.MaxhasworkedtirelesslytoimprovePPCApublicperformancelicencepenetrationandincreaselicencerevenue,andwecongratulateheronthisachievement.
Licensor RepresentativeEarlyin2008,theBoardreviewedtheprocessforelectionandappointmentoftheLicensorRepresentativetotheBoard.Itresolvedtomovetheprocesstoamoresuitabletimeoftheyear.ThetermofthisBoardpositionwillnowbeforafinancialyear(formerlycalendar),withtheelectionprocessoccurringthroughoutMarch–Mayeachyear.Inordertotransitiontothenewtimetable,SebastianChase’stermhasbeenextendedto30June2009,andwethankhimforhisco-operationineffectingthischange.
ConclusionFinally,IwouldliketoextendmythanksandcongratulationstoboththeBoardandstaffofPPCAfortheireffortsoverthepastverysuccessfulyear.Inparticular,IwouldliketoacknowledgetheenormouscontributionofoutgoingChairJohnO’Donnell,whohaspresidedoveraperiodofunprecedentedgrowthintheorganisation,andrepeatedlyfocusedonachievingequitablereturnfortheuseofourveryvaluablerepertoire.
George AshPPCAChairmanNovember6,2008
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4
Summary
91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08
Public Performance Licences
5000
5200 99
00 13,100 16,050
18,726
21,421 26,965 30,285
32,961
33,290
34,451
35,496
36,469
39,540 42,613 47,356
0.487
0.729
1.045
1.280
1.811
2.512
3.476
4.013
4.073
4.215
5.846
7.215 8.127
8.827 10.016
10.329
12.667
1.616
1.806
2.204
2.621
3.185
4.110 5.462
5.963
6.336
6.618 8.419
9.897
11.183
11.934 13.367
14.617 16
.812
20.044
Gross Revenue (Millions)
91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08
Distribution (Millions)
14.498
91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08
50,974
Executive Secretariat
TheCompanyRegistered Office
Level4,19HarrisStreet,Pyrmont,NSW2009A.C.N000680704A.B.N43000680704
BankersCommonwealthBankofAustralia
SolicitorsGilbert&Tobin
AuditorsDeloitteToucheTohmatsu
Directors November 2008
George Ash
Sebastian Chase
Paul Christie
Bill Cullen
Denis Handlin, AM
Belinda Morrison
Mark Poston
Ed St John
Stephen PeachChiefExecutiveOfficer
Lynne SmallManager-Finance,Operations&Administration
Maxine ChisholmLicensingManager
Linda CourtneyDistributionManager
Stephen ConwayManager-BusinessTechnologies
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George AshPPCACHAIRMAN
GeorgeAshbecameamemberofthePPCABoardinAugust2003.GeorgeistheManagingDirectorofUniversalMusicAustralia(UMA),adivisionoftheUniversalMusicGroup.PriortoGeorge’scurrentpositionwithUniversalMusicAustralia,heheldpositionsasManagingDirectoratUniversalMusicNZ,ManagingDirectoratMCAGeffenNZandheldkeymanagementrolesatBMGNZ.GeorgehasalsoheldrolesinPolygramManufacturingandintheretailsector.
George’spassionforthemusicindustrybeganasamusicianandhasspanned25yearsincludingholdingavarietyofrolesinkeyindustrybodieswithintheNewZealandIndustrybeforerelocatingtoAustraliainhiscurrentrolein2001.
Paul ChristiePPCABOARDMEMBER–ARTISTREPRESENTATIVE
Paulisabassplayingmusician,currentlyperformingwithMondoRockandROCKHOUSE.Heconceived,managedandperformedinThePartyBoys,attainingrecordconcertticketsalesanda#1SinglealongwithplatinumandgoldalbumsforEMIandSONY.
Hehaspublishedtwo‘howto’booksformusicindustrystarters,utilisingthesetextsascurriculumforhistenureaslecturerattheAustralianInstituteofMusic.PaulhasalsoconsultedwiththeNSWMinistryforTheArts
oncontemporarymusiceducation,conductingseveralhighlysuccessfulseminarsfortheMinistryoverathree-yearperiod.
PaulhasexperienceandunderstandingofinformationtechnologiesandhaslivedandworkedinNewYorkfrom1995-1997,infilm,andLosAngelesinmusic.Heisapassionatemusicloverandstaunchsupporterofmusiciansandtheirrightstobroadbasedincomes.HeisamemberofAPRA,PPCAandaretiredmemberoftheAMMF.HeisalsoanactivememberofHarbourKeeperswww.harbourkeepers.org.auwhichrunsarangeofactivitiestoprotectandrestoreSydneyHarbourtoincludebushregeneration,cleanupsandfishsurveys.
Bill CullenPPCABOARDMEMBER–MANAGERREPRESENTATIVE
BillbecameamemberofthePPCABoardin2004,asthemanagerrepresentative.
BillistheManagingDirectorofOneLouderEntertainment,themanagementhometoPaulKelly,EndOfFashion,SarahBlaskoandTheDrones.Hehasbeeninvolvedinthemusicbusinesssinceleavingschool,anddidalongstretchworkingwithGrantThomasManagement,workingwithactssuchasCrowdedHouseandTheRockmelons.Afive-yearstintinLondonfollowed,whereheworkedwiththelegendaryPeteJenner(managerofPinkFloyd,TheClash,BillyBraggetc.),beforegoingontoco-manageNewZealandactOMC(HowBizarre)whowentontoanumberone
singleandgoldalbumintheUS.HereturnedtoAustraliain1999,andestablishedOneLouder,andhassincehadgoldplussuccesswithAlexLloyd,George,Amiel,SarahBlasko,EndOfFashionandPaulKelly.
Denis Handlin, AMPPCABOARDMEMBER
DenisistheChairmanandChiefExecutiveOfficerofSonyMusicEntertainmentAustraliaandNewZealand,havingpreviouslyheldanumberofseniorpositionswithinSonyMusicEntertainmentAustraliasince1970,includingtheCEOrolesince1984.
Denishasadeepinvolvementinthemusicindustry.HehasservedonthecommitteesofseveralindustryassociationsandhasheldvariouspositionsincludingChairmanofthePhonographicPerformanceCompanyofAustralia,ViceChairmanoftheAustralianRecordingIndustryAssociation(ARIA)andChairmanoftheARIAChart&MarketingCommittee.DenishasbeenaPPCAandARIABoardmembersince1984,andheldtheARIAChairmanpositionfor10consecutiveyearsfrom1999-2008.
In2005,DeniswasnamedaMember(AM)oftheOrderofAustraliaintheGeneralDivisionforhisservicetothemusicindustry,particularlythroughthepromotionofAustralianmusiciansandhiscontributionstoprofessionalorganisations,andtothecommunitythroughfundraisingforcharitableorganisations.Denisisaco-founderandaGovernoroftheSony
BoardMembersasatNovember2008
Foundationwhichhasraised$10millionintenyearsforcharitablecausessupportingAustralianyouth.HeisalsoPatronoftheYouthofftheStreetsscholarshipprogram.
Lindy MorrisonPPCABOARDMEMBER–ARTISTREPRESENTATIVE
LindyMorrisonhasbeenamemberofthePPCABoard,asarepresentativeofregisteredAustralianrecordingartists,since1994.Lindytouredtheworldasadrummer,withZero,TheGo-BetweensandCleopatraWong,from1978until1992.ShepresentlyplaysinTheRainySeason.Since1992,LindyhasworkedaroundAustraliaasthemusicaldirectororperformerinshows,paradesandfestivals,andhasleddrumandmusicworkshopswithmanydiverseandvariedcommunitygroups.ShehasbeenthemusicaldirectoroftheJunctionHouseBand,agroupofmusicianswithintellectualdisabilities,since1993.ShealsoteachesinMusicBusinesscoursesatbothUltimoandGymeaTAFEs.
LindyistheNationalCoordinatorforSupportActLtd–thebenevolentsocietyformusiciansandworkersinthemusicindustry.
Ed St JohnPPCABOARDMEMBER
EdStJohnbecameamemberofthePPCABoardinJuly2001.EdisthePresident&CEOofWarnerMusicAustralasia,adivisionoftheWarnerMusicGroup.PriortojoiningWarner
inFebruary2004,EdwastheManagingDirectorofBMGAustraliaforfouryears,havingpreviouslyheldanumberofseniorpositionswithinthecompanysincejoiningin1998.EdhasalsoheldthepositionofDirectorofMarketingatColumbiaRecords,adivisionofSonyMusicAustralia.
CurrentlytheChairmanoftheAustralianRecordingIndustryAssociation(ARIA)BoardofDirectors,Edhasalongassociationwiththemusicindustry.Hehasworkedasatelevisionwriterandproducer,specialisinginmusicandentertainment-focusedprogrammingandasafreelancemusicwriterandcontributortoseveralkeybooksonAustralianmusic.
Sebastian Chase PPCABOARDMEMBER–LICENSORREPRESENTATIVE
Sebastian,thenewestadditiontotheboard,isthefounderofMGMDistribution,nowAustralia’smostdiversedistributorofAustralianmusic,workingwithmanyindieartistsincludingJohnButler,TheWaifs,andTheBeautifulGirls.HehasplayedanintegralroleintheevolutionofAustralianmusic,startinghiscareerbymanaginglegendarybandssuchasRoseTattoo,DragonandtheearlydaysofColdChisel.
Inthe80s,SebastianestablishedChaseRecords,apioneeratofferingmajordistribution(viaCBS,nowSonyBMG)tootherindependentlabelssuchasSurvivalRecords.Fromthere,heestablishedrooArtRecordstogetherwithChrisMurphy&JustinVanStom,
leavinginthe90stobecomeapartnerinPhantomRecords.HelaterwentontofoundtheBlackYaklabelinpartnershipwithTimFreidmanfromTheWhitlams.
SebastianhasbecomeakeyadvisortosomeofAustralia’smosticonictalentsandhisDIYmodelischangingthewayindependentartistsbringtheirmusictothefans.
Mark Poston PPCABOARDMEMBER
Mark’spassionismusic-somuchsoit’slikelytobefoundinhisDNAoneday.Hehasworkedinmusicsince1989,inanumberofrolesfromrunningarecordstoretoworkinginvariousrolesatlabelsincludingSonyandBMG-workingwithmanyAustralianandinternationalartistsandmanagers.Bythetimeheturned30hewasheadofCapitolRecordsatEMIAustraliaworkingwithartistssuchasSilverchair,Coldplay,Jet,KeithUrban,PaulMac,RobbieWilliams,TheLivingEnd,KaseyChambers,JohnWilliamson,TheFinnBrothersandGorillaz.In2005,hewaspromotedtoDirector,GlobalMarketingforEMIbasedinLondon.InJuly2006,MarkwentontobeDirectorofanewEMIUKfrontlinelabelAngelMusicGroup/Charisma.InAugust2008,hereturnedtoAustraliaasChairmanandSeniorVicePresidentofMarketingforEMIAustralasia,basedinSydney.
Heneverwantstobecomecynicalorjaded,andcoulddowith30hoursinthedayinsteadoftheaverage24.
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ManagementReport
Financial Performance2007/08wasanotherrecordyearforPPCA,evidencedonceagainbysubstantialincreasesinbothrevenuesandsurplusavailablefordistributiontoartistandlabelstakeholders.
Duringtheyear,revenueincreasedby19%tojustover$20million.Thekeycontributorswereincreasesinpublicperformancelicencerevenue,drivenbybothgeneralgrowthinlicencepenetrationandmorefavourablelicencefeesfromthenightclubanddancepartysector,followingthesuccessfulconclusionofourapplicationtotheCopyrightTribunal.
Publicperformancelicencenumbersincreasedby8%and,attheendofJune2008,stoodatjustunder51,000Australiawide.Thiscontinuedgrowthisatestamenttothestrongcommitmentofthelicensingteam,whichhascontinuedtocontacthundredsofvenuestoexplainlicensingobligationsinregardtotheuseofmusic.Duringtheperiod,theteamalsovisitedhundredsofoutletsinshoppingandcommercialprecinctsinanefforttofurtherimprovecompliance.Notallvenuesarepreparedtomeettheirobligationsvoluntarily,andsomeinspectionshaveresultedinproceedingsintheFederalMagistrates’court,allofwhichhavebeensuccessfullyconcludedfromPPCA’sperspective.
DistributionItispleasingtonotetheincreaseinthedistributablesurplus,whichwasdistributedtoregisteredartistsandlicensorlabelsinDecember2008.Atjustunder$15million,thetotalavailablefordistributionis14.5%higherthanthepreviousyear,andmorethanthreetimeshigherthanthesurpluspostedin2000.Thishasbeenachievedatthesametimeassubstantialinvestmentsarebeingmadein
securingfutureincomestreams,whicharedescribedfurtherunder‘TariffReviews’.
ThenumberofPPCAlicensorscontinuestoincrease,particularlyasmoreself-releasedartistsbecomeawareofthebenefitsofincludingtheirrepertoireinPPCA’sblanketlicenceschemes.Similarly,thenumberofartistregistrationsundertheArtistDirectDistributionSchemeincreaseseachyear,andweaskthatallPPCAregisteredartistshelpspreadtheword,andletfellowAustralianartistsknowoftheopportunitytoregisterwithPPCAandshareintheannualdistribution.
CommunicationsPPCAcommunicationsactivityforthepastyearcontinuestoworkacrosstwoaudiences:artistsandbusinessowners.Throughadvertising,sponsorshipsandmediarelationsactivity,PPCAhasbeenraisingawarenessoftheorganisationamongthesetwokeyaudiencesdirectly,throughindustryorganisationsandviathemedia.
Forbusinesses,PPCAcontinuestospreadthemessagethatallbusinessesneedtobelicensedtopubliclyplayrecordedmusic.Inaddition,PPCAhasbeenincorporatingmessagesonenforcementtoensurebusinessownersareawarethattherearerepercussionsfornotobtainingalicence.
PPCAalsoboosteditsenforcementcommunicationsbycreatinganenforcementbulletin,entitledPPCA in Action,whichaimstoeducatebusinessownersaboutthevalueofobtainingaPPCAlicence,whileprovidingupdatesonourNationalEnforcementProgram.Thenewsletter,whichisdistributedtobusinessesthatrefusetoacknowledgetheircopyrightlicensingobligations,showcasesPPCA’ssuccessesinpursuingthose
businessesthatunlawfullyplayrecordedmusicwithoutalicence.
Inaddition,PPCAcontinuestoinformartistsoftheirneedtoregisterwithus.PPCAparticipatedintheinauguralS3SongSummitSydney,wherestaffengagedwithartistsone-on-onetoanswertheirquestionsabouttheorganisationandencouragethemtoregister.In2007-2008wealsocontinuedadvertisingtoartistsinindustrypublicationsandalertingartiststotheregistrationcut-offviathemedia.Finally,PPCA’ssponsorshipoftwomusiccompetitions,TheAustralianMusicPrize(AMP)andTheNationalCampusBandCompetition(NCBC),helpedtogrowouridentityamongtheartistcommunitythroughadvertising,mediarelationsanddirectcorrespondencewithparticipatingbands.
PPCAcontinuestodraftanddeliverourlong-standingartistandlicenseenewsletters,On the RecordandIn the Loop.Finally,www.ppca.com.aucontinuestobethehubofallcommunicationsactivityandisregularlyupdatedtoreflectthelatestPPCAnews.Pleaseseethecommunicationssectionformoredetailonthisyear’sactivities.
AuthorisationsAsreportedlastyear,inOctober2007PPCAsuccessfullyobtainedre-authorisationforitsactivitiesfromtheAustralianCompetitionandConsumerCommission(ACCC).
Whilstthere-authorisationwasaverypositivestepforPPCA,whichenabledtheexpansionoflicensingscopeandextendingcoveragetoallfuturelicensors,itdidresultinasignificantamountofadditionaladministrativework–bothforPPCAandindividuallicensors.
AllofPPCA’sstandardinputagreementswithlicensorshadtobeupdatedand,underthenew
Prepared by Stephen Peach and Lynne Small
conditionsoftheauthorisation,alllicensorshavebeenobligedtodevelopandpublishpoliciesondirectlicensing.
Werealisetheimplementationprocessresultedinasignificantincreaseincorrespondence.Wewouldliketotakethisopportunitytothanklicensorsfortheirpatienceduringthisperiod,andencourageanylicensorwhohasnotyetfinalisedtheirdirectlicensingpolicytodosoasamatterofurgency.Weremindlicensorsthatifyouamendyourpolicy(asyouareperfectlyfreetodoatanytime),youshouldprovideuswithacopyforourrecordssothatweareinapositiontoreporttotheACCCwhenrequired.
Finally,wewouldliketoacknowledgethesupportprovidedtoPPCAlicensorsbytheArtsLawCentreofAustralia(ALCA)onthisissue.TheALCAroutinelyprovidesindependentlegaladvicetopotentiallicensorsonthetermsofourinputagreementand,during2008,providedenormousassistancetoPPCAlicensorsontheformulationoftheirdirectlicensingpolicies.
Tariff Reviews – Public PerformanceFollowingthesuccessfulconclusionofthelongstandingCopyrightTribunalmatteronnightclubsanddanceparties,thenewrateswereimplementedlatein2007.TheappealagainsttheTribunal’sdeterminationlodgedbytheAustralianHotelsAssociation(AHA)washeardbytheFederalCourtinMarch2008.TheCourtdismissedtheappeal,upholdingtheTribunal’sdecision.
TheongoingTribunalreferenceinrelationtofitnessclasstariffsisalsoprogressing,withhearingdatessetforMarch2008.WearedelightedtoadvisethatFitnessAustralia,thepeakrepresentativebodyforfitnesscentres,hasagreedtoparticipateinaformalmediationprocessthatisscheduledforlateJanuary.Itisourhopethatallpartiescanagreeonthetermsofthelicencetoavoidalengthyhearing.
Throughout2008wehavealsobeenengagingwithRestaurant&CateringAustraliainordertoconsultonappropriatetarifflevelsforrestaurantsandcafés.Whilstwearestillgatheringdataandgainingadeeperunderstandingofthesector,
weexpecttobeabletotableaproposedschemefordiscussionearlyin2009.
Weremaincommittedtoensuringthatourtariffratesrepresentfairpaymentforuseofourstakeholders’creativeoutput.
Tariff Reviews – BroadcastingLastyearatthistimewereportedthecommencementofproceedingsintheCopyrightTribunalinrespectoftherateapplicabletothebroadcastofsoundrecordingsbycommercialfree-to-airtelevisionstations.
Althoughtherehasbeensomeprogress,thematterismovingveryslowlyandwedonotyethavedatesforahearing.
Earlyin2008,PPCAdevelopednewlicenceschemescoveringthebroadcastofmusicvideoclips,bothbyfree-to-airstationsbroadcastingdedicatedmusicvideoprogramsandsubscriptiontelecasterswithmusicvideochannels.Bothcommercialandsubscriptiontelecasterswereofferedtheselicencesbutalldeclinedtheoffer,advisingthattheybelievetheyhavetheappropriatedirectlicencesinplacewiththerelevantlabels.WetakethisopportunitytoremindlicensorsthatPPCArepresentsyourrepertoireonanon-exclusivebasisandyouarefreetomakeyourproductavailabletobroadcastersunderanytermsyouwish.Wedo,however,recommendthatwhensupplyingproducttotelecastersyouclearlyarticulatethetermsofthearrangement.
Code of ConductAlongwithanumberofotherAustraliancollectingsocieties,PPCAsubscribestoavoluntaryCodeofConductforCollectingSocieties(theCode).Eachyear,PPCA’scompliancewiththeCodeisindependentlyreviewed.Onceagain,PPCAreceivedafavourableCodecompliancereviewfromtheindependentCodeReviewer,theHonJamesBurchett,QC.ThereviewdemonstratesPPCA’scommitmenttofairandefficientdealingswithbothcopyrightusersandcopyrightholders.Inaddition,everythreeyears,theCodeitselfisreviewedtoseeifanyamendmentsneedtobemadetomaintaincurrencyandrelevance.
ThisreviewtookplacethisyearandwaspublishedinApril.BoththeTriennialReviewoftheCodeandtheComplianceReviewareavailableonthePPCAwebsite.
Support Act LimitedPPCAisafoundingmemberofSupportActLimited(SAL),themusicindustry’sbenevolentfund.Throughoutthe2007/08periodPPCAcontinueditssupportofSAL’sactivities,byprovidingpracticalassistanceintheareasoffundraisingandadministration.Itisencouragingtonotethecharity’sprogressovertherecentyear–mostparticularlythedevelopmentofactivestatechaptersinVictoriaandSouthAustralia,andtheappointmentofapart-timeadministrationmanagerinmid-2008.IfyouareunfamiliarwithSAL’sactivities,orwouldliketobecomemoreinvolved,pleasevisitwww.supportact.com.au.
Information SystemsAfteralengthyselectionprocess,wehaverecentlysettledonasuppliertoassistintheimplementationofanewfinancialsystem,whichwillcoverallaspectsoflicensingandcustomerrelationshipmanagement.Thereismuchtobedoneintermsofsystemconfigurationanddatamigration,andwehopetolaunchthenewsystemin2009.WebelievesuchanupdateisessentialtopositionPPCAforfurthergrowth,andallowustoflexiblyrespondtonewtariffmodelsandotherlicensingopportunities.
Staff milestonePPCAcongratulatesLicensingManagerMaxineChisholmfor20yearsatPPCA.Whenshebeganthejobin1988,MaxwastheonlypersondedicatedtolicensingatPPCA–nowshemanagesateamof14.Daytoday,Maxandherteamcommunicatewithawidevarietyofbusinesses,rangingfromsmallbowlingclubstolargecasinos,helpingthemtocomplywiththeircopyrightobligations.Overtheyears,shesaysshe’sseensomuchchangeintheindustry,notingthatPPCA’sprofileandcopyrightawarenessamongbusinessownershasincreaseddramatically.PPCAthanksMaxfortwodecadesofhardworkanddedication.
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CommunicationsIn 2007-2008, PPCA undertook the following communications activities to promote the organisation and support the music industry:
The DeadlysPPCAproudlysponsoredthe14thannualDeadlys,Australian’sNationalIndigenousmusic,sport,entertainmentandcommunityawards.BroadcastonSBS,ImparjaandNITV,TheDeadlyshasanestimatedaudienceofmorethan200,000people.PPCAcongratulatesallofthisyear’swinners.
Trade organisation membership, sponsorship and advertisingToengagewithexistingandpotentiallicensees,PPCAisasupporterofavarietyofindustryorganisations.TheseincludethestateRestaurant&Cateringorganisations,theAustralianHotelsAssociationandtheirstategroups,theHairandBeautyIndustryAssociation,thestate-basedClubsorganisationsandtheAustralianRetailAssociation.WesupportindustryeventssuchastheRestaurant&CateringAwardsandadvertiseinassociationpublicationsandavarietyoftrademagazines.
PPCAcongratulatesthefollowingwinnersoftheRestaurant&CateringAwards:
• BestGreekRestaurantNSW/ACT–Perama,Petersham
• BestIndianRestaurantNSW/ACT–Nilgiri’s,StLeonards
• BestRestaurantinaWineryNSW/ACT–Morrison’sRiverviewWinery&Restaurant
• BestFamilyEstablishmentRestaurantBrisbane,QLD–EnchiladasMexicanCantina,Aspley
• BestEuropeanRestaurantRegionalNSW–ZestRestaurant,NelsonBay
• BestPub/ClubTavernVIC–TheGrandHotelinRichmond.
• BestVenueCatererSA–EpicureCateringattheAdelaideTownHall
The AMPOnceagainPPCAprovidedthe$25,000cashprizetothewinneroftheAustralianMusicPrize.Congratulationsto2007AMPwinners–Sydney’sTheMessHall.
Artist advertisingPPCAcontinuestoencourageAustralianartiststoregisterwithPPCAfortheirshareofourannualdistribution.Weincludeeditorialinformationonwhyit’simportanttoregisterandalertstoourregistrationcut-offdateinmusicpress,musicassociationcommunicationssuchase-newsletters,andadvertisementsintheAustralianMusicIndustryDirectory,andtheannualTamworthCountryMusicFestivalGuideandothermusicpublications.
The Australian Songwriters Association – National Songwriting ContestOnceagain,PPCAsponsoredthebestliveperformanceonthenightattheAustralianSongwritersAssociation’sNationalSongwritingAwards.BoardmemberPaulChristieandLynneSmallwereonhandfortheevening.PPCAcongratulatesthisyear’sjointwinners:VanessaKelly,LindsayRimes&SimonShapiroandOpetaiaFoai/MalcolmSmith.
National Campus Band CompetitionForthefirsttime,PPCAsponsoredtheNationalCampusBandCompetition–thelargestlivebandcompetitioninthesouthernhemisphere.
OrganisedbytheAustralasianAssociationofCampusActivities(AACA),PPCAprovidedfundingandajudge,PPCABoardMemberLindyMorrison,forthefinals.Congratulationstothewinners:
1st Rubycon(ACT)2nd BehindTheseWalls(SA)3rd Wifey(NSW)
SongroomInAugustoflastyear,PPCAcommitted$50,000toawonderfulAustralianchildren’scharity–TheSongRoom.TheSongRoomisanot-for-profitorganisationdedicatedtoprovidingmusicandartsprogramsinAustralianschoolsandcommunities.ThankstoPPCA’ssupport,morechildrenacrossthecountrywillhaveaccesstomusicclassesandmusicalinstruments.
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Maxine Chisholm with Perama restaurant
Lynne Small with Morrison’s restaurant
Stephen Peach and The Mess HallA Song Room percussion workshop
Lindy Morrison with Rubycon
Maxine Chisholm with Perama restaurant
Paul Christie with winners Vanessa Kelly & Simon Shapiro, along with members of Opetaia Foai
PPCAPerformers’Trust
12
PPCA Trust ActivitiesSinceitsinception,PPCAhasfundedandco-administeredwiththeMusician’sUnionandtheMediaEntertainmentandArtsAlliance(formerlyActor’sEquity)the“PPCATrust”.TheTrusteesduringtheperiod1July2007–30June2008wereJohnO’Donnell,StephenPeach,PatriciaAmphlettandDenisShelverton.
InexercisingtheirpowerspursuanttotheprovisionsoftheTrust,theTrusteeshavethepowertopayortoapplytheTrustFundtoorforthebenefitofsuchbeneficiariesastheTrusteesintheirabsolutediscretionfromtimetotimedetermineinrespectofoneormoreofthefollowingpurposes:
1.performanceatconcertsatorforcharitableinstitutionssuchashospitalsorhomesfortheaged;or,
2.scholarshipsforthepromotionandencouragementofmusicalandtheatricaleducation;or
3.thepromotionandencouragementoftheperformingartstothegeneralpublic;or,inparticular,
4.theaidorassistanceofanybeneficiarywhointheopinionoftheTrusteesisunabletoadequatelymaintainherself/himselfbyher/hisownexertionsandotherincome.
TotalfundsprovidedsincecreatingtheTrusthavebeen$1,990,080(upto30June2008).
Inthe2007-2008year,fourTrustmeetingswereheldand37applicationswereputtotheTrustees.Ofthese,22wereapprovedtotaling$70,150.Ofthesuccessfulapplications16relatedtofurthereducationandresearch;and6tofestivals,livemusicandlocalartists.
The names of the recipients are as follows:
Aust.MusicExaminationsBoardBonnieBrownByronWestburyCamdenHavenMusicFestivalChristinaKatsimbardisCloseShaveBarbershopQuartetDanielChristoffersonEmilyGoddardGillianGregoryGuilderWorkshopHeatherLuptonHobartCityVeteransBrassBandLeeCheongMatthewSykesMediaEntertainment&ArtsAllianceMusiciansUnionofAustraliaNatalieNowakSue-EllenPaulsenTheAustralianBoysChoralInstituteWallaceGunnWestCoastYouthServicesIncZoePepper
TheTrustBalanceSheetcanbefoundonpage39ofthisreport.
Feedbackfrommanyofthegrantsrecipientshasbeenwelcomeanduseful.Herearesomeexamples:
Thank you very much for your generous grant of $500 for my trumpet studies in Hobart. It has been and will continue to be very helpful in assisting with the cost of lessons with Mr Levy, which are currently going extremely well.
Many thanks again,RosemaryTurner.
I am writing to thank you very much for the award of $2500 to further my studies and help with tuition fees at the Amsterdam Conservatorium this year. I would like to let you know that I am continuing with the project and I am currently in the Netherlands about to undertake my study. I have recognised the support from the PPCA Performers Trust on my website.
Thank you again,AlanaBlackburn
I am writing to acknowledge the generous support received from the PPCA Performers’ Trust Foundation which enabled me to attend the 8th World Symposium on Choral Music recently in Copenhagen. I was one of 38 delegates from Australia amongst a total of over one thousand from all around the world. The week-long conference was inspiring and enabled me to ‘re-charge the batteries’ as a choral conductor through attendance at workshops and seminars on the voice, choral conducting and repertoire and, of course, the immensely exciting opportunity to hear the world’s best choirs in concert. . .
I ask that you convey my thanks to the Trustees, without whose help I would not have been able to attend the Symposium.
Yours sincerely, NoelAncell,ArtisticDirector,TheAustralianBoysChoralInstitute.
The PPCA Most Broadcast Lists acknowledge Australian artists that receive extensive airplay according to PPCA’s broadcast logs. We compile these lists from the play list data used to distribute income to licensors, artists and the PPCA Performers’ Trust Foundation.
2008MostBroadcastRecordingsandArtists
The2008MostBroadcastArtistsandRecordingshavedemonstratedpositivegrowthinexposureforAustralianartists,withanunprecedented19actsmakingitintothe2008Top50MostBroadcastArtistReport.Thisisupfrom16in2007and15in2006.The2008Top100MostBroadcastRecordingReportwasalsoaboonforlocalartists,with28tracksfrom20differentactsmakingthelist.
Forthesecondconsecutiveyear,P!nktoppedthe2008Top50MostBroadcastArtistReport,followedbyMaroon5at#2,Matchbox20at#3,Fergieat#4andFallOutBoyat#5.TheVeronicaswerethetoprankedAustralianactat#6followedbyRogueTradersat#9.
Matchbox20hastoppedthe2008Top100MostBroadcastRecordingReportwithHow Far We’ve Come,followedbySantanaat#2withInto The NightandFergieat#3withBig Girls Don’t Cry (Personal).GoodCharlotteisat#4
withDance Floor AnthemandMatchbox20featuresagainat#5withAll Your Reasons.ThePotbelleezleadthewayforAustralianacts,at#6withDon’t Hold Back,withTheVeronicas,Silverchair,Ricki-LeeandDeltaGoodremmakingthetop20.MikaandFergiebothcontributedfourdifferentsongstotheTop100,withTheVeronicas,DeltaGoodrem,FallOutBoy,P!nk,SnowPatrolandMaroon5allplacingthreesongsinthereport.
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Top100MostBroadcastRecordings2008The chart is measured by collating titles that appear in the PPCA radio/TV broadcast logs during the period July to June each year.
HowFarWe’veComeIntoTheNightBigGirlsDon’tCry(Personal)DanceFloorAnthemAllYourReasonsDon’t Hold BackBleedingLove‘CuzICanPicturesOfYouWon’tGoHomeWithoutYouWakeUpCallUntouched ShadowOfTheDayHeyThereDelilahStraight LinesMiseryCan’t Touch It (Radio Edit)HappyEndingOpenYourEyesIn This LifeWayIAre,TheHook Me UpShutUpAndDriveStopAndStare-AlbumVersionClumsyOpinions Wont’ Keep You Warm At NightLongRoadToRuinLoveTodayDon’t You Wanna FeelMakesMeWonderDon’tStopTheMusicLeaveMeAlone(I’mLonely)PieceOfMe4InTheMorningBetter ThanThnksFrThMmrsIt’sNotOverStrongerNoOneParalyzerWhatI’veDoneI Never Liked YouNeverAgainSummerLoveDreamCatchMeTattooWhenYou’reGoneThis Heart Attack20 Good ReasonsThePretender
0102030405060708091011121314151617181920212223242526272829303132333435363738394041424344454647484950
14
Track Name Artist Name
Matchbox20SantanaFergieGoodCharlotteMatchbox20The PotbelleezLeonaLewisP!nkTheLastGoodnightMaroon5Maroon5The Veronicas LinkinParkPlainWhiteT’sSilverchairGoodCharlotteRicki-LeeMikaSnowPatrolDelta GoodremTimbalandThe VeronicasRihannaOneRepublicFergieKisschasyFooFightersMikaRogue TradersMaroon5RihannaP!nkBritneySpearsGwenStefaniThe John Butler TrioFallOutBoyDaughtryKanyeWestAliciaKeysFingerElevenLinkinParkRogue TradersKellyClarksonJustinTimberlakeNewtonFaulknerJordinSparksAvrilLavigneFakerThirsty MercFooFighters
DestinationCalabriaWorkI Don’t RememberLittleWondersLetMeThinkAboutIt(FreddeLeGrandClubMix)This LoveBubblyHotTeenagersIn PiecesWhenI’mGone(AcousticVersion)The Hard WayLow4MinutesLoudBetterThanMeDon’t Miss YouSweet About MeHowToSaveALifeI Don’t Do SurprisesLost And RunningBelieve AgainUFOHandsOpen2 HeartsTheTakeOver,TheBreaksOverGraceKellySuddenlyISeePerfectWithYouNineIntheAfternoonChasingCarsTheSweetEscapeApologizeLoveStoned/IThinkSheKnows(RadioEdit)SlowDownBabyBetterInTimeGimmeMoreDearMr.PresidentBlack Fingernails, Red WineGlamorousAmericanBoyThisAin’tAScene,It’sAnArmsRaceBeautifulGirlsBigGirl(YouAreBeautiful)Where I StoodYourLoveIsALie(AmendedAlbumVersion)OneMinuteYou Will Only Break My HeartHereICome
51525354555657585960616263646566676869707172737475767778798081828384858687888990919293949596979899100
Track Name Artist Name Track Name Artist Name
AlexGaudinoKellyRowlandPowderfingerRobThomasIdaCorrThe VeronicasColbieCaillatAvrilLavigneMyChemicalRomanceShannon NollSimplePlanThirsty MercFloRidaMadonnaShannon NollHinderAmy PearsonGabriella CilmiTheFrayAxle WhiteheadPowderfingerDelta GoodremSneaky Sound SystemSnowPatrolKylie MinogueFallOutBoyMikaKTTunstallVanessa AmorosiChrisBrownPanicAtTheDiscoSnowPatrolGwenStefaniTimbalandJustinTimberlakeChristinaAguileraLeonaLewisBritneySpearsP!nkEskimo JoeFergieEstelleFallOutBoySeanKingstonMikaMissy HigginsSimplePlanKellyClarksonDelta GoodremFergie
15
50MostBroadcastArtists2008
The chart is measured by collating titles that appear in the PPCA radio/TV broadcast logs during the period July to June each year.
16
01.P!nk02.Maroon503.Matchbox2004.Fergie05.FallOutBoy06.TheVeronicas07.JustinTimberlake08.GoodCharlotte09.RogueTraders10.Timbaland11.U212.Powderfinger13.LinkinPark14.AvrilLavigne15.GwenStefani16.KellyClarkson17.DeltaGoodrem18.INXS19.TheJohnButlerTrio20.Mika21.ThirstyMerc22.KylieMinogue23.Santana24.SneakySoundSystem25.BritneySpears26.SnowPatrol27.Madonna28.LeonaLewis29.Silverchair30.RobbieWilliams31.RedHotChiliPeppers32.ThePotbelleez33.EskimoJoe34.Ricki-Lee35.TheLastGoodnight36.MissyHiggins37.NellyFurtado38.Kisschasy39.PlainWhiteT’s40.FooFighters41.Evermore42.ChristinaAguilera43.GreenDay44.CrowdedHouse45.SimplePlan46.Daughtry47.Coldplay48.Nickelback49.PeteMurray50.ColdChisel
MostBroadcastArtists2005-2007
17
2005 2006 2007
Kylie Minogue Maroon5 U2 Missy Higgins GreenDay SimplePlan AvrilLavigne BritneySpears Powderfinger Delta Goodrem Jet KellyClarkson Destiny’sChild Anastasia GwenStefani Nelly RobbieWilliams Eminem Guy Sebastian Pete Murray Killing Heidi GoodCharlotte Usher Matchbox20 INXS
01.02.03.04.05.06.07.08.09.10.11.12.13.14.15.16.17.18.19.20.21.22.23.24.25.
01.02.03.04.05.06.07.08.09.10.11.12.13.14.15.16.17.18.19.20.21.22.23.24.25.
KellyClarkson RobThomas Nickelback RobbieWilliams BlackEyedPeas Madonna The Veronicas GreenDay Shannon Noll U2 Rogue Traders GwenStefani JamesBlunt Pete Murray Coldplay BackstreetBoys Bernard Fanning Kylie Minogue INXS Ben Lee SimplePlan Sugababes FooFighters ThePussycatDolls DanielPowter
P!nkRobbieWilliamsNickelbackEskimo JoeU2NellyFurtadoJustinTimberlakeRedHotChiliPeppersSnowPatrolEvermorePussycatDollsThe Rogue TradersShannon NollINXSChristinaAguileraTheFrayGwenStefaniBeyonceKellyClarksonPete MurrayThe VeronicasPanic!AtTheDiscoColdplayEvanescenceJet
01.02.03.04.05.06.07.08.09.10.11.12.13.14.15.16.17.18.19.20.21.22.23.24.25.
SpecialPurposeFinancialReport2004-2007For the financial year ending 30 June 2008
Directors’Report 19
Auditor’sIndependenceDeclaration 21
IndependentAuditor’sReport 22
Directors’Declaration 23
IncomeStatement 24
BalanceSheet 25
StatementofRecognisedIncomeandExpense 26
CashFlowStatement 27
NotestotheFinancialStatements 28
18
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19
Directors’Report2004-2007ThedirectorsofPhonographicPerformanceCompanyofAustraliaLimitedsubmitherewiththeannualfinancialreportofthecompanyforthefinancialyearended30June2008.InordertocomplywiththeprovisionsoftheCorporationsAct2001,thedirectorsreportasfollows:
Thenamesofthedirectorsofthecompanyduringorsincetheendofthefinancialyearare:
George William Ash Managing Director, Record Company
Jonathan Carter (AlternateforJohnO’Donnell) Head of Business Affairs, Record Company
Sebastian Chase Chief Executive Officer, Record Company
Paul Adrian Christie Independent Artist
Raani Costelloe(AlternateforDenisAnthonyHandlin) General Manager, Legal & Business Affairs, Record Company
David William De Barran Cullen Director, Management Company
Karen Ann Don (AlternateforGeorgeWilliamAsh); Director, Legal & Business Affairs, Record Company
Deborah Veronica Gervay(AlternateforJohnAnthonyO’Donnell); Head of Business Affairs, Record Company
Denis Anthony Handlin Chairman and CEO; Australia and New Zealand, Record Company
Belinda Morrison Independent Artist
Mark Narborough(AlternateforEdwardErskineStJohn); Director of Finance, Record Company
John Anthony O’Donnell Managing Director, Record Company
Mark Andrew Poston Managing Director, Record Company
Edward Erskine St John Managing Director, Record Company
David Andrew Vodicka Managing Director, Record Company
Theabovenameddirectorsheldofficeduringandsincetheendofthefinancialyearexceptfor:
Deborah Veronica Gervay Resigned 5 December 2007
David Andrew Vodicka Resigned 28 February 2008
John Anthony O’Donnell Resigned 27 August 2008
Sebastian Chase Appointed 8 May 2008
Jonathan Carter Appointed 5 December 2007
Mark Andrew Poston Appointed 27 August 2008
Directors’Report
20
Directors’ Meetings Thefollowingtablesetsoutthenumberofdirectors’meetingsheldduringthefinancialyearandthenumberofmeetingsattendedbyeachdirector(whiletheywereadirector).Duringthefinancialyear,fiveboardmeetingswereheld.
Directors Board of Directors Held Attended
George William Ash 5 3
Jonathan Carter (Alternate)(Appointed5December2007) - -
Sebastian Chase (Appointed8May2008) 2 2
Raani Costelloe (Alternate) 5 5
Paul Adrian Christie 5 5
David William De Barran Cullen 5 5
Karen Ann Don (Alternate) 2 -
Deborah Veronica Gervay (Alternate)(Resigned5December2007) - -
Denis Anthony Handlin 5 -
Belinda Morrison 5 5
Mark Narborough (Alternate) 1 -
John Anthony O’Donnell 5 5
Edward Erskine St John 5 4
David Andrew Vodicka (Resigned28February2008) 2 1
Company SecretaryLynne Maree SmallC.P.A.,Appointed16May1997
Principal activitiesTheprincipalactivityofthecompanyinthecourseofthefinancialyearwasactingforthecopyrightownersinthelicensingthroughoutAustraliaofthebroadcastandpublicperformanceofsoundrecordingsandmusicvideoclips.
Directors’Report
21
Review of operationsThecompanydistributesthelicencefeesitcollectstotheCopyrightownersandartistsafterdeductingoperatingexpenses.Asaresultofthis,noprofitorlossisreportedandthedirectorsdonotrecommendthatadividendwillbepayableinthecurrentyear.Nodividendwaspayableintheprioryear.
Thecompany’sresultshaveagainshownasubstantialincreaseintheamounttobedistributedtocopyrightownersascomparedwiththepreviousyear.Theresultsoftheoperationsofthecompanyduringtheyearwerenot,intheopinionofthedirectorssubstantiallyaffectedbyanyitem,transactionoreventofamaterialandunusualnature.
Thecompany’sdistributiontoitslicensorsinrelationtothecurrentyearwas$14,497,874(2007:$12,666,828).
Thecompany’sresultsforthecurrentyearended30June2008wasaprofitof$nil(2007:$nil).
Changes in state of affairsTherewerenosignificantchangesinthestateofaffairsofthecompanyduringthefinancialyear.
Subsequent eventsTherehasnotbeenanymatterorcircumstanceoccurringsubsequenttotheendofthefinancialyearthathassignificantlyaffected,ormaysignificantlyaffect,theoperationsofthecompany,theresultsofthoseoperations,orthestateofaffairsofthecompanyinfuturefinancialyears.
Future developmentsDisclosureofinformationregardinglikelydevelopmentsintheoperationsofthecompanyinfuturefinancialyearsandtheexpectedresultsofthoseoperationsislikelytoresultinunreasonableprejudicetothecompany.Accordingly,thisinformationhasnotbeendisclosedinthisreport.
Environmental regulationsThecompany’soperationsarenotsubjecttoanyparticularandsignificantenvironmentalregulationsunderanyStateorFederallaws.
Indemnification of officers and auditorsDuringthefinancialyear,thecompanypaidapremiuminrespectofacontractinsuringthedirectorsofthecompany(asnamedabove),thecompanysecretary,LynneMareeSmall,andallexecutiveofficersofthecompanyandofanyrelatedbodycorporateagainstaliabilityincurredassuchadirector,secretaryorexecutiveofficertotheextentpermittedbytheCorporationsAct2001.Thecontractofinsuranceprohibitsdisclosureofthenatureoftheliabilityandtheamountofthepremium.
Thecompanyhasnototherwise,duringorsincethefinancialyear,excepttotheextentpermittedbylaw,indemnifiedoragreedtoindemnifyanofficerorauditorofthecompanyorofanyrelatedbodycorporateagainstaliabilityincurredassuchanofficerorauditor.
Auditor’s independence declarationTheauditor’sindependencedeclarationisincludedonpage4oftheannualreport.
Signedinaccordancewitharesolutionofdirectorsmadepursuanttos.298(2)oftheCorporationsAct2001.
Onbehalfofthedirectors,
George William AshDirectorSydney,6November2008
IndependentAuditReport
Wehaveauditedtheaccompanyingfinancialreport,beingaspecialpurposefinancialreport,ofPhonographicPerformanceCompanyofAustraliaLimited,whichcomprisesthebalancesheetasat30June2008,andtheincomestatement,cashflowstatementandstatementofrecognisedincomeandexpensefortheyearendedonthatdate,asummaryofsignificantaccountingpolicies,otherexplanatorynotesandthedirectors’declarationassetoutonpages23to38.
Directors’ Responsibility for the Financial ReportThedirectorsofthecompanyareresponsibleforthepreparationandfairpresentationofthefinancialreportandhavedeterminedthattheaccountingpoliciesdescribedinNote2tothefinancialstatements,whichformpartofthefinancialreport,areappropriatetomeettherequirementsoftheCorporationsAct2001andareappropriatetomeettheneedsofthemembers.Thedirectors’responsibilityalsoincludesestablishingandmaintaininginternalcontrolrelevanttothepreparationandfairpresentationofthefinancialreportthatisfreefrommaterialmisstatement,whetherduetofraudorerror;selectingandapplyingappropriateaccountingpolicies;andmakingaccountingestimatesthatarereasonableinthecircumstances.
Auditor’s ResponsibilityOurresponsibilityistoexpressanopiniononthefinancialreportbasedonouraudit.Noopinionisexpressedastowhethertheaccountingpoliciesused,asdescribedinNote2,areappropriatetomeettheneedsofthemembers.WeconductedourauditinaccordancewithAustralianAuditingStandards.TheseAuditingStandardsrequirethatwecomplywithrelevantethicalrequirementsrelatingtoauditengagementsandplanandperformtheaudittoobtainreasonableassurancewhetherthefinancialreportisfreefrommaterialmisstatement.
Anauditinvolvesperformingprocedurestoobtainauditevidenceabouttheamountsanddisclosuresinthefinancialreport.Theproceduresselecteddependontheauditor’sjudgement,includingtheassessmentoftherisksofmaterialmisstatementofthefinancialreport,whetherduetofraudorerror.Inmakingthoseriskassessments,theauditorconsidersinternalcontrolrelevanttotheentity’spreparationandfairpresentationofthefinancialreportinordertodesignauditproceduresthatareappropriateinthecircumstances,butnotforthepurposeofexpressinganopinionontheeffectivenessoftheentity’sinternalcontrol.Anauditalsoincludes
evaluatingtheappropriatenessofaccountingpoliciesusedandthereasonablenessofaccountingestimatesmadebythedirectors,aswellasevaluatingtheoverallpresentationofthefinancialreport.
Thefinancialreporthasbeenpreparedfordistributiontothemembersforthepurposeoffulfillingthedirectors’financialreportingrequirementsundertheCorporationsAct2001.Wedisclaimanyassumptionofresponsibilityforanyrelianceonthisreportoronthefinancialreporttowhichitrelatestoanypersonotherthanthemembers,orforanypurposeotherthanthatforwhichitwasprepared.
Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinion.Auditor’s Independence DeclarationInconductingouraudit,wehavecompliedwiththeindependencerequirementsoftheCorporationsAct2001.
Auditor’s Opinion
Inouropinion,thefinancialreportofPhonographicPerformanceCompanyofAustraliaLimitedisinaccordancewiththeCorporationsAct2001,including: (a)givingatrueandfairviewofthecompany’sfinancialpositionas
at30June2008andofitsperformancefortheyearendedonthatdateinaccordancewiththeaccountingpoliciesdescribedinNote2;and
(b)complyingwithAustralianAccountingStandardstotheextentdescribedinNote2andtheCorporationsRegulations2001.
Deloitte Touche Tohmatsu
Gaile PearcePartnerCharteredAccountantsSydney,2008
22
Directors’Declaration
AsdetailedinNote2tothefinancialstatements,thecompanyisnotareportingentitybecauseintheopinionofthedirectorsthereareunlikelytoexistusersofthefinancialreportwhoareunabletocommandthepreparationofreportstailoredsoastosatisfyspecificallyalloftheirinformationneeds.Accordingly,this‘specialpurposefinancialreport’hasbeenpreparedtosatisfythedirectors’reportingrequirementsundertheCorporationsAct2001.
Thedirectorsdeclarethat: (a)inthedirectors’opinion,therearereasonablegroundstobelieve
thatthecompanywillbeabletopayitsdebtsasandwhentheybecomedueandpayable;and
(b)inthedirectors’opinion,theattachedfinancialstatementsand
notestheretoareinaccordancewiththeCorporationsAct2001,includingcompliancewithaccountingstandardsandgivingatrueandfairviewofthefinancialpositionandperformanceofthecompany.
Signedinaccordancewitharesolutionofthedirectorsmadepursuanttos.295(5)oftheCorporationsAct2001.
Onbehalfofthedirectors,
George William AshDirectorSydney,6November2008
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24
IncomeStatementFor the financial year ending 30 June 2008
Note 2008 2007 $ $
Notestothefinancialstatementsareincludedonpages28to38
Continuing operations
Revenue
SubscriptionfeespaidorpayabletotheInternationalFederationofPhonographicIndustry
Employeebenefitsexpense
Depreciationandamortisationexpense
Occupancyexpense
Distributiontolicensors
Legalexpense
Otherexpenses
Profitbeforetax
Incometaxexpense
Profit for the year
Profit for the year attributable to members of the parent entity
20,043,667 16,811,529 (376,806) (476,613) (2,158,874) (1,919,855) (155,789) (173,148) (194,190) (182,822) (14,497,874) (12,666,828) (1,845,042) (652,780)
(815,092) (739,483) - - - -3 - - - -
25
BalanceSheetAs at June 2008
Note 2008 2007 $ $
Notestothefinancialstatementsareincludedonpages28to38
Current assetsCashandcashequivalentsTradeandotherreceivablesOtherfinancialassets
Total current assets
Non-current assetsPlantandequipment
Total non-current assets
Total assets
Current liabilitiesTradeandotherpayablesProvisions
Total current liabilities
Non-current liabilitiesProvisions
Total non-current liabilities
Total liabilities
Net assets
EquityIssuedcapital
Total equity
1,263,730 898,113 5,569,181 3,908,471 14,766,320 14,466,320
21,599,231 19,272,904
261,638 376,870
261,638 376,870
21,860,869 19,649,774
21,539,167 19,373,499 210,370 168,931
21,749,537 19,542,430
111,320 107,332
111,320 107,332
21,860,857 19,649,762
12 12
12 12
12 12
11(a) 4 5
6
7 8
8
9
StatementofRecognisedIncomeandExpenseFor the financial year ending 30 June 2008
26
Note 2008 2007 $ $
Profitfortheperiod
Total recognised income and expense for the period
- -
- -
Notestothefinancialstatementsareincludedonpages28to38
27
Notestothefinancialstatementsareincludedonpages28to38
CashFlowStatementFor the financial year ending 30 June 2008
Cash flows from operating activitiesReceiptsfromcustomersPaymentstosuppliersandemployeesDistributionstolicensors
Netcashprovidedby/(usedin)operatingactivities
Cash flows from investing activitiesInterestreceivedPaymentsforproperty,plantandequipment
Netcashprovidedbyinvestingactivities
Net increase in cash and cash equivalents
Cash and cash equivalents at the beginning of the financial year
Cash and cash equivalents at the end of the financial year
19,210,498 17,362,285 (6,865,898) (5,825,120) (12,666,828) (10,329,049) (322,228) 1,208,116 1,028,402 797,945 (40,557) (48,767) 987,845 749,178 665,617 1,957,294 15,364,433 13,407,139 16,030,050 15,364,433
Note 2008 2007 $ $
11(b)
11(a)
28
NotestotheFinancialStatementsFor the financial year ending 30 June 2008
1. General information
PhonographicPerformanceCompanyofAustraliaLimited(thecompany)isaproprietarycompany,incorporatedinAustraliaandoperatinginAustralia.PhonographicPerformanceCompanyofAustraliaLimited’sregisteredofficeanditsprincipalplaceofbusinessisasfollows:
Registeredofficeandprincipalplaceofbusiness:Level419HarrisStreetPYRMONTNSW2009Telephone(02)85691100
Theentity’sprincipalactivityisactingforthecopyrightownersinthelicensingthroughoutAustraliaofthebroadcastandpublicperformanceofsoundrecordingsandmusicvideoclips.
2. Significant accounting policies
Financial reporting frameworkThecompanyisnotareportingentitybecauseintheopinionofthedirectorsthereareunlikelytoexistusersofthefinancialreportwhoareunabletocommandthepreparationofreportstailoredsoastosatisfyspecificallyalloftheirinformationneeds.Accordingly,this‘specialpurposefinancialreport’hasbeenpreparedtosatisfythedirectors’reportingrequirementsundertheCorporationsAct2001.
Statement of complianceThefinancialreporthasbeenpreparedinaccordancewiththeCorporationsAct2001,therecognitionandmeasurementrequirementsspecifiedbyallAccountingStandardsandInterpretations,andthedisclosurerequirementsofAccountingStandardsAASB101‘PresentationofFinancialStatements’,AASB107‘CashFlowStatements’andAASB108‘AccountingPolicies,ChangesinAccountingEstimatesandErrors.’
Basis of preparationThefinancialreporthasbeenpreparedonthebasisofhistoricalcost,exceptfortherevaluationofcertainnon-currentassetsandfinancial
instruments.Costisbasedonthefairvaluesoftheconsiderationgiveninexchangeforassets.AllamountsarepresentedinAustraliandollars,unlessotherwisenoted.
Deficiency of working capitalAsat30June2008thecompanyhasaworkingcapitaldeficiencyof$150,306(2007:$269,526).Includedinthecompany’scurrentliabilitiesareaggregateamountsrepresentingthelicensefeesreceivedinadvancefor$5,431,079(2007:$5,465,901)andamountspayabletolicensorsof$14,497,874(2007:$12,666,828).WhiletheamountpayabletothelicensorswillbesettledinDecember2008,thelicensefeesreceivedinadvancewillbeusedtosupporttheoperationsofthecompanyinthenextfinancialyearwithonlythesurplusformingpartoftheamountwhichwillbedistributedtothelicensorsinrelationtothefinancialyearending30June2009.
Consequently,theworkingcapitaldeficiencypositionat30June2008isduetothenatureofPPCA’sbusinessanddoesnothighlightanissuerelatingtothegoingconcernassumptionofthecompany.
Critical accounting judgements and key sources of estimation uncertaintyIntheapplicationofthecompany’saccountingpolicies,managementisrequiredtomakejudgments,estimatesandassumptionsaboutcarryingvaluesofassetsandliabilitiesthatarenotreadilyapparentfromothersources.Theestimatesandassociatedassumptionsarebasedonhistoricalexperienceandotherfactorsthatareconsideredtoberelevant.Actualresultsmaydifferfromtheseestimates.
Theestimatesandunderlyingassumptionsarereviewedonanongoingbasis.Revisionstoaccountingestimatesarerecognisedintheperiodinwhichtheestimateisrevisediftherevisionaffectsonlythatperiod,orintheperiodoftherevisionandfutureperiodsiftherevisionaffectsbothcurrentandfutureperiods.
Adoption of new and revised Accounting StandardsInthecurrentyear,thecompanyhasadoptedallofthenewandrevisedStandardsandInterpretationsissuedbytheAustralianAccountingStandardsBoard(theAASB)thatarerelevanttoitsoperationsandeffectiveforthecurrentannualreportingperiod.
29
Detailsoftheimpactoftheadoptionofthesenewaccountingstandardsaresetoutintheindividualaccountingpolicynotessetoutbelow.ThecompanyhasalsoadoptedAASB101‘PresentationofFinancialStatements(revisedOctober2006)’inrespectofdisclosure.
Thefollowingsignificantaccountingpolicieshavebeenadoptedinthepreparationandpresentationofthefinancialreport:
(a) Goods and services tax Revenues,expensesandassetsarerecognisednetofthe
amountofgoodsandservicestax(GST),except:
i.wheretheamountofGSTincurredisnotrecoverablefromthetaxationauthority,itisrecognisedaspartofthecostofacquisitionofanassetoraspartofanitemofexpense;or
ii.forreceivablesandpayableswhicharerecognisedinclusiveofGST.
ThenetamountofGSTrecoverablefrom,orpayableto,thetaxationauthorityisincludedaspartofreceivablesorpayables.
Cashflowsareincludedinthecashflowstatementonagrossbasis.TheGSTcomponentofcashflowsarisingfrominvestingandfinancingactivitieswhichisrecoverablefrom,orpayableto,thetaxationauthorityisclassifiedasoperatingcashflows.
(b) Revenue Revenueisbroughttoaccountoverthetermsofthe
licencesissuedonthefollowingbasis:
•Publicperformancelicencefeesarenormallyissuedforaperiodofoneyear,althoughshorterperiodsareaccommodated.Inallcaseslicencefeesarepayableinadvance.Incomeisbroughttoaccountonamonthlybasisoverthelifeofthecontract.
•Broadcastlicencesareissuedforvariousterms-incomeisbroughttoaccountonamonthlybasisoverthelifeofthecontract.
•Interestrevenueisrecognisedonatimeproportionatebasisthattakesintoaccounttheeffectiveyieldonthefinancialasset.
•Revenuefromthedisposalofotherassetsisrecognisedwhentheentityhaspassedcontroloftheotherassetstothebuyer.
Interest revenue Interestrevenueisaccruedonatimebasis,byreference
totheprincipaloutstandingandattheeffectiveinterestrateapplicable,whichistheratethatexactlydiscounts
estimatedfuturecashreceiptsthroughtheexpectedlifeofthefinancialassettothatasset’snetcarryingamount.
(c) Income tax Thecompanypreparesitsincometaxreturnsonthe
basisthatitactsasagentforthecopyrightholdersthatitrepresents.Assuch,itdoesnotderiveincomeonitsownaccount.Rather,itisentitledunderitsconstituentdocumenttobereimbursedforexpenditureincurredinthecourseofitsactivities.ThebasisofassessmenthasbeenagreedwiththeAustralianTaxationOffice.
Theneteffectoftemporaryandpermanentdifferencesarisingfromexpenditureincurredbythecompanyispassedontotherecipientsoftheroyaltiescollected.
(d) Cash and cash equivalents Cashcomprisescashonhandanddemanddeposits.
Cashequivalentsareshort-term,highlyliquidinvestmentsthatarereadilyconvertibletoknownamountsofcashandwhicharesubjecttoaninsignificantriskofchangesinvalue.
Bankoverdraftsareshownwithinborrowingsincurrentliabilitiesinthebalancesheet.
(e) Financial assets
Loans and receivables Tradereceivables,loans,andotherreceivablesthathave
fixedordeterminablepaymentsthatarenotquotedinanactivemarketareclassifiedas‘loansandreceivables.’
NotestotheFinancialStatementsFor the financial year ending 30 June 2008
30
NotestotheFinancialStatementsFor the financial year ending 30 June 2008
2. Significant accounting policies (continued)
Loansandreceivablesaremeasuredatamortisedcostusingtheeffectiveinterestmethodlessimpairment.
Interestincomeisrecognisedbyapplyingtheeffectiveinterestrate.
(f) Impairment of financial assets Financialassets,otherthanthoseatfairvaluethrough
profitorloss,areassessedforindicatorsofimpairmentateachbalancesheetdate.Financialassetsareimpairedwherethereisobjectiveevidencethatasaresultofoneormoreeventsthatoccurredaftertheinitialrecognitionofthefinancialassettheestimatedfuturecashflowsoftheinvestmenthavebeenimpacted.
Forfinancialassetscarriedatamortisedcost,theamountoftheimpairmentisthedifferencebetweentheasset’scarryingamountandthepresentvalueofestimatedfuturecashflows,discountedattheoriginaleffectiveinterestrate.
Thecarryingamountoffinancialassetsincludinguncollectibletradereceivablesisreducedbytheimpairmentlossthroughtheuseofanallowanceaccount.Subsequentrecoveriesofamountspreviouslywrittenoffarecreditedagainsttheallowanceaccount.Changesinthecarryingamountoftheallowanceaccountarerecognisedinprofitorloss.
(g) Plant and equipment Plantandequipment,leaseholdimprovementsarestated
atcost,lessaccumulateddepreciationandimpairment.Costincludesexpenditurethatisdirectlyattributabletotheacquisitionorconstructionoftheitem.Intheeventthatsettlementofallorpartofthepurchaseconsiderationisdeferred,costisdeterminedbydiscountingtheamountspayableinthefuturetotheirpresentvalueasatthedateofacquisition.
Depreciationisprovidedonproperty,plantandequipment,includingfreeholdbuildings,butexcludingland.
Depreciationiscalculatedonastraight-linebasissoastowriteoffthenetcostorotherrevaluedamountofeachassetoveritsexpectedusefullifetoitsestimatedresidualvalue.Leaseholdimprovementsaredepreciatedovertheperiodoftheleaseorestimatedusefullife,whicheveristheshorter,usingthestraight-linemethod.Theestimatedusefullives,residualvaluesanddepreciationmethodarereviewedattheendofeachannualreportingperiod,withtheeffectofanychangesrecognisedonaprospectivebasis.
Thegainorlossarisingondisposalorretirementofanitemofproperty,plantandequipmentisdeterminedasthedifferencebetweenthesalesproceedsandthecarryingamountoftheassetandisrecognisedinprofitorloss.
(h) Leased assets Leasesareclassifiedasfinanceleaseswhentheterms
oftheleasetransfersubstantiallyalltherisksandrewardsincidentaltoownershipoftheleasedassettothelessee.Allotherleasesareclassifiedasoperatingleases.
Operatingleasepaymentsarerecognisedasanexpenseonastraight-linebasisovertheleaseterm,exceptwhereanothersystematicbasisismorerepresentativeofthetimepatterninwhicheconomicbenefitsfromtheleasedassetareconsumed.Contingentrentalsarisingunderoperatingleasesarerecognisedasanexpenseintheperiodinwhichtheyareincurred.
(i) Employee benefits Aliabilityisrecognisedforbenefitsaccruingtoemployees
inrespectofwagesandsalaries,annualleaveandlongserviceleavewhenitisprobablethatsettlementwillberequiredandtheyarecapableofbeingmeasuredreliably.
Liabilitiesrecognisedinrespectofemployeebenefitsexpectedtobesettledwithin12months,aremeasuredat
31
NotestotheFinancialStatementsFor the financial year ending 30 June 2008
theirnominalvaluesusingtheremunerationrateexpectedtoapplyatthetimeofsettlement.
Liabilitiesrecognisedinrespectofemployeebenefits
whicharenotexpectedtobesettledwithin12monthsaremeasuredasthepresentvalueoftheestimatedfuturecashoutflowstobemadebythecompanyinrespectofservicesprovidedbyemployeesuptoreportingdate.
Defined contribution plans Contributionstodefinedcontributionsuperannuationplans
areexpensedwhenemployeeshaverenderedserviceentitlingthemtothecontributions.
(j) Provisions Provisionsarerecognisedwhenthecompanyhasapresent
obligation(legalorconstructive)asaresultofapastevent,itisprobablethatthecompanywillberequiredtosettletheobligation,andareliableestimatecanbemadeoftheamountoftheobligation.
Theamountrecognisedasaprovisionisthebestestimateoftheconsiderationrequiredtosettlethepresentobligationatreportingdate,takingintoaccounttherisksand
uncertaintiessurroundingtheobligation.Whereaprovision ismeasuredusingthecashflowsestimatedtosettlethe presentobligation,itscarryingamountisthepresentvalue ofthosecashflows.
Whensomeoralloftheeconomicbenefitsrequiredtosettleaprovisionareexpectedtoberecoveredfromathirdparty,thereceivableisrecognisedasanassetifitisvirtuallycertainthatreimbursementwillbereceivedandtheamountofthereceivablecanbemeasuredreliably.
(k) Financial instruments issued by the company
Other financial liabilities Otherfinancialliabilities,includingborrowings,areinitially
measuredatfairvalue,netoftransactioncosts.Otherfinancialliabilitiesaresubsequentlymeasuredatamortised
costusingtheeffectiveinterestmethod,withinterestexpenserecognisedonaneffectiveyieldbasis.
Theeffectiveinterestmethodisamethodofcalculatingtheamortisedcostofafinancialliabilityandofallocatinginterestexpenseovertherelevantperiod.Theeffectiveinterestrateistheratethatexactlydiscountsestimatedfuturecashpaymentsthroughtheexpectedlifeofthefinancialliability,or,whereappropriate,ashorterperiod.
(l) Standards and Interpretations issued not yet effective
Atthedateofauthorisationofthefinancialreport,theStandardsandInterpretationslistedbelowwhichareexpectedtobeapplicabletothecompanywereinissuebutnotyeteffective.
InitialapplicationofthefollowingStandardwillnotaffectanyoftheamountsrecognisedinthefinancialreport,butwillchangethedisclosurespresentlymadeinrelationtothecompanyandthecompany’sfinancialreport:
•AASB101‘PresentationofFinancialStatements’(revisedSeptember2007),AASB2007-8‘AmendmentstoAustralianAccountingStandardsarisingfromAASB101’Effectiveforannualreportingperiodsbeginningonorafter1January2009,expectedtobeinitiallyappliedinthefinancialyearending30June2010.
TheinitialapplicationoftheexpectedissueofanAustralianequivalentaccountingstandardtothefollowingstandardisnotexpectedtohaveamaterialimpactonthefinancialreportofthecompany:
•ImprovementstoIFRSs(2008)Effectiveforannualreportingperiodsbeginningonorafter1July2009.
32
NotestotheFinancialStatementsFor the financial year ending 30 June 2008
3. Profit for the year
LicencefeesInterestrevenue–otherparties
Lossonsaleofplantandequipment
Depreciationandamortisationofnon-currentassets
Employeebenefitsexpense
Operatingleaseexpense
4. Trade and other receivables
TradereceivablesAllowancefordoubtfuldebts
PrepaidexpensesOtherlicencereceivablesOther
19,015,265 16,013,584 1,028,402 797,945 20,043,667 16,811,529 - (614) (155,789) (173,148) (2,158,874) (1,919,855) (194,190) (182,822)
2008 2007 $ $
4,817,475 3,527,559 (102,789) (64,703) 4,714,686 3,462,856
11,361 22,123 538,894 167,814 304,240 255,678 5,569,181 3,908,471
33
NotestotheFinancialStatementsFor the financial year ending 30 June 2008
4. Trade and other receivables
TradereceivablesAllowancefordoubtfuldebts
PrepaidexpensesOtherlicencereceivablesOther
5. Other financial assets
Cashondeposit
4,817,475 3,527,559 (102,789) (64,703) 4,714,686 3,462,856 11,361 22,123 538,894 167,814 304,240 255,678 5,569,181 3,908,471
2008 2007 $ $
14,766,320 14,466,320
34
NotestotheFinancialStatementsFor the financial year ending 30 June 2008
6. Plant and equipment
2008
GrosscarryingamountAccumulateddepreciation
2007
GrosscarryingamountAccumulateddepreciation
61,525 62,255 646,886 218,929 989,595 (59,867) (54,658) (407,381) (206,051) (727,957) 1,658 7,597 239,505 12,878 261,638
60,921 52,894 616,294 218,929 949,038 (50,893) (51,954) (298,425) (170,896) (572,168) 10,028 940 317,869 48,033 376,870
Office furniture
at cost$
Office equipment
at cost$
Computer equipment
at cost$
Leashold improvements
at cost$
Total$
Thefollowingusefullivesareusedinthecalculationofdepreciation:• Officefurniture 5years• Officeequipment 4years• Computerequipment 3years• Leaseholdimprovements 5years
35
NotestotheFinancialStatementsFor the financial year ending 30 June 2008
TradepayablesGoodsandservicestaxpayableDeferredrentLicencefeesreceivedinadvanceAmountspayabletolicensors
8. Provisions
CurrentEmployeebenefits
Non-currentEmployeebenefitsLeasemakegoodprovision(i)
(i)PhonographicPerformanceCompanyofAustraliaLimitedhasrenewedtheoperatingleaseagreementforafurtherthreeyearsinthecurrentyear,commencing1April2008.Consequently,theleasemakegoodprovisionhasbeenclassifiedasnon-currentinthecurrentfinancialyear.
1,087,658 735,595 522,556 490,055 - 15,120 5,431,079 5,465,901 14,497,874 12,666,828 21,539,167 19,373,499
2008 2007 $ $7. Trade and other payables
2008 2007 $ $
210,370 168,931 51,320 47,332 60,000 60,000 111,320 107,332
36
NotestotheFinancialStatementsFor the financial year ending 30 June 2008
12fullypaidordinaryshares(2007:12)
Fully paid ordinary sharesBalanceatbeginningoffinancialyear
Balanceatendoffinancialyear
Fullypaidordinarysharescarryonevotepershareandcarrytherighttodividends.
ChangestothethenCorporationsLawabolishedtheauthorisedcapitalandparvalueconceptinrelationtosharecapitalfrom1July1998.Therefore,thecompanydoesnothavealimitedamountofauthorisedcapitalandissuedsharesdonothaveaparvalue.
12 12
2008 2007 $ $9. Issued capital
2007 No. $
2008 No. $
12 12 12 12
12 12 12 12
Other expenditure commitmentsNon-cancellable operating lease payments (i)Notlongerthan1yearLongerthan1yearandnotlongerthan5years
(i)PhonographicPerformanceCompanyofAustraliaLimitedhasrenewedtheoperatingleaseagreementforafurtherthreeyearsintheprioryear,commencing1April2008.
403,989 271,710 839,251 - 1,243,240 271,710
2008 2007 $ $10. Commitments for expenditure
37
NotestotheFinancialStatementsFor the financial year ending 30 June 2008
CashandcashequivalentsCashontermdeposits Note5
1,263,730 898,113 14,766,320 14,466,320 16,030,050 15,364,433
2008 2007 $ $
11. Notes to the cash flow statement
(a) Reconciliation of cash and cash equivalentsForthepurposesofthecashflowstatement,cashandcashequivalentsincludescashonhandandinbanksandinvestmentsinmoneymarketinstruments,netofoutstandingbankoverdrafts.Cashandcashequivalentsattheendofthefinancialyearasshowninthecashflowstatementisreconciledtotherelateditemsinthebalancesheetasfollows:
Profitfortheyear
Lossonsaleordisposalofnon-currentassetsDepreciationandamortisationInterestincomereceivedandreceivable
Changes in net assets and liabilities(Increase)/decreaseinassets: TradeandotherreceivablesIncrease/(decrease)inliabilities: Tradeandotherpayables Provisions(current) Provisions(non-current)
Netcash(usedin)/providedbyoperatingactivities
- - - 614 155,789 173,148 (1,028,402) (797,945) (1,660,710) (1,138,821) 2,165,668 2,951,488 41,439 23,751 3,988 (4,119) (322,228) 1,208,116
2008 2007 $ $
(b) Reconciliation of profit for the period to net cash flows from operating activities
38
NotestotheFinancialStatementsFor the financial year ending 30 June 2008
38,514 35,200 8,569 13,300 47,083 48,500
2008 2007 $ $12. Remuneration of auditors
Auditor of the parent entityAuditorreviewofthefinancialreportOthernon-auditservices–distributionservicesandpreparationofthetaxreturn
39
Performers’TrustFoundationBalanceSheetAs at 30 June 2008
Current assetsCashandcashequivalentsTradeandotherreceivablesTermdeposits
Total current assets
Total assets
Current liabilitiesTradeandotherpayablesGrantsallocatedandunexpendedattheendofthefinancialyearheldbytrusteesforbeneficiariesof: ProfessionalMusician’sUnionofAustralia MediaEntertainment&ArtsAlliance
Total current liabilities
Total liabilities
Net assets
FundsFundsretainedintheTrust
Total funds
163,405 153,664 3,359 5,548 500,000 500,000 666,764 659,212 666,764 659,212 4,379 4,001 357,122 287,274 45,735 35,733 407,236 327,008 407,236 327,008 259,528 332,204 259,528 332,204 259,528 332,204
2008 2007 $ $
40
TariffCategories
GeneralLicences–openairevents;school,danceacademyorchurchconcerts;motivationalspeakers.(Singleeventlicencesareavailable).
Eventsandfestivals
Cinemasandtheatres
Dancestudios,danceinstructors,linedanceinstructors
Liveperformancegroups,dancecompanies,liveperformancepromoters
Nightclubs
Dancesanddanceparties
Foregroundmusicinbars
Mobilediscothequeoperators/DJs
Mobilevideodiscothequeoperators
Halls
Musiconhold
Factories,industrialpremisesandoffices.
Audiojukeboxes
Audiojukeboxoperators
Videojukeboxoperators
Amusementcentres,poolrooms,squashcourts,swimmingpools,tenpinbowlingcentres
Commercialorprofessionalpremises–includingartgalleries,bars,clubs,elevators,foyers,functionrooms,funeralparlours,hairdressers,health/medicaloffices(egdoctors,dentists,chiropractors,massagetherapists,osteopaths,physiotherapists),hotels,libraries,lounges,motels,museums,receptionareas,retailstores,taverns,zoos,and/orsimilarestablishments.Thistariffalsocoverstheuseofprotectedsoundrecordingsfordemonstrationpurposesinelectrical,video/DVDrentalandhi-fistores.
Electricalandhi-fistores
Shoppingcentres,plazas,concourses
Publicvehicles(egaircraft,buses,charterboats,coaches,ferries,hirecars,lightrail,monorail,ships,taxis,trains,trams)
Restaurants,cafes
Sportsarenas,racetracks,showgrounds,outdooramusementparks
Outdoorrecreationalareas(egbeaches,parks)
Skatingrinks
Fitnesscentres,gymnasiums,healthclubs
Musicvideoclips
Musicvideoclipsinnightclubs
Concertvenues
Conferencerooms
A
B
C
D
DD
E1
E2
E3
F
FW
H
HM
I
J
JO
JW
K
Licencefeesarecalculateddifferentlyineachcategory(e.g.,feesmaybeflatfeesperannum,feesperpersonorpermachine,orfeesdeterminedbysizeofvenuedependingoncategory)–contactPPCAforfulldetails.Itisquitepossible,dependingonyourneeds,thatyoumayhavealicencewithanynumberofTariffse.g.,ahotelmayhaveanumberofbarareas(TariffM),restaurants(TariffR),night-clubs(TariffE1),gymnasium(TariffV),andvideojukebox(TariffW).
PPCAlicencesareavailabletocovertheusebypublicperformanceofprotectedsoundrecordingsand/orpublicexhibitionofmusicvideoclipsin:
Public performance licences
M
MW
N
P
R
S
SS
U
V
W
W-E
X
U
PHONOGRAPHIC PERFORMANCE COMPANY OF AUSTRALIA LTD
ACN 000 680 704 ABN 43 000 680 704LEvEL 4, 19 HArriS St, PyrMoNt NSw 2009 Po Box q20, quEEN viCtoriA BuiLDiNG NSw 1230t. 02 8569 1100 f. 02 8569 1183 [email protected] www.ppca.com.au