T h e n e w s l e t t e r f o r P P C A A r t i s t s APRIL 2007

Winner of the Amp announcedThe winner of the Australian Music Prize for 2006 has been announced, with Melbourne band Augie March picking up the prestigious award and $25,000 cheque from PPCA.

PPCA has partnered with The Australian Music Prize since its inception in 2005.

Augie March’s album, “Moo, You Bloody Choir” was recognised by the AMP Award’s judging panel for its musical excellence and outstanding creativity.

John O’Donnell, Chairman of PPCA said Augie March’s genius album ‘Moo, You Bloody Choir’ was a deserving winner.

“This award is designed to acknowledge and reward artistic excellence and so I can think of no more fitting winner this year than Augie March. Saul Bellow would be proud of them,” he said.

PPCA is proud to be associated with the AMP - an innovative award which acknowledges excellence and encourages the professional development of Australian artists.

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PPCA Annouces Board for 2007PPCA is pleased to announce its Board of Directors for 2007

to On the Record – PPCA’s newsletter for Artists and Licensors

With the Christmas season over, PPCA is back supporting and promoting Australian music and artists. In this edition of On the Record we will celebrate the achievements of those Australian artists who were included on the PPCA Most Broadcast lists. This year we had a record number of Australians make the list, which is a testament to the health of the industry and the talent of local artists.

In its second year, the Australian Music Prize has been awarded to Melbourne band Augie March. PPCA again provided the $25,000 prize, which will help Augie March to develop their career throughout 2007.

As with previous years, PPCA completed its distribution of surplus funds in December, issuing over 1200 cheques to Australian artists and licensor. As the distribution process can seem quite complex, we’ve included an explanation of your artist distribution statement in this newsletter.

We are also happy to announce the results of the elections for Artist and Licensor representatives on the PPCA Board. Congratulations to David Vodicka and Paul Christie, who will join Lindy Morrison on the Board for 2007.

Remember, if you release a CD and do not register it with us, then any income that may have been earned for that release will be paid to your record label. We are also unable to pay royalties to those artists that we are unable to contact. Please check the lost artists list on our website for your friends and if you’d like to check which recordings you have registered with us, please contact our Distribution department.

As always, PPCA welcomes your feedback and should you require any further information PPCA, please go to www.ppca.com.au or contact us on (02) 8569 1133.

Regards

Stephen PeachPPCA CEO

Top five FAQsWhat’s the difference between PPCA and APRA?

There are at least two copyrights in each sound recording or music video:

• First, there’s the copyright in the composition (that’s the notes and lyrics) which is called the ‘musical work’; and

• Secondly, there’s the copyright in each recorded version of the usually produced by an artist and their record company.

So every time a recording is played in public, there are two licence fees to be paid - one goes to APRA which passes the money on to the person or people who composed and published the work. The other goes to PPCA which passes the money onto the sound recording copyright owner (usually the record label) and featured Australian performers registered under PPCA’s Artist Direct Distribution Scheme.

If you are both the songwriter and featured Australian performer on a recording, then you may have to register with both APRA and PPCA.

Why is my APRA cheque so much more than my PPCA cheque?

This is a very commonly asked question and there are a number of reasons why PPCA’s collections are substantially lower than those of APRA. These include limitations in the Copyright Act which apply to sound recordings (PPCA), but not to musical works (APRA). These include:

• A cap on the licence fees payable by radio broadcasters (including the ABC);

• The inability to grant licences for US recordings;

• The inability to grant licences to premises playing only the radio or TV (except music on hold).

#7/07

Augie March with John O’Donnell and Scott Murphy (The Amp organiser)

PPCA Chairman John O’Donnell Managing Director, EMI Music Australia

George Ash Managing Director, Universal Music Australia

Paul Christie Artist Representative

Bill Cullen Artist Manager Representative, One Louder Entertainment

Denis Handlin Chairman & CEO, Sony BMG Music Entertainment Australia & NZ

Lindy Morrison Artist Representative

David Vodicka Licensor Representative, Rubber Records

In addition to John O’Donnells re-election as PPCA Chairman, two new appointments have been made to the Board. Following the annual election by PPCA’s non-major licensors undertaken earlier this year, David Vodicka, Principal of Rubber Records and entertainment law fi rm Media Arts Lawyers has been appointed as the Licensor Representative Director for 2007.

Following the conclusion of Mr Greg Macainsh’s term, Mr Paul Christie has been elected to serve as Artist Representative Director for 2007 and 2008. Paul joins Lindy Morrison (Artist Director) and Bill Cullen (Artist Manager Director) in representing the interests of Australian recording artists on the Board.

Paul Christie is a musician who currently performs with Mondo Rock, Rockhouse and The Big Daddys, and was a founding member of The Party Boys. He lectures at the Australian Institute of Music, and has written books for aspiring musicians on how to get started in the industry.

Thank you to all who voted and feel free to contact your representative if you have an issue to raise.

The 2006 PPCA Annual Report is now available online atwww.ppca.com.au/reports.html

During Kylie’s Showgirl Tour in late 2006, PPCA was able to present her with the PPCA Most Broadcast Australian Artist plaque for 2005. Kylie has now topped the Most Broadcast Artist list 3 times – an achievement which clearly reflects her popularity with commercial broadcasters and the Australian public.

In 2006 PPCA enjoyed another record year, posting increases in income, licenses issued and distributable surplus. Now in our 16th consecutive year of growth, PPCA’s distribution surplus of $10.3 million, represents an increase of 3% on 2005.

As with previous years, PPCA completed the distribution of funds in late December, issuing over 1200 cheques to Australian artists and Licensors.

All registered artists are reminded that they need to register new releases with PPCA for them to be eligible for an annual distribution.

2006 Distribution - Another record year! PPCA presents Kylie with Most Broadcast Artist 2005 Award

PPCA Trust Foundation – grants available now!

2006 Most Broadcast Artists and Recordings The annual PPCA lists show that 15 Australian acts made it into the 2006 Top 50 Most Played Artist Report, an increase from 13 last year, while 30 local tracks featured in the 2006 Top 100 Most Broadcast Recordings, up from 22 last year.

Bernard Fanning’s “Wish You Well” is the number one Most Broadcast Recording, followed by Daniel Powter’s “Bad Day” and Kelly Clarkson’s “Because Of You”. Kelly Clarkson has also claimed the mantle of Most Played Artist for the period,

followed by Rob Thomas and Nickelback. The Veronicas, at No. 7, were the most broadcast local act for 2006.

Fanning, Shannon Noll, Ben Lee and The Veronicas all featured in the top 100 Most Broadcast Recordings, with Shannon Noll, The Veronicas and Rogue Traders each contributing 3 tracks to the top 100. The Veronicas and Shannon Noll also made the top 100 of the Most Played Artist Report.

Over the years Australian artists have featured strongly on the PPCA Most Broadcast lists, but never to this extent, and PPCA is thrilled to witness the phenomenal achievements of these local acts. These results show the strength of the local industry across a wide range of broadcast formats.

The PPCA Performers’ Trust Foundation distributes grants for one or more of the following purposes

• performances at concerts at or for charitable institutions such as hospitals or homes for the aged

• scholarships for the promotion and encouragement of musical and theatrical education

• the promotion and encouragement of the performing arts to the general public

• the aid or assistance of any beneficiary who is unable to adequately maintain herself/himself by her/his own exertions and other income

A grant under the PPCA Performers’ Trust Foundation can be used for most costs associated with the above, including:

• Tuition fees

• Travel costs (hire, airfares, petrol)

• Accommodation

• Venue hire/ PA hire

The Trustees are scheduled to meet again later this year to consider applications – so go to the PPCA website now, for more information on how you can apply for a grant.

The 2006 distribution statements were issued in late December. As the distribution process can seem complex, we have prepared the following example to explain the information contained in the registered artist distribution statements.

When referencing the below statement:

• John Citizen is part of a band called ‘Citizen John’.

• Citizen John has 5 members and is signed to the record company Citizen Records.

• They have released 1 single called “Number One”.

• John has registered a track for the Artist Direct Distribution Scheme called “Number One”.

• For each Australian track, distributable income is currently divided on the following basis:48.75% is available for the registered artist/s48.75% goes to the copyright owner or exclusive licensee2.5% goes to the PPCA Trust.

• The Copyright Owner, Citizen Records, is displayed on the statement. The copyright owner or exclusive licensee must be registered with PPCA so that we can collect and distribute earnings.

• The band, Citizen John, has 5 band members, so earnings from the Artist Distribution Scheme can be split 5 ways. This is shown on John Citizen’s statement as a 20.00% share. Each band member would receive a similar statement if they are registered with PPCA.

• “Number One” was available as both a sound recording and a music video and both formats appeared in the PPCA logs for the period.

Key termsCopyright OwnerThis is generally the relevant record company, but may be the artist themselves.

C/O ShareThe proportion each copyright owner is entitled to. This is generally 100% where a single copyright owner controls the recording, but may be split if two of more copyright owners share control.

Total available for distributionThe amount of the licensing revenue, after deduction of administrative costs, that can be attributed to the song ‘Number One’. This amount is calculated based on the extensive airplay logs we receive.

Total available for artist distributionThis is the total that is available for distribution to all artists registered for the track. This amount is currently 48.75%of the total amount. Any unclaimed income is sent to the copyright owner.

Your share of artist distributionThe percentage that each band member is entitled to. For Citizen John, each band member is entitled to 20%.

Total amount payableThe figure that appears on your advice is the pre-tax amount. The amount on your cheque will have tax applied out if applicable.

If you have any questions about your statement, don’t hesitate to call PPCA on 8569 1133.

Your PPCA Artist Statement Explained

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Content Stephen Peach, Carly Learson, Linda Courtney, Christy Hayes, Lynne Small

Photos Universal and Warners by permission

Previous editions of On The Record –PPCA’s newsletter for artists can be viewed on our website, www.ppca.com.au

The Veronicas

Bernard Fanning

Kylie Minogue with Ed St.John

Copyright Owner/Exclusive Licensor

Total earnings for track

Amount available for ArtistDistribution Scheme

Claim Percentage

Amount paid to Artist

Amount paid to Artist for all tracks. This amount is then transferred to theRemittance Advice where any taxationamounts are applied to your payment.

PPCA’s distribution growth over the past 15 years

John Citizen

Citizen John Number One Citizen Records

John Citizen

Citizen John Number One Citizen RecordsNumber One

20.00%

20.00%