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Where does my money go?

Find out how we determine licence fees and how much we pay out in royalties.

Cost to revenue ratio

We ensure the licence fees you pay are distributed to songwriters, composers and music publishers in the most accurate and cost-effective way possible.

Administration and operational costs are deducted from the licence revenue we receive. The remaining fees are distributed to the copyright owners of the music we license to you.

For every dollar we collect, about 85 cents is paid to music creators. Our costs compare very favourably to organisations providing the same service as us overseas.

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How licence fees are set

Licence fees are generally determined according to the nature and type of music use. We have various licence schemes for the different ways music is used by different industries.

For example, the value of music to a music streaming service or an FM radio station is very different to the value of music to a café owner. Our fees are applied to different industry types accordingly. Where music use is intrinsic to a business, our rates tend to be higher to reflect that value.

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How we know when music is used

The main sources of music-use data used to calculate royalties owed to songwriters, composers, and music publishers are:

  • Radio and television stations reporting the music they broadcast,
  • Digital music services, streaming video on-demand services, websites, and record labels reporting the songs they stream or sell and their volumes,
  • Services using Music Recognition Technology (such as digital fingerprinting and audio recognition) to match performances or broadcasts to their song databases,
  • Data from music providers who supply programmed curated music for specific industries, such as fitness,
  • Background Music Suppliers who provide us with music reports from their clients’ playlists, and
  • Setlists of songs performed by artists or DJs at gigs, live events, and festivals.

The impact of digital

In recent years the volume of data we process has increased rapidly alongside growth in digital music services. We ensure the costs of collecting music use information are balanced against our need for accuracy.

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