Our annual process of collecting and distributing income works like this:
Licensing – Collecting Income
We provide licences to businesses and organisations around the country that play our members’ music. We do this is two ways. Licences are either negotiated directly or “blanket” public performance licences are offered through our joint initiative with APRA called OneMusic.
We then deduct our running costs each year, which we work hard to keep as low as possible.
Gathering Data and Allocating Royalties
We collect data on how music has been used over the year by our licensees. Radio and television broadcasters provide us with detailed logs on the sound recordings they have used and broadcast income is matched directly with this data.
Wherever possible, we try to match income with data on how music was used – for instance, iwi radio income is matched directly with data from iwi radio stations.
We don’t ask businesses that hold public performance licences to provide us with data on the music they play – this would be impractical. So, public performance income is distributed each year based on radio data.
Distributing the Income
The final step is to distribute this income to copyright holders who have registered their sound recordings with us. We do this is two stages:
30th June: The first distribution is made at the end of June and includes the majority of radio income and all public performance income.
September: This second distribution in September includes television, RadioNZ Concert and any international income.
Who receives royalty income from Recorded Music NZ?
The recipients of income from Recorded Music NZ fall into two main categories:
- The owners of sound recordings – for example, major and independent record labels, distributors representing record labels and self-released artists.
- New Zealand resident artists who have registered tracks with us, where the owner of the sound recording is also registered. In this case the artist and the sound recording owner each receive half the royalties payable for each track.