Copyright Review Commission Report - ICT Law and Regulation ...

PRS (UK)SPRE (FRANCE)SUISA(SWITZERLAND)IPRS (INDIA)SAMROBetween60% and70%6%81% to90%8%Music is lessthan 15% of thetotal broadcast1%Between70% and80%Between80% and90%7%8%91% to100%9%Between90% and100%9%8.2.2.1. SAMRO has an average rate of 3,25% for radio broadcasters, but the published tariffs are different.According to the published tariffs, SAMRO uses a sliding scale of between 1% and 10% in accordancewith music usage. For the purposes of this analysis, the average tariffs (of 3,25%) were used.8.2.2.2. The global norm is the sliding scale based on either the music usage or revenue generated.8.2.2.3. SAMRO ranks lowest when compared with the performance rights collecting societies of the UK,Switzerland and India (as per Table 5). Most local music radio stations allocate about 70% of their airspaceto music and generate more than R30 million in revenues per annum. Comparable figures are reflected inTable 6 at 70%.Table 6: Radio Stations Tariffs for Radio Stations with at least 70% Music Airspace and at least R30 millionAnnual RevenuePRS (UK) SUISA (Switzerland) IPRS (India) SAMRO5,25% 7% 7% 3,25%8.2.2.4. Based on Table 6, it is clear that SAMRO rate at 3,25% compares unfavourably to 7% for IPRS, 5,25% forPRS and 7% for SUISA and 6% for SPRE. Talk radio stations such as Radio 702 and SAFM would benefitunder the SUISA model because they would pay only 1%. The SPRE and SUISA tariffs relate to bothperformance rights and sound recording rights. Without taking into account the sound recording rights, it isclear that SAMRO’s tariffs are at least 3% below those of the other collecting societies.- 60 -