Where Does Your Money Go?
We care about ensuring the licence fees you pay are distributed in the most economical and accurate way possible. We deduct our expenses from the revenue we receive and then distribute your fees to the songwriters, composers and music publishers whose works we have licensed to you.
For every dollar we collect, about 87 cents is returned to music creators. At about 13 per cent, our costs compare very favourably to organisations providing the same service overseas. In the UK the figure is about 16 per cent and about 18.5 per cent in Germany.
In recent years the volume of data we receive and process has increased rapidly alongside the growth in digital music services. We are mindful to ensure the costs of collecting music use information are balanced against our desire for accuracy. Our distribution practices are subject to the approval of the APRA and AMCOS Boards and will use a combination of techniques.
Direct allocation incorporates royalties paid directly to the songwriter/composer with reported use of their music. Areas where we use direct allocation include promoted concerts, streaming services and production music. Direct allocation is also used for commercial radio (including some student radio) and television stations reporting the music they broadcast, and digital download services and record labels reporting the tracks or CDs they sell.
Sample analysis is where we allocate royalties according to sampled data. We survey the music used by sample licensees such as schools and community radio stations, and distribute royalties based on the results.
Third party data
Third party data is data that we receive from third parties who supply us with music use reports. This includes data from background music suppliers (companies who supply retail and hospitality businesses with background music), as well as data from providers of music to the fitness industry for fitness classes.
Music Recognition Technology (MRT)
Music Recognition Technology (MRT) uses digital fingerprinting and audio-recognition technology to match performances/broadcasts of works to their databases. We then use this data as a part of our distribution for certain licence types.
Distribution by analogy
Distribution by analogy uses existing data sources (such as radio play) to attribute music use in certain distribution pools where data is either unavailable or cost prohibitive to collect. Examples of this include background music played by cafes or restaurants.
For certain licence types and in certain circumstances we use a combination of techniques for the one revenue source.
View our full distribution rules and practices here.