PPCA Annual Report 2002

Transcription

Contents
2
2002 Highlights
3
Chairman's Report
4
The Company
5
PPCA Board Members
7
Management Report 2002
10
PPCA Communications
12
PPCA Performers Trust Foundation
13
2002 Most Broadcast Recordings and Artists
14
PPCA Top 100 Most Broadcast Recordings 2002
15
PPCA Top 50 Most Broadcast Recording Artists 2002
16
PPCA Most Broadcast Artists 1999 - 2002
17
PPCA Most Broadcast Recordings 1999 - 2002
18
Appendix A
Code of Practice - Australian Music
20
Special Purpose Financial Report
38
PPCA Performers’ Trust Foundation Balance Sheet
39
40
Appendix B
Sample PPCA Licence
Appendix C
Tariff Categories
Credits
Content
Stephen Peach
Marcella McAdam
Lynne Small
Typing
Veronica Tooker
Rosie O'Donoghue
Proofing
Rosie O'Donoghue
Photography
Kaye Higgins
Jason McCormack
Design
Freestyle Design
Thanks to
Sony Music Entertainment Aust., Roadshow Music,
Transistor Music, Warner Music, BMG Australia,
Universal Music Australia, Standard Records,
EMI Music, Festival Mushroom Records
KYLIE MINOGUE | FMR
PPCA MOST BROADCAST AUSTRALIAN
RECORDING ARTIST (2002)
Copy Co-ordination
Marcella McAdam
2002 Highlights
PPCA revenues, distributions, licences and registered artists continued to
increase in 2001-2002, maintaining our unbroken succession of
improvements since 1990.
• Income up 17.55% to $9,897,215
• Distribution surplus up 23.4% to $7,215,375
• Licences up 3.5% to 34,451
THE PPCA PERFORMERS TRUST FOUNDATION APPROVED 15
APPLICATIONS FOR FUNDING:
DARREN HAYES | ROADSHOW MUSIC
KEITH URBAN | WEA
• 12 related to further education and research
• 3 for festivals, live music and local artists
2
Chairman’s Report
I am pleased to report on another successful and busy year for the organisation.
The year’s income (1 July to 30 June) stood at the record level of $9.8 million, representing an
increase of 17% over the previous year. The surplus is at another record high - $7.2 million
dollars available to distribute to artists and labels, representing an increase of 23% over the year
ending June 2001. This year’s excellent result was assisted by the resolution of the FACTS
agreement which accounted for approximately half of the 23% increase, and included a back
payment component.
Public performance licence numbers at the end of the period stood at 34,451, representing an
increase of approximately 3% over the previous year.
Overall, a very encouraging result from a financial perspective, and PPCA’s 13th consecutive
year of income and surplus growth.
A key highlight for PPCA in 2002 was the relaunching of the website now providing new features
and an improved and streamlined navigation system, allowing users to easily access relevant
information on PPCA activities. Areas of direct relevance to registered artists include a news &
communications section, material on new policies and legislative issues and the ability to print
off artist and recording registration forms.
This year also saw the introduction of new procedures for artist registration. These were
executed as a direct result of the new federal privacy legislation designed to help protect
personal information and ensure that artist entitlements are correctly reported.
As reported last year, PPCA in association with other Australian collecting societies, developed
an industry code of conduct which was successfully implemented this year with PPCA taking all
the necessary steps to ensure compliance with the code.
With regards to international activities, a reciprocal agreement with PPL, PPCA’s sister body in
the UK, covering independent copyright owners for broadcasting and public performance in
both territories was successfully negotiated. Under this arrangement, PPCA will represent UK
Indies in Australia for broadcast and public performance rights and PPL will be able to collect
and distribute licence fees on behalf of Australian Indies. This is a positive initiative by PPCA for
our smaller labels that do not have license arrangements in place with local UK labels or the
resources to deal direct with PPL.
PPCA continues its role of raising the awareness of public performance and broadcasting rights
and this includes regular submissions to government to assist in positive law reform. The recent
appointment to PPCA of a Manager for Licensing Development will also ensure that new and
viable sources of revenue streams from the commercial use of sound recordings are explored
and implemented on behalf of all members.
I would like to take the opportunity to acknowledge the contribution of my fellow Board
members during the year and thank them for their support as well as the continued dedication
and hard work of the PPCA secretariat in all their activities.
Peter Bond
Chairman PPCA
November 2002
Phonographic Performance Company of Australia Ltd. Annual Report 2002
3
The Company
Headline
SUBHEAD
DIRECTORS
EXECUTIVE SECRETARIAT
PETER BOND
ELIZABETH ANN BLAKEY
- Appointed 10 September 2001
STEPHEN PEACH
Chief Executive Officer
LOUIS CALLEJA
DENIS ANTHONY HANDLIN
SHAUN JAMES
LYNNE SMALL
GREGORY JOHN MACAINSH
Manager - Finance, Operations
& Administration
MICHAEL MCMARTIN
BELINDA MORRISON
EDWARD ERSKINE ST JOHN
- Appointed 3 July 2001
MAXINE CHISHOLM
Licensing Manager
KAREN ANN DON
(Alternate for Peter Bond) - Appointed 5 November 2001
MICHAEL WILLIAM GOLDEN
(Alternate for Elizabeth Ann Blakey)
- Appointed 20 February 2002
LINDA COURTNEY
Distribution Manager
GRAHAM DAVID HARRIS
(Alternate for Louis Calleja)
DAMIAN PETER RINALDI
JAMES GRIERSON
(Alternate for Denis Anthony Handlin)
- Appointed 19 August 2002
IT Manager
MARK NARBOROUGH
(Alternate for Shaun James)
DESMOND ARTHUR DUBERY
NICHOLAS LOVE
(Alternate for Edward Erskine St John)
Licensing Development Manager
JEREMY FABINYI
- Resigned 26 July 2001
ADRIAN FITZ-ALAN
- Resigned 31 August 2002
JASON MCLENNAN
Corporate Counsel
TIMOTHY PRESCOTT
- Resigned 3 July 2001
AUDITORS
DELOITTE TOUCHE TOHMATSU
BANKERS
REGISTERED OFFICE
COMMONWEALTH BANK OF AUSTRALIA
PPCA A.C.N. 000 680 704 A.B.N. 43 000 680 704
Level 4, 19 Harris Street, Pyrmont NSW 2009
SOLICITORS
GILBERT & TOBIN
4
PPCA Board Members
Peter Bond - PPCA Chairman
Peter Bond is the current chairman of PPCA and has 38 years music industry
experience in A&R, marketing, label and regional management in the UK,
USA, Australia, Asia and Africa. Peter’s career began at PolyGram in 1964,
joining Sony Music (CBS Records) in 1978, then starting his own label
Timbuktu Records in 1990. Peter then joined Universal Music (MCA Records)
in 1996. Peter is currently the Chairman of Universal Music Australia and
President of Universal Music International for Australia, New Zealand and
Africa.
Libby Blakey
Libby Blakey is currently Director of Business Affairs for Festival Mushroom
Records and has also held a legal position at Polygram Music.
Louis Calleja
Louis Calleja became a member of the PPCA Board in 1999. Louis is Head
of Business Affairs and New Business Development for EMI Music Australia.
Louis has qualifications in Business Commerce and Finance, along with an
extensive career background within EMI Music Australia in senior executive
positions. With 20 years of experience in the music industry, Louis enjoys
working with teams dedicated to the changing needs of the industry.
Denis Handlin
Denis is the Chairman and Chief Executive Officer of Sony Music
Entertainment Australia Limited, having held various senior positions within
the company during the past 31 years. Denis is also a former chairman of the
PPCA. Denis’ deep involvement in the music industry is also reflected in his
current position as Chairman of the Australian Record Industry Association
(ARIA), and his previous experience as Chairman of the ARIA Chart
Committee. Denis has also served on the committees of several industry
associations.
Shaun James
Shaun James became a member of the PPCA Board in May 1999. Shaun is
also the Chairman and CEO of Warner Music Australasia, a division of the
Warner Music Group, since 1999. Prior to Shaun’s current position with
Warner Music Australia, he held positions in the promotions, sales and
marketing divisions after joining the company in 1991. Shaun’s close
association with the Australian music industry began in Melbourne with
Festival Records. Shaun holds a Bachelor of Business (Marketing) from
Monash University.
5
PPCA Board Members
Greg Macainsh - Artist Representative
Greg Macainsh has been a recording artist, songwriter and musician for over
25 years, forming the seminal Australian group Skyhooks in 1973. Skyhooks
disbanded in 1980 and Greg moved into production, management and
songwriting tuition. A keen bass player, he has toured with a number of
artists, notably John Farnham and Dave Warner. Greg is a strong advocate
for the contemporary music industry, holding positions as a Director and
Chairperson of the Victorian Rock Foundation from 1989 to 1993 and a
Writer Director of APRA from 1997 to 2000. He was elected to the PPCA
board as an Artist Representative in 2001.
Michael McMartin - Manager Representative
Michael McMartin started Trafalgar Records in 1975 and went on to develop
a stable of artists ranging from Radio Birdman to Gyan and 1927. Michael
formed Melody Management Pty. Ltd. in 1984 and has been manager of the
Hoodoo Gurus since that time. Other clients presently include Brooke
McClymont, Persian Rugs and producers Charles Fisher (Savage
Garden,Hoodoo Gurus etc.) and Tim Whitten (Powderfinger etc.) Michael
was a foundation member of the Music Managers Forum (MMF Aust) and
Co-chairman of MMF for four years. Michael is currently the MMF's
Professional Development /International Manager and Vice Chairman of the
World Wide Association of Managers' Forums, the IMMF. Michael is also on
the Board of Support Act Limited - the benevolent society for musicians and
workers in the music industry.
Lindy Morrison - Artist Representative
Lindy Morrison has been a member of the PPCA Board, as a representative
of registered Australian recording artists, since 1993. Lindy toured the world
as a drummer, with Zero, The Go-Betweens and Cleopatra Wong, from 1978
until 1992. Since then, Lindy has worked around Australia as the musical
director or performer in shows, parades and festivals, and has led drum and
music workshops with many diverse and varied community groups. Lindy is
also a Director on the Music Council of Australia Board, and she is the
National Coordinator for Support Act Ltd - the benevolent society for
musicians and workers in the music industry.
Ed St John
Ed St John became a member of the PPCA Board in July 2001. Ed is the
Managing Director of BMG Australia, having previously held a number of
senior positions within the company since joining in 1998. Prior to joining
BMG, Ed held the position of Director of Marketing, Columbia Records - a
division of Sony Music Australia. Ed’s long association with the music
industry includes work as a television writer and producer specialising in
music and entertainment-focused programming, and as a freelance music
writer and contributor to several key books on Australian music.
6
Management Report 2002
FINANCIAL PERFORMANCE
It is a pleasure to once again report record achievements in the areas of revenue, distributable
surplus and licence coverage.
Total income for the 2002 financial year increased by 17%, resulting in overall earnings of $9.8
million. Increases in the areas of “Public Performance Fees” (up by $541k) and “Commercial
Television Fees" (up by $722k) were the main contributors to this positive growth. It should be
noted that fees from the commercial television sector covered an eighteen month period, as an
adjustment for the previous year was received on conclusion of the agreement.
Unfortunately, the demise of the “Music Country” pay television channel reduced the income
from the subscription television sector.
Despite the substantial increases in income, operating expenses were closely contained, and
increased by only 2.4%.
The distributable surplus reached a new high with an increase of 23.4% over the previous year,
resulting in an amount of just over $7.2 million for distribution to artists and record labels.
The number of general public performance licences continues to grow, and at June 2002 stood
at 34,451. The ongoing growth in licence coverage and public performance income illustrates
the effectiveness of the licensing department and the contribution of the communications
programme.
The simple graphs on page 9 display PPCA’s achievements in the key areas of revenue,
distributable surplus and public performance licence coverage.
COMMUNICATIONS
During the year our programme of advertising and communications has continued, as we
endeavour to increase awareness of the value that can be derived from using sound recordings
in business, the concept of copyright ownership, and the benefits PPCA can provide in linking
sound recording users with owners. PPCA’s profile has been enhanced by our participation in a
number of industry events and education based programmes around Australia.
The PPCA website (www.ppca.com.au) is a key element of the communications strategy, and
was relaunched in 2002 after extensive redevelopment. Through its simple navigation system,
users can quickly access the increased resources for copyright owners, artists, licensees and
the general public.
DISTRIBUTION
During December 2002, PPCA made its annual distribution to registered artists and record labels
for the financial year ending June 2002. Almost 750 cheques were issued prior to Christmas to
distribute the record surplus to artists and labels.
We continue to work to increase awareness of PPCA throughout the artist community, and urge
all artists, managers and associations to spread the word and encourage all eligible Australian
recording artists to register for the Artist Direct Distribution Scheme.
Similarly, we continue to contact emerging labels to explain the role and function of PPCA and
the benefits of allowing PPCA to assist in their licensing activities.
During the year, two distribution related policy decisions were effected. First, the minimum
threshold for an artist payment was increased to $5 (previously $2). This increase was
7
Management Report 2002 continued
implemented to control administrative overheads, due to the costs involved in processing
payments. This is the first increase in a number of years, and still provides a very low threshold
for participation in direct artist distributions.
As usual, any amounts allocated to registered artists that do not reach this annual threshold will
be directed to the relevant copyright owner / record company, for distribution in accordance with
the particular contractual arrangements for the various recordings.
Secondly, following a review of the artist registration procedures as a result of new federal
privacy legislation, each artist must now register individually (i.e. “group” / “band” registrations
are no longer accepted) and sign their initial registration form. The revamped PPCA website is
a good source of information, and explains the registration process. All forms can be
downloaded from the site, and there are some sample documents to demonstrate how they
should be completed.
Over the next twelve months PPCA will be contacting those registered as “bands” to convert
them to individual registrations. We encourage all artists to ensure that their details are complete
and they keep us up to date on a regular basis with details of their new recordings.
The distribution process, a core function of PPCA, is both complex and time consuming. As in
prior years, the process was greatly assisted by the free access granted to PPCA by the
Australian Record Industry Association (ARIA) of its extensive catalogue database. This
database provides invaluable information, and assists in the matching of artist registrations with
the titles contained in the distribution logs.
SUPPORT ACT LIMITED (SAL)
PPCA has continued its support of SAL - a national benevolent fund established to provide
assistance to Australian musicians, composers, and associated workers.
PPCA is represented on the Board of SAL, and supports SAL’s aim to provide financial, legal and
medical assistance to those artists / composers and families in need.
In addition to providing ongoing administrative support, PPCA has provided practical assistance
in fund raising activities, with events such as the annual Melbourne Cup Lunch drawing the
industry together to generate much needed funds to aid the organisations ongoing charitable
activities.
HUMAN RESOURCES
Mid 2002 saw the appointment of Nick Love in the newly created role of Manager, Licensing
Development. The role focuses on key customer relations and identifying new areas of
business, and is a key element of PPCA's strategy to continue to deliver year on year growth in
the areas of revenue and distributable surpluses.
Alex Malik left PPCA in July 2002, in order to undertake doctoral studies in intellectual property
at Sydney’s University of Technology. Following Alex’s departure, Jason McLennan was
appointed to the position of Corporate Counsel.
8
Management Report 2002 continued
THE COMING YEAR
As always, the year ahead is expected to be another challenging one for the organisation and
its staff. Negotiations are currently underway with cable subscription telecasters and
commercial radio broadcasters in relation to the appropriate level of licence fees, and we hope
to conclude these agreements within the next few months.
We are also in the process of finalising arrangements with the ABC for a new long term
agreement in relation to fees for the use of sound recordings and music video clips in its radio
and television services.
We plan to maintain and improve our record for steady public performance licence growth. Our
established public relations and communications programme supports this goal and dovetails
neatly with our obligations under the Code of Conduct for Collecting Societies.
PPCA has and will continue to engage in ongoing dialogue with government, to ensure that the
particular needs of artists and sound recording copyright owners are not overlooked as the
community embraces new technologies and ways of conducting business.
In relation to broadcast rights, PPCA continues to seek the removal of the artificial limit on radio
broadcast fees contained in the Copyright Act. For many years, the owners of copyright in
sound recordings have been effectively subsidising the Australian commercial radio
broadcasting industry. Since the
GRAPH 1 DISTRIBUTION (Millions)
introduction of the Copyright Act
(1968) commenced, broadcasters
have benefited from the “price
capping” on the licence fees that
can be charged for the broadcast
of sound recordings.
The limits are significantly lower
than market rates for such
licences in other comparable
countries. This is a vital issue for
PPCA. It continues to remain high
on our list of priorities for the
benefit of our constituents as it
has a significant impact on current
and future income levels.
On this, and all issues, PPCA
remains committed to ensuring
that all registered artists and
record
labels
obtain
fair
remuneration for the use of their
sound recordings and music video
clips.
GRAPH 2 NUMBER OF LICENCES
(Thousands)
GRAPH 3 GROSS REVENUE
(Millions)
Stephen Peach
Chief Executive Officer
Lynne Small
Manager - Finance,
Operations & Administration
9
PPCA Communications
10
PPCA Communications
PPCA Most Broadcast Australian Country Music Recording Artist for 2001
awarded to Gina Jeffreys - pictured with Rod Cameron (UMA), Peter Bond
(Chairman, PPCA) and Clive Hodson (ABC Contemporary Music).
PPCA were pleased to be a sponsor of both the Fitness ACT Expo and their
inaugural Sports Awards in 2002. Pictured with PPCAs Communications
Manager, Marcella McAdam (centre) is Dr Dion Klein (Fitness ACT
President) and Alison Dart (Executive Director, Fitness ACT) at the Expo
held in Canberra.
Nick Love (Licensing Development Manager, PPCA centre) attended the
Restaurant & Catering Awards for Victoria.
Restaurant and Catering NSWs Executive Director, Robert Goldman
(centre) pictured with Peter Bond (Chairman, PPCA) and Stephen Peach
(CEO, PPCA) shortly after their annual Awards for Excellence.
11
PPCA Performers’ Trust Foundation
Since its inception, PPCA has funded and co-administered with the Musicians’ Union and the
Media Entertainment and Arts Alliance (formerly Actor’s Equity) the PPCA Performers’ Trust
Foundation (The Trust). The Trustees during the period 1 July 2001 - 30 June 2002 were Peter
Bond, Emmanuel Candi (resigned January 2002), Stephen Peach (from February 2002), Patricia
Amphlett and Denis Shelverton.
In exercising their powers pursuant to the provisions of the Trust, the Trustees have the power
to pay or to apply the Trust Fund to or for the benefit of such beneficiaries as the Trustees in
their absolute discretion from time to time determine in respect of one or more of the following
purposes:
1
performance at concerts at or for charitable institutions such as hospitals or homes for
the aged; or,
2
scholarships for the promotion and encouragement of musical and theatrical education;
or
3
the promotion and encouragement of the performing arts to the general public;
or, in particular,
4
the aid or assistance of any beneficiary who in the opinion of the Trustees is unable to
adequately maintain herself/himself by her/his own exertions and other income.
Total funds provided since creating the Trust have been $1,460,806 (up to 30 June 2002).
In the 2001-2002 year, three Trust meetings were held and 19 applications were put to the
Trustees. Of these, 15 were approved totaling $74,437. Of the successful applications 12
related to further education and research; and 3 to festivals, live music and local artists.
The names of the recipients are as follows:
• Mike Bevan
•
Willow Neilson Quartet
• Flinders Street School of Music
•
Sam Riley
• Musicians’ Union of Australia
•
15th Annual ARIA Awards
• Claire Stirling
•
Gary Wain
• Media Entertainment & Arts Alliance
•
Teresa Beck-Swindale
The Trust Balance Sheet can be found on page 39 of this report.Feedback from many of the
grants recipients has been welcome and useful. Here are some examples:
Thank you for your assistance with the Willow Neilson Quartets
trip to Belgium to attend the Jazz Hoelaart International
Competition in Belgium. Each member of the group has benefited
from the experience in many ways. I think we created interest in
Australian jazz amongst all the musicians and organisers that we
met. I attained a contact in each major city in central Europe and
think we succeeded in all of our objectives and more.
What I think was most important, outside of the contacts we
made for further touring, recording and arrangement work, was
the musical interaction between other young musicians of high
calibre from so many countries.
Thank you once again,
Willow Neilson
12
I am writing on behalf of the Flinders Street School of Music to
express our sincere thanks for the grant the Trust has provided
for the Festival of Australian Music held in Adelaide in August/
September 2000. The Festival was a resounding success, and
received a very positive response in both the local and national
media as well as providing strong opportunities for students from
the School.
Once again, please accept our thanks for your generosity.
Diana J Harris
Principal Lecturer
Director - Festival of Australian Music
2002 Most Broadcast
Recordings and Artists
As with previous years, PPCA continues to acknowledge the most broadcast recordings and
artists in Australia. The extensive play lists used as the basis for PPCA’s distribution surplus
payments determine these results.
SOPHIE MONK | WARNER MUSIC
The MOST BROADCAST RECORDINGS lists the 100 most broadcast recordings of the year as
played by radio and television stations across Australia. The MOST BROADCAST ARTIST list is
measured by collating all titles performed by each of the artists listed in the PPCA radio/TV
broadcast logs taken during the relevant period (i.e. July 2001 to June 2002).
MOST BROADCAST RECORDINGS
The most Broadcast Recording over all for 2002 was Drops of Jupiter by Train taking the #1
position; this was followed by Lifehouse with Hanging by a Moment at #2 and then Gabrielle’s
hit single Out of Reach from the movie soundtrack Bridget Jones’ Diary at #3. Local talent hit
the list with Alex Lloyd’s award winning Amazing reaching #5 making it the most broadcast
Australian recording on radio for the period.
Australian music continued to have a strong presence in the PPCA list for the given period with
many artists achieving multiple entries including Kylie Minogue, Powderfinger, Paul Mac as
well as Alex Lloyd. Credit must be given to the record companies for their dedicated marketing
and investment efforts towards these artists and their recordings throughout the year.
Many Australian artists covering diverse genres made their debut onto the PPCA list during 2002
and this included Paul Mac, Aneiki, Kasey Chambers, Grinspoon, Shakaya, Selwyn, Bardot
and a solo Darren Hayes.
Overall, twenty-one (21) positions in the Top 100 Most Broadcast Recordings for 2002 were by
fifteen (15) Australian artists.
MOST BROADCAST ARTISTS
The Top 50 MOST BROADCAST ARTISTS saw an outstanding result for local music with
international pop sensation Kylie Minogue taking the #1 position. This position was mainly
achieved by having four (4) of her recordings ‘airplayed’ into the Top 100 – Can’t Get You Out of
My Head, In Your Eyes, Love at First Sight and On a Night Like This - pushing Kylie ahead of
international artists U2 at #2 and Madonna at #4 and last year’s #1 on the list, Savage Garden.
In the history of compiling the PPCA broadcast charts, this is the third year running an
Australian act has achieved the top position indicating the popularity of Australian music across
a wide range of broadcasting station formats. This, combined with her continuing catalogue of
hits, has resulted in Kylie Minogue receiving the PPCA Award as the Most Broadcast Australian
Recording Artist (2002).
Other Australian performers in the Top 50 Most Broadcast Artists list included Paul Mac (10),
Powderfinger (13), Alex Lloyd (16), John Farnham (19), Natalie Imbruglia (29), INXS (35)
Vanessa Amorosi (36), many still proving the dominance of their music catalogue on radio.
PPCA has once again compiled the list of the Most Broadcast Recording and Artists for 1999,
2000, 2001 and 2002 on the following pages. Being hard factual data, these results are always
keenly observed by artists and record companies, radio stations and music enthusiasts.
13
PPCA Top 100 Most Broadcast
Recordings 2002
1
2
3
4
5
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7
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10
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15
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18
19
20
21
22
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24
25
26
27
28
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30
31
32
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34
35
36
37
38
39
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41
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48
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51
52
Drops of Jupiter
Hanging by a Moment
Out of Reach
Follow Me
Amazing
Pleased to Meet You
Can’t Get You Out Of My Head
How you remind me
Don’t Stop Movin’
Starlight (original version)
Lovin’ each day
In Your Eyes
Cherry Lips (Go Baby, Go!)
Just The Thing
Dancing in the Moonlight
With Arms Wide Open
Turn off the Light
What Took You So Long?
I’m a Believer
Better Man
Sing
When it’s Over (album version)
Rapture
Can’t Fight the Moonlight
Not Pretty Enough
Hey Baby (feat. Bounty Killer)
Walking Away
Drive
Hands Clean
Superman (It’s Not Easy)
I’m Like a Bird
Smooth Criminal
The Sound of Breaking Up
Family Affair
Elevation
Thank You
It’s Been a While
Gotta get Thru This (radio edit)
My Sacrifice (album version)
Heavensent
Whole Again
Ride Wit Me (feat. City Spud)
Androgyny
Don’t Let Me Get Me
Let me Blow Ya Mind
The Greatest View
You give me Something
Love at First Sight
Miss California
Kryptonite
Wrong Impression
Wherever you will Be
Train
Lifehouse
Gabrielle
Uncle Kracker
Alex Lloyd
Aneiki
Kylie Minogue
Nickelback
S Club 7
The Superman Lovers
Ronan Keating
Kylie Minogue
Garbage
Paul Mac
Toploader
Creed
Nelly Furtado
Emma Bunton
Smash Mouth
Robbie Williams
Travis
Sugar Ray
Iio
Leann Rimes
Kasey Chambers
No Doubt
Craig David
Incubus
Alanis Morisette
Five for Fighting
Nelly Furtado
Alien Ant Farm
Paul Mac
Mary J. Blige
U2
Dido
Staind
Daniel Bedingfield
Creed
Killing Heidi
Atomic Kitten
Nelly
Garbage
Pink
Eve
Silverchair
Jamiroquai
Kylie Minogue
Dante Thomas
3 Doors Down
Natalie Imbruglia
The Calling
53
54
55
56
Beautiful Day
Insatiable
Don’t Mess with the Radio
Crying at the Discotheque
(radio edit)
57 You get What You Give
58 My Happiness
59 Free
60 Another Chance
61 In the End
62 Luv Me, Luv Me
(feat. Samantha Cole)
63 I Need Somebody
64 One Day in Your Life
65 Short Skirt / Long Jacket
66 Angel
67 If You’re Gone
68 Chemical Heart
69 Murder on the Dancefloor
70 Smooth
71 Lady (Hear Me Tonight)
72 Let’s Dance (radio edit)
73 Buggin’ Me
74 Too Close (radio edit)
75 Do You Love Me? (radio edit)
76 U Got it Bad
77 Stop Callin’ Me (radio edit)
78 Hit ‘em up Style (Oops!)
79 I’m outta Love
80 Everywhere
81 25 Miles 2001 - radio mix
82 Ain’t It Funny
83 It’s Raining Men (album version)
84 Fallin’ (album version)
85 Hide U (album version)
86 Whenever, Wherever
87 Shine
88 The Metre
89 Butterfly
90 Love Foolosophy
91 Who Do You Love Now?
(radio version)
92 Rockin’ the Suburbs
93 Get the Party Started
94 Hero
95 Escape
96 Green
97 Sick Sick Carousel
98 On a Night Like This
99 Someone to call my Lover
100 Dance With Me
U2
Darren Hayes
Nivea
Alcazar
New Radicals
Powderfinger
Mya
Roger Sanchez
Linkin Park
Shaggy
Bardot
Anastacia
Cake
Shaggy
Matchbox 20
Grinspoon
Sophie Ellis Bextor
Santana
Modjo
Five
Selwyn
Blue
Mademoiselle
Usher
Shakaya
Blu Cantrell
Anastacia
Michelle Branch
Three Amigos
Jennifer Lopez
Geri Halliwell
Alicia Keys
Kosheen
Shakira
Vanessa Amorosi
Powderfinger
Crazy Town
Jamiroquai
Riva
Ben Folds
Pink
Enrique Iglesias
Enrique Iglesias
Alex Lloyd
Lifehouse
Kylie Minogue
Janet Jackson
112
Chart is measured by collating all titles that appear in the PPCA radio broadcast logs during the period July to June each year.
Bold denotes Australian Artist.
14
26
The Corrs
2
U2
27
Blink 182
3
Savage Garden
28
Nickelback
Madonna
29
Natalie Imbruglia
30
Fleetwood Mac
NATALIE IMBRUGLIA | BMG
4
5
Garbage
6
Elton John
31
Sugar Ray
7
Jennifer Lopez
32
Red Hot Chili Peppers
8
Creed
33
Alanis Morissette
9
The Beatles
34
Pink
10
Paul Mac
35
INXS
11
Ronan Keating
36
Vanessa Amorosi
12
Lifehouse
37
Aneiki
13
Powderfinger
38
The Offspring
14
Matchbox 20
39
Killing Heidi
15
No Doubt
40
Crowded House
16
Alex Lloyd
41
Anastacia
17
Nelly Furtado
42
R.E.M
18
Train
43
Cold Chisel
19
John Farnham
44
Uncle Kracker
20
Robbie Williams
45
Billy Joel
21
Smash Mouth
46
Silverchair
22
Shaggy
47
The Eagles
23
Gabrielle
48
Bryan Adams
24
Jamiroquai
49
Craig David
25
Green Day
50
Rolling Stones
POWDERFINGER | UMA
Kylie Minogue
1
KILLING HEIDI |
ROADSHOW MUSIC
PPCA Top 50 Most Broadcast Artists 2002
Chart is measured by collating all titles that appear in the PPCA radio broadcast logs during the period July to June each year.
15
PPCA Most Broadcast Artists 1999 - 2002
1999
2000
2001
2002
1
Shania Twain
1
Savage Garden
1
Savage Garden
1
Kylie Minogue
2
The Beatles
2
The Beatles
2
Matchbox 20
2
U2
3
Madonna
3
Madonna
3
U2
3
Savage Garden
4
Elton John
4
Elton John
4
The Corrs
4
Madonna
5
Bachelor Girl
5
Taxiride
5
Vanessa Amorosi
5
Garbage
6
Natalie Imbruglia
6
Vanessa Amorosi
6
Ronan Keating
6
Elton John
7
John Farnham
7
Bryan Adams
7
Kylie Minogue
7
Jennifer Lopez
8
Goo Goo Dolls
8
Shania Twain
8
Backstreet Boys
8
Creed
9
Alanis Morissette
9
Killing Heidi
9
Madonna
9
The Beatles
10
Elvis Presley
10
U2
10
The Beatles
10
Paul Mac
11
Savage Garden
11
Backstreet Boys
11
John Farnham
11
Ronan Keating
12
U2
12
Smash Mouth
12
Elton John
12
Lifehouse
13
Phil Collins
13
Bachelor Girl
13
PowderFinger
13
Powderfinger
14
Billy Joel
14
Santana
14
Human Nature
14
Matchbox 20
15
Spice Girls
15
Crowded House
15
Bryan Adams
15
No Doubt
16
Human Nature
16
The Beach Boys
16
Shania Twain
16
Alex Lloyd
17
Mariah Carey
17
Fleetwood Mac
17
Cold Chisel
17
Nelly Furtado
18
John Mellencamp
18
Red Hot Chili Peppers
18
Killing Heidi
18
Train
19
Lighthouse Family
19
INXS
19
Bon Jovi
19
John Farnham
20
Cher
20
Billy Joel
20
Jennifer Lopez
20
Robbie Williams
21
All Saints
21
Human Nature
21
INXS
21
Smash Mouth
22
Bryan Adams
22
The Eagles
22
Anastacia
22
Shaggy
23
Jewel
23
Rolling Stones
23
Bachelor Girl
23
Gabrielle
24
Sheryl Crow
24
John Mellencamp
24
Madison Avenue
24
Jamiroquai
25
Neil Diamond
25
Jennifer Lopez
25
Billy Joel
25
Green Day
16
1999
2000
2001
2002
1
1
1
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
High
Lighthouse Family
Crush
Jennifer Paige
Slide
Goo Goo Dolls
Buses And Trains
Bachelor Girl
Believe
Cher
One Week
Barenaked Ladies
The Way
Fastball
Save Tonight
Eagle Eye Cherry
When You're Gone
Bryan Adams
From This Moment
On
Shania Twain
Thank U
Alanis Morissette
Wishing I Was There
Natalie Imbruglia
Sweetest Thing
U2
Sway
Bic Runga
Lullaby
Shawn Mullins
I Don't Want To Miss
A Thing
Aerosmith
When the Lights Go
Out
Five
That Don't Impress
Me Much
Shania Twain
Time Of Your Life
(Good Riddance)
Green Day
Hands
Jewel
Can't Get Enough Of
You Baby
Smash Mouth
The Day You Come
Powderfinger
This Kiss
Faith Hill
Music Sounds Better
With You (radio edit)
Stardust
Iris
Goo Goo Dolls
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
Smooth
Santana
Everywhere you go
Taxiride
She's So High
Tal Bachman
I Try
Macy Gray
All Star
Smash Mouth
I Knew I Loved You
Savage Garden
Affirmation
Savage Garden
When You Say
Nothing At All
Ronan Keating
Hey Leonardo
(She Likes Me For Me)
Blessid Union of Souls
Weir
Killing Heidi
Steal My Sunshine
Len
Have A Look
Vanessa Amorosi
Absolutely
Everybody
Vanessa Amorosi
Mascara
Killing Heidi
Last Kiss
Pearl Jam
Scar Tissue
Red Hot Chili
Peppers
Get Set
Taxiride
Baby Did A Bad Bad
Thing
Chris Isaak
Beautiful Stranger
Madonna
Kiss Me
Sixpence None The
Richer
Burning Down the
House
Tom Jones
Pure Shores
All Saints
If You Had My Love
Jennifer Lopez
Permission to Shine
Bachelor Girl
Larger Than Life
Backstreet Boys
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
Breathless
The Corrs
Life is a Rollercoaster
Ronan Keating
Shine
Vanessa Amorosi
Sunshine on a
Rainy Day
Christine Anu
I’m Outta Love
Anastacia
If You’re Gone
Matchbox 20
Crash & Burn
Savage Garden
My Happiness
Powderfinger
Bent
Matchbox 20
Shackles (Praise You)
Mary Mary
Rome Wasn’t Built in
A Day
Morcheeba
Spinning Around
Kylie Minogue
It’s My Life
Bon Jovi
Beautiful Day
U2
On A Night Like This
Kylie Minogue
Teenage Dirtbag
Wheatus
Cruisin’
Gywneth Paltrow
Let’s Get Loud
Jennifer Lopez
Permission To Shine
Bachelor Girl
Chained To You
Savage Garden
Groove Jet
Spiller
Don’t You Worry
Madasun
Gotta Tell You
Samantha Mumba
Yellow
Coldplay
Can’t Fight The
Moonlight
(Theme From “Coyote
Ugly”)
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
Leann Rimes
25
ALEX LLOYD | EMI
PPCA Most Broadcast Recordings
1999 - 2002
Drops of Jupiter
Train
Hanging by a
Moment
Lifehouse
Out of Reach
Gabrielle
Follow Me
Uncle Cracker
Amazing
Alex Lloyd
Pleased to Meet You
Aneiki
Can’t get you out of
my Head
Kylie Minogue
How you remind me
Nickelback
Don’t Stop Movin’
S Club 7
Starlight (original
version)
The Superman Lovers
Lovin’ Each Day
Ronan Keating
In Your Eyes
Kylie Minogue
Cherry Lips (Go
Baby, Go!)
Garbage
Just The Thing
Paul Mac
Dancing in the
Moonlight
Toploader
With Arms Wide Open
Creed
Turn off the Light
Nelly Furtado
What Took You So
Long?
Emma Bunton
I’m a Believer
Smash Mouth
Better Man
Robbie Williams
Sing
Travis
When it’s Over
(album version)
Sugar Ray
Rapture
Iio
Can’t Fight the
Moonlight
Leann Rimes
Not Pretty Enough
Kasey Chambers
17
Appendix A
CODE OF PRACTICE - AUSTRALIAN MUSIC
The purpose of the Code is to implement the object, set forth in the Broadcasting Services Act
1992, of promoting the role of broadcasting services in developing and reflecting a sense of
Australian identity, character and cultural diversity, by prescribing minimum content levels of
Australian Music.
Metropolitan and Regional Stations
Category
Format
Proportions
A
CHR/Mainstream Rock/Album oriented
Alternative
Not less than 25%
B
Mainstream adult contemporary, country,
Classic rock
Not less than 20%
C
Soft adult contemporary, Hits & Memories
Gold, news talk
Not less than 15%
D
Easy listening - oldies, gold
Not less than 10%
E
Niche formats - jazz, big band
Not less than 5%
All formats - other than niche not less than 10%
SAVAGE GARDEN | ROADSHOW
BROOKE MCCLYMONT
| UNIVERSAL
18
JOHN FARNHAM | BMG
HUMAN NATURE | SONY MUSIC
SILVERCHAIR | EMI
MAGIC DIRT | WARNER MUSIC
Phonographic Performance Company of Australia Limited
Special Purpose
Financial Report
21
Directors’ Report
24
Independent Audit Report
25
Directors’ Declaration
26
Statement of Financial Performance
27
Statement of Financial Position
28
Statement of Cash Flow
29
Notes to the Financial Statements
19
Directors’ Report
The Directors of Phonographic Performance Company of Australia Limited, submit herewith the
annual financial year ended June 2002. In accordance with the provisions of the Corporations
Act 2001 the Directors report as follows:
The Directors of the company in office during or since the end of the financial year are:
PETER BOND
ELIZABETH ANN BLAKEY
Appointed 10 September 2001
LOUIS CALLEJA
DENIS ANTHONY HANDLIN
SHAUN JAMES
GREGORY JOHN MACAINSH
MICHAEL MCMARTIN
BELINDA MORRISON
EDWARD ERSKINE ST JOHN
Appointed 3 July 2001
KAREN ANN DON
(Alternate for Peter Bond) Appointed 5 November 2001
MICHAEL WILLIAM GOLDEN
(Alternate for Elizabeth Ann Blakey) Appointed 20 February 2002
GRAHAM DAVID HARRIS
(Alternate for Louis Calleja)
MARK NARBOROUGH
(Alternate for Shaun James)
DESMOND ARTHUR DUBERY
(Alternate for Edward Erskine St John)
JEREMY FABINYI
Resigned 26 July 2001
ADRIAN FITZ-ALAN
TIMOTHY PRESCOTT
Resigned 3 July 2001
20
Directors’ Report
DIRECTORS’ MEETINGS
The following table sets out the number of Directors’ meetings held during the financial year and
the number of meetings attended by each director (while they were directors). During the
financial year, 5 board meetings were held.
DIRECTORS
Elizabeth Ann Blakey
Peter Bond
Louis Calleja
Karen Ann Don (Alternate)
Desmond Arthur Dubery (Alternate)
Jeremy Fabinyi
Adrian Fitz-Alan (Alternate)
Michael William Golden (Alternate)
Denis Anthony Handlin
Graham David Harris (Alternate)
Shaun James
Gregory John Macainsh
Michael McMartin
Belinda Morrison
Mark Narborough (Alternate)
Timothy Prescott
Edward Erskine St John
BOARD OF DIRECTORS
Held
Attended
5
5
5
1
5
5
5
3
5
5
5
5
2
5
4
4
2
1
4
4
2
3
4
4
5
1
-
PRINCIPAL ACTIVITY
The principal activity of the company in the course of the financial year was acting for the
copyright owners in the licensing throughout Australia of the broadcast and public performance
of sound recordings and music video clips.
During the year there was no significant change in the nature of this activity.
CHANGES IN STATE OF AFFAIRS
During the financial year there was no significant change in the state of affairs of the company
other than that referred to in the financial statements or notes thereto.
REVIEW OF OPERATIONS
The company distributes the licence fees it collects to the Copyright owners and artists after
deducting operating expenses. As a result of this, no profit or loss is reported and the Directors
do not recommend that a dividend will be payable in the current year or was payable in the prior
year.
21
Directors’ Report
The company's results have again shown a substantial increase in the amount to be distributed to
Copyright owners as compared with the previous year. The results of the operations of the
company during the year were not, in the opinion of the Directors substantially affected by any
item, transaction or event of a material and unusual nature.
SUBSEQUENT EVENTS
There has not been any matter or circumstance, other than that referred to in the financial
statements or notes thereto, that has arisen since the end of the financial year, that has
significantly affected, or may significantly affect the operations of the company, the results of those
operations, or the state of affairs of the company in financial years.
FUTURE DEVELOPMENTS
Disclosure of information regarding likely developments in the operations of the company in future
financial years and the expected results of those operations is likely to result in unreasonable
prejudice to the company. Accordingly, this information has not been disclosed in this report.
INDEMNIFICATION OF OFFICERS AND AUDITORS
During or since the financial year the company has not indemnified or made a relevant agreement
to indemnify an officer or auditor of the company or of any related body corporate against a liability
incurred as such an officer or auditor. In addition, the company has not paid, or agreed to pay, a
premium in respect of a contract insuring against a liability incurred by an officer or auditor.
Signed in accordance with a resolution of the Directors made pursuant to Section 298(2) of the
Corporations Act 2001.
On behalf of the Directors
P. Bond
Director
S. James
Director
Sydney, 2002
22
Independent Audit Report
TO THE MEMBERS OF PHONOGRAPHIC PERFORMANCE COMPANY OF AUSTRALIA LIMITED
Scope
We have audited the attached financial report, being a special purpose financial report, of
Phonographic Performance Company of Australia Limited for the financial year ended 30 June
2002 as set out on pages 26 to 38. The company's directors are responsible for the financial report
and have determined that the accounting policies used and described in Note 1 to the financial
statements which form part of the financial report are appropriate to meet the requirements of the
Corporations Act 2001 and are appropriate to meet the needs of the members. We have
conducted an independent audit of the financial report in order to express an opinion on it to the
members of Phonographic Performance Company of Australia Limited. No opinion is expressed
as to whether the accounting policies used, and described in Note 1, are appropriate to the needs
of the members.
The financial report has been prepared for distribution to members for the purpose of fulfilling the
directors' financial reporting requirements under the Corporations Act 2001. We disclaim any
assumption of responsibility for any reliance on this report or on the financial report to which it
relates to any person other than the members, or for any purpose other than that for which it was
prepared.
Our audit has been conducted in accordance with Australian Auditing Standards. Our procedures
included examination, on a test basis, of evidence supporting the amounts and other disclosures
in the financial report and the evaluation of significant accounting estimates. These procedures
have been undertaken to form an opinion whether, in all material respects, the financial report is
presented fairly in accordance with the accounting policies described in Note 1, so as to present
a view which is consistent with our understanding of the company’s financial position and
performance as represented by the results of its operations and its cash flows. These policies do
not require the application of all Accounting Standards and other mandatory professional reporting
requirements in Australia.
The audit opinion expressed in this report has been formed on the above basis.
Audit Opinion
In our opinion, the financial report of Phonographic Performance Company of Australia Limited is
in accordance with:
(a)
(b)
the Corporations Act 2001, including:
(i)
giving a true and fair view of the company’s financial position as at 30
June 2002 and of its performance for the year ended on that date in
accordance with the accounting policies described in Note 1; and
(ii)
complying with Accounting Standards in Australia to the extent described
in Note 1 and the Corporations Regulations 2001; and
other mandatory professional reporting requirements in Australia to the
extent described in Note 1.
DELOITTE TOUCHE TOHMATSU
Julia Bickerstaff
Partner
Chartered Accountants
Sydney, 2002
23
Directors’ Declaration
PHONOGRAPHIC PERFORMANCE COMPANY OF AUSTRALIA LIMITED
As detailed in Note 1 to the financial statements, the company is not a reporting entity because in
the opinion of the Directors there are unlikely to exist users of the financial report who are unable
to command the preparation of reports tailored so as to satisfy specifically all of their information
needs. Accordingly, this "special purpose financial report" has been prepared to satisfy the
Directors’ reporting requirements under the Corporations Act 2001.
The Directors declare that:
(a)
The attached financial statements and notes thereto comply with Accounting Standards;
(b)
The attached financial statements and notes thereto give a true and fair view of the
financial position and performance of the company;
(c)
In the Directors’ opinion, the attached financial statements and notes thereto are in
accordance with the Corporations Act 2001; and
(d)
In the Directors’ opinion, there are reasonable grounds to believe that the company will be
able to pay its debts as and when they become due and payable.
Signed in accordance with a resolution of the directors made pursuant to s.295(5) of the
Corporations Act 2001.
On behalf of the Directors’
P. Bond
Director
S. James
Director
Sydney, 2002
24
Statement of Financial Performance
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2002
Note
Revenue from ordinary activities
Employee benefits expense
2002
2001
$
$
9,897,215
8,419,395
(1,330,097)
(1,211,738)
Depreciation and amortisation expense
(58,545)
(73,945)
Borrowing costs
(11,067)
(7,457)
Other expenses from ordinary activities
(1,282,131)
(1,280,037)
Distribution to licensors
(7,215,375)
(5,846,218)
2
-
-
1(b)
RESULT FROM ORDINARY ACTIVITIES
BEFORE INCOME TAX EXPENSE
Income tax expense relating to
ordinary activities
-
-
Net Result
-
-
Total Changes in Equity other than those
Resulting from Transactions with Members as Members
-
-
Notes to the financial statements are included on pages 29 to 38.
25
Statement of Financial Position
AS AT 30 JUNE 2002
Note
2002
2001
$
$
CURRENT ASSETS
Cash assets
898,818
1,105,813
Receivables
6
1,648,764
2,241,552
Other financial assets
7
8,255,000
5,614,619
10,802,582
8,961,984
96,717
110,524
96,717
110,524
10,899,299
9,072,508
10,796,062
8,880,045
TOTAL CURRENT ASSETS
NON-CURRENT ASSETS
Plant and equipment
8
TOTAL NON-CURRENT ASSETS
TOTAL ASSETS
CURRENT LIABILITIES
Payables
9
Interest-bearing liabilities
10
-
10,711
Provisions
11
85,398
117,759
10,881,460
9,008,515
TOTAL CURRENT LIABILITIES
NON-CURRENT LIABILITIES
Interest-bearing liabilities
12
-
56,264
Provisions
13
17,821
7,711
17,821
63,975
10,899,281
9,072,490
18
18
TOTAL NON-CURRENT LIABILITIES
TOTAL LIABILITIES
NET ASSETS
EQUITY
Contributed equity
14
18
18
Retained profits
19
-
-
18
18
TOTAL EQUITY
26
Statement of Cash Flow
Note
2002
2001
$
$
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from operating activities
10,942,921
8,194,736
Payments for operating activities
(2,878,241)
(3,305,441)
Interest received
324,935
400,357
Interest paid
(11,067)
(7,457)
(5,846,218)
(4,215,189)
2,532,330
1,067,006
(90,647)
(18,419)
58,678
200
(31,969)
(18,219)
Distribution to licensors
Net cash provided by operating activities
17(b)
CASH FLOWS FROM INVESTING ACTIVITIES
Payment for plant and equipment
Proceeds from sale of plant and equipment
Net cash used in investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of borrowings
(66,975)
(8,948)
Net cash used in financing activities
(66,975)
(8,948)
NET INCREASE IN CASH HELD
2,433,386
1,039,839
Cash at beginning of financial year
6,720,432
5,680,593
9,153,818
6,720,432
Cash at the end of the financial year
17(a)
27
1. SUMMARY OF ACCOUNTING POLICIES
FINANCIAL REPORTING FRAMEWORK
The company is not a reporting entity because in the opinion of the directors there are unlikely
to exist users of the financial report who are unable to command the preparation of reports
tailored so as to satisfy specifically all of their information needs. Accordingly, this “special
purpose financial report” has been prepared to satisfy the Directors’ reporting requirements
under the Corporations Act 2001.
The financial report has been prepared on the basis of historical cost and except where stated,
does not take into account changing money values or current valuations of non-current assets.
Cost is based on the fair values of the consideration given in exchange for assets.
The financial report has been prepared in accordance with the Corporations Act 2001, the basis
of accounting specified by all applicable Accounting Standards and UIG Consensus Views and
the disclosure requirements of Accounting Standards AASB 1001 “Accounting Policies”, AASB
1018 “Statement of Financial Performance”, AASB 1034 “Financial Report Presentation and
Disclosures” and AASB 1040 “Statement of Financial Position” and UIG Abstract 35 “Disclosure
of Contingent Liabilities”, except the disclosure requirements of AASB 1017 “Related Party
Disclosures” and AASB 1033 “Presentation and Disclosure of Financial Instruments”.
SIGNIFICANT ACCOUNTING POLICIES
Accounting policies are selected and applied in a manner which ensures that the resulting
financial information satisfies the concepts of relevance and reliability, thereby ensuring that the
substance of the underlying transactions and other events is reported.
The following significant accounting policies have been adopted in the preparation and
presentation of the financial report:
a)
Depreciation
Depreciation is provided on plant and equipment. Depreciation is calculated on a
straight-line basis so as to write off the net cost or other revalued amount of each asset
over its expected useful life. Leasehold improvements are depreciated over the period of
the lease or estimated useful life, whichever is shorter, using the straight line method.
The following estimated useful lives are used in the calculation of depreciation.
Office Furniture
Office Equipment
Computer Equipment
Motor Vehicles
b)
10–11 years
9 years
3 years
5 years
Income Tax
The company prepares its income tax returns on the basis that it acts as agent for the
record companies that it represents. As such, it does not derive income on its own
account. Rather it is entitled under its constituent document to be reimbursed for
expenditure incurred in the course of its activities. The basis of assessment has been
agreed with the Australian Taxation Office.
The net effect of timing and permanent differences arising from expenditure incurred by
the company is passed on to the recipients of the royalties collected.
28
c)
continued
Revenue Recognition
Unearned revenue is brought to account over the terms of the licences issued on the
following basis:
i. Public performance fees are normally issued for a period of one year, although shorter
periods are accommodated. In all cases licence fees are payable in advance. Income
is brought to account on a monthly basis over the life of the contract.
ii. Broadcast licences are issued for various terms - income is brought to account on a
monthly basis over the life of the contract.
d)
Leased Assets
Leased assets classified as finance leases are recognised as assets. The amount initially
brought to account is the present value of minimum lease payments.
A finance lease is one which effectively transfers from the lessor to the lessee
substantially all the risks and benefits incidental to ownership of the leased property.
Finance leased assets are amortised on a straight-line basis over the estimated useful
life of the asset.
Finance lease payments are allocated between interest expense and reduction of lease
liability over the term of the lease. The interest expense is determined by applying the
interest rate implicit in the lease to the outstanding lease liability at the beginning of each
lease payment period.
Operating lease payments are recognised as an expense on a basis which reflects the
pattern in which economic benefits from the leased asset are consumed.
e)
Recoverable Amount of Non-Current Assets
Non-current assets are written down to recoverable amount where the carrying value of
any non-current asset exceeds recoverable amount. In determining the recoverable
amount of non-current assets, the expected net cash flows have not been discounted to
their present value.
f)
Employee Entitlements
Provision is made for benefits accruing to employees in respect of wages and salaries,
annual leave and long service leave when it is probable that settlement will be required
and are capable of being measured reliably.
Provisions made in respect of wages and salaries and annual leave expected to be
settled within 12 months, are measured at their nominal values.
Provisions made in respect of long service leave which are not expected to be settled
within 12 months are measured as the present value of the estimated future cash
outflows to be made by the company in respect of services provided by employees up
to reporting date.
29
g)
continued
Receivables
Trade receivables and other receivables are recorded at amounts due less any allowance
for doubtful debts.
h)
Accounts Payable
Trade payables and other accounts payable are recognised when the company becomes
obliged to make future payments resulting from the purchase of goods and services.
i)
Investments
Investments are recorded at cost. Interest revenue is recognised on an accruals basis.
j)
Acquisition of Assets
Assets acquired are recorded at the cost of acquisition, being the purchase
consideration determined as at the date of acquisition plus costs incidental to the
acquisition.
In the event that settlement of all or part of the cash consideration given in the
acquisition of an asset is deferred, the fair value of the purchase consideration is
determined by discounting the amounts payable in the future to their present value as at
the date of acquisition.
k)
Goods and Services Tax
Revenues, expenses and assets are recognised net of the amount of goods and services
tax (GST), except:
i. where the amount of GST incurred is not recoverable from the taxation authority, it is
recognised as part of the cost of acquisition of an asset or as part of an item of
expense; or
ii. for receivables and payables which are recognised inclusive of GST.
The net amount of GST recoverable from, or payable to, the taxation authority is
included as part of receivables or payables.
Cash flows are included in the statement of cash flows on a gross basis. The GST
component of cash flows arising from investing and financing activities which is
recoverable from, or payable to, the taxation authority is classified as operating cash
flows.
30
Note
continued
2002
2001
$
$
9,498,589
7,586,829
-
454,462
339,948
377,904
58,678
200
9,897,215
8,419,395
2. AGENCY REVENUE AND EXPENDITURE
AGENCY REVENUES
Licence fees
Licence fees – prior year claim
OTHER AGENCY REVENUES
Interest – other persons
Proceeds on disposals of plant and equipment
TOTAL AGENCY REVENUE
Less:
AGENCY EXPENSES
Provision for doubtful debts (note 4)
-
7,695
Depreciation of plant and equipment
44,517
52,257
Long service leave
12,684
12,023
Annual leave
30,296
20,208
Amortisation of leased assets
14,028
21,688
Finance lease charges
11,067
7,457
Auditing the financial report
14,000
20,034
Other services
27,579
26,400
213,936
207,456
Other agency expenses
2,313,733
2,197,959
TOTAL AGENCY EXPENSE
2,681,840
2,573,177
DISTRIBUTION TO LICENSORS
7,215,375
5,846,218
12,769
200
TRANSFER TO PROVISIONS
FINANCE LEASES
AUDITORS’ REMUNERATION
OTHER
Operating lease payments
3. SALES OF ASSETS
Sales of assets in the ordinary course of business have been
given rise to the following profits:
Plant and equipment
31
Note
continued
2002
2001
$
$
28,480
11,152
-
7,695
3,832
1,552
1,508,409
770,461
(36,327)
(64,807)
1,472,082
705,654
4. BAD AND DOUBTFUL DEBTS
a) Bad debts written off against provision for
doubtful debts – trade receivables
b) Amount set aside to provision for doubtful debts –
trade receivables
5. DIRECTORS’ REMUNERATION
Payments to artist representative directors
(Member company representatives are ineligible for fees)
6. CURRENT RECEIVABLES
Trade receivables
Allowance for doubtful debts
Prepaid expenses
1,205
22,087
Other licence receivables
76,604
1,421,635
Other receivables
98,873
92,176
1,648,764
2,241,552
8,255,000
5,614,619
7. OTHER CURRENT FINANCIAL ASSETS
Cash on deposit
32
Note
continued
2002
2001
$
$
8. PLANT AND
EQUIPMENT
Office
Furniture
Office
Equipment
Computer
Equipment
Motor
Vehicles
Total
GROSS CARRYING
AMOUNT
Balance at 30 June 2001
123,026
70,085
212,340
111,336
516,787
Additions
367
2,856
87,424
-
90,647
Disposals
-
-
(104,748)
(111,336)
(216,084)
123,393
72,941
195,016
-
391,350
(94,587)
(65,299)
(194,978)
(51,399)
(406,263)
ACCUMULATED
DEPRECIATION
Disposals
-
-
104,748
65,427
170,175
(8,780)
(4,821)
(30,916)
(14,028)
(58,545)
(103,367)
(70,120)
(121,146)
-
(294,633)
As at 30 June 2001
28,439
4,786
17,362
59,937
110,524
As at 30 June 2002
20,026
2,821
73,870
-
96,717
Depreciation expense
NET BOOK VALUE
33
continued
2002
2001
$
$
Office furniture
8,780
11,397
Office equipment
4,821
7,491
Computer equipment
30,916
33,369
Motor vehicles
14,028
21,688
58,545
73,945
Trade payables
500,349
515,941
Goods and Services Tax (GST) payable
268,308
182,066
Note
8. PLANT AND EQUIPMENT
CONTINUED
AGGREGATE DEPRECIATION RECOGNISED AS AN
EXPENSE DURING THE YEAR.
9.
CURRENT PAYABLES
Licence fees received in advance
2,812,030
2,335,820
Amounts payable to licensors
7,215,375
5,846,218
10,796,062
8,880,045
-
10,711
85,398
117,759
-
56,264
17,821
7,711
18
18
10. CURRENT INTEREST-BEARING LIABILITIES
Secured: Finance lease liability (note 15)
11. CURRENT PROVISIONS
Employee entitlements (note 18)
12. NON-CURRENT
INTEREST-BEARING LIABILITIES
Finance lease liabilities (note 15)
13. NON-CURRENT PROVISIONS
Employee entitlements (note 18)
14. CONTRIBUTED EQUITY
18 fully paid ordinary shares
Fully paid ordinary shares carry one vote per share.
34
continued
2002
2001
$
$
Not later than one year
-
16,392
Later than one year and not later than five years
-
60,603
Minimum finance lease payments
-
76,995
Less: Future finance charges
-
(10,020)
Finance lease liability
-
66,975
-
10,711
Note
15. LEASES
FINANCE LEASE COMMITMENTS
Included in financial statements as:
Current Interest-bearing liabilities (note 10)
Non-current Interest-bearing liabilities (note 12)
-
56,264
-
66,975
185,468
215,239
NON-CANCELLABLE OPERATION LEASES
Phonographic Performance Company of Australia Limited
has an operating lease for its office premises. The lease
expires 30 April 2003 with an option to renew. Lease
commitments are as follows:
No longer than 1 year
Longer than 1 year and not longer than 5 years
-
184,770
185,468
400,009
16. FINANCIAL REPORTING BY SEGMENT
The company operates in one industry being the derivation
of revenue from licensing the broadcast and public
performance of sound recordings and music video clips
wholly within Australia.
35
Note
continued
2002
2001
$
$
17. NOTES TO THE STATEMENT OF CASH FLOWS
a) Reconciliation of Cash
For the purposes of the statement of cash flows, cash
includes cash on hand and in banks and investments in
money market instruments, net of outstanding bank
overdrafts. Cash at the end of the financial year as shown
in the statement of cash flows is reconciled to the related
items in the statement of financial position as follows:
Cash assets
898,818
1,105,813
8,255,000
5,614,619
9,153,818
6,720,432
-
-
(12,769)
(200)
58,545
73,945
592,788
(977,272)
1,916,017
368,139
Current provisions
(32,361)
1,661,204
Non-current provisions
10 ,110
(58,810)
2,532,330
1,067,006
Current (note 11)
85,398
117,759
Non-current (note 13)
17,821
7,711
103,219
125,470
No.
No.
26
27
Cash on term deposit
b) Reconciliation of result from ordinary activities to net
cash flows from operating activities
PROFIT FROM ORDINARY ACTIVITIES
Profit on sale of non-current assets
Depreciation and amortisation of non-current assets
Changes in net assets and liabilities:
(Increase)/decrease in assets:
Current receivables
Increase/(decrease) in liabilities
Current payables
Net cash provided by operating activities
18. EMPLOYEE ENTITLEMENTS
The aggregate employee entitlement liability recognised
and included in the financial statements is as follows:
Provision for Employee Entitlements
Number of employees at end of financial year
36
continued
2002
2001
$
$
Balance at beginning of financial year
-
-
Net result
-
-
Balance at end of financial year
-
-
Note
19. RETAINED PROFITS
20. ADDITIONAL COMPANY INFORMATION
Phonographic Performance Company of Australia Limited is
a limited company, incorporated and operating in Australia.
Principal Registered Office and Place of Business
Level 9, 263 Clarence Street
Sydney NSW 2000
37
PPCA Performers’ Trust Foundation
BALANCE SHEET AS AT 30 JUNE 2002
Note
FUNDS RETAINED IN THE TRUST
2002
2001
$
$
328,142
328,755
Represented by:
CURRENT ASSETS
Cash assets
61,467
77,223
Accrued income
4,813
4,562
Deposits – at call
77,607
12,072
Term deposits
400,000
450,119
GST – tax input receivable
-
470
TOTAL CURRENT ASSETS
543,887
544,446
TOTAL ASSETS
543,887
544,446
2,350
2,400
171,973
146,086
Less:
CURRENT LIABILITIES
Payables and accrued charges
Grants allocated and unexpended at year end held by
trustees for beneficiaries of:
Professional Musicians’ Union of Australia
Media Entertainment & Arts Alliance
38
41,422
67,205
TOTAL CURRENT LIABILITIES
215,745
215,691
TOTAL LIABILITIES
215,745
215,691
NET ASSETS
328,142
328,755
Appendix B
SAMPLE PPCA LICENCE
39
Appendix C
TARIFF CATEGORIES
A
General Licences - open air events; school, dance academy or church concerts; motivational
B
Arts, film, music events and similar festivals
C
Cinemas and theatres
D
Dance studios, dance instructors, line dance instructors
DD
Live performance groups, dance companies, performance promoters
E
Nightclubs, discotheques, discotheque promoters, foreground music in bars
F
Mobile discotheque operators/DJ’s
FW
Mobile video discotheque operators
H
Halls
HM
Music on hold
I
Factories, industrial premises and offices.
J
Jukeboxes
JO
Jukebox operators
JW
Video jukebox operators
K
Amusement centres, pool rooms, squash courts, swimming pools, ten pin
LEE KERNAGHAN | ABC CONTEMPORARY MUSIC
DISCO MONTEGO | WARNER MUSIC
speakers.(Single event licences are available).
bowling centres
M
Commercial or professional premises - including art galleries, bars, clubs,
elevators, foyers, function rooms, funeral parlours, hairdressers, health/medical
offices (eg doctors, dentists, chiropractors, massage therapists, osteopaths,
physiotherapists), hotels, libraries, lounges, massage parlours, motels,
museums, reception areas, retail stores, taverns, zoos, and/or similar establishments
MW
Electrical and hi-fi stores
N
Shopping centres, plazas, concourses
P
Public vehicles (eg aircraft, buses, charter boats, coaches, ferries, hire cars, light
rail, monorail, ships, taxis, trains, trams)
R
Restaurants, cafes, coffee lounges, road houses
S
Sports arenas, race tracks, showgrounds, outdoor amusement parks
SS
Community service recreational areas (beaches, parks)
U
Skating rinks
V
Fitness centres, gymnasiums, health clubs
W
Music video clips
W-E
Music video clips in nightclubs, fixed discotheques and discotheque operators
X
Concert venues
Y
Conference rooms
Licence fees are calculated differently in each category (eg, fees may be flat fees per annum, fees per
person or per machine, or fees determined by size of venue depending on category) - contact PPCA
for full details. It is quite possible, depending on your needs, that you may have a licence with any
number of Tariffs eg a hotel may have a number of bar areas (Tariff M), restaurants (Tariff R), nightclubs
(Tariff E), gymnasium (Tariff V), and video jukebox (Tariff W).
40

PPCA Annual Report 2002

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