ACMA Thumbs Its Nose At Music Industry As Commercial Radio Code Drops

The Australian Communications and Media Authority (ACMA) has dropped its revised code of conduct today, delivering a slap in the face to the music industry by not only ignoring existing holes in the code but – according to ARIA – avoiding consultation over key changes to format definitions. 

The Commercial Radio Code of Practice is reviewed every three to five years, with a section of the code dealing with the sectors’ obligations to Australian content.

The music industry has long argued that the code includes loopholes which are exploited by the radio industry to get around playing local content, including the ability to back-load content at nights where listenership is low as well as the self-selection of format definition. It also allows stations to avoid Australian music requirements on DAB+ and online stations, particularly impacting country music formats, leaving an entire genre without protection.

The new code has completely failed to address time-shifting and DAB+ requirements, with stations continuing to be able to place local music in late-night timeslots and to avoid Australian content on digital. In what could be seen as the only concession made, there have been some minor shifts to format categories, with hip hop formats now requiring 25% local content up from 15%, however there has been no attempt to codify what the formats actually mean. 

If someone from ACMA can explain the difference between “soft adult contemporary” (which requires 15% Australian content) or “easy listening” (which only requires 10%), the music industry would love to hear it. Or perhaps the reasoning behind why “Gold – encompassing Classic Hits” requires 15%, while “Oldies” is 10%. What exactly is an “Oldie”? The problem is that no definition exists for any of the above.

Given we’re no longer in the 1990s (probably the last time someone in ACMA actually read this section of the code), the justification of having a smaller percentage of Australian content on a “classic hits” station was that there was simply less local music for those formats to tap into.

When classic hits meant the ‘40s, ‘50s, and ‘60s, that argument definitely had merit. Now though, Gold means the best of the ‘80s, ‘90s, and ‘00s, arguably a creative and commercial high watermark for Australian music. If anything, it should be easier for Gold stations to furnish their playlists with local content than it is for top 40 stations. 

The shame of this is that ACMA had an opportunity here to draw a line under the ‘radio vs music’ wars that have plagued both industries for years. What is needed is a clear code with a clear expectation. Re-applying mascara on the old code simply entrenches the current problems and creates even more points for the two sides to argue over. 

ARIA and PPCA CEO Annabelle Herd has slammed the release of the code, accusing ACMA of not consulting the music industry on the changes to music genre categories. 

We are extremely disappointed that despite all the evidence put forward showing that these quotas aren’t working, the ACMA has not pursued any reasonable or practical changes,” Herd said. “CRA Code reviews don’t happen very often and yet this has become another instance of Australian radio policy failing the country’s homegrown culture and artists in the very market where they should have a natural advantage.”

“Commercial radio uses publicly owned spectrum to generate over $1 billion of revenue annually. That is a privilege, and it comes with a responsibility to surface Australian stories, Australian voices, and Australian music at times when audiences are actually tuned in.

“Under the current framework, stations are meeting their obligations while relegating Australian music to overnight and off-peak slots. The practical effect is that the quota exists on paper but delivers little for artists or the Australian listeners it was designed to serve.”

She continued:

For the ACMA to agree to changes to important music genre categories without any input from the music industry is baffling. Numerous other countries enact policies to ensure local content on radio is not swamped with international music but in Australia, we continue to leave our artists exposed, undermining the National Cultural Policy and support for Australian artists undertaken across multiple levels of government and industry.

There is so much excellent Australian music being released right now. Many local artists are seeing large local fan bases and major success internationally. They are winning Grammys, performing to massive international festival audiences and sellout crowds. This is not a supply issue.

At a minimum we are simply asking for Australian music to be played when Australians are listening. That is a modest and reasonable expectation, and it is disappointing that the opportunity to deliver on it has been rejected by the ACMA. It now falls to government to recognise this gap and examine the ways in which it can ensure Australians are hearing local music in their own country. Our artists carry Australian stories to the world: they deserve a framework at home that gives them a genuine foundation to build on.

APRA AMCOS CEO Dean Ormston also expressed disappointment towards the new code. He explained:

This code is like Jurassic Park and doesn’t reflect the opportunity that’s right in front of commercial radio right now.

The talent is undeniable. International revenue for local songwriters and composers hit a record $98.8 million last financial year – up nearly 15% – and more than doubled since 2019.

Our songwriters and composers are making their mark on the world stage like never before with an extraordinary amount of great new Australian music travelling the globe backed by decades of incredible hits.

Acknowledging that some radio stations are already going above and beyond for Australian music, such as Triple M – awarding the station Licensee of the Year at the 2023 APRA Music Awards – Ormston continued:

Triple M always go above and beyond and their audiences love them for it. It shows what happens when a network genuinely gets behind Australian music – it wouldn’t take much for others to do the same.

With CRA and ACMA not doing anything meaningful through this code, we’re calling directly on stations to seize the opportunity and join the Australian music renaissance.

We’re here and ready to work with any station that wants help curating local content – we’re not trying to tell anyone how to run their business, but we can connect them to the extraordinary breadth of music being made right now.

Ormston concluded:

Commercial radio stations are local businesses – their bread and butter is built on encouraging communities to shop locally and support their neighbours. Australian music is a local product. At a time of globalisation, when our local sounds and culture have never been more important, it’s time to double down.

From Bega to Broome and beyond, the airwaves have never had a better opportunity to carry the sounds of Australia – regardless of location, genre or age. This is music that brings people together.

Now’s the time to be excited about the partnership between these two great industries. Now’s the time to rediscover that great Australian soundtrack – from across the nation, from across the decades. The opportunity has never been clearer.

Commercial Radio and Audio (CRA) welcomed the new code, with a very different take on ACMA’s consultation throughout the process.

It’s important to note that the Australian content requirements are just one piece of the broader code of conduct which also delivered requirements around AI disclosure and a “special care” provision around content expectations around school drop off and pick up when kids are in the car.

We’re proud to lead the way with this new Code,” said CEO Lizzie Young. “The Australian radio industry is pleased to be proactively addressing evolving community standards, positioning the local commercial radio sector to navigate technological and social changes responsibly.”  

“Over the course of the review we’ve worked closely with the Australian Communications and Media Authority, our members, and the Australian public who shared their views during consultation. The result is a new Code that reflects what matters most to the communities that commercial radio connects with every day, and we’re committed to continuing our work with the ACMA as it takes effect.”

The sad part of it all is that radio and music should be on the same team. Instead, the music industry sees radio as a revenue source rather than an important algorithm-busting window into local ears.

The radio industry sees Australian music as a thing to minimise rather than cultivate. The relationship works best when a local station can champion a local artist. The artist can then turn up to cook sausages at the outside broadcast and bring listeners into their world. The radio station can benefit from access to the artist who can continue to support them as they grow.

But instead we’ve got a music industry that cuts its radio teams and sees radio as something to be ‘managed’ rather than as partners in breaking artists. And in turn we have a radio industry that sees Australian music as the enemy to be curtailed as opposed to a valuable cultural cornerstone to be nurtured. 

When Ball Park Music took the stage to support Oasis after a career of over a decade, who lost out by having a stadium full of people who liked what they saw, but for most were hearing the songs for the first time?

How much better would it have been to have a stadium singing along to Please Don’t Move To Melbourne or It’s Nice To Be Alive? If Australian music was embraced on commercial radio rather than just tolerated, the big winner would have been the audience.

We’ve had a ruling on the 1% cap that has essentially told the two industries to sort it out amongst themselves with little regulatory change. We’ve now had ACMA washing their hands of helping to broker peace. No matter how much radio hates it, they live or die by the songs they play now, and in fifteen to twenty years time they’ll need Australian hits for their gold formats.

No matter how much the music industry tries to ignore it while they go on their cheap ‘influencer’ hunt, still nothing creates hits like radio. 

It’s time for Mum and Dad to stop fighting. Great Australian music on the airwaves is in everyone’s long-term interests.

You can read the new Commercial Radio Code of Practice here.