Record Industry backs down on quotas

01 May 2001
BMG argues in favour of a variable sliding scale quota for radio stations. They state that to saturate all South African radio stations with artificially high local content quotas “would literally kill the goose that lays the golden egg for the industry as a whole, and which effectively creates the investment pool on which domestic repertoire development depends”.

Gallo states bluntly that since the introduction of the quota there has been no significant improvement in the South African music business.

Leaving local content aside, both submissions instead focus on the introduction of ‘needletime’ – a levy payable by broadcasters to performers and producers of music, in addition to other royalties. ‘Needletime’ is, however, likely to remain a side issue in this inquiry as the decision whether or not to introduce it, is one for government rather than the regulator.



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