Distribution Policy

Once a year we distribute the revenues we collect (minus our costs) to Recording Artists and Rights Holders.

Our goal is to maximise returns to recording artists and rights holders by getting the best possible price for the licences and operating as efficiently as possible to reduce costs. We collect a huge amount of data tracking actual usage of sound recordings and (where this is not possible or feasible) we use appropriate ‘proxy data’ (usually radio play) to allocate income and calculate distributions. We have a published Distribution Policy as approved and adopted by our full Board of Directors. Any amendments to this policy must likewise be approved by the full Board of Directors and promptly published.

The Distribution Policy covers:

• The granting of rights under the Master Rights Agreement
• The licensing and collection of fees
• Data collection from radio and other users
• Distribution of royalties; and
• Any issues relative to disputes/overpayments

2025 Changes to Distribution Policy – Transitional Schedule

Recorded Music is upgrading to a new IT system to process data and distributions and as a result our systems and processes will be in a state of transition throughout 2025.

In order to reflect how we will operate during this time of transition, we have published a Transitional Schedule to the Distribution Policy that amends and takes precedence over the existing Distribution Policy where applicable. The Transitional Schedule has been approved by Recorded Music NZ’s Board and takes effect from 1st May 2025. The Schedule will apply to the 2025 distribution of 2024 funds and until further notice.

Read on below for a summary of the changes, and what is and is not changing.

Recorded Music portal and obligations of Master Rights Holders and Registered Artists: The obligations of Master Rights Holders and Registered Artists to provide and update a range of information to Recorded Music NZ will not change, however going forward the new myRecordedMusic portal will become the primary way Master Rights Holders and Registered Artists advise us of their details.

Registration of repertoire and rights: Master Rights Holders and Registered Artists will also have the option to advise repertoire and rights to us via RDx and in some circumstances, via PPL.

Minimum repertoire requirements: Under the new system we cannot register repertoire unless the minimum required information is provided. More information about the requirements is in the Transitional Schedule.

Repertoire conflicts: A repertoire conflict arises when two parties claim that they are legally entitled to be paid in respect of the same recording. If a conflict exists and we cannot resolve the conflict prior to the cutoff date for a distribution, we will hold an amount attributable to the value of that recording/usage until the conflict or dispute is resolved. This is a change from our existing Distribution Policy. We will publish further information about how we will address repertoire conflicts later in 2025.

Copyright term and data updates: We are in the process of updating our repertoire data and in particular the (P) dates that will be used to determine copyright term.

Invoicing, payments and minimum payments: We will no longer be requiring an invoice in order to make payments to Master Rights Holders and Registered Artists. Instead we will require payment, bank and tax details to be provided, updated or confirmed and if that is done we will make payment automatically. Under the old system we applied a minimum of $10 to distribution payments. Under the new system and starting from the 2025 distribution, there will be no minimum amount for a distribution paid to a NZ bank account and our intention is to pay out whatever amount is allocated. Due to the cost of transferring funds overseas, we reserve the right to apply a minimum to payments made to overseas banks.

Holding allocated balances from prior years: In 2025 we are introducing a limit to the period of time we will hold balances from prior years while we seek details/confirmation from the Master Rights Holder or Registered A The limit is 5 years from the end of the year in which the distribution was due to be paid, and this timeframe may be changed or extended at the discretion of the Recorded Music NZ Board. Before releasing balances from prior years, we will make reasonable efforts to contact the relevant person to obtain the details we need to make the payment.

Privacy Policy: Our Privacy Policy has been updated to reflect changes in the way we work with the new system.

What IS changing –
The changes for the 2025 distribution as compared to previous years are related to the mechanics and timing of the distribution, including –

• How Master Rights Holders advise us of their rights and repertoire, including the repertoire sources that we rely on;
• How Registered Artists claim their share of repertoire that has been registered with us;
• The systems we use to store and process data relating to rights holders, artists, repertoire and usage data and to allocate distributions;
• The way we manage repertoire conflicts, i.e. situations where two parties have claimed they are entitled to be paid for the same track;
• The deadlines and timeframes for registering repertoire, and making payments;
• The way we make payments to Master Rights Holders and Registered Artists; and
• How we handle situations where we cannot pay a Master Rights Holders or Registered Artists as we don’t have sufficient information.

What is NOT changing –
There is no change in 2025 to the core functions of Recorded Music NZ or the way we allocate distributions, including –

• No change to how we license music users;
• No change to who is eligible to register as a Master Rights Holders or claim as a Registered Artist;
• No change to the type of rights that we license – although we are also in the process of updating our Master Rights Agreements, to take effect in the future;
• No change to the nature of the data that we use allocate distributions; and
• No change to the way we apply the data or the weightings that we use.