Radio stations

If you want to use phonograms in linear radio broadcasts both on FM frequencies and in online simulcasts, you can make an agreement with Gramex.

Who is this for?

For Finnish commercial radio stations that have a continuous, professional radio broadcasting business based on an operating licence. You can make an agreement with Gramex on using sound recordings on FM radio and in online simulcasts. Remuneration is based on the usage of phonograms and the advertising income of the radio station. To make the agreement, contact Gramex customer service (see bottom of page).

Review the agreement (in Finnish)

Remuneration

Remunerations from commercial radio stations are based on the amount of music played and advertising income. Yle’s remuneration rate is based on an agreement made with Gramex.

The remuneration percentage for commercial radios is calculated by dividing the percentage share of Gramex-protected phonogram music of the overall broadcast time by 8.5.

The remuneration is calculated as follows:

• Percentage share of phonogram music = protected phonograms’ minutes of use / reported broadcast time

• Remuneration percentage = protected phonogram music’s percentage share of overall broadcast time / 8.5

What radio advertising income affects the size of the remuneration?

Remunerations from commercial radio stations for phonogram use are based on the amount of music played and the advertising income of the radio station. The advertisement income used as the basis for remuneration refers to all income generated from the radio’s advertisements and adverts, programme sponsoring or other similar support arising from radio broadcasting. Realised credit losses can be deducted from the income. The reported income does not include taxes. Radio stations report their advertising income to Gramex monthly via a dedicated turnover reporting portal. You can access the portal here: https://report.gramex.fi/login

What are protected phonograms?

All Finnish phonograms created or released within the last 70 years are protected. Gramex remunerations are not collected for any older phonograms. Please note that we are currently undergoing a transition for the protection term. If a phonogram was recorded and published before 1963, its protection term was only 50 years. The phonogram is no longer protected for Gramex rights. It may still have valid Teosto rights. For foreign phonograms, Gramex protection is determined based on the recording country of the phonogram and the nationality of the phonogram’s producer. Recordings currently protected include phonograms recorded in countries with agreements in place that are included in a list provided by Gramex, and/or phonograms created by producers who are citizens of the listed countries. You can see the list of countries here.

Calculation example

– A radio station makes €500,000.00 in advertising per year

– During the year, protected music is used in broadcasts for a total of 179,193 minutes

– During the year, the station broadcasts a total of 527,040 minutes

– The percentage share of protected phonogram music used in all broadcasts: 179,193 / 527,040 minutes = 34 %

– Final remuneration percentage: divide 34 % by 8.5: 34 % / 8.5 = 4 %

– Annual remuneration: 4 % x 500,000.00 euros = €20,000.00 (+VAT)

Reporting

Radio stations must provide data on all phonogram use in their broadcasts to Gramex each month. The report must be delivered by the 21st of the month following the use of the sound recordings. Performance data of the recordings is reported to Gramex as instructed in our reporting guidelines. Gramex and Teosto use the same reporting guidelines, and the same report is delivered to both.

Reporting guidelines (in Finnish)

Billing

Remuneration is billed monthly based on the phonogram reports and revenue reports received from the radio station. The customer company has a 14-day payment term. Penalty interest will be charged for late payments in accordance with applicable laws.

Simulcasting

Simulcasting refers to the simultaneous and unaltered online broadcast of commercial FM radio broadcasts. In addition to an FM radio licence, simulcasting requires a separate remuneration. Phonograms recorded in the United States are also included in a simulcasting remuneration.

Contact us

Request further information and make an agreement:

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Elmo Helokumpu

Key Account Manager

+358 10 248 9213 elmo.helokumpu@gramex.fi