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Producers want Local Content quotas redefined for “First Release” TV

Producers call on govt to ensure Local Content is first release anywhere in the world, to limit NZ drama replacing local production.

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Australian producers want the government to redefine local content to a ‘first release’ global status to encourage television networks to commission premiere TV.

The push follows the Nine Network screening 51% of New Zealand-produced drama in 2013, counting towards Australian content quotas under the Australia-NZ Economic Trade Agreement.

It is one of several policy reforms Screen Producers Australia is canvassing following a 2 day symposium held in Sydney, Prism, at which sectors of the industry canvassed a range of concerns.

SPA is seeking bipartisan support from political parties for an ‘holistic’ range of policy reforms to support the independent production sector, including:

  • an increase to the Producer Offset rate for television
  • incentives to attract off-shore productions to Australia
  • licence fee reductions matched by increases in drama, documentary and children’s programming
  • flexibility in temporary visa reforms

Screen Producers Australia CEO, Matthew Deaner, said, “Our industry is at a crossroads. We are amongst the most entrepreneurial, innovative and productive screen industries in the world. Many of our independent production companies are already succeeding in the international marketplace and, increasingly, the world is looking to us for new ideas and innovation. However, the industry is also in a period of rapid technological change and fragmentation. We therefore have to ensure that Government interventions, so important in underpinning the health of our sector and delivering cultural outcomes, are keeping pace with the new world environment in which we operate to both keep Australian production businesses expanding and innovating, and to guarantee that we can continue to create and present diverse, quality local content to Australian audiences.”

Screen Producers Australia has set out an ambitions range of policy reforms to ensure Australia’s independent production sector, which currently accounts for $1.7 billion worth of production activity annually, continues to grow, export and innovate. The reforms that Screen Producers Australia will be seeking bipartisan support for include:

Adjustment to tax incentives:

Screen Producers Australia says that following cuts to Screen Australia, ABC and SBS in 2014, its members have concerns regarding the compound effects of additional cuts to Screen Australia in the 2015 Federal Budget.

Screen Producers Australia CEO, Matthew Deaner, said that Screen Producers Australia is advocating for an increase to the Producer Offset rate for television structured with safeguards to ensure the benefit of an increase remains with the small businesses that need this leverage the most. This will ensure international competitiveness and alleviate the impact of reduced screen subsidies.

Screen Producers Australia is also advocating for greater flexibility to be built into the Producer Offset legislation in regards to the theatrical release requirements of feature films; and for developing and retaining skills by maintaining a critical mass of production through incentives to attract off-shore (footloose) productions to Australia.

Adjustment to regulations:

In response to increased pressure facing commercial free-to-air television, Screen Producers Australia is supportive in principle of a reduction in spectrum licence fees, but which it believes must assist with stimulating investment across a diverse range of Australian content on commercial free-to-air television and not simply facilitate sports arms race at the expense of drama, documentary and children’s programming.

Screen Producers Australia wants greater broadcasting transparency to enable more effective benchmarking of policy objectives and outcomes. Mr Deaner said that the Broadcasting Financial Results published by Australian Media and Communications Authority as a good example of reporting obligations for the commercial sector that should be replicated for public broadcasters.

The organisation is also calling for stronger oversight of commercial transactions between broadcasters and the independent production sector. Screen Producers Australia has maintained benchmark terms of trade with ABC since 2009.

“These terms align with other negotiated agreements and provide certainty to both parties. This is not to fix pricing but rather streamline the commissioning process by assisting in the mapping and modernising of rights available in both broadcast and ancillary usages across a multichannel and online broadcast environment. However, ABC is an isolated example with other broadcasters resisting similar arrangements,” Mr Deaner said.

“We want Government to assist in establishing an industry code of conduct to strengthen the voluntary arrangements that been promoted to date by the independent production sector. Independent producers look to such arrangements to ensure that broadcasters don’t to use their disproportionate level of market power, either intentionally or otherwise, to create an unfair marketplace in the acquisition of screen content.

“The recent report from the Canadian Media Production Association (CMPA), Impacts of the 2003 Communication Act on UK Indie Producers, highlights clearly the advantages to both the independent production sector and broadcasters since Terms of Trade were mandated in the UK in 2003,” Mr Deaner said.

CMPA report: http://cmpa.ca/sites/default/files/documents/terms-of-trade/CMPA Terms of Trade Report by Olsberg SPI 04-06-2015.pdf

Mr Deaner further said that adjustments to regulations are required to ensure the integrity of Australian content on commercial free-to-air television.

Screen Producers Australia is seeking a redefinition of the term ‘first release’ in the Australian Content Standard, by broadening the definition to reflect the concept of a worldwide premiere and not just a program’s initial screening in the licence area. This will avoid the disappointing and alarming 2014 compliance results for metropolitan commercial free-to-air television licensees released by the Australian Media and Communications Authority which revealed that the Nine Network met 51 per cent of its drama obligation with the use of New Zealand programming.

Screen Producers Australia continues to advocate for immigration reform, in relation to temporary visas for international actors.

“We are looking to the Government’s review of temporary visas to deliver sensible reform that balances the needs of all parts of the screen industry and contribute to the continued growth of the sector to ensure greater employment not only for cast but also writers, directors, crew and producers,” Mr Deaner said.

11 Responses

  1. “SPA is seeking bipartisan support from political parties for an ‘holistic’ range of policy reforms to support the independent production sector” Someone needs to improve their spelling! It’s not “an holistic” rather it is “a wholistic” because the word is derived from “whole”, meaning “complete”, “entire”. And even as I write I note the red line appearing on my monitor, but I strongly believe “wholistic” to be correct for reasons already stated.

    1. “Wholistic”. My school motto was “Each For The Whole”. It raised a few smiles when we started digging the new swimming pool. A comprehensive education!

  2. You don’t like New Zealand programs counting as local content? Wait till the Government signs the Trans Pacific Partnership agreement. Who knows what bizarre outcomes that will produce.

    1. New Zealand is a separate sovereign nation. Its TV programmes should not be counted as Australian, no matter how much we like to do so. And as for the Trans-Pacific Partnership Agreement, signing this will be high treason as it will strip Australia of its sovereignty. Foreign companies will be able to sue the Australian government if legislation to protect Australian industries impede the foreign company from pursuing its interests which are at the expense of the local companies. A bad deal all round!

      1. Australia agreed to a trade deal where TV content is not to be discriminated against. Trade deals are between different sovereign nations. We benefit from lots of goods and services going the other way.

        The problem is driving local content by crude quotas. The “cultural outcome” produced is all too often stuff like Wonderland. Using regulation and taxpayer money to make LCD stuff that people don’t even want to watch, after spending $1.2b p.a. on public broadcasters, is ridiculous. Canada is only country that does something similar, but they subsidise quality productions targeted Canada, the US and global markets. Australian drama is frequently badly written and made and relies largely on parochialism to succeed here.

        1. Not so sure that “not to be discriminated against” was part of the wording. Generally these agreements are about ruling out future increases in the minimum requirements of Australian content, so there may be a loophole regarding definitions. It’s also up to the network whether they submit the titles as Aus quota.

        2. The first part of my comment was about TV programming but the bit about the Trans-Pacific Partnership was more general. And yes, it will be treason, High Treason if it is signed as it certainly will strip Australia of its sovereignty.

  3. Looks like its going to have to go the same way as food and have “Country of Origin” labels. I guess with the free trade agreements we have with Korea et al they are going to be local content as well for any channel unscrupulous enough (no names required). A lot of Chinese food comes from New Zealand after repacking. A Chinese drama with NZ subtitles is Australian made isn’t it?

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