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Licence cuts a missed opportunity say producers

$127 million relief for networks but producers cite NZ content and a drop in drama as still being problematic.

While Free to Air networks are welcoming the government dropping the licence fee for 2016 / 2017, Screen Producers Australia has mixed feelings.

SPA says the $127 million in relief is a missed opportunity to assist production in Australia.

Networks are turning more to New Zealand productions, have scaled back drama & documentary production and, in a blow to the independent sector, are taking more productions in-house.

“The Government is giving commercial broadcasters relief, in part, based on arguments that they will use these windfalls to invest in local content. Unfortunately, these arguments have, at times, proved specious,” SPA CEO Matthew Deaner said yesterday.

“According to the recently released Australian Bureau of Statistics industry update, since 2011-12, commercial television broadcasters have cut their commitment to Australian drama and documentaries by 20 per cent and increased the substitution of Australian content for cheap second-run New Zealand content.

“The broadcasters are also moving more production in-house, from 44 per cent of production in 2011-12 to 55 per cent in 2015-16. This, together with worsening deals being offered to the independent production sector, should be ringing competition alarm bells in the Government and the ACCC. Independent producers are being driven to the wall.

“Unfortunately, the Government has either ignored these significant structural issues or kicked them into the long grass. Comparing 2011-12 to 2015-16, production business income grew five per cent, less than inflation. Production income was down six per cent. While employment was up 9 per cent, labour costs are up significantly to 14 percent. We are seeing an increasingly challenging environment for the independent production sector.

“After years of policy inertia, the Government has only recently announced a review. Unfortunately, this is too late many of our small businesses, most recently KEO Films, who are leaving our shores because of the difficult market conditions here. The Government can’t continue to sit on its hands and wait for a review to address obvious structural issues. Screen Producers Australia will shortly submit to Government a plan to address these structural issues.”

5 Responses

  1. This is not surprising. my prediction is that More Australian content producers will make content exclusively for subscription streaming services because they see the value in it. At the end of the day this will hasten the demise of trust in traditional media.

  2. Sadly the independent producers don’t have the financial clout to pay lobbyists to camp on the doorsteps of Coalition politicians nor the political influence that broadcasters can exercise on-air. The result has been a slow decline over more than twenty years and still more and more subsidy and freebies are demanded by the commercial broadcasters and their demands are always met. The result is that our best and brightest who want a career in television are leaving Australia to work in much bigger and more creatively demanding markets. After the huge fight for Australian content in the 1960 and 70s it is sad to witness this.

  3. Can’t trust the Networks to spend the Licence money on local drama? Was that the intention? Perhaps the Govt should take the licence money and give it back on a Cashless Debit Card with useage restictions but let’s not call it an FTA Welfare payment.

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