Audience Reach, Ownership Control and Local Content

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From Screen Producers Australia

Landmark report supports new rules for streaming services

Screen Producers Australia (SPA) welcomes the release of a landmark Parliamentary report into Australia’s arts and cultural institutions, and the clear recommendation for a 20% Australian content safeguard on streaming video services.

The House of Representatives Standing Committee on Communications and the Arts has released the report of its inquiry, titled Sculpting a National Cultural Plan, and it includes two key recommendations relating to the screen sector.

Firstly, it recommends that streaming video platforms be required to spend 20% of locally sourced revenue on Australian content. Secondly, it recommends that 20% of that 20% be required to be spent on Australian children’s content and drama.

“SPA welcomes the findings of the inquiry, which took a detailed and considered look at the importance of the sector to the country’s cultural, social and economic well-being, the impact of the pandemic, and what steps are necessary to ensure success into the future,” said Matthew Deaner, CEO of SPA.

“We would like to thank the Parliamentarians on the Committee for their diligent exploration and consideration of the issues and the thoughtful response to the full scope of factors in play.

“In particular, the report recognises that Australia’s screen sector is a major cultural industry which creates jobs, promotes Australia to audiences overseas and is a ‘nation-building asset’. The importance of screen content production to regional economies, in terms of local investment, showcasing regions and encouraging future tourism is also a highlight of the report, as is the recognition of the cultural and economic power of Australian children’s content.

“Of critical importance, however, is future-proofing the regulatory environment for the sector, and this is explicitly supported by the landmark recommendation for a 20% Australian content expenditure requirement on streaming services.

“This is in line with the SPA proposal, and will create 10,000 local jobs, $360 million in new investment and 300 hours of great Australian content for audiences, on the platforms they are using.

“A safeguard at this level will keep us competitive internationally with markets such as France and Italy, which have implemented or announced 20-25% safeguards. Canada is also considering a quota at this level.

“We also know that such a measure would be popular with Australians, who in recent polling expressed majority support for a 20% safeguard for streaming platforms in Australia.

“With the release of this report the time is ripe for Government action, and we look forward to the release of the Minister’s response to the Media Reform Green Paper and a transition into conditions of certainty and growth."

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Good news for local content

HISTORIC DAY FOR AUSTRALIAN SCREEN SECTOR

Australia’s independent production sector today heralded the passage through Parliament of a significant boost to vital screen support measures, and also warmly welcomed amendments which protect tax support for many in the industry.

The passage of the Treasury Laws Amendment (2021 Measures No. 5) Bill 2021 brings into effect the long fought for increase in the Producer Offset for television productions, rising from 20% to 30%.

Screen Producers Australia (SPA) is also very pleased to note that significant amendments were made to the Bill during debate in the Parliament. These changes wind back some potentially challenging reforms which would have made accessing financing support harder for a range of producers in our sector.

Since the changes were first announced in September 2020, SPA has fought strongly and consistently to have their impact mitigated, and we are very grateful to the Parliament for listening to the industry’s concerns and accepting these amendments.

“This is a landmark day for the production sector. The passing of the laws will unlock rich new streams of financial support into the sector, and is the culmination of years of effort. It’s also an important day for Australian audiences, with the boost in the Offset an important part of securing the future of Australian stories on the small screen,” said SPA CEO Matthew Deaner .

“We thank the Government for moving forward with this critical measure for television production. We are also grateful for the support of all Parliamentarians in working towards an outcome on this Bill that benefits the screen industry as a whole, in particular the ALP for moving amendments supported by the Greens and other parties, and ultimately the Government,” said Deaner.

“The passage of the laws will resolve a period of uncertainty for many production businesses regarding the Offset, and helps to unlock funding and cashflow for a significant number of Australian television productions, which is wonderful news for SPA members and the Australian viewing public,” said Deaner.

https://twitter.com/scoopgeorge/status/1465995155840720899?s=20

https://twitter.com/latingle/status/1465956541006106636?s=20

The resolution means the centrepiece of the federal government’s package – the increase in the TV producer offset rebate – will be implemented and backdated to July 1. The screen industry has been desperately awaiting the passage of the measure, estimating $400 million in productions were on the line.

A key element of the legislation was lifting the Producer Offset for non-feature length content from 20 to 30 per cent, and the passage of the Bill before the end of the sitting year had become a pressing priority for the industry.

Given the legislation is supposed to apply retroactively to July 1, many TV projects had already gone into production on the assumption of a 30 per cent offset.

“This is a landmark day for the production sector. The passing of the laws will unlock rich new streams of financial support into the sector, and is the culmination of years of effort.

“It’s also an important day for Australian audiences, with the boost in the offset an important part of securing the future of Australian stories on the small screen.”

Labor’s arts spokesman Tony Burke said the opposition had forced the Coalition’s hand.

“The government has now adopted Labor’s changes because it knew it did not have the numbers in the lower house,” he said. “Labor’s sensible and responsible amendment has saved jobs and businesses.”

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While this is good to see, its a shame that we have resorted to needing to propping up the industry in this way in order to get local content

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Meanwhile, in Regional Media land

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This has already been posted a few days ago The increasingly crowded streaming market - #562 by TV.Cynic

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Something odd in the ACMA’s 2021 Population Determination.

We know Central is covered by a few different licences: Imparja’s licence covers the entire region (Remote Central and Eastern Australia TV1), while SCA and CDT’s licences have two licences (Mt Isa TV1 plus Remote Central and Eastern Australia TV2 for everything else).

Overall they both cover the exact same land area so you would think they would add up to the exact same population count, right?

Imparja’s licence area: 406,363
SCA/CDT’s licence area: 424,643

Not quite sure how you can suddenly lose or invent eighteen thousand people… :thinking: :joy:

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Isn’t Mount Isa’s population around 20k?

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Census lists Mt Isa LGA at 18.7k: 2021 Mount Isa, Census All persons QuickStats | Australian Bureau of Statistics

But also not the point I was making. If you add the raw figures of Mt Isa TV1 and Central TV2 together, it should equal Central TV1 which covers both of the prior areas. But it doesn’t.

Same goes if you add the figures for 7WA and 10 West (SSW+VEW+GTW+WAW) and compare to WIN WA. 635,977 versus 604,768.

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I know that wasn’t your point, just a potential reason for the disparity, potentially a double up, if will.

I think there’s a problem with your maths.

REMOTE CENTRAL & EASTERN AUSTRALIA TV1 IMP 406,550

REMOTE CENTRAL & EASTERN AUSTRALIA TV2 CDT, QQQ 388,270
MT ISA TV1 IDQ, ITQ 18,280
Total (388,270+ 18,280) = 406,550

You’ve used the figures from the overlap of those areas with Australia S40, which isn’t 100% of those areas. The complete numbers are:

REMOTE AND REGIONAL WESTERN AUSTRALIA TV1 WOW 604,975

SOUTH WEST AND GREAT SOUTHERN TV1 SDW, SSW 364,160
KALGOORLIE TV1 VDW, VEW 54,696
GERALDTON TV1 GDW, GTW 49,500
WESTERN ZONE TV1 WAW, WDW 167,832
Total (363,160 + 54,6969 + 49,500 + 167,832) = 636,188

Difference is 31,213. This is because there is overlap in the 7WA/10 West areas so some people get counted twice.

3,320 people are in KALGOORLIE TV1 AND SOUTH WEST AND GREAT SOUTHERN TV1
4,551 people are in KALGOORLIE TV1 AND WESTERN ZONE TV1
2,853 people are in GERALDTON TV1 AND WESTERN ZONE TV1
21,188 people are in SOUTH WEST AND GREAT SOUTHERN TV1 AND WESTERN ZONE TV1

Total: 31,912, which still gives a difference of 699. This would be because the people in the overlap between Kalgoorlie, South West and Western Zone are still being counted twice.

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Good, you’ve narrowed it. How do you eliminate the disparity and identify the overlap?

I don’t think these were ever linked to on here, the regional broadcaster’s responses last year to the previous Federal Government’s white paper on media reform. Provides further insight into their arguments over the outdated legislation on ownership.

https://www.infrastructure.gov.au/sites/default/files/documents/mrgp-prime-media-group-southern-cross-austereo-win-network_0.pdf

https://www.infrastructure.gov.au/sites/default/files/documents/mrgp-imparja-television-pty-ltd.pdf

That joint submission from the regional broadcasters is a frustrating read - handouts and carveouts appear to be the only way to make the declining industry sustainable.

It would be interesting to see if Seven as Prime new owner supports the submission or they have a different view

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Exactly. If Seven were to buy out all the Seven signals SCA broadcast, they would have close to nationwide coverage except for Griffith, Loxton and Mt Gambier. I highly doubt Seven would allow the likes of WIN to carry both Nine and Ten. Or would they come to arrangement where all the fully owned SCA 10 signals could be brought as a 50/50 JV between WIN & Seven and would the Fed Govt allow that?

From The Australian

Federal government extends ‘Alston Determination’ for streaming services

The federal government has extended legislation that allows Australia’s commercial free-to-air broadcasters and their linked streaming services to abide by different broadcasting rules.

Known as the Alston Determination, the legislation means certain types of live streaming services are excluded from the definition of a “broadcasting service”, which allows them to operate under a separate set of regulations.

The Alston Determination was introduced by former communications Minister Richard Alston in 2000 and dictated that TV or radio programs that used the internet “do not fall within the definition of a broadcasting service”.

For example, in the lead-up to the federal election in May, live-streaming platforms aired political advertising, while a broadcasting blackout still applies to political advertising on commercial free-to-air stations in the three days leading up to the poll.

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Statement from Senator Sarah Henderson, Shadow Communications Minister

Why did the Albanese Government fail to act until the death knell on critical regulations covering commercial broadcasters and streaming services operating in Australia?

This not only shows Labor’s incompetence, but its disregard for Australian media companies and other digital streaming services which require legal and commercial certainty to operate.

The remaking of the ‘Alston Determination’ by the government, just days before it expired, imposed an unacceptable level of risk to Australian commercial broadcasting and streaming companies.

Commercial television and radio stations, and live streaming services, deserve much better than this chaotic law making by the Albanese Government.

The extension of the Alston Determination for a lengthy five years also shows that Labor doesn’t have the ticker to implement the necessary media regulation reforms before the next federal election.

As set out in my letter (below) to Labor’s Communication’s Minister, the ACCC Digital Platforms Inquiry recommended there should be a harmonisation of media regulation between traditional media and those delivering services over the internet. Labor clearly has no intention of tackling the big reform challenges in the media sector in the foreseeable future.