SPAA WELCOMES THE CONVERGENCE REVIEW’S FINAL REPORT

The Convergence Review Final Report was released on April 30, 2012 by the Department of Broadband, Communications and the Digital Economy. The report includes a near term and long term vision with recommendations for how Government can best respond to the challenges of the digital revolution and the internet while ensuring satisfactory levels of Australian content will continue to be produced and consumed by Australians.

"SPAA welcomes the release of the Convergence Review Final Report 2012. It contains a range of farsighted recommendations acknowledging the future landscape of Australian media. We particularly note the retention and expansion of Australian Content sub-quotas across the FTA's new digital networks and the introduction of Australian spend requirements on Pay TV children's and documentary channels. SPAA supports the platform neutral approach to content obligations based on audience and revenues and the introduction of a 40% Producer Offset for high end local television and a new interactive entertainment Producer Offset.  SPAA also supports the recommendation for government to establish a separate enquiry into the commercial terms of trade between independent content producers and Content Services Enterprises. All in all, the review has reaffirmed the value of Australian content for Australian audiences and recognised the important role of Australian content producers in the new digital landscape where content can come from everywhere." said SPAA Executive Director, Geoff Brown.

In summary, some of the major recommendations and policy positions that would affect the film, television, and interactive media industries are as follows:

·      Public interest justifies the regulation of media ownership, media content standards across all platforms, and production and distribution of Australian and local content.

·      Content Services Enterprises (CSE’s) should be regulated when they have control over content, a large number of users of that content, and a high level of revenue from content supply.

·      Shift in approach to regulation from ‘black letter law’ to ‘principles based legislation’.

·      A new statutory regulator to replace ACMA.

·      A new self-regulating body with sanction powers to oversee news standards.

·      An increase in sub quota content obligations of 50% for commercial free to air networks to take account of multi-channels.

·      The 10% expenditure requirement for Pay TV drama channels should be extended to children’s and documentary channels.

·      The replacement of the existing requirement for broadcasters to pay license fees for the right to transmit with a market based system of licenses for spectrum usage.

·      That the ABC be required to meet an Australian content requirement of 55% Australian content.

·      That the SBS be required to meet an Australian content requirement of 22.5% Australian content.

·      That ‘premium television content’ exceeding an as yet unspecified threshold be eligible for a 40% Producer Offset.

·      That in the short term, existing Australian content arrangements be retained because, based on data modelling commissioned by the Convergence Panel, expenditure on Australian content would decline drastically if removed.

·      That in the long term, the sub quota regulation be repealed and replaced with a new ‘uniform content scheme’ to operate in a converged environment.

·      That the new regulator establish a model for Australian content obligations based on the CSE’s revenue and audience share requiring contributions to Australian content expenditure.

·      That a Converged Production Fund be established to manage contributions and invest in productions on a competitive basis.

·      A suggestion that interactive entertainment content including games and other applications be eligible for a Producer Offset of 30% for projects above $500,000 and 20% for projects above $200,000.

·      That revenue from user generated content not be taken into account in determining investment requirements for Australian content.

·      That government conduct a separate Review of the independent production sector including terms of trade between broadcasters and independent producers.

I would urge all members to read the report, which can be found here.  

Geoff Brown

Executive Director