Convergence Review: Drive to promote Australian screen content production
Much of the focus of the Convergence Review into the media is on ensuring that Australian content appears on screens, and producers have incentives to go on making it.
However, there is also a proposed loosening of the local content quota which would see the free to air networks able to spread their local content quota obligations onto their digital channels. The review proposes a new set of rules for Australia’s major media owners (those with revenues of more than $200m) – labelled content service enterprises – when it comes to screen content:
- Content service enterprises that meet defined service and scale thresholds should be required to invest a percentage of their total revenue from professional television-like content in the production of Australian drama, documentary or children’s content or, where this is not practicable, contribute to a new converged content production fund.
- The government should create and partly fund a new converged content production fund to support the production of Australian content.
- Premium television content exceeding a qualifying threshold should attract the 40 per cent offset available under the Producer Offset scheme. This will bring premium television content in line with the current rate of offset available for feature film production.
- Interactive entertainment, such as games and other applications, should be supported by an offset scheme and the converged content production fund.
The review acknowledged: “Submissions also highlighted the need to support those employed in the industry to earn a reasonable living, develop skills, build sustainable enterprises and communicate their stories and visions to the widest possible audience. The Review considers that government intervention is necessary to ensure the production of content forms that the public considers valuable, but which would be under-produced if market forces alone were at play.”
And it warned: “Existing measures are too narrowly focused on the main commercial free-to-air broadcast channels. While the main channels attract large audiences, their audience share is likely to continue to fragment over time as digital multichannels and other services evolve and gain in popularity. Unless the scope of Australian content measures is broadened to include a wider range of platforms, the amount of Australian content consumed will diminish as users move to other services.”
A key recommendation is that rather that in the long term the regulations move away from direct content quotas and instead insist that media companies invest a specific portion of their revenues into local programming:
The Review recommends that, in the longer term, the existing requirements based on quotas and minimum expenditure be abolished and a new uniform content scheme be developed. The scheme would require all content service enterprises that provide drama, documentary and children’s programs and that meet the scale and service criteria to either:
> invest a percentage of their Australian market revenue from professional television-like content in new
Australian drama, documentary and children’s content (investment option), or
> contribute to a central converged content production fund (contribution option).
It adds: “Research commissioned by the Review indicated that, to maintain Australian content at its current level, the traditional broadcasters would need to invest 3 to 4 per cent of their revenue on Australian drama, documentary and children’s programs if the scheme were implemented now. This is an indicative figure only. The actual contribution rate would need to be set by the new communications regulator after determining the number of qualifying content service enterprises and assessing their revenue at the time the scheme is introduced.”
Another major recommendation is the creation of a “converged content production fund”:
The Review recommends the creation of a converged content production fund as the key production support measure.
Similar to the existing direct subsidy programs administered by Screen Australia, the converged content production fund would invest in content productions on a competitive basis.
The fund’s mission would be to develop new and innovative content suitable for all platforms. In addition, the coverage of the fund would be broader than existing arrangements because it would support both audio and audiovisual content. The fund would also focus on innovation in service delivery in both of these sectors, with a special emphasis on regional and community content service providers. The fund’s primary roles would be to support:
> the production of programs in key genres, including drama, documentary and children’s content, by the independent production sector
> the production of programming for local and regional services
> new forms of content delivery and platform innovation, including the production of new media content such as interactive apps and webisodes
> contemporary music.
Funding the converged content production fund
The converged content production fund should have three sources of funding:
> contributions from eligible content service enterprises under the uniform content scheme
> direct appropriations from government
> spectrum fees paid by radio and television broadcasters
There will also be protection for the Australian advertising industry, with the current quota of 80% Australian produced advertising on the main channels to remain.
The review supports increasing the producer offset for TV from 20% to 40% to come into line with feature films. However, it remains on the fence on whether this should be for independent producers only.
All of the proposals are yet to be accepted by media minister Stephen Conroy and would then be subject to the Labor government staying in power long enough to enact them.
Tim Burrowes founded Mumbrella in 2008. He worked on Mumbrella until 2021. At various points he was editor, content director and editor-at-large.
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Well researched & well presented technical document obviously compiled by those familiar with the dark art of synopsis construction – (killer bottom line).
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