021/04
16 March 2005

Review of Australian drama on Pay TV

The 10 per cent requirement for new spending on drama on subscription television will stay following the tabling of the review of Australian and New Zealand content on subscription television by the Minister for Communications, Information Technology and the Arts, Senator Helen Coonan.

"The Review found the 10 per cent new eligible drama expenditure requirement is an appropriate measure," Senator Coonan said.

"The requirement is flexible enough to respond to developments in the pay TV sector such as the expanding range of channels available as we move to digital television."

The Review also found that the requirement is highly valued by the Australian production industry as it promotes development and provides employment opportunities and new Australian product for export.

"The Australian Government wants to ensure the subscription television sector continues to make a cultural contribution by telling Australian stories and making quality Australian drama," Senator Coonan said.

"The new spending requirement has annually delivered $15-20 million to a variety of Australian productions, ranging from feature films such as Somersault to television series such as Love My Way."

To ensure its ongoing effectiveness, the Review recommends some changes to the 10 per cent requirement.

"The Government will now allow limited pre-production expenditure on script development to count towards the requirement and to allow spending in excess of the 10 per cent to be carried forward and treated as new expenditure in the following year," Senator Coonan said.

"This is broadly consistent with the operation of the local content requirements on drama for commercial television broadcasters."

A further review of the operation of the new eligible drama expenditure requirement in 2008 will take into account the changes occurring in the subscription television sector.

A copy of the Review is available at www.dcita.gov.au/broad/consultation.