Council Applauds NZ On Air Changes to Recoupment

19 April 2007

Screen Council Applauds NZ On Air Changes to Recoupment

The Screen Council has welcomed the announcement by the Minister for Broadcasting that the recoupment criteria for NZ On Air television funding are to be changed. The new criteria, which apply from 1 April, mean that producers will receive a much greater return when they sell programmes funded by NZ On Air.

The previous default criteria meant that whenever a television programme was sold, after it had been first broadcast in New Zealand, producers would only receive 20 percent of the net revenue with the other 80 percent returning (ie being "recouped") to NZ On Air. Under the new criteria, 75 percent will return to producers when NZ On Air funding exceeds $200,000 (rising to 90 percent when NZ On Air funding has been fully recouped); 100 percent when funding is less than $200,000 (provided the broadcaster contribution is comprised solely of a licence fee); and 90 percent for all "ancillary" rights ie non- programme rights such as pod-casting.

"These changes will have a major impact on producer's willingness to put effort into selling their programmes, particularly in international markets", said Tim Thorpe, Executive Director, NZ Screen Council. "There will now be material returns to producers for their efforts. This should improve the sector's export performance, and encourage innovation in new media."

Experience in the United Kingdom, where similar changes were adopted two years ago, has shown that producers' revenues have grown significantly and helped create sustainable businesses and improved export sales.

"It also increased revenues back to the funding bodies", noted Mr Thorpe. "While funding bodies had a smaller percentage share of the returns, the sales were so much greater. I expect something similar will occur with NZ On Air".

The Screen Council has been involved in the negotiations with NZ On Air about its recoupment position for the past three years. Now it will be turning its attention to ensuring that producers have the capability to develop and market their productions for maximum returns. The first Screen Council training courses in marketing of programmes will be held in early May.

Discussions with other government funding agencies are also pending.

ENDS

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