Media Release

Screen Producers Australia (SPA) has lodged its submission to the Australian Government's National Cultural Policy consultation, making 22 recommendations to help ensure audiences continue to have access to independent Australian screen stories.

"With the second iteration of the Albanese Government’s National Cultural Policy, we have a real opportunity to expand our ambition for our arts and creative industries leaving an invaluable intergenerational legacy," said SPA CEO Matthew Deaner.

“We are pleased about the growth in confidence of First Nations storytelling, with their screen stories increasingly taking place across a breadth of genres and platforms: from science fiction to comedy, from thrillers to documentaries. This is reflected in the increase in First Nations majority-owned businesses in SPA’s membership over the last 4 years: up to 27 from 18.

“The Australian screen industry is brimming with great stories to share with audiences, both here and abroad, but there are also worrying cracks. 

"I know that with the right policy settings that update our thinking and recognise some tough realities, our industry could once again witness a renaissance in Australian screen storytelling. The elements of success are there for the taking. 

"But our SME-driven sector can’t do this alone. We need to match our generous tax incentives with Government action that recognises the very real structural challenges our industry is facing.

“With social cohesion under pressure, now is the right time to press forward on the task of recognising the importance of arts and culture to our lives. It’s great that we now have local content rules on streaming platforms that were promised in Revive - but these tackled the start of just one element of an increasingly complex dynamic - and meanwhile, a myriad of other issues facing the sector are creating some unsustainable pressure points across the industry.

“For SPA’s screen producing businesses, the Australian Government cannot continue to ignore the structural issues that have dramatically altered the commercial arrangements in the screen industry. The advent of digital streaming platforms has completely upended commissioning practices in our industry and the ‘take it or leave it’ deals offered when Screen Australia is not at the deal table has exposed the incredible market power most commissioners have in our industry.

"SPA has tried every avenue available to bring this untenable situation to the Government’s attention as an area of urgent regulatory need, including this year, recourse to the ACCC. While these pressures are being acknowledged in other sectors through the News Media Bargaining Incentive and the ACCC’s Digital Platforms Inquiry Report, SPA is pressing for a better understanding from Government about the impact of these platforms on independent screen production in Australia.

“It is no longer the situation in which Australian SME screen businesses can negotiate commissioning contracts on the fair and reasonable terms that enable them to operate sustainably. Rather than creating the win/win proposition that screen businesses are seeking through greater fairness, the current environment is placing increasing pressure on the long-term sustainability of our sector.

"If Australia wants to continue to have the independent screen sector that has driven so much of our celebrated screen successes of the past, then the structural market power imbalance between commissioners (ie, streaming platforms and broadcasters) and our SME screen businesses needs to be tackled through Government interventions.

"That’s why SPA’s submission has detailed an important recommendation, "that a process requirement for ‘fairness’ could be introduced into Australian regulatory landscape for screen production, potentially through a terms of trade model, or as part of the test for ‘Australian’ within the various domestic content requirement regimes."

"In doing this, SPA has identified that three key principles need to apply in commissioning: good faith negotiations, fair value for terms acquired and transparency around project data and success metrics. Regrettably most screen deals fall far from this standard, regrettably, even those with our Government broadcasters.

1. Good Faith

• Parties should negotiate in good faith.
• Parties should be prepared and willing to vary terms in a manner that results in mutual benefit or a re-balance of terms that favour one party.
• Parties should provide terms in advance, with reasonable timeframes for negotiation.
• Commissioners should only licence rights they actually intend to exploit at the time of commissioning. Additional rights should be acquired at the appropriate time for fair market value.

2. Fair Value

• Intellectual property rights must be fairly valued.
• Commercial success should be factored into extensions, re-licencing, new season and derivative commissions.
• Protection of downstream value for producers should be prioritised.

3. Transparency

• Parties should be open and transparent in data sharing about commissioned projects.
• Commissioners should share regular and comprehensive information relating to the exploitation of programs, including views, audience, territories, commercial success.

Other important recommendations made by SPA include:

• Increase Australia’s screen export effort through a review of resourcing and development of an aligned export strategy; [Recs 7,8]
• Prioritising new co-production agreements and modernising existing ones [Rec 3];
• Increasing audience access to Australian children’s screen stories [Recs 18, 19]

"There is much work to do to ensure Australian screen culture continues to thrive and prosper.

Link to SPA's submission on the National Cultural Policy.