10% minimum eligible drama expenditure—channel provider supplies channel
103N 10% minimum eligible drama expenditure—channel provider supplies channel
If:
a licensee provides a subscription TV drama service; and
a person is a channel provider in relation to the subscription TV drama service because the person supplies a channel;
it is a condition of the licence that, for each financial year of operation, the sum of:
the channel provider’s new eligible drama expenditure in relation to the subscription TV drama service; and
the channel provider’s carry‑forward eligible drama expenditure in relation to the subscription TV drama service;
equals or exceeds 10% of the channel provider’s total program expenditure in relation to the channel.
In this section:
channel provider’s carry‑forward eligible drama expenditure, in relation to the subscription TV drama service, means the channel provider’s carry‑forward eligible drama expenditure (within the meaning of subsection 103NA(2)) for the financial year.
channel provider’s new eligible drama expenditure, in relation to the subscription TV drama service, means so much of the total expenditure incurred by the channel provider during the financial year on new eligible drama programs as the channel provider nominates for the purposes of the application of subsection (1) in relation to the subscription TV drama service.
channel provider’s total program expenditure, in relation to the channel, means the total expenditure incurred by the channel provider during the financial year on the program material that is included, or available to be included, in the channel.
The channel provider is not entitled to nominate, under the definition of channel provider’s new eligible drama expenditure in subsection (2), so much of the designated script development expenditure incurred by the channel provider during the financial year as exceeds 10% of the channel provider’s new eligible drama expenditure in relation to the subscription TV drama service.
Division 3 of Part 10 (which deals with breaches of conditions) does not apply to the condition set out in subsection (1).
If the sum of the channel provider’s new eligible drama expenditure and the channel provider’s carry‑forward eligible drama expenditure is less than 10% of the channel provider’s total program expenditure, the shortfall will have to be made up in the next financial year—see sections 103P and 103Q.
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