10% minimum eligible drama expenditure—pass‑through provider supplies channel
103R 10% minimum eligible drama expenditure—pass‑through provider supplies channel
If:
a licensee provides a subscription TV drama service; and
a person is a pass‑through 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 licensee’s new eligible drama expenditure in relation to the subscription TV drama service; and
the licensee’s carry‑forward eligible drama expenditure in relation to the subscription TV drama service;
equals or exceeds 10% of the licensee’s total program expenditure in relation to the channel.
In this section:
licensee’s carry‑forward eligible drama expenditure, in relation to the subscription TV drama service, means the licensee’s carry‑forward eligible drama expenditure (within the meaning of subsection 103RA(2)) for the financial year.
licensee’s new eligible drama expenditure, in relation to the subscription TV drama service, means the sum of:
so much of the total expenditure incurred by the licensee during the financial year on new eligible drama programs as the licensee nominates for the purposes of the application of subsection (1) in relation to the subscription TV drama service; and
so much of the total expenditure incurred by the pass‑through provider during the financial year on new eligible drama programs as the licensee nominates for the purposes of the application of subsection (1) in relation to the subscription TV drama service.
licensee’s total program expenditure, in relation to the channel, means the total expenditure incurred by the licensee during the financial year in respect of the supply by the pass‑through provider of the channel.
The licensee is not entitled to nominate, under the definition of licensee’s new eligible drama expenditure in subsection (2), so much of the designated script development expenditure incurred by the licensee and/or the pass‑through provider during the financial year as exceeds 10% of the licensee’s new eligible drama expenditure in relation to the subscription TV drama service.
If:
the licensee nominates the whole or a part of particular expenditure under paragraph (a) of the definition of licensee’s new eligible drama expenditure in subsection (2); and
the whole or part, as the case may be, of the expenditure is attributable to a new eligible drama program on which expenditure was incurred by the pass‑through provider;
that new eligible drama program is to be disregarded in determining the expenditure that may be nominated by the licensee under paragraph (b) of that definition.
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 licensee’s new eligible drama expenditure and the licensee’s carry‑forward eligible drama expenditure is less than 10% of the licensee’s total program expenditure, the shortfall will have to be made up in the next financial year—see section 103S.
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