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SPADA - the Screen Production and Development Association – welcomes the new terms of trade negotiated with NZ On Air, which result in the majority of income from programme sales flowing back to programme creators.

This result represents the culmination of nearly two years negotiations by SPADA.  The key changes (effective 01 April 2007) are that producers receive 75% of programme sales income, with 25% to NZ On Air: this represents a near reversal of terms of trade in favour of the producer.  On full recoupment of NZOA investment, and for other sales (e.g formats), the split is 90% to the producer and 10% to NZOA. 

"We believe these new terms of trade will benefit the independent screen production industry, NZ On Air and broadcasters.  They will enable production houses to retain a greater share of returns to their programmes, resulting in a strengthening of the economic and creative value of the screen production sector, as well as the creative sector as a whole," SPADA Chief Executive Penelope Borland said.

“NZ On Air’s announcement speaks directly to the needs of the sector, and incentivises producers to maximise the potential returns from their programmes internationally.  It signals a maturing of the sector in terms of acknowledging the commercial worth of intellectual property: which is the foundation of the creative sector.   Where this has happened elsewhere, such as the UK , it has led to a much more vibrant and creative television environment, as well as a more sustainable independent production sector,” said Ms Borland.

NZ On Air Chief Executive Jane Wrightson says the agency is delighted with the new arrangements.  “The new deal will help producers grow new markets for their programmes, yet keep a consistent return to the taxpayer.  We’re very grateful to SPADA for helping us sort this out,” Wrightson said. 

A list of Q&A’s and a ‘New Terms of Trade Made Simple’ summary will be available on the SPADA website, and are exclusively available to SPADA members.

For further comment please contact CEO Penelope Borland on (0274) 534 177.