ANNUAL REPORT 2016
SCREEN PRODUCERS IRELAND 77 Merrion Square South Dublin 2, D02 DH22
Tel: (01) 662 1114 www.screenproducersireland.com Charity no: CHY14539
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Inside front cover Inside back cover CONTENTS
Report from the Chair & the CEO 3
Industry Funding overview 7
SPI Progress Report 25
Policy Papers 29
SPI Strategic Plan 2017-2020 45
Screen Producers Ireland Overview 49
SPI Board 2016 51
SPI Committees 2016 59
SPI Executive & Corporate Structure 63
SPI Financials 65
SCREEN PRODUCERS IRELAND | 2016 ANNUAL REPORT PAGE 1 PAGE 2 SCREEN PRODUCERS IRELAND | 2016 ANNUAL REPORT REPORT FROM THE CHAIR & THE CEO
THE VOICE OF INDEPENDENT FILM TELEVISION ANIMATION
SCREEN PRODUCERS IRELAND | 2016 ANNUAL REPORT PAGE 3 THE CHAIR JOHN HENNESSY
impact of opt-out advertising on the Irish broadcasting landscape. This was followed in late 2016 by the launch of the Creative Ireland programme. The Creative Ireland programme is a hugely important opportunity which places the creative industries at the heart of policy and government. SPI welcomes this initiative, particularly as there is a specific objective to create an industry-wide, long term plan for Ireland as a global hub for the production of Film, TV Drama, and Animation.
The creative industries are one of Irelands great strengths. Irish made productions are enjoyed by audiences around the world. They enhance our reputation, provide high value employment and attract tourism to Ireland. The sector is facing many challenges because of increased complexity of the competitive environment. Technology My focus as Chair in 2016 was on the Audio Visual (AV) Sector advancements, changes in audience behaviours, lack of adequate and Organisation strategy, collaboration and connecting with the funding of Public Broadcasting and our national screen agency broader sector and continued development and communication and unfair or antiquated regulation. Irish Government support and of SPI Policy. the European Commission’s Digital Single Market Strategy are important for the screen based creative industries to thrive and The longer term sustainability and development of the AV sector develop. remains a major challenge. Effective communication of SPI policies remains a priority as it is the path to growth and securing additional As Chairman, I am confident that our creative industries will funding for quality content. Government understanding of the continue to make the people of Ireland and global audiences proud sector and its importance to the culture of Ireland together with in leading the world in the fields of innovation, creativity and art if their ongoing support is a prerequisite to the implementation of given the right supports. policies to support the sector. In 2016 SPI continued to build upon and communicate our key policy papers to government and all In 2017 my focus will be collaboration between all stakeholders to stakeholders. Work to communicate these policies included policy develop a holistic creative industries strategy in conjunction with meetings held with Ministers in key Departments, many senior the Creative Ireland Programme. Government officials and with all relevant sector stakeholders. An important challenge for SPI is to build a vibrant AV sector with I would like to thank the board of SPI, SPI board sub-committees, a strong voice and influence. all SPI members and the very committed SPI staff for their contribution and commitment to the organisation during 2016. In The policy work also informed other communication strategies addition, I would like to thank outgoing CEO, Barbara Galavan well and papers. In advance of the 2016 General Election SPI initiated in her new endeavours and for her enormous contribution to SPI a ‘message to candidates’ campaign, highlighting the necessary over her six-year term as CEO. I wish the incoming SPI CEO, Elaine infrastructure required to support the audio-visual sector. In Geraghty every success in her new role. August 2016 SPI also issued pre-budget 2017 submission to Government. A response to the ‘Culture 2025’ Report entitled ‘The John Hennessy indigenous producers perspective’ was also submitted to the Joint Chairman Oireachtas Committee on Regional Development Rural Affairs, Arts and the Gaeltacht. SPI also attended the Oireachtas to discuss the Culture 2025 framework. In November SPI was invited to discuss Public Service Broadcasting with the Oireachtas Joint Committee on Communications, Climate Action and Environment along with RTÉ and TG4.
The active lobbying in 2016 lead by outgoing CEO, Barbara Galavan, raised the profile of Screen Producers Ireland and continued to establish the organisation as a respected thought leader for the Audio Visual sector. Promoting the cultural and economic value of the Independent production sector at Government level was at the forefront of the lobbying. The research and analysis made an impact as Government listened to and acted upon some of the policy issues. In 2016 the Government committed to an economic analysis study of the audio-visual sector of Ireland as well as a report on the
PAGE 4 SCREEN PRODUCERS IRELAND | 2016 ANNUAL REPORT CEO BARBARA GALAVAN
of local talent by providing funding for the development and production of Irish films. The funding constraints of Ireland’s Public Service Broadcasters and the National Screen Agency are impediments to growth and are impacting on their ability to fulfil their remit.
In 2016 SPI increased awareness of the issues facing the audio visual sector, through its policy campaign initiative and pro-active lobbying. As part of the Culture 2025 consultation I addressed the Oireachtas and advised that the Culture 2025 process provides for the perfect opportunity to foster an all industry approach to developing a strategy for the sector. In late 2016 the Creative Ireland programme was launched. We were pleased to see that this collaborative initiative ‘will facilitate an industry-wide plan to 2016 was another year of steady trading results for the Irish film ensure strategic coherence around the objective of making Ireland and television production sector. a leader in this sector’. The Creative Ireland programme provides the opportunity for an overarching strategy to be developed 2016 was the first full year of operation of the amended Section 481 for Ireland’s Creative Industries allowing it to address the Film Tax Incentive Scheme. Total Irish Expenditure in the year was impediments to growth while recognising the opportunities €265M, the highest ever achieved. in a changing technological landscape.
TV Drama remains the outstanding contributor to production The first collective agreement between Irish Equity/SIPTU and SPI activity with an average S481 Irish Expenditure of €127M per annum was signed in March 2016. The agreement covers actors employed over the last three years. on indigenous TV drama productions. Work continues on a similar Film activity for the three years 2014 to 2016 averaged €39M per agreement to cover indigenous TV docu-drama which it is hoped annum, illustrating a slight increase over the preceding 3 year period. will be concluded during 2017. SPI and SIPTU remain committed to building on the relationship to provide the industry with Animation activity in the same period had an average S481 Irish competitive professional collective agreements. Expenditure of €30.6M per annum, which is consistent with the previous 3 year period. In September the European Commission published its package of proposals to modernise copyright rules across the EU. This In 2016 SPI continued to participate on the Section 481 Industry included a Directive on copyright in the Digital Single Market and a Policy Group. This group seeks to ensure engagement with key proposed regulation on online transmissions and retransmissions stakeholders and provides feedback to Government on the of television and radio programmes. The Commission’s proposal in operation of the Section 481 scheme. Delays in the processing the Broadcast Regulation to extend the Country of Origin principle of S481 applications and payments, was the principle concern to broadcasters’ ancillary online services, despite the opposition of the Group in 2016. of the majority of consulted stakeholders and no legal or economic evidence of its benefits, will undermine the principle of territoriality RTÉ spend on independent production during 2016 increased upon which the financing of audiovisual works rests. The potential slightly by €1M to €39M. impact that this proposed regulation will have on the independent production sector is extremely concerning. SPI remains committed TG4 have invested over €20M annually in original Irish to The European Coordination of Independent Producers (CEPI) to programming from the independent production sector since 2013. communicate our concerns to the Commission. Indications are that this level of investment continued in 2016. SPI hosted 9 SPI members’ events in 2016 fulfilling our aim to bring The Broadcasting Authority of Ireland awarded €10.2M over two about greater stakeholder collaboration at the RTÉ and TV3 events rounds in 2016 representing a decrease in the 2015 figure. The Irish which were attended by all senior commissioning personnel. Film Board capital grant increased slightly to €11.7M. Finally, I would like to say that it has been a privilege for me to have Of central importance to the independent production sector is the led SPI as CEO over the past six years. I would like to take this need for a strong indigenous broadcasting sector. As is the case in opportunity to thank the Chairman John Hennessy, the Board and other European countries strong public service broadcasting leads the sub committees for their support during this time. And I would to a strong indigenous production sector. Broadcasters generate like to say a particular word of thanks to the staff for their continued work so that producers can develop talent as well as being hard work and commitment to the SPI agenda. incubators for talent themselves. Barbara Galavan The Irish Film Board also plays a critical role in the development CEO
SCREEN PRODUCERS IRELAND | 2016 ANNUAL REPORT PAGE 5 CEO UPDATE ELAINE GERAGHTY
I took up the role of CEO at SPI in January 2017 and I look forward to The launch of the Creative Ireland programme in late 2016 offers working with our Board, our members and stakeholders at this very a significant opportunity to progress a meaningful A.V. strategy exciting time for the audio visual sector. Having formerly spent over involving all key stakeholders. This, along with the release of the 20 years working in independent broadcast sector, I’m delighted to Olsberg SPI/Nordicity A.V. economic study will underpin my focus return to what feels like my natural home. for 2017.
2016 was a year of significant change in the media landscape. Finally, I would like to wish the outgoing CEO Barbara Galavan Virgin Media entered the marketplace with the purchase of UPC, every best wish for the future and to thank her and the team at SPI TV3 Group and UTV Ireland. All national commercial television for ensuring that I am stepping in to a well-developed and well in Ireland is now owned by one well resourced, international respected industry body. I look forward to continuing to implement media organisation. We look forward with interest to see what SPI’s strategy and working hard on behalf of all of our members. impact this will have on investment in and committment to Irish independent production. Eircom also entered the market with the Elaine Geraghty purchase of Setanta Sports, a new 350,000 sq ft studio opened its Incoming CEO doors and Troy is now the biggest studio space in Ireland creating opportunities for Limerick and the mid west region.
There were also changes to key personnel working in the industry, with a new Director General appointed to both public state broadcasters, Dee Forbes at RTÉ and Alan Esslemont at TG4. I look forward to ensuring that SPI builds upon the relationships already forged by SPI with both broadcasters and ensuring the voice of independent producers is communicated and supported.
PAGE 6 SCREEN PRODUCERS IRELAND | 2016 ANNUAL REPORT INDUSTRY FUNDING
S481 IS ESSENTIAL TO IRELAND’S PRODUCTION LANDSCAPE INDUSTRY FUNDING S481
Ireland’s film and television tax incentive, Section 481 is essential The twin pillars to a successful film and television production to Ireland’s production landscape. industry in Ireland is a competitive tax incentive scheme together with adequate supports for indigenous productions. The value of S481 provides a competitive tax incentive which is of benefit to indigenous Irish projects has not followed the same year on year indigenous productions, co-productions and gives independent growth experienced by incoming productions, the value gap in producers leverage to attract incoming productions, thereby 2016 between indigenous projects and incoming projects was creating high value industry jobs in Ireland. €111.6m or 239%. To ensure sustainable growth of the industry, the value of indigenous projects needs to grow in tandem with that Productions availing of Section 481 relief in 2016 continued to be of incoming projects. The trend of continued growth of incoming the main contributors to production activity in the State with a total projects and stagnation of indigenous productions is a potential of €265M certified in the year. risk to the continued development of the industry. The stagnation During 2011 and 2014 the value of S481 certified projects had of indigenous productions could be linked to the stagnation of increased by approximately 25% year on year. In 2015 the available national funding, the fact that amounts available from legislation governing the delivery of the scheme changed from an the IFB have not changed substantially since 2011, and the lack of investor led model to a Corporation Tax Credit model. The change development funding. to the scheme impacted on the total value of projects certified in To remain sustainable and build companies of scale Independent that year, and caused fluctuations in the statistics as the S481 production companies need to maintain security of funding and application deadline for 2014 extended into 2015. 2016 shows an develop original IP. The ownership of IP provides producers with increase of 12% on 2014 from €237M to €264M. the potential for future earnings. The development of the TV Drama remains the biggest contributor to production activity in indigenous industry is extremely important to avoid the sector the State with an average of €127M S481 for the last 3 years. The becoming a service industry for International companies who hold main growth area is Incoming high-end TV Drama which has the IP and the downstream revenues. increased 285% from € 28M in 2011 to € 161M in 2016. This is in line The IFB are also cognisant of the imbalance between indigenous with the growth in this genre being experienced worldwide. industry investment and foreign direct investment. Their 2016- The year on year increase in S481 projects certified confirms 2020 strategy stated that they ‘need to work on ensuring the right that Ireland’s film and tax incentive scheme works to increase balance of resources allocation in respect of inward production and production activity in the State. on ways to make it work for creative talent development’. The IFB have also confirmed that the funding constraints are already SPI will continue to ensure S481 is renewed in 2018 to take impacting on indigenous drama production, ‘due to funding account of the long lead time required for film and television constraints only development of high-end international tv drama production. is currently supported’.1
The principal growth in projects availing of S481 is in incoming The SPI policies provide potential solutions to increasing the level productions. Incoming productions grew by 235% between 2011 of national funding available, and developing the infrastructure to (€61M) and 2016 (€204M). The increase of incoming productions support the audio-visual sector. Although there is currently no clear highlights the ability of the Independent Production sector to overarching government vision or strategy for the audio visual achieve the high standards required for large scale production industry, a number of key stakeholders are aligned with the SPI and the ability to compete in a global marketplace. strategy to work in collaboration to establish a vision for the audio
Section 481 Projects Certified by Revenue Commissioners 2011-2016
2011 2012 2013 2014 2015 2016 No of S481 projects 57 52 67 67 66 77 Irish Expenditure €118,248,839 €142,968,378 €183,142,646 €237,387,613 €118,618,238 €264,829,803 Animation Total €31,982,729 €32,127,088 €44,942,020 €39,104,231 €20,752,709 €31,999,653 Documentary Total €4,853,720 €3,797,207 €2,717,403 €7,108,573 €8,959,749 €12,533,745 Film Total €33,231,456 €29,243,763 €35,856,614 €49,221,388 €34,022,510 €35,155,980 TV Drama Total €48,180,934 €77,800,320 €99,626,609 €141,953,421 €54,883,270 €185,140,425
1 IFB Strategic Plan 2016-2020 building on success
PAGE 8 SCREEN PRODUCERS IRELAND | 2016 ANNUAL REPORT 150M 142.0
2011 2012 2013 2014 2015 120M 99.6
90M 77.8
60M 54.9 49.2 44.9 48.2 39.1 33.2 35.9 34.0 32.0 32.1 29.2 30M 20.7 9.0 4.9 7.1 3.8 2.7
Animation Documentary Film TV Drama
2012-2016 – Growth of S481 Projects Certified by Genre 150M 142.0 Million 200 2011 2012 2013 2014 2015 120M 180 160 99.6
90M140 77.8 120 60M100 54.9 49.2 44.9 48.2 80 39.1 33.2 35.9 34.0 32.0 32.1 29.2 30M60 20.7 40 9.0 4.9 7.1 20 3.8 2.7
0 Animation Documentary Film TV Drama Animation Documentary Film TV Drama 2012 n 32.1 3.8 29.2 77.8 2013 n 44.9 2.7 35.9 99.6 2014 n 39.1 7.1 49.2 142.0 2015 n 20.7 9.0 34.0 54.9 2016 n 32.0 12.5 35.2 185.1
2011-2016 – S481 Projects Certified Incoming v Irish Local Value Million 300
250
200
150
100
50
0 Genre 2011 2012 2013 2014 2015 2016
Irish n 0 57.1 52.7 41.1 62.9 52.5 60.3 Incoming n 0 61.1 90.3 142.0 174.5 66.1 204.5
200MTotal n 0 118.2 143.0 183.1 237.4 118.6 264.8
150Mvisual sector. Stakeholders in the industry are also aligned on a and increase the funding available to support locally produced number of other elements of SPI Policy namely the SPI policy to content, the extension of S481 beyond 2020, and ensure that increase funding for the IFB and Public Service Broadcasters, Revenue is resourced sufficiently to be able to deal with any government support in the form of legislative changes to protect IP increase in S481 applications 100M .
50M
SCREEN0M PRODUCERS IRELAND | 2016 ANNUAL REPORT PAGE 9 2011 2012 2013 2014 2015 INDUSTRY FUNDING FILM
The total Irish expenditure of S481 film projects certified in 2016 potential to grow thriving sustainable business with multiple decreased 42% from € 49.2M in 2014 to € 35.1M in 2016. income streams.
2014 was an exceptional year for film in Ireland. Films such as The traditional sales model relied on revenue streams from the ‘Room’, ‘Brooklyn’, ‘The Lobster’, ‘My Name is Emily’, ‘11 Minutes’, DVD, Broadcaster, cinema theatre sales market. Digital disruption ‘A Date for Mad Mary’, ‘The Secret Scripture’, and ‘Sing Street’ were has eroded the sales potential as DVD sales have diminished, certified in 2014. Due to the nature of production, the success of broadcasters are diluted by streaming services, cinema is these productions was not visible on screen until 2016. A number of predominantly focused on big budget blockbuster films and piracy these productions received multiple Oscar and other prestigious has further eroded the market. Income streams and any potential nominations and awards in their first year of release. downstream revenue for film producers has now diminished and companies are becoming solely reliant on producer fees alone to The success of Irish Film is an indication of what can be achieved sustain their business. Producers who are new to the market have by the industry if adequate funding is available. not had the opportunity to build up revenues before the impact of digital disruption. In 2016 the value of indigenous Irish film projects decreased from €29M in 2014 to €14.7M in 2016. This represents a 50% decrease. The traditional sales model is no longer relevant in the digital age The number of indigenous2011 projects receiving certification2012 remained and 2013a new sales model that can2014 monetise on the digital2015 market to €50,000,000 largely similar, 12 in 2014 to 11 in 2016. In 2016 the average value of an equivalent level as the traditional model and one that finds €45,000,000 a S481 certified Irish project was €1.3M. This suggests that a larger alternative income streams for film has yet to be devised. €40,000,000number of small budget films are now being made. The average €35,000,000value also suggests that Irish films with micro to small budgets are In contrast to TV Drama, the introduction of the S481 tax incentive dominating output. has had little impact on Film Production in Ireland to date as the €30,000,000 total spend remains relatively static. The worldwide market is now €25,000,000This domination of bottom heavy production is a worrying trend dominated by High End TV Drama and Large Budget US studio film. €20,000,000which exacerbates the existing issues around production company In the absence of a new sales model, international financiers are €15,000,000sustainability. The lack of available local funding and the impact focusing on projects with recognised onscreen and off screen digital disruption has had on the international market place, are the talent to provide the commercial security in the current landscape. €10,000,000 key issues for Irish Independent film production sector, limiting the The level of funding available through local sources is not sufficient €5,000,000 €0 Film 2011-2016 2011 2012 2013 2014 2015 S481 Projects Certified by Revenue Commissioners
2011 2012 2013 2014 2015 2016 €60,000,000
€50,000,000
€40,000,000
€30,000,000
€20,000,000
€10,000,000
€0 2011 2012 2013 2014 2015 2016
Film Irish €20,504,507 €14,362,156 €12,399,328 €29,297,469 €13,359,548 €14,715,171
Film Incoming €12,726,949 €14,881,607 €23,457,286 €19,923,919 €20,662,962 €20,440,809
Film Total €33,231,456 €29,243,763 €35,856,614 €49,221,388 €34,022,510 €35,155,980
PAGE 10 SCREEN PRODUCERS IRELAND | 2016 ANNUAL REPORT to adequately fund medium to large productions with recognised opportunity for the industry to be a gateway for Hollywood to onscreen and off-screen talent. Independent production Europe provided that Ireland has the required infrastructure, companies need to be well resourced to develop projects of this available studio space and the volume of experienced crew. scale and secure the funding from outside of Ireland. Access to slate funding schemes enable producers to be more ambitious The industry needs to unlock the growth potential of Irish film by and provide an opportunity for producers to develop sustainable investing in talent and company development. companies of scale. Company development is also linked to the Irish film production companies are one of the most vulnerable availability of onscreen and off screen talent. The Irish Film sectors in the current AV landscape. SPI will continue to lobby Board agree that ‘in order to achieve national and international Government for an increase in capital funding for the Irish Film recognition it is vital to invest (and continue to invest) in home- Board and for other legislative changes to increase the amount grown talent.’* The increased pressure on finance and the lack of of local funding available for film producers. local financing increases the number of co-produced projects. Co-productions, although a requirement in the Irish market, have the potential to dilute the downstream revenue for producers unless the Irish producer is bringing a developed project to market or bringing additional financing to secure their position.
Irish film producers are faced with a confluence of challenges when it comes to securing incoming films, and Ireland has not been able to attract film productions of scale, while the UK is close to capacity levels. The international film market is highly competitive, as most countries offer similar tax incentives. The competitiveness of Ireland is affected by the rates of exchange, currently US dollar and Sterling rates are weaker than the Euro making Ireland more expensive. It is also difficult to get a film which is not set in Ireland to shoot here. The Irish tax incentive on its own is not enough to attract large film productions into Ireland. Brexit could provide an
* IFB Strategic Plan 2016-2020 building on success
SCREEN PRODUCERS IRELAND | 2016 ANNUAL REPORT PAGE 11 INDUSTRY FUNDING ANIMATION
The total value of S481 certified animation projects increased animation represents 0.11% of the €40M statutory spend for slightly from € 20.7M in 2015 to € 32M in 2016. This represents a independent production. Children are the audience of the future 54% increase from 2015, however the 2016 total has decreased and they are currently underserved as the main PSB RTÉ are failing €12.9M 29% from 2013 when the total was € 44.9M. Animation has to invest in any meaningful way. It is in the public interest to not experienced year on year increase, the figures continue to produce quality childrens programming to deliver knowledge, fluctuate. The highest level achieved for incoming production values and cultural identity. In the absence of any meaningful was € 35.5M in 2013 and2011 €11.6M in 2011 for Irish Animation.2012 investment2013 in Irish animation, International2014 programming2015 swamps €50,000,000 local content as animation can be cheaper to acquire than local €45,000,000The value of indigenous Irish animation increased from € 7M in content. According to the SPI analysis of the RTÉjr schedule in 2015 to €8.7M in 2016. Although this represents a 23% increase, the €40,000,000 2016, the percentage of independently produced programmes was value of indigenous Irish animation has yet to surpass the highest on average 7%, while acquisitioned programmes accounted for 69% €35,000,000level achieved in 2011 of €11.6M. of the schedule. While this trend continues, Irish children will learn €30,000,000 their values and perhaps subsume the cultural identity of the UK €25,000,000The stagnation of indigenous animation is directly linked to the the main supplier of acquisition programming into Ireland. The SPI level of local funding available, Irish animation companies are €20,000,000 policy advocates for RTÉ to have a guaranteed annual spend on reliant on the IFB, BAI and RTÉ for local investment. In 2016 this animation programmes. While this might address the Irish versus €15,000,000 equated to roughly €1.9M in production funding. Independent acquisition imbalance, the industry also needs a solution to the €10,000,000producers have shown themselves to be highly skilled at single buyer market to encourage programme diversity. developing€5,000,000 different sources of finance for their programmes, in 2016 they€0 leveraged the €1.9M with a x 4.6 multiplier to reach the Irelands S481 tax incentive is a main driver for growth in the €8.7M in Irish S481 eligible spend. animation industry. Access to S481 has enabled Irish production 2011 2012 companies2013 to attract international2014 projects and achieve2015 a Indigenous animation is operating in an unhealthy monopsony reputation as a hub for animation production. Irish animation (single buyer) environment, with RTÉ as the single Irish buyer for companies collaborate with all the major studios in the the indie sector to engage. RTÉ recognises the importance of a international animation industry. Producing a number of high young audience and have a dedicated childrens channel RTÉjr. quality animations for international clients including Peter Rabbit, The annual average level of investment of € 450k in Irish produced Octonauts, The Amazing World of Gumball, Littlest Pet Shop,
Animation 2011-2016 S481 Irish Expenditure – Projects Certified by Revenue Commissioners
2011 2012 2013 2014 2015 2016 €50,000,000 €45,000,000 €40,000,000 €35,000,000 €30,000,000 €25,000,000 €20,000,000 €15,000,000 €10,000,000 €5,000,000 €0 2011 2012 2013 2014 2015 2016
Animation Irish €11,588,733 €10,209,245 €7,447,823 €5,020,803 €7,076,047 €8,722,559 Animation Incoming €20,393,996 €21,917,843 €37,494,197 €34,083,428 €13,676,662 €23,277,094 Animation Total €31,982,729 €32,127,088 €44,942,020 €39,104,231 €20,752,709 €31,999,653
PAGE 12 SCREEN PRODUCERS IRELAND | 2016 ANNUAL REPORT Roobard and Custard, Danger Mouse. In 2016 the value of incoming capacity in the sector for further growth. SPI and the animation animation was €23M. Fulfilling servicing contracts for international committee initiated engagement with animation colleges in 2016 studios is the foundation of the industry, it allows Irish animation with the aim of increasing industry and college collaboration and companies establish themselves in the International marketplace upskilling to meet the needs of the sector. and provides their staff with the requisite training and experience Greater support is required for indigenous animation to go on and develop original animations. A current impediment to productions to increase the level and total value of Irish growth is the shortage of available industry ready staff. The animation production which has not increased from 2011. industry is subject to continuous and rapid technological changes which means that the skills base needs to be constantly updated. To build sustainable animation companies, it is essential The Higher Education curriculum requires continuous investment in that we increase funding to the sector and address emerging order to train graduates with the relevant skills. The industry must skills shortages. S481 as the main driver for investment in be able to access the necessary skills on the jobs market to allow it animation in Ireland must be extended beyond the current to grow and take on new projects. This will ensure that there is 2020 cessation date.
SCREEN PRODUCERS IRELAND | 2016 ANNUAL REPORT PAGE 13 INDUSTRY FUNDING DOCUMENTARY 150M 142.0
2011 2012 2013 2014 2015 120M The total value of documentary projects certified in 2016 was €12.5M Irish expenditure, the highest value achieved to date. 99.6 Documentary was the only genre to increase in value since 2014. 90M The total value of S481 projects certified for Documentary increased 77.8 from €7M in 2014 to over €12M in 2016. This represents a 76% increase.60M The number of projects has more than doubled from 11 in 54.9 49.2 2014 to 25 in 2016. In 201644.9 the number of documentary projects 48.2 39.1 exceeded any other genre with Animation totalling 15, Film 17 and 33.2 35.9 34.0 32.0 32.1 29.2 TV30M Drama 19. The total S481 is not divided into Irish projects and incoming projects. Therefore we are20.7 not currently able to determine 9.0 if the increase is due to an increase in Irish projects4.9 or incoming.7.1 3.8 2.7 €80,000,000 Documentary is experiencingAnimation a year on year increase Documentarysince 2014 Film TV Drama and this indicates a positive outlook for documentary projects availing of S481 for 2017.
Documentary 2011-2016 S481 Irish Expenditure - Projects Certified by Revenue Commisioners
2011 2012 2013 2014 2015 2016 €14,000,000
€12,000,000
€10,000,000
€8,000,000
€6,000,000
€4,000,000
€2,000,000
€0 2011 2012 2013 2014 2015 2016
Documentary n €4,853,720 €3,797,207 €2,717,403 €7,108,573 €8,959,749 €12,533,745
PAGE 14 SCREEN PRODUCERS IRELAND | 2016 ANNUAL REPORT INDUSTRY FUNDING TV DRAMA
TV Drama has experienced unprecedented growth from an Irish series in 2016 and 2017 has created a micro economy in the local expenditure of €48M in 2011 to €185M certified for S481 in 2016. area of Ashford, Co. Wicklow. The production provides local This represents close to a fourfold increase in the period. The employment for up to 700 and occupies Ashford Studios, which increase is driven by incoming High-end TV Drama which has was built in 2012 to accommodate the production and in turn increased from €28M in 2014 to €161M in 2016, representing increased capacity for the industry. This production provides a 575% increase. quality employment for periods of around 6 months at a time and provides a substantial training ground for crew to upskill to the Between 2011 and 2014 incoming TV Drama production experienced high standards required. a year on year increase. The significant decrease in 2015 coincides with the introduction of new S481 rules whereby the 2014 scheme Funding for indigenous Irish TV Drama has remained relatively deadline was extended into 2015. The 2015 figures therefore do not static since 2011. The lack of available national development and capture a full 12 month period. production funding is stymying growth in the industry. In 2016 the IFB stated that ‘due to funding constraints only the development of The total value of TV drama projects certified in 2016 continues high-end international TV Drama is currently supported’ 2. Those to surpass the value of film projects certified in the year. This funding constraints on the national screen agency towards illustrates the worldwide trend in increased TV Drama production Indigenous Irish production will further impact on the development and the high international value of recurring prestige TV drama and production of Irish TV Drama. In the absence of sufficient series. In 2016 three High-End TV drama productions accounted development funding for Irish originated co-production for 78% of the TV Drama total in the year. In 2016 ‘Penny Dreadful’ independent production companies could be required to source alone employed 1,200 cast and crew over the course of the development funding, and co-produce with international production last year. This is more than the number currently broadcasters to realise their vision. Across the border in Northern employed by Facebook in Ireland. This demonstrates the scale and Ireland by comparison, Game of Thrones received $15.3M from the high-quality production value of these productions. Northern Ireland Screen in its first 4 seasons. The overdependence The internationally successful drama series Vikings is an Irish of Irish producers of TV Drama upon the PSBs, which are facing originated international co-production. Vikings which was in its 5th funding challenges, is unhealthy and a serious impediment to the
TV Drama 2011-2016 S481 Irish Expenditure - Projects Certified by Revenue Commisioners
2011 2012 2013 2014 2015 2016 €200,000,000
€180,000,000
€160,000,000
€140,000,000
€120,000,000
€100,000,000
€80,000,000
€60,000,000
€40,000,000
€20,000,000
€0 2011 2012 2013 2014 2015 2016
TV Drama Irish €20,153,467 €24,317,347 €18,562,284 €21,429,352 €23,124,451 €24,305,355
TV Drama Incoming €28,027,467 €53,482,973 €81,064,325 €120,524,069 €31,758,819 €160,835,070
TV Drama Total €48,180,934 €77,800,320 €99,626,609 €141,953,421 €54,883,270 €185,140,425
2 IFB Strategic Plan 2016-2020 Building on Success
SCREEN PRODUCERS IRELAND | 2016 ANNUAL REPORT PAGE 15 INDUSTRY FUNDING TV DRAMA
growth and sustainability of the genre. TV Drama is a highly International co-produced TV Drama has further potential for competitive market which is currently dominated by American and growth and Irish producers are key to leveraging and building on British High-end Drama which has international appeal but which the success to date. To maintain high levels of employment a presents a significant growth opportunity for Ireland. The national consistent pipeline of production is required to ensure the studios broadcasters are not sufficiently resourced to develop and and employees are not on standby. Independent producers need commission international Irish co productions. RTÉ has cut back its access to high level development funding to create further investment in TV Drama commissioning activity and have rather International co-production projects of scale. focused on TV Drama designed to solely cater for a domestic market. To compete in the international market place along side TV Drama presents the most significant growth opportunity of all ‘Downton Abbey’, ‘War and Peace’, ‘Outlander’ etc, the national genres. To ensure growth, the industry needs to continue to broadcaster needs to develop a dual strategy to invest in Irish highlight impediments to growth. These include the need to originated co-production tailored for a global audience and increase funding opportunities for Indigenous Irish TV Drama, continue to invest in nationally funded indigenous TV Drama address the issue of film and television studio capacity and the productions with the domestic audience in mind. need to ensure adequate training for employees in the sector.
PAGE 16 SCREEN PRODUCERS IRELAND | 2016 ANNUAL REPORT INDUSTRY FUNDING THE IRISH FILM BOARD
In 2016 the Irish Film Board capital grant from the Department of ‘The remit of the IFB is as the development agency to promote Arts, Heritage & the Gaeltacht was €11.7M. Following substantial creative talent working in film, television and animation. lobbying by SPI and the IFB for increased funding. IFB received an Our aim is to develop a sustainable industry for filmmaking increase of €500k in 2016, the first increase since 2008. While this in Ireland. Our purpose is to support the highest quality in was a welcome increase the level of funding available to the Irish creative filmmaking and our ambition is to see this quality Film Board is insufficient and is not only inhibiting the IFB ambition recognised by Irish and international audiences.’ to widen its remit and become the national screen agency for James Hickey Chief Executive Irish Film Board creative screen content but is having an impact on the allocation Strategic Plan 2016-2020 of development funding for indigenous TV Drama. In 2016 the IFB stated that ‘due to funding constraints only the development of Without adequate funding for the Irish Film Board, the production high-end international TV Drama is currently supported’. 3 sector risks becoming over reliant upon incoming productions.
In 2016 the IFB launched their 5 year Strategic Plan 2016-2020, SPI’s Irish Film Board policy calls on the Government to restore Building on Success. The strategy has 3 central pillars namely funding levels to the 2008 level of €20M. Vision for 2020, Building on our Core Strengths and Strong Foundations. Funding is a key requirement for 2 out of the 3 pillars funding of and support for development of creative screen production and creative talent, funding for investment.
The IFB strategy pillar for a vision for the industry is aligned with the SPI strategy for collaboration between all stakeholders to build a strong industry by setting out an action plan to mobilise a vision for the audio-visual industry.
Irish Film Board Oireachtas Grant €M 2008-2016
2016 11.7
2015 11.2
2014 11.227
2013 11.898
2012 13.15
2011 16
2010 16.5
2009 18.817
2008 20
0 5 10 15 20 25
20
3 IFB Strategic Plan 2016-2020 Building on Success page 9
15
SCREEN PRODUCERS IRELAND | 2016 ANNUAL REPORT PAGE 17
10
15
0 2016 2015 2014 2013 2012 2011 2010 2009 2008
Funding 11.7 11.2 11.3 11.9 13.2 16.0 16.5 18.8 20.0 INDUSTRY FUNDING BAI
Through the Sound & Vision Scheme the Broadcasting Authority 2015 and 2016 at 72%, €7.4M of the total awarded €10.2M. of Ireland distributes 7% of the annual value of the Licence Fee for The broadcasting landscape changed significantly during 2015 and high quality television and radio programmes on Irish culture, 2016. UTV Ireland launched in 2015 and it was announced that heritage and experience and programmes to improve adult literacy. Virgin Media was to purchase TV3, with Alex White the Minister for In 2016 the BAI awarded €10.2 M to 64 television productions over Communications at the time approving the sale by December 2015. two application rounds. The BAI Sound & Vision scheme makes a In 2016 Virgin Media announced the takeover of the TV3 Group. In significant contribution to Independent productions. In 2015 and July 2016 UTV Ireland was sold to the TV3 Group and was re 2016 the average amount available through the Sound & Vision branded as be3. In December 2015, Eir purchased the Setanta scheme was €12M per year. The inadequacy of the TV licence Sports Ireland Ltd. and on July 5th 2016 Setanta Sports system impacts on the BAI S&V scheme and the amount available was rebranded as Eir Sport. to the BAI has decreased over the period 2011 to 2016, while the number of households have increased by 18 thousand between 2011 The market changes are reflected in the BAI Sound and Vision and 2016. In September 2016 the evasion rate was estimated at funding awards where there was a significant decrease in the 13.75%, representing a loss of €40m per annum to public service amounts awarded to Setanta Sports and UTV Ireland in 2016. The broadcasting.4 By addressing the ongoing issue of evasion, amount awarded to UTV Ireland decreased 76% from €736k in 2015 additional income to support quality broadcasting can be realised. to €180k in 2016 and Setanta Sports decreased 88% from €737k in 2015 to €88k in 2016. 2016 was also the first year that Oireachtas In 2016 the amount awarded to RTÉ via the Sound & Vision scheme TV received an award from the S&V scheme. remained at the same level as 2015, i.e. €5.7M. RTÉ, TG4 and TV3 continue to be the top 3 broadcasters receiving more than 85% The impact of the introduction of the Virgin Media Group and Eir into of the total amount awarded in 2015 and 2016. Drama and the broadcast media landscape has yet to be experienced. Documentary combined received the majority of the funding in
BAI S&V Genre Overview 2016 BAI S&V Broadcaster Overview 2016 Summary of BAI S&V Rounds 26, 27 Summary of BAI S&V Rounds 26, 27
Projects Genre Award €’000 % Total TV Projects Broadcaster Award €’000 % Total TV 17 Drama €3,740 37% 32 RTÉ €5,753 56% 32 Documentary €3,604 35% 11 TG4 €1,481 14% 7 Entertainment €1,300 13% 6 TV3 €1,710 17% 4 Education €850 8% 1 Setanta Sports €88 1% 4 Animation €745 7% 1 UTV Ireland €180 2% Total 64 €10,239 100% 8 Community TV €396 4% 1 Oireachtas TV €70 1% 2 Irish TV €211 2% 1 BBC2 €50 0% 1 BBCNI €300 3% Total 64 €10,239 100%
⁴ Department of Communications, Climate Action and Environment Dáil Éireann Debates. Oireachtas. 16 September 2016. p. 67. Retrieved 27 September 2016 “Written Answer No. 1704: Television Licence Fee”.
PAGE 18 SCREEN PRODUCERS IRELAND | 2016 ANNUAL REPORT INDUSTRY FUNDING CREATIVE EUROPE IRELAND DESK
The Creative Europe MEDIA fund has been allocated €823m for Ireland also received support for the Development of 22 international the seven year period 2014-2020. This represents 56% of the projects under the Single Project Development scheme in the 2014- total Creative Europe budget. Creative Europe MEDIA supports 2016 period. The amount of single project development funding EU film and audio-visual industries with funding initiatives for awarded in Ireland has not grown year on year, despite there being development, distribution, promotion and training administered a lack of development funding available in Ireland. This is perhaps by the Education, Audiovisual and Culture Executive Agency due to a lack of awareness of the funding scheme and the eligibility EACEA in Brussels. criteria for applying for the fund. At the stage of developing a business and finance plan the producer should consult with Creative In the three years from 2014-2016 the average amount awarded to Europe Ireland to discuss the opportunities and the company Europe was €107.1m per annum, Ireland received an annual average requirements for accessing the scheme. of €1.8m or 2% of the total European fund. This scheme is perhaps currently underutilised there is no cap on This fund is an important one for development funding. In 2014 €2m the amount available per country and so Ireland could apply for more was awarded to 21 companies. Animation companies received 43% funding. This fund has the potential to enable producers to further of the total development funding awarded in that year. develop original IP which could in turn increase the sustainability of the company. Ireland has been very successful at accessing development funding through Creative Europe. In the years 2014-2016, Ireland received There may also be other funding opportunities for organisations, € 3.44m or 6.2% of the total €54,877,278 amount of development in particular TV and training. During the years 2014-2016 only 4 funding awarded across Europe. This places Ireland in 6th position projects were awarded TV production funding from Creative Europe out of 32 countries in Europe with only France, Sweden, Belgium, MEDIA. Two animation productions and two Creative Documentaries. Denmark and Germany above us. This is of particular significance The TV Programming Scheme is extremely competitive as it offers a given that Ireland represents less than 1% of the EU population and significant percentage of production finance while the rights for that that non-EU countries also participate in the programme. element of the financing remain with the Producer. While a minimum of 3 European Broadcasters are required to be eligible to apply, in In 2014 Ireland was awarded €1.4m for slate development funding. reality, a minimum of 4 Broadcasters in addition to strong Distribution This reduced by 72% to €399k in 2015. Ireland currently has a investment is required to succeed. certain number of companies of scale who are eligible to apply for this funding and any company who applied in 2014 were not In 2016 SPI had a focus on the animation skills requirements to eligible to apply the following year. Ireland needs to create more ensure graduates are industry ready. There is a clear need for a companies of scale and companies should be more aware of the continuous training programme which bridges the gap between funding opportunities available through Creative Europe MEDIA at college and industry. The Creative Europe MEDIA fund could an early stage of their company development, as companies need provide access to funding for a college and industry collaborative to be running for 3 years to qualify for slate funding. training initiative.
Creative Europe Media Funding Ireland 2014-2016
2014 2015 2016 €1,600,000
€1,400,000 €1,200,000
€1,000,000
€800,000
€600,000
€400,000 €200,000
€0 2014 2015 2016
Single Project Dev Funding n €585,000 €320,000 €220,000 Slate Funding Dev n €1,436,524 €399,524 €648,689 TV Production Funding n €130,291 €25,704 €570,000
SCREEN PRODUCERS IRELAND | 2016 ANNUAL REPORT PAGE 19 INDUSTRY FUNDING RTÉ
Actual expenditure committed to new commissioning activities in spend from €75M in 2008 to €38.6 M (inc RTÉ attributable overheads) 2015 was €33M (excl. RTÉ attributable overhead). The statutory level in 2015. This is a decrease of €36.4 M or 48%. for 2015 was €39.5M (i.e.€40M subject to CPI) and we understand that the figures for 2016 have remained largely in line with 2015. RTÉ There is a critical need for reform of the television Licence Fee with new commissioning spend resulted in 406 hours of programming evasion levels estimated at 14% of Irish households now not paying 2016 11.7 5 produced by 74 independent production companies. the TV Licence Fee. This equates to €40M in lost revenue each year. In2015 addition to investment of €33M, Drama and Animation 11.2SPI policy advocates for Licence Fee reform and for a doubling programmes attracted funding from other sources to the value of the current statutory spend on independent production from of2014 €10.8M. This additional funding from other sources represents 33% 11.227€40M to €80M. of RTÉ’s committed expenditure. The total value inclusive of all2013 third-party funding was €43.8M. RTÉ11.898 receives grant aid of 85% of the revenue generated from the TV Licence Fee. RTÉ grant aid has decreased dramatically since 2009 RTÉ2012 young peoples, including RTÉjr, RTÉs dedicated commercial-free from € 13.15200.2M to € 178.9M in 2015. This represents an 11% decrease channel for children under seven and TRTÉ on RTÉ2 commissioned or €21.3M. 23.220 11hours of independently produced programming in 2015. 16 The decrease has had the biggest impact on the independent The2010 RTÉ Commissioning activity table below shows the continued production sector. The total16.5 expenditure on independent decrease in the Independent Production Unit activity. The number production reduced by €36.4 M between 2008 and 2015. €75M was of2009 programme hours commissioned in 2015 is a reduction of 406 spent in 2008 compared to € 38.6 M18.817 in 2015. This represents a 48% hours from the total of 812 hours in 2010. This decrease represents decrease in the period. 50%2008 of the number of hours commissioned in 2015. The Independent 20 production0 sector has also experienced5 a significant decrease10 in RTÉ The decrease in15 the value of the grant in aid20 is intrinsically linked 25
RTÉ Commissioning Activities 2011-2015 2015 2014 2013 2012 2011 2010 No of Companies that submitted proposals 293 244 212 224 273 274 No of Proposals Received 1402 970 861 973 1273 1224 No of Commissions awarded 136 132 150 151 136 144 No of Hours Commissioned 406 490 536 602 646 812
RTÉ Grant in Aid expenditure in Independent Sector €’M 2008-2015
22% 38.6 2015 178.9 22% 39.7 2014 178.6 20% 36.6 2013 182 23% 41.1 2012 180.9 26% 47.5 2011 183.6 27% 53.2 2010 196 29% 57.1 2009 200.20 37% 75 2008 200.90 0 50 100 150 200 250 Total expenditure RTÉ IPU stat and non stat costs Total RTÉ Grant in aid
⁵ Joint Committee on Communications, Climate Action and Environment Consultation on the Funding of Public Service Broadcasting, Tuesday November 22nd 2016 Opening Statement by Dee Forbes, Director General RTÉ.
PAGE 20 SCREEN PRODUCERS IRELAND | 2016 ANNUAL REPORT to the reduction in the number of TV licences paid year on year. The reduction in the number of licences paid is reducing at a time when the number of television households has increased.
Ireland has one of the lowest TV Licence Fees in Europe, both on a per household basis and per capita. It has one of the highest TV Licence Fee evasion rates in Western Europe at 14%. There are a further 8% of households that claim they do not have a television and therefore do not pay the Licence Fee. In aggregate, circa 22% of Irish households now do not pay the TV Licence Fee. This equates to over €50M in lost revenue each year.
In 2016 there were organisational changes in RTÉ. RTÉ director General Noel Curran resigned, and Dee Forbes was appointed to the role in April 2016. Dee Forbes was the first director-general in almost 50 years to be appointed externally, and was the first female to hold the role. Shortly after joining the organisation Ms. Forbes announced that RTÉ needs to ‘re-engineer and rethink the shape of the organisation and delivery of output.’ 6 She ‘highlighted that the two traditional revenue streams for RTÉ – the licence fee and RTÉ currently relies on a dual funded PSB model where commercial advertising revenue – had both taken a hit in recent times.’ 7 All the activities are needed to bridge the gap in public funding received. revenue streams are falling annually and digital disrupters caused This places RTÉ at risk from external factors relating to the a collapse in the DVD and distribution market. advertising market and other digital disrupters. In 2016 RTÉ advertising revenue decreased as UK advertising reacts to Brexit. In the face of falling revenue and increased competition from commercial operators in the Irish market the next few years will RTÉ recognises that the organisation needs to reinvent itself to determine RTÉ’s survival. ensure that it is relevant in the digital age. The media landscape is rapidly changing but government legislation and policy for SPI advocates for Public Service Broadcasters to be adequately broadcasters is outdated and designed for a different era. funded and their role within the media landscape to be preserved and supported by Government policy and legislation. SPI advocates for the Government to support public service broadcasters, recognise the urgent need for reform of the television RTÉ is central to the Irish media eco system, and holds a vital licence fee and update legislation to mitigate the other risks in role in preserving Irish culture on screen, nurturing Irish talent the media landscape which distort competition, ensuring fair and providing Irish audiences with high quality programming. regulation of all broadcasters, both foreign and Irish, broadcasting ‘RTÉ connects Irish people with the events and moments in and into Ireland. shaping their lives and our world.’ 8 RTÉ investment in the ‘The issues of a media fee and increased attention to licence Independent Production Sector enables producers to leverage fee evasion still need sustained consideration at a political on the investment and gain access to international funding. level and it is the view of the Board that the resolution of these RTÉ provides an environment for producers to develop original issues, in conjunction with other strategies, is the key to RTÉ’s programming, generating IP which is a prerequisite for building overall funding.’ 9 sustainable companies of scale and increasing employment in the sector. Moya Doherty RTÉ Chairperson RTÉ 2015 Annual Report Public service broadcasters are dependent upon Government support for security of funding to meet their obligations under the SPI continues to highlight the issues to Government and proposes Broadcasting Act. legislative change be enacted to enable License Fee reform.
⁶ Irish Independent article TV Times How Dee Forbes plans to make RTE ready for the future of broadcasting ⁸ RTÉ 2015 Annual Report page 6 October 30 2016 ⁹ RTÉ Chairperson Moya Doherty RTÉ 2015 Annual Report ⁷ Speaking on RTÉ’s Today with Sean O’Rourke 22nd March 2017
SCREEN PRODUCERS IRELAND | 2016 ANNUAL REPORT PAGE 21 INDUSTRY FUNDING RTÉ
RTÉ One | Top 30 Programmes | 2016
Programming made by independent producers for RTÉ continues independent producers. The independent production sector in to rate very highly and consistently performs successfully across Ireland continues to deliver quality, diverse, innovative and digital and social media platforms. In 2016, 2 of the top 10 and 10 cost-efficient programming for the national broadcaster. See of the top 30 rating programmes on RTÉ One were produced by further details in table below.
RTÉ Top Programmes 2016 Ranked by Average TVR, Individuals 4+ National / Consolidated / Based on Any Day, Any Time, Best Episode (Minimum Duration: 10 Minutes)
RANKING DESCRIPTION DAY OF WEEK DATE TIME R(TVR) 000s SHARE
1 Late Late Toy Show, The FRIDAY 02-12-2016 21:37 - 23:57 38.41 1,571.6 76.18 2 RTE News: Nine O’clock SATURDAY 27-02-2016 21:00 - 21:45 17.58 721.4 45.69 3 Rebellion SUNDAY 10-01-2016 21:30 - 22:31 17.37 713.0 42.29 4 Mrs Brown’s Boys: Mammy’s Forest SUNDAY 25-12-2016 22:28 - 22:57 17.27 706.6 38.84 5 Mrs Brown’s Boys: Chez Mammy SATURDAY 31-12-2016 21:35 - 22:12 16.62 680.3 42.87 6 Room To Improve SUNDAY 28-02-2016 21:37 - 22:38 16.55 679.1 44.11 7 Late Late Show, The FRIDAY 19-02-2016 21:38 - 23:40 16.54 678.8 47.35 8 Mrs Brown’s Boys Live SATURDAY 23-07-2016 21:46 - 22:21 15.41 630.6 45.81 9 RTE News: Six One FRIDAY 01-01-2016 18:01 - 18:20 15.29 627.5 40.79 10 Prime Time Leaders Debate TUESDAY 23-02-2016 21:38 - 23:11 15.24 625.4 43.81 11 Rose Of Tralee 2016, The TUESDAY 23-08-2016 21:35 - 23:16 15.18 621.0 42.49 12 Voice Of Ireland, The SUNDAY 24-01-2016 18:32 - 19:56 15.07 618.4 38.84 13 Claire Byrne Live Leaders’ Debate MONDAY 15-02-2016 21:36 - 23:36 14.32 587.8 45.06 14 Fair City TUESDAY 09-02-2016 20:02 - 20:29 14.29 586.4 38.02
15 Sugar Crash MONDAY 11-01-2016 21:36 - 22:31 13.77 565.2 34.36 16 Mrs Brown’s Boys: Mammy’s Christmas Punch SATURDAY 24-12-2016 22:34 - 23:13 13.74 562.1 39.24 17 Prison In Peru: Michaellas First Interview SUNDAY 03-04-2016 21:30 - 22:01 13.68 561.5 34.09 18 Operation Transformation WEDNESDAY 20-01-2016 20:31 - 20:57 13.35 547.9 32.46 19 At Your Service SUNDAY 21-02-2016 20:31 - 20:57 13.18 540.8 32.21 20 Centenary MONDAY 28-03-2016 21:35 - 22:59 12.38 507.9 33.93 21 Election 2016 SATURDAY 27-02-2016 18:45 - 20:56 12.30 504.6 33.38 22 Mrs Brown’s Boys TUESDAY 20-12-2016 21:36 - 22:09 12.28 502.7 33.01 23 RTE Irish Country Music Awards FRIDAY 24-06-2016 21:36 - 23:07 11.64 477.8 37.72 24 Mrs Brown’s Boys - Mammy Christmas THURSDAY 22-12-2016 21:36 - 22:10 11.41 466.8 31.33 25 Ireland’s Fittest Family SUNDAY 18-12-2016 18:32 - 19:27 11.29 461.8 34.75 26 Celebrity Operation Transformation WEDNESDAY 07-09-2016 21:35 - 22:36 11.10 454.0 35.33 27 Ray D’Arcy Show, The SATURDAY 29-10-2016 21:49 - 23:12 10.91 446.2 34.26 28 Prime Time THURSDAY 07-01-2016 21:39 - 22:13 10.85 445.3 27.90 29 Nathan Carter Show, The SUNDAY 30-10-2016 21:30 - 22:29 10.84 443.8 35.09 30 Dragons’ Den SUNDAY 17-04-2016 21:30 - 22:30 10.61 435.5 29.64
Source Nielsen/TAM Ireland RTÉ One only, excluding sports programmes.
Indigenous Irish Co-Production/Enhanced In-House Acquired Independent Production Acquisition by RTÉ RTÉ Production Programme
PAGE 22 SCREEN PRODUCERS IRELAND | 2016 ANNUAL REPORT INDUSTRY FUNDING TG4
TG4 has invested over €20m annually in original Irish programming commissioned 680 hours of new Irish language programming and from the independent production sector in Ireland from 2013- almost 291 hours of re-voiced material and subtitling from the 2015. In 2015 this investment directly supported 300 jobs in independent sector. Independently produced programmes include the sector and an additional 673 in associated employment.10 ‘Ros NaRun’, ‘Corp agus Anam’ and ‘An Klondike’. TG4, as a publisher broadcaster, sources a major share of its programming from the Irish language independent production TG4, as a publisher broadcaster, sources a major share of its sector. TG4 committed to the publisher broadcaster model because programming from the Irish language independent production of the benefits it delivers to both TG4 and the Irish economy sector. TG4 continues to increase the total funding to the including: helping to ensure that TG4’s schedule is distinctive and Independent production sector from 51% of the total TG4 grant reflects Irish cultural identity; supporting the preservation and in aid in 2008 to 66% in 2015 (€18.1M in 2008 to €21.2M in 2015). development of the Irish language production sector; new and TG4 committed to the publisher broadcaster model because original programming in the Irish language provides a diversity of the benefits it delivers to both TG4 and the Irish economy of perspective and a fresh approach to entertainment. including: helping to ensure that TG4’s schedule is distinctive and reflects Irish cultural identity; supporting the preservation and In 2015 TG4 received €32.24M in the form of a grant via development of the Irish language production sector; new and the Department of Communications, Energy and Natural original programming in the Irish language provides a diversity of Resources. The 2015 funding represented a reduction of €0.5M perspective and a fresh approach to entertainment. on 2014/2013/2012. TG4 sources content from over 100 Irish independent production companies. Over 300 highly skilled and In 2016 the Government committed to providing funding of €32.8M creative full-time jobs in the sector are directly sustained by TG4 to TG4 for 2017 an increase of €147k. TG4 ‘This continues to be commissions. Most of these are small companies and many, but short what was required to reinstate 2014 current funding levels not all, of these jobs are located in Gaeltacht areas. In 2015, TG4 and also to allow TG4 to develop its services and deliver on its
TG4 Grant in Aid spend on the Independent Production Sector €’M 2008-2015
2015 2014 2013 2012 2011 2010 2009 2008 40
35
30
25
20
15
10
5
0 2015 2014 2013 2012 2011 2010 2009 2008
TG4 n €11.0 €11.1 €11.3 €15.0 €15.3 €15.3 €17.2 €17.3 Independent sector commissioning n 2 €21. €21.7 €21.5 €17.8 €17.5 €17.0 €18.0 €18.1
10 TG4 2015 Annual Report p17 note 5. Based on an analysis of TG4’s 2015 actual expenditure (operating and capital including programme funding) in Ireland.
SCREEN PRODUCERS IRELAND | 2016 ANNUAL REPORT PAGE 23 INDUSTRY FUNDING TG4
objectives as set-out in its five-year strategy.’ 11 SPI advocates for Public Service Broadcasters to be adequately funded and their role within the media landscape to be preserved As a public service broadcaster TG4 face many of the same and supported by Government policy and legislation. challenges as RTÉ including the lack of security of funding as the TG4 funding commitment from Government is discretionary, In 2016, the Director General of TG4 since 2000 Pól Ó Gallchóir the decrease in revenue streams due to the decrease in license resigned from the position. Alan Esslemont was appointed to fee income, digital disrupters and reduced advertising. The succeed Pól in mid-October 2016. He had previously worked combination of the downturn and media market developments with Teilifís na Gaeilge for the first twelve years of its operation have resulted in TG4’s advertising and sponsorship income and oversaw the rebranding to TG4 before returning to his native declining by approximately 50% between 2008 and 2016. 12 Scotland in 2008 to work on the establishment of the Gaelic TG4’s public funding remains the key source of income for TG4 and language channel BBC ALBA. In December 2016 Alan informed it is vital that current funding is set at levels which can enable TG4 the sector that TG4 would be announcing a new programme to develop the service, grow its audience across all platforms and commissioning model in 2017. respond to the challenges it faces in the digital environment.
11 TG4 Joint Committee on Communications, Climate Action and Environment, Public Consultation on Funding 12 TG4 Joint Committee on Communications, Climate Action and Environment, Public Consultation on Funding of Public Service Broadcasting in Ireland, 22nd November 2016 p4 of Public Service Broadcasting in Ireland, 22nd November 2016 p4
INDUSTRY FUNDING TV3
The TV3 schedule comprises approximately 40% of Irish produced Expenditure figures by TV3 on independent production are content. TV3 has a substantial in-house production unit which not currently published. Under their 2009 contract with the produces mainly news, current affairs, daytime programming and Broadcasting Commission of Ireland (now BAI), TV3 undertook studio based programming. In recent years, TV3 has increased the to spend between 15% – 25% of its annual programme budget on volume of commissioning from independent producers. independent productions.
In 2016 TV3 commissioned the third series of the channels In 2015 TV3 was sold to UPC. UPC Ireland is part of Virgin Media, independently produced flagship Drama ‘Red Rock’ for Liberty Global’s UK subsidiary and in 2016 Virgin Media purchased transmission in 2017. ‘Red Rock’ has proved a major success UTV Ireland, which just launched in 2015. for the channel in terms of ratings and in terms of the export sales in the US to Amazon Prime and in the UK to the BBC who The purchase of Virgin by Liberty Global and the subsequent acquired 80 episodes. takeover by Virgin of both TV3 and UTV Ireland now means that all national commercial television in Ireland is owned by one highly Independently produced programmes commissioned by TV3 in resourced international media organisation. It is not clear at 2016 also included ‘The Restaurant’ an Irish originated TV Format this stage if this new conglomeration will lead to any significant by Vision Independent Productions, ‘Masterchef’ produced by increased investment in Irish programming or commissions from Shinawil, ‘The Great Guide to the Future’, ‘Paul Williams – State the independent production sector in Ireland, however SPI will be of Fear’, ‘Paramedics’, and ‘Aerial Ireland’ produced by Tile Films, lobbying for this. ‘This is Jobstown’, ‘The Airport up in Knock’ produced by Motive TV, and ‘The Great Irish Bake Off’ produced by Sideline.
PAGE 24 SCREEN PRODUCERS IRELAND | 2016 ANNUAL REPORT SPI PROGRESS REPORT
SUPPORTING GROWTH AND DEVELOPMENT OF A DYNAMIC AV SECTOR SPI PROGRESS REPORT
In 2016 SPI increased awareness of the issues facing the audio Film and Television Tax Incentive S481 visual sector, through its policy campaign initiative and pro-active In 2016 SPI continued to participate on the Section 481 Industry lobbying. As part of the Culture 2025 consultation SPI addressed Policy Group. This group seeks to ensure engagement with key the Oireachtas and advised that the Culture 2025 process provides stakeholders and provides feedback to Government on the operation for the perfect opportunity to foster an all industry approach to of the Section 481 scheme. SPI also continued to engage directly developing a strategy for the sector. with Revenue, the Department of Finance and the Department of Arts, Heritage and the Gaeltacht. To encourage consultation with the In late 2016 the Creative Ireland programme was launched. We industry and to try to ensure an efficient S481 certification process. were pleased to see that this collaborative initiative ‘will facilitate an industry-wide plan to ensure strategic coherence around the SPI hosted a members event on March 8th to gather members and objective of making Ireland a leader in this sector’ and that one of the stakeholders views on the amended S481 Scheme in it’s first year in five pillars of the programme will focus on ‘Ireland’s potential to be operation. Views on SPI members experience of the scheme were a global leader in film production, TV drama, documentary, children’s fed back to Revenue at a meeting in April 2016. These included both storytelling, and animation for the screen’. SPI will engage fully with positive experiences but also concerns, particularly in relation to this initiative as it presents a significant opportunity to develop one delays in processing applications and payments. overall strategy for the Audio Visual industries. In late 2016 a new condition related to the tax compliance of third Following a productive meeting with Deputy Hildegarde Naughton, party suppliers and the obligations of Producers in that regard, Chair of the Oireachtas Communications Committee, SPI, was introduced by Revenue without prior consultation. Since then represented by Larry Bass and Jennifer Keneally, was invited to there has been intense engagement by both SPI and the Policy attend a Committee hearing on PSB funding in November. The Group with Revenue in relation to the wording, implementation and Independent Broadcasters of Ireland, Professor Kevin Rafter of DCU, management of this new condition. We expect to conclude upon an RTÉ, TG4 and the IFB also attended the session. agreed form of wording for this new condition in early 2017 and will continue to engage on all aspects of the incentive. Well researched policy papers provide a platform to highlight the issues facing the AV industry to Government. In 2016 SPI developed RTE the SPI Animation policy and we will continue to build on the policy Dee Forbes was appointed new D.G. at RTE in April and commenced papers. in August,2016, leaving her post of President and Managing Director Discover Networks Northern Europe to take up her new role. The SPI Industry Statistics Chair and CEO had an introductory meeting with Ms Forbes early in The Industry S481 Policy Group convened and chaired by the IFB her tenure in September to introduce SPI, review the relationship to agreed on Nov 13th 2015 that the group would support and find a date with independent producers and to discuss the need for an AV way to fund a sustainable method of collecting data which could be sectoral strategy and for greater collaboration within the sector as published in an industry report. a whole. In November 2016 the Dept. of Arts, Heritage and the Gaelteacht On an operational level, SPI continued to engage with RTE regularly commissioned an economic analysis of the screen based creative in 2016 to monitor and review the recently agreed terms of trade industries. The study would examine the economic impact and the commissioning process. A survey of SPI members in 2015 and potential of the Irish film, TV and animation sector. The regarding the impact and operation of the code, will be conducted commissioning of the study is committed to in the Action Plan for again in 2017. Jobs 2016. Adequate funding clearly remains a key issue for RTÉ and it will Following an open tender process, Olsberg SPI Ltd in association be a priority issue as part of a strategic review which RTE will now with Nordicity, were selected to conduct the study. A steering group carry out. Part of that review will be to engage with a range of led by Minister Humphreys’ Department, with representatives of the stakeholders, including SPI and we expect that engagement to Department of Communications, Climate Action and Environment, occur in early 2017. the Department of Jobs, Enterprise and Innovation, the Irish Film Board and the Broadcasting Authority of Ireland would liaise with TG4 Oslberg SPI Ltd/Nordicity. Involvement of Government Departments Alan Esselmont took up the post of Director General of TG4 in mid responsible for the film tax incentive (Arts) and broadcasting October, succeeding Pol O’Gallchoir, who had been head of TG4 (Comms) is considered a very positive development, given the need since 2000. Mr. Esselmont joined TG4 from BBC ALBA, where he was for broadcasters and the IFB to provide the necessary data for such a head of content. TG4’s new commissioning strategy is expected to report. be announced in January 2017. It is expected that the analysis would take six months and that there An agreement between SPI and TG4 on a Code of Fair Trading would be deep engagement with the sector including directly through Practise had not been reached up to the point of Mr. Esselmont’s Screen Producers Ireland. SPI welcome this research however, once appointment, however engagement has commenced to achieve this the research report is produced, it is critical the data gathered forms and SPI will continue to press for a Code to reflect he BAI Guidance a benchmark for industry information which should be updated on at note to PSBs. least bi annual basis.
PAGE 26 SCREEN PRODUCERS IRELAND | 2016 ANNUAL REPORT Irish Film Board a Directive on copyright in the Digital Single Market and a proposed In 2016 the IFB published their five year strategy covering the period Regulation on online transmissions and retransmissions of television 2016-2020. The strategic objectives of the plan are centred around and radio programmes. The Commission’s proposal in the Broadcast Regulation to extend the Country of Origin principle to broadcasters’ Vision for 2020 Building on Core Strengths ancillary online services, despite the opposition of the majority of 1. Vision and Leadership 4. Development and Support of Screen consulted stakeholders and no legal or economic evidence of its 2. Gender Equality and Diversity Creative Content Production benefits, will undermine the principle of territoriality upon which the 3. Building Audiences 5. Development of Talent and Skills financing of audiovisual works rests. The potential impact that this 6. Inward Production and Investment proposed Regulation will have on the independent production sector is extremely concerning. SPI remains committed to The European Strong Foundations Coordination of Independent Producers (CEPI) to communicate our 7. Increased Investment in the IFB concerns to the Commission. 8. Partnerships for Screen Production Attendance at Events 9. Organisations Effectiveness SPI attended all key industry events during 2016, including the Gender Equality was identified as a major priority for the IFB during 2nd annual Media Con conference . SPI also attended the Cannes 2016 having announced their 6 point plan in January to address Film Festival, the Galway Film Fleadh, the Celtic Media Festival, gender equality in January. Dungarvan the Dutch Conference of promoting cross-Border Circulation of European A.V. Content and the CEPI General Assembly SPI is continuing to work with the Writers’ Guild and the Director’s in Slovenia. Guild to identify female creative talent. We held a second joint event in August which was successful based on feedback. Industrial Relations The first collective agreement between Irish Equity/SIPTU and SPI SPI Events 2016 was signed in March 2016. The agreement covers actors employed SPI hosted 9 SPI members’ events in 2016 fulfilling our aim to bring on indigenous TV drama productions. Work continues on a similar about greater stakeholder collaboration at the RTÉ and TV3 events agreement to cover indigenous TV docu drama and should be which were attended by all senior commissioning personnel. concluded during 2017.
See full list on page 28. Efforts also continued towards negotiating one collective industry agreement for employees in the film and T.V. Drama sector. Some Corporate Governance changes to the Industrial Relations landscape in 2016 resulted in In 2016 SPI continued to ensure our corporate governance structure negotiations being challenging and complex, with new entrants was of the highest standard. seeking to recruit members and negotiate directly with SPI members. Against this background and while SPI recognises that local A new Companies Act 2014 was enacted into law in June 2015. SPI agreements may have to be entered into from time to time in order prepared a new constitution in accordance with the new Companies to secure production, at a policy level SPI remains committed to Act. This constitution was approved by the members at an EGM in ensuring secure industry -wide agreements which will operate at all early 2016. The new constitution provides for new rules restricting the budget levels and have the required level of transparency. This work period of tome board members can service consecutive terms and a has continued into 2017 with an increased level of engagement by SPI more structured approach to how the board members declare their with SIPTU and by extension ICTU. interest in running for election to the SPI Board.
SPI continues to improve and update the Corporate Governance SPI Membership Numbers At the end of 2016, SPI had 113 members, the same level as 2015. In manual. SPI also adheres to the obligations of the Regulation of 2016 the Board approved an increase in the Membership Fee to €400 Lobby Act, and the Charity Act 2009. per annum, with effect from January 2017. SPI members received Development of a National Skills Strategy notification of the change in August 2016. The Board also approved Crowe Horwath won the tender for the Development of a National a new simplified Independent production levy structure moving from Strategy for Skills Development in the AV Industry in Ireland. a six tiered structure to a single levy of 0.25% for all productions and a cap of €20K per production, with a discount of 65% for Animation Following stakeholder consultation, Crowe Horwath issued a projects. SPI members received notification of the change in discussion document in February. SPI facilitated further membership, November 2016. SPI Board, and stakeholder consultation for this draft. While we understood Crowe Horwath were working to a May/June timeframe for publication it is yet to be published. Developments in Europe In September the European Commission published its package of proposals to modernise copyright rules across the EU. This included
SCREEN PRODUCERS IRELAND | 2016 ANNUAL REPORT PAGE 27 SPI EVENTS EVENTS 2016
January Practical Guide for Film & TV companies to new Companies Act 2014 event in collaboration with Screen Training Ireland. Panel: Jillian O’Sullivan, Grant Thornton; John Gleeson, Grant Thornton; Ruth Hunter, Matheson.
February RTÉ Commissioning Overview & Audience Insights Update. Speakers: Glen Killane, Adrian LynchChannel Controller, Bill Malone, Sheila DeCourcy, Paul Loughrey, Aoife Byrne. The Genre Heads who attended the networking sessions with SPI members included: Emer Beesley, Digital; Sharon Brady, Senior Communications Manager TV & Digital; Roger Childs, Religion, Eddie Doyle, Comedy, Music & Talent; Jason Duffy, RTÉ Player; John Dunne, Business & Finance Executive; Janet Frawley, Formats; Jane Gogan, Drama; Dermot Horan, Director of Production & Acquisitions; Grainne McAleer, Daytime & Lifestyle; Rónán Mac Con Iomaire, Group Head Irish Language.
March Practical Guide to Section 481 for Novice Users. A workshop on the application procedure and management of Section 481 for producers new to using the scheme. Panel: Brian Gormley, Philip Lee Solicitors; Róisín Henehan, Grant Thornton; Siobhán Ward, Crossing the Line Films.
April/May Utilising Irish & UK Film Tax Credits. Breakfast Briefing Event with Animation Ireland in association with Mazarz. Panel: Paul Mee, Mazars Ireland; David Prestwich & Ben Adams, Mazars UK.
June SPI Annual General Meeting - 'Enterprise Growth Strategies for Production Companies'. The panel discussed how to move your company from a project based model and how to create a sustainable enterprise model. It also examined the effect of spreading ever reducing resources thinner and the choice between Quality over Quantity. Panel: Jane Kelly, Big Mountain Productions; Andrew Lowe, Element Pictures; Irial MacMurchú, Nemeton TV; John Phelan, Halycon Business Solutions.
July Gender Equality Pitching Event – Part 1. A pitching event for female writers and directors in response to the IFB's plans to improve gender equality in the sector. This event was organised in collaboration with the Writers Guild and the Screen Directors Guild. Each participant was given twelve minutes with three assigned producers to pitch ideas and scripts.
August 1. Gender Equality Pitching Event-Part 2. A second pitching event for female writers and directors in response to the IFB's plans to improve gender equality in the sector.
2. Supporting Regional Producers. As a follow up to the SPI hosted event Producing Beyond the M50 held in November 2015 and the Celtic Media Festival event The Future of Production in the Gaeltacht held in April 2016, this event was arranged to identify tangible supports for the regional production sector. Facilitator: Mairéad Ní Nuadháin (ex RTÉ commissioning Editor for Irish Language & ex RTÉ Deputy Director of Programmes).
September Irish Equity TV Drama Agreement Event aimed at producers, production accountants, line producers and anyone involved in drafting contracts or budgeting TV Drama productions. Panel: Barbara Galavan and Caroline Skinnader, Screen Producers Ireland
October Section 481: How to Make the System Work for You. The event provided producers on how to navigate the Section 481 application process. Tips and best advices were given by experienced applicants on how to ensure quick application process. Speakers: Catherine Tiernan, Metropolitan Pictures; Roisin Henehan, Grant Thornton; Elaine Gill, Clancy and Associates; Stephen Rooke, Tile Films.
November TV3 Breakfast Briefing for SPI Members. Presented by TV3's Managing Director Pat Kiely and Virgin Media's Chief Digital Entertainment Officer David Bouchier the event outlined TV3 future strategy (as part of Virgin Media) and independent commissioning plans.
December RTÉ Briefing and Networking Event outlined RTÉ's strategic and commissioning plans for RTÉ One and RTÉ 2 television channels for 2017-2018. Speakers: Dermot Horan, Adrian Lynch and Paul Loughrey.
PAGE 28 SCREEN PRODUCERS IRELAND | 2016 ANNUAL REPORT POLICY PAPERS
Screen Producers Ireland have identified a number of policy areas which are of key importance to indigenous producers. The organisation has produced a number of policy papers on these issues for distribution to government and other relevant stakeholders.
1. Policy on Section 481
2. Policy on Public Service Broadcasting
3. Film Policy for Ireland’s National Broadcaster
4. Policy on Strengthening the Animation Sector
5. Policy of Fair Regulation of Broadcasters
6. Policy on Irish Film Board Funding
7. Policy on Cable Re-Transmission and the Cable Copyright Exemption
EFFECTIVE COMMUNICATION OF SPI POLICIES POLICY ON SECTION 481
KEY POINTS deadline were in fact accounted for and included in the 2014 • Section 481 has a positive impact on the creation of figures. indigenously produced content. In 2016 Irish productions committed to spend €265M in 2016 in the • Section 481 attracts incoming production and has a positive Irish economy as a direct result of Section 481 certified projects. impact on the creation of high end jobs. This is the highest level ever achieved. • Section 481 contributes to Ireland’s reputation as a global hub SPI believes that maintaining Section 481, updating it to ensure for high-tech digital and creative content. it remains internationally competitive and improving it when • SPI is calling on Government to ensure that Section 481 is necessary, is essential to ensure further growth in the sector. continued and extended two years in advance of 2020 to take account of the long lead time required in the international Section 481 provides high end jobs, it helps to position Ireland as a production sector. leader in the creative industries, it promotes Ireland’s rich culture around the world, it contributes to Ireland’s reputation as a global CORE POLICY hub for high-tech digital and creative content and it has a direct A fiscal incentive such as Section 481 is necessary if Ireland’s impact on attracting tourism to our country. content production industry is to continue to thrive. Section 481 is a scheme intended to provide relief in the form of a corporation tax PRINCIPLES ON WHICH THIS POLICY IS BASED credit related to the cost of production incurred in Ireland. Those Ireland has a long history of fiscal incentive for film and television countries with which Ireland competes have similar or comparable dating back to 1980. It was one of the first countries to introduce incentives. It is imperative for the Irish film and television industry an incentive. Now countries with which Ireland competes have that a fiscal incentive is maintained and modified as required to similar or comparable incentives. The UK, Hungary, Luxembourg, keep apace of international market conditions. Germany, the Czech Republic, Canada, Australia, New Zealand and South Africa are some of the countries that now provide attractive Ireland has a long history of supporting its film and television incentives. In addition, within the US, individual states have industry through fiscal incentives, dating back to 1980. Since then introduced incentives in order to try and draw production activity the Irish film and TV sector has evolved into a vibrant industry with away from the most dominant and traditional location of California. a sophisticated infrastructure of production companies, studios, service companies and personnel, all of which provide valuable The result is that Ireland has become an attractive location for employment in the Irish economy. incoming film and television production while also supporting indigenous production. Irish expenditure increased by over 20% year on year between 2011 and 2014. 2014 looks like an exceptional year when compared The expenditure in the Irish economy as a result of Section 481 to 2013 and 2015. However, the following needs to be considered clearly illustrates the need for Ireland to maintain and continue to when looking at 2014 and 2015. An amended S481 scheme was improve its fiscal incentive, as required. introduced in January 2015, and the deadline for certification The table below illustrates the growth in Section 481 funds raised of 2014 projects was extended into early 2015. Therefore any of between, 2011-2014 the approved 2014 projects certified in 2015 under the extended
Section 481 Projects Certified by Revenue Commissioners 2011-2016
2011 2012 2013 2014 2015 2016 No of S481 projects 57 52 67 67 66 77 Irish Expenditure €118,248,839 €142,968,378 €183,142,646 €237,387,613 €118,618,238 €264,829,803 Animation Total €31,982,729 €32,127,088 €44,942,020 €39,104,231 €20,752,709 €31,999,653 Documentary Total €4,853,720 €3,797,207 €2,717,403 €7,108,573 €8,959,749 €12,533,745 Film Total €33,231,456 €29,243,763 €35,856,614 €49,221,388 €34,022,510 €35,155,980 TV Drama Total €48,180,934 €77,800,320 €99,626,609 €141,953,421 €54,883,270 €185,140,425
To maintain expenditure and promote growth in the sector, Ireland must: I) Ensure the continuance of the film and television tax incentive Section 481. II) Secure the extension of Section 481 in advance of 2020 to take account of the long lead time required in the international production industry.
PAGE 30 SCREEN PRODUCERS IRELAND | 2016 ANNUAL REPORT POLICY 2.2. PSM FUNDING MIX BY COUNTRY: VARIOUS MODELS ACROSS THE EBU PUBLIC SERVICE BROADCASTING POLICY
Chart 26 illustrates the balance between the vast majority of other European In the latter two countries, commercial the various public and commercial countries have adopted more income is even the main source of revenue revenue sources, country by country. It mixed funding systems, relying on a for PSM, ahead of public income. illustrates the great diversity of national combination of public and commercial KEY POINTS Dualfunding funding models model across the EBU area. sources. Commercial revenues included here are The dual funding model of licence fee and high levels of dependency not only advertising income, but also • Public service broadcasters, RTÉ and TG4, need security of PUBLIC INCOME: FROM ONLY ONE- In 35 out of 45 markets (77.8%), public other revenue, such as programme sales funding to meet their obligations under the Broadcasting on advertising/commercialTHIRD TO FULL PSM FUNDING income leaves fundingIreland’s remains public predominant, service with or merchandising. It is also worth noting Act and should not be reliant on advertising and commercial broadcasters open to significant fluctuationsmore thanin their 70% annualof the respective that in several cases the relative proportion revenues. budget.The proportion It gives rise of combined to uncertainty public in the sectorPSM funding through mix. not In the having 10 remaining of commercial revenues has mechanically longincome term invisibility 2015 ranged on income from 31.1% levels to guaranteecountries, compliance commercial withrevenues make increased over the past few years with the • SPI proposes legislative change be enacted to counteract the in Malta to 98.6% in Greece. A few up at least one-third of the PSM funding sudden drops in public funding in absolute publiccountries, service specifically commitments. Nordic ones, mix: Netherlands, the UK (because of terms, without the PSM organizations current high evasion levels of the TV License. such as Finland, Norway and Sweden, advertising-funded Channel 4), Italy, actually being more present on the Of the 45 countries surveyed by the European Broadcasting Union • RTÉ should move towards the emerging trend of the publisher- almost exclusively rely on public Iceland, the Flemish Community of advertising or other commercial markets. (EBU)income. in 2015, However, Ireland’s while publicmaintaining service broadcasterBelgium, Austria, is the third Albania, most Ireland, This is the case, for instance, in Poland (see broadcaster model by doubling the statutory spend on dependentthe predominance PSB on advertising of public income, income, afterPoland Poland and and Malta. Malta. Case Study, p. 33). independently produced content from the current level of €40M p/a to €80M2.2.2.2. p/a. PSMPSM FUNDINGFUNDING MIXMIXThe BYBY table below COUNTRY:COUNTRY: outlines the funding mix of public service media in VARIOUSVARIOUS MODELSMODELS ACROSSACROSSthe 45 territories THETHE surveyed. EBUEBU CORE POLICY CHARTCHART 26. 26. PSM FUNDING MIX – COUNTRY LEVEL (%, 2015) Ireland’s public service broadcasters need to be adequately funded. PSMPSM Funding FUNDING Mix MIX – -Country COUNTRY Level LEVEL (%, (%, 2015) 2015) ChartChart 2626 illustratesillustrates thethe balancebalance betweenbetween thethe vastvast majoritymajority ofof otherother EuropeanEuropean InIn thethe latterlatter twotwo countries,countries, commercialcommercial The provision of athe thewell-funded variousvarious publicpublic public andand commercialservicecommercial broadcaster countriescountries is an havehave adoptedadopted moremore incomeincome isis eveneven Fundingthethe mainmain mix sourcesource ofof revenuerevenue Funding mix revenuerevenue sources,sources, countrycountry byby country.country. ItIt mixedmixed fundingfunding systems,systems, relyingrelying onon aa Public forfor PSM,PSM, aheadahead ofof publicpublic income.income. Public Income 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Income 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% important principleillustratesillustrates for most thethe national greatgreat diversitydiversity governments. ofof nationalnational SPI believescombinationcombination ofof publicpublic andand commercialcommercial Greece 98.6% 99% Morocco 82.1% 62% 20% 14% Ireland should movefundingfunding towards modelsmodels the acrossacross European thethe EBUEBU norm area.area. where PSB’ssources.sources. are CommercialCommercial revenuesrevenues includedincluded herehere areare Finland 97.9% 98% Latvia 81.9% 82% 13% 5% notnot onlyonly advertisingadvertising income,income, butbut alsoalso funded principally from licence fee revenue with little or no reliance Norway 97.7% 97% Slovenia 81.5% 79% 10% 9% PUBLICPUBLIC INCOME:INCOME: FROMFROM ONLYONLY ONE-ONE- InIn 3535 outout ofof 4545 marketsmarkets (77.8%),(77.8%), publicpublic otherother revenue,revenue, suchsuch asas programmeprogramme salessales Luxembourg 97.7% 98% France 80.9% 77% 8% 8% on advertising andTHIRDTHIRD commercial TOTO FULLFULL revenues. PSMPSM FUNDINGFUNDING fundingfunding remainsremains predominant,predominant, withwith oror merchandising.merchandising. ItIt isis alsoalso worthworth notingnoting Vatican 97.5% 97% Hungary 80.6% 81% 13% moremore thanthan 70%70% ofof thethe respectiverespective thatthat inin severalseveral casescases thethe relativerelative proportionproportion FYR Macedonia 97.0% 31% 66% Moldova 80.2% 80% 11% 5% Public service broadcastersTheThe proportionproportion RTÉ of ofand combinedcombined TG4, need publicpublic security of PSMPSMfunding fundingfunding to mix.mix. InIn thethe 1010 remainingremaining ofof commercialcommercial revenuesrevenues hashas mechanicallymechanically Ukraine 95.7% 96% Portugal 79.6% 80% 9% 11% incomeincome inin 20152015 rangedranged fromfrom 31.1%31.1% countries,countries, commercialcommercial revenuesrevenues makemake increasedincreased overover thethe pastpast fewfew yearsyears withwith thethe meet their obligations under the Broadcasting Act. Sweden 95.5% 96% Serbia 78.7% 78% 18% inin MaltaMalta toto 98.6%98.6% inin Greece.Greece. AA fewfew upup atat leastleast one-thirdone-third ofof thethe PSMPSM fundingfunding suddensudden dropsdrops inin publicpublic fundingfunding inin absoluteabsolute Romania 94.3% 35% 59% Andorra 76.8% 77% 18% 5% countries,countries, specificallyspecifically NordicNordic ones,ones, mix:mix: Netherlands,Netherlands, thethe UKUK (because(because ofof terms,terms, withoutwithout thethe PSMPSM organizationsorganizations This can be achieved through introducing a Household Media Charge Estonia 94.3% 94% 6% Switzerland 75.7% 74% 15% 5% suchsuch asas Finland,Finland, NorwayNorway andand Sweden,Sweden, advertising-fundedadvertising-funded ChannelChannel 4),4), Italy,Italy, actuallyactually beingbeing moremore presentpresent onon thethe Georgia 93.7% 94% 6% San Marino 72.5% 73% 14% 9% and by initiating plansalmostalmost to exclusively exclusivelydecouple relyRTÉrely on onand publicpublic TG4 from the advertisingIceland,Iceland, thethe FlemishFlemish CommunityCommunity ofof advertisingadvertising oror otherother commercialcommercial markets.markets. Turkey 93.1% 7% 86% 6% Belgium French 71.5% 72% 21% 7% market. income.income. However,However, whilewhile maintainingmaintaining Belgium,Belgium, Austria,Austria, Albania,Albania, Ireland,Ireland, ThisThis isis thethe case,case, forfor instance,instance, inin PolandPoland (see(see Slovakia 92.9% 26% 67% Netherlands 68.0% 68% 23% 6% thethe predominancepredominance ofof publicpublic income,income, PolandPoland andand Malta.Malta. CaseCase Study,Study, p. 33).p. 33). Denmark 91.6% 92% 8% United Kingdom 67.1% 5% 62% 16% 17% Efficiencies and value for money for the tax payer must be a condition Bulgaria 91.2% 91% 6% Italy 65.7% 66% 21% 12% of this policy and for this reason we believe RTÉ should move towards Czech Republic 91.1% 91% 7% Iceland 64.2% 64% 28% 6% Lithuania 90.6% 91% 6% Belgium Flemish 63.2% 63% 10% 24% the emerging trendCHARTCHART of the 26. 26.publisher-broadcaster model. Publisher- CHARTCHART 26.26. Croatia 90.1% 87% 7% Austria 60.7% 61% 21% 18% broadcasters out-sourcePSMPSM FUNDINGFUNDING programme MIXMIX –– COUNTRYCOUNTRYproduction, LEVELLEVEL leading (%,(%, 2015)2015)to content PSMPSM FUNDINGFUNDING MIXMIX -- COUNTRYCOUNTRY LEVELLEVEL (%,(%, 2015)2015) Spain 88.2% 88% 7% Albania 59.1% 14% 45% 39% diversity and reduced costs. Armenia 88.0% 88% 5% Ireland 57.1% 6% 51% 30% 13% Montenegro 87.3% 87% 8% 5% Poland 32.3% 30% 44% 18% 6% FundingFunding mixmix FundingFunding mixmix Germany 87.2% 5% 83% 8% Malta 31.1% 31% 51% 18% The publisher-broadcaster modelPublicPublic operated by Channel 4 in the PublicPublic IncomeIncome 0%0% 10%10% 20%20% 30%30% 40% 40% 50% 50% 60%60% 70%70% 80%80% 90%90% 100%100% Cyprus IncomeIncome86.7% 0%0% 10%10% 20%20% 30%30% 40% 40%87% 50% 50% 60%60% 70%70% 80%80% 90%90%9% 100%100% UK is recognized as a moreGreeceGreece cost-effective98.6%98.6% and innovative99%99% way MoroccoMorocco 82.1%82.1% 62%62% 20%20% 14%14% Public funds Licence fee Advertising Other commercial income Other of producing quality content,FinlandFinland while97.9%97.9% supporting the enterprise98%98% LatviaLatvia 81.9%81.9% 82%82% 13%13% 5%5% economy and giving audiencesNorwayNorway 97.7%97.7%access to a wider range97%97% of SloveniaSlovenia 81.5%81.5% 79%79% 10%10% 9%9% programming and creativeLuxembourgLuxembourg talent.97.7%97.7% The BBC is currently98%98% moving in Note: NoFrance Francelabels below80.9%80.9% 5%. 77%77% 8%8% 8%8% VaticanVatican 97.5%97.5% 97%97% Note: PublicHungaryHungary income80.6%80.6% comprising Public Funds81%81% + Licence Fee. 13%13% this direction by restructuringFYRFYR Macedonia Macedonia its97.0%97.0% organizational31%31% model and 66%re-66% Source:Moldova MoldovaEBU based80.2%80.2% on Members' data. 80%80% 11%11% 5%5% purposing its entire in-houseUkraineUkraine production95.7%95.7% 96%96% PortugalPortugal 79.6%79.6% 80%80% 9%9% 11%11% SwedenSweden 95.5%95.5% 96%96% SerbiaSerbia 78.7%78.7% 78%78% 18%18% Plans should be initiatedRomaniaRomania to decouple94.3%94.3% RTÉ and35%35% TG4 from reliance59%59% AndorraAndorra 76.8%76.8% 77%77% 18%18% 5%5% EstoniaEstonia 94.3%94.3% 94%94% 6%6% SwitzerlandSwitzerland 75.7%75.7% 74%74% 15%15% 5%5% on advertising income. RTÉGeorgiaGeorgia should93.7%93.7% move towards the94% 94%emerging 6%6% SanSan Marino Marino 72.5%72.5% 73%73% 14%14% 9%9% trend of the publisher-broadcasterTurkeyTurkey 93.1%93.1% model7%7% by doubling the86%86% statutory 6%6% BelgiumBelgium French French 71.5%71.5% 72%72% 21%21% 7%7% spend on independentlySlovakiaSlovakia produced92.9%92.9% content26%26% from the current67%67% level of NetherlandsNetherlands 68.0%68.0% 68%68% 23%23% 6%6% €40M p/a to €80M p/a.DenmarkDenmark 91.6%91.6% 92%92% 8%8% UnitedUnited Kingdom Kingdom 67.1%67.1% 5%5% 62%62% 16%16% 17%17% BulgariaBulgaria 91.2%91.2% 91%91% 6%6% ItalyItaly 65.7%65.7% 66%66% 21%21% 12%12% CzechCzech Republic Republic 91.1%91.1% 91%91% 7%7% IcelandIceland 64.2%64.2% 64%64% 28%28% 6%6% FUNDING OF PUBLIC SERVICE MEDIA 2016 30 PRINCIPLES ON WHICHLithuaniaLithuania POLICY90.6%90.6% IS BASED 91%91% 6%6% BelgiumBelgium Flemish Flemish 63.2%63.2% 63%63% 10%10% 24%24% CroatiaCroatia 90.1%90.1% 87%87% 7%7% AustriaAustria 60.7%60.7% 61%61% 21%21% 18%18% Household-based mediaSpainSpain Charge88.2%88.2% 88%88% 7%7% AlbaniaAlbania 59.1%59.1% 14%14% 45%45% 39%39% ArmeniaArmenia 88.0%88.0% 88%88% 5%5% IrelandIreland 57.1%57.1% 6%6% 51%51% 30%30% 13%13% The current licence feeMontenegroMontenegro model is87.3%87.3% no longer fit for purpose,87%87% as 8%8%5%5% PolandPoland 32.3%32.3% 30%30% 44%44% 18%18% 6%6% acknowledged in the ProgrammeGermanyGermany 87.2%87.2% for Government5%5% 2011-2016.83%83% SPI 8%8% MaltaMalta 31.1%31.1% 31%31% 51%51% 18%18% CyprusCyprus 86.7%86.7% 87%87% 9%9% supports the introduction of a household-based media charge to Public funds Licence fee Advertising Other commercial income Other ensure a stable funding base for Irish publicPublicPublic service fundsfunds broadcasting.LicenceLicence feefee Note:AdvertisingAdvertising No labels below 5%. Note:OtherOther Public commercialcommercial income comprising incomeincome Public Funds +OtherOther Licence Fee. Source: EBU based on Members' data.
Note:Note: NoNo labelslabels belowbelow 5%.5%. Note:Note: PublicPublic incomeincome comprisingcomprising PublicPublic FundsFunds ++ LicenceLicence Fee.Fee. Source:Source: EBUEBU basedbased onon Members'Members' data.data.
SCREEN PRODUCERS IRELAND | 2016 ANNUAL REPORT PAGE 31
FUNDINGFUNDING OFOF PUBLICPUBLIC SERVICESERVICE MEDIAMEDIA 20162016 3030 POLICY PUBLIC SERVICE BROADCASTING POLICY
RTÉ’s dependency on commercial income (46% in 2015) also RTÉ One, Ratings for Top 30 Programmes in 2016 contributes to a distortion in the media and advertising market in Ireland. Competitor broadcasters, regional radio, newspapers and Locally produced content tends to resonate well with Irish audiences other media outlets claim unfair advantage. and generally enjoys very successful TAM ratings (as shown below). This indicates strong audience (and licence payer) demand for Since the economic downturn, RTÉ’s total income has fallen indigenous productions. from €441M in 2008 to €334M in 2015, a fall of €107M or 24%. The principal reason for the decrease is the dramatic drop in advertising 6 of the top 20 titles were produced by Irish independent producers. revenue during the period. Ireland’s primary public service 10 of the top 20 were in-house RTÉ One productions. broadcaster dependency on advertising income means a large proportion of its income is vulnerable to fluctuations. This is not the RANKING DESCRIPTION DATE case in most European territories where the income is stable. RTÉ’s 1 Late Late Toy Show, The 02-12-2016 funding needs to be stabilised and TG4’s funding needs certainty. Currently a significant percentage of TG4 funding is discretionary 2 RTE News: Nine O’clock 27-02-2016 government funding. Stability can be achieved through eliminating 3 Rebellion 10-01-2016 evasion of the TV Licence Fee. 4 Mrs Brown’s Boys: Mammy’s Forest 25-12-2016 5 Mrs Brown’s Boys: Chez Mammy 31-12-2016 PUBLISHER-BROADCASTER MODEL 6 Room To Improve 28-02-2016 Efficiencies and value for money must be a condition of this policy 7 Late Late Show, The 19-02-2016 and for this reason we believe RTÉ should move towards the 8 Mrs Brown’s Boys Live 23-07-2016 emerging trend of the publisher-broadcaster model, retaining core 9 RTE News: Six One 01-01-2016 functions of news and current affairs within RTÉ. 10 Prime Time Leaders Debate 23-02-2016 The publisher-broadcaster model such as Channel 4 and TG4 is an 11 Rose Of Tralee 2016, The 23-08-2016 efficient and cost-effective model to deliver quality public service 12 Voice Of Ireland, The 24-01-2016 broadcasting in the rapidly changing digital media environment, as 13 Claire Byrne Live Leaders’ Debate 15-02-2016 evidenced internationally. 14 Fair City 09-02-2016
SPI believes that programming made by independent producers is 15 Sugar Crash 11-01-2016 high quality, cost-effective and makes the best use of the public 16 Mrs Brown’s Boys: Mammy’s Christmas Punch 24-12-2016 money. Independent producers have consistently delivered some 17 Prison In Peru: Michaellas First Interview 03-04-2016 of the highest rating and valued programmes for Irish audiences 18 Operation Transformation 20-01-2016 since the introduction of the minimum statutory spend in 1993 (see table below). The independent production sector offers 19 At Your Service 21-02-2016 diversity of ideas, innovative and quality content, transparency 20 Centenary 28-03-2016 and accountability for every euro of the licence fee spent on 21 Election 2016 27-02-2016 programmes commissioned. 22 Mrs Brown’s Boys 20-12-2016 23 24-06-2016 RTÉ as a publisher-broadcaster would be a better use of the licence RTE Irish Country Music Awards fee and would result in a greater volume of quality, original Irish 24 Mrs Brown’s Boys - Mammy Christmas 22-12-2016 programming available for Irish audiences. 25 Ireland’s Fittest Family 18-12-2016 26 Celebrity Operation Transformation 07-09-2016 Plans should be initiated to decouple RTÉ and TG4 from reliance 27 Ray D’Arcy Show, The 29-10-2016 on advertising income. The statutory spend on independently produced content should be doubled from the current level of 28 Prime Time 07-01-2016 €40M p/a to €80M p/a to pave the way for RTÉ to move towards the 29 Nathan Carter Show, The 30-10-2016 emerging trend of the publisher-broadcaster model. 30 Dragons’ Den 17-04-2016
Indigenous Irish Co-Production/Enhanced Independent Production Acquisition by RTÉ In-House Acquired RTÉ Production Programme
PAGE 32 SCREEN PRODUCERS IRELAND | 2016 ANNUAL REPORT POLICY FILM POLICY FOR IRELAND’S NATIONAL BROADCASTER
KEY POINTS This results in fewer Irish films being made. • In contrast to most European countries, Ireland has no SPI proposes a change to the 2009 Broadcasting Act to provide legislative or regulated commitment from its’ national for the following minimum spend by RTÉ on Irish feature films and broadcaster, RTÉ, to spend a minimum amount on locally feature documentaries. produced films. • This places Irish producers at a competitive disadvantage and 1.5% of RTÉ revenue allocated to Television Integrated Business results in fewer Irish films being made. Division (i.e. licence fee + commercial income) in the preceding financial year (e.g. 2014: €172,862,000 = @1.5% = €2.59m) and in • SPI proposes that 1.5% of RTÉ revenue allocated to the any case no less than €2.5m per annum. Television Integrated Business Division in the preceding financial year, and in any case no less than €2.5m per annum, PRINCIPLES ON WHICH POLICY IS BASED be allocated to spend on Irish feature films and feature documentaries. We set out how such legislation, regulation or formalised minimum spend is achieved in individual territories. The outcome is a vibrant CORE POLICY economic environment for the local indigenous film industry. In most European territories Public Service Broadcasters play a pivotal role in the success of their domestic film production Ireland by contrast has no such legislation or regulated industries. This role is underpinned either by legislation, regulation commitment. or a formalised minimum spend commitment on local film, on the The 2009 Broadcasting Act states: part of the national broadcasters. The result is a healthy support RTÉ: “114.—(1) The objects of RTE´ are— (4) the principal express and strong broadcaster demand for indigenous films from the powers of RTE´ in pursuance of the objects outlined in subsection local territory. (1) are……(n) to invest in, originate or procure films,” Ireland has no such legislation or regulated commitment. SPI The Irish Broadcasting Act 2009 recognises film as a distinct believes Ireland’s national broadcaster RTÉ should be compelled genre, underlining the importance of film to Irish audiences but to play this pivotal role in Ireland. it makes no distinction between Irish film and foreign films and Film is a costly medium when compared to other programme it imposes no obligation on the national broadcaster to fund or genres and for this reason, Ireland’s national broadcaster will often support Irish feature films or feature length documentaries. SPI overlook film in favour of lower cost programme genres to support. believes that this issue must be rectified in order to support the For this reason, in order to support their indigenous film industries, growth of the Irish film industry. other territories have legislated or provide regulation for minimum spend requirements for locally produced films. Ireland has no such Cultural Benefits of Film legislation or regulated commitment. Not having such legislation or Heritage and culture are important determinants of national regulation puts the Irish film industry at a fundamental disadvantage. identity. It is therefore vital to create and preserve Irish heritage and contemporary society on screen for audiences both in Ireland In 2014 the Irish Film Board invested just under €10 million in and abroad. To tell stories by Irish filmmakers for Irish audiences production activity. This permitted Irish producers to leverage this and the world. funding to generate production expenditure of over €42 million in relation to IFB funded projects in that year. Support for a greater Films matter, they provide historical perspectives on events, a number of feature films and feature documentary films by RTÉ mirror of contemporary society, they allow us to reflect on the would result in more production activity in the State due to the past, assess the present and imagine the future. They provide producers ability to leverage funding. an opportunity to showcase Ireland as a tourism destination and provide tangible benefits for Ireland’s valuable tourism industry. A principal factor when seeking co-production partners for the Examples of important Irish films which have resonated deeply with financing of film is that a local broadcaster, particularly the national audiences in Ireland and across the world include ‘The Quiet Man’, broadcaster, is an investment partner. Producers and financiers ‘Michael Collins’, ‘The Crying Game’, ‘My Left Foot’, ‘In the Name of in other territories operate on this basis and therefore they find the Father’, ‘In America’, ‘Once’, ‘What Richard Did’, ‘The Guard’, it difficult to understand why Irish producers do not enjoy the ‘Song of The Sea’ and documentaries ‘The Summit’, ‘Lón sa Spéir’, support of Ireland’s national broadcaster. It is problematic for Irish ‘One Million Dubliners’. producers to explain to international partners why the national broadcaster does not support Irish film projects at the early There is no specific reference to supporting Irish film in the 2009 financing stage. Broadcasting Act and there is no minimum requirement to invest in Irish productions. Consequently, Irish producers operate at a competitive disadvantage when compared to their European counterparts as Screen Producers Ireland calls on the Irish Government to legislate the international market interprets this as a fault with the project. on this important issue to Ireland’s film makers.
SCREEN PRODUCERS IRELAND | 2016 ANNUAL REPORT PAGE 33 POLICY FILM POLICY FOR IRELAND’S NATIONAL BROADCASTER
INTERNATIONAL COMPARISONS broadcasters into a specified account in the Centre National de la Many European countries have had far greater success at Cinematographie (CNC). The tax is calculated by applying a rate nurturing their respective indigenous film industries than Ireland to the amounts paid by the television services in performance of has. The following are some examples of this: contracts for the transfer of broadcasting rights. AUSTRIA France, key Film Stats 2013: There has been a non-legal voluntary treaty „Film-Fernseh– • 270 feature films were produced in France during 2013 Abkommen“ between the Austrian PSB ORF to contribute €8m • Of which 154 were fully financed by France p/a to the Austrian Film Instutute (additional to AFI budget • Investment in French production totaled €1.3 billion of €20m.). Between 2000 and 2013, the ORF got extra money • French PSB’s contributed €101.5m (under legislative from the government and one of the conditions was to fulfill the requirements) „Film-Fernseh–Abkommen“. This condition was set up into the ORF-Law and expired in 2013. • Private Films Channels (incl. Canal+) €190m (under legislative requirements) The programme of the new government (elected in 2013) included • Over 42% of films aired on television were French the announcement to support the production of film by the PSB. • The largest viewership for film on TV was recorded by a French There is currently a draft law being discussed whereby the ORF has film ‘Rien à déclarer’ (‘Nothing to Declare’) a legal obligation to the „Film-Fernseh–Abkommen“ with a binding minimum budget of €8m per annum. FINLAND YLE has a published strategy to invest €6m per annum 2014-2016 DENMARK for films (incl. documentary). This is part of a declaration of intent The two Danish PSB’s Danmarks Radio & TV2 Danmark are on a minimum number of feature film projects with the Finnish Film regulated by the Radio and Television Broadcasting Act and their Foundation. obligations are specified in a contract with the Ministry of Culture, including the obligation to strengthen Danish film production. GERMANY Federal: In principle, there is no requirement on the PSB’s to Every 4 years parliament agrees a “Media Policy” which covers all invest in Federal film aid. However, there is a Film Support Act aspects of the PSB’s obligations and their licence fee. Amongst (‘FFG’) which states that contributions and grants are to be agreed other issues, the agreement issued by the Ministry of Culture between the PSB’s and the German Federal Film Board (FFA). establishes the obligation of the PSB to have financial involvement in “indigenous” film, not as an obligation to “invest", but an ZDF and ARD have undertakings in their individual Film Aid obligation to buy a license to transmit. In the last 4 years this Agreements (FF-Abkommen), renewed every 4 years, to support figure was on average 53m. dkr (€ 7.1m) for feature (80%) and co-productions and contributions in cash and in kind. The documentaries (20%) per annum. private broadcasters have an agreement with the FFA, (the VPRT Abkommen), whereby the broadcasters provide cash contributions FRANCE and media services to the film fund. Under French law, PSB’s and Private Broadcasters must invest in cinema movies by Direct Contribution and an Indirect Contribution. Regional: In principle, there is no requirement on regional PSB’s to invest in regional film aid. Except for WDR (which belongs to ARD). Direct Contribution: Broadcasters must invest 3.2% of their WDR must assign an amount of its licence fee to the Westfalia Film turnover per year in European productions. 2.5% of the turnover Foundation. must be invested in feature films originally made in the French language (“EOF” works). POLAND Poland Act on Cinematography 2005, is a comprehensive 16 page Canal Plus is required to invest more as it is a cinema channel. document which “… defines the principles in respect of supporting Canal Plus must spend 12% of its total resources on pre-purchase film creativity and other activities in the field of cinematography of European films and at least 9% on pre-purchase of “EOF works”. and the protection of film art resources.” In addition, at least 17% of its “EOF” obligation must be spent on low-budget films. Chapter 1. Article 19. (7) Public television broadcasters are required to earmark at least 1.5% of their annual proceeds A special scheme applies to Arte (Franco-German channel), where from subscriptions from television owners for film production there are no obligations to cinema film. However, the channel purposes. The broadcaster shall submit to the Director an annual typically invests 5% of its turnover in Arte France Cinema. report on discharging this duty by the end of the first quarter of the More details here: http://bit.ly/220kAPu calendar year. If the amount referred to in the first sentence is not fully expensed on film production, the broadcaster shall transfer to Indirect Contribution (“soutien antenne” ): This is a tax paid by all the Institute the difference resulting.
PAGE 34 SCREEN PRODUCERS IRELAND | 2016 ANNUAL REPORT The Act also stipulates that cinema exhibitors, distributors, • The UK spend associated with inward investment features was commercial television broadcasters, digital platforms, cable £1,233 million, up 40% from £879 million in 2013. television stations each contribute 1.5% of specified revenues to • Seventeen big budget films (£30 million or over) accounted for the Polish Film Institute. 89% of the total UK film production spend. More details here: http://bit.ly/1ONjr6h • FILM 4: annual production expenditure STG. £15M for feature film Poland key Film Stats 2014: • BBC Films annual budget approx. STG. £12M for feature film Poland produced over 40 feature films in 2014. The average budget • British Film Institute expenditure on Production STG. £23M of a domestic film is 4-4.5m PLN (c. €1m). The Polish Film Institute (2012) (PISF) is the largest source of funding in Poland, with additional funds coming from television, a well-developed network of regional • (BBC TV Drama budget approx. STG. £200M) film funds as well as private sources. By December of 2014 the number of titles distributed in Poland surpassed 240, with the As outlined in the above, many European countries take a pro- three top spots in the box office held by Polish productions active approach to nurturing their indigenous film industries and (‘Gods’, ‘Warsaw 44’, ‘Jack Strong’). this has resulted in greater success for the industry. If Ireland is to replicate this success there must be a regulated minimum spend SWEDEN on Irish film introduced. According to the Public service regulation, SVT shall “contribute to the development of Swedish film production”. In the Swedish Film Agreement (between the government and the industry), SVT has committed to 42,1 MSEK (€4.7M) per year to the Swedish Legislative Reference to Cinema Film Production Film Institute for the Swedish film funds. In addition, SVT has a for Broadcasters minimum guaranteed spend of 41,3 MSEK (€4.6) on co-production or purchases of new Swedish feature films or new Swedish shorts PSB's and documentaries. Legislative Govt./Ministry According to a Declaration signed by SVT and FILMTVP (Swedish Obligation Policy producers association) in 2010, the estimated share of independent Austria No Yes production in relation to SVT's program budget (excl. news, sports Belgium Yes and foreign purchases) will not be less than 40 % annually for the Croatia No Yes foreseeable future. Denmark No Yes Private broadcasters are also obliged to “contribute to the Estonia No Yes development of Swedish film production” under their licences. Finland No Yes UK France Yes Communication Act 2003: (Chapter 21, Part 3, Chapter 4, p235) Germany No Yes requires that cultural activity in the UK is reflected by the inclusion Greece Yes of feature films in the services of PSB’s. Hungary Yes Key Points 2014 Ireland No No BBC: Charter & Agreement 2006 states the need for the BBC to Italy Yes have a film strategy overseen by the BBC Trust. BBC Films budget Macedonia Yes in 2013 was STG. £12m. Netherlands Yes Yes Channel 4: Digital Economy Act 2010 [22.(1)(1) Channel 4 must Norway No No participate in… (b) the making of high quality films intended to be Poland Yes shown to the general public at the cinema in the UK and (c) the Portugal Yes Yes broadcasting and distribution of such content and films. Film 4’s Romania Yes annual budget is approx. STG. £15m. Spain Yes UK key Film Stats 2014: Sweden Yes • 223 feature films were produced in UK during 2014 UK Yes • Of which 154 were domestic UK features • Total UK film production activity was £1.5 billion
SCREEN PRODUCERS IRELAND | 2016 ANNUAL REPORT PAGE 35 POLICY ON STRENGTHENING THE ANIMATION SECTOR
KEY POINTS STRENGTHENING THE ANIMATION SECTOR • Levels of funding currently available to animation production POLICY PRINCIPLES companies must be increased through increased IFB and PSB Service Work and IP Creation - the Building Blocks funding. of Sustainable Companies • The rapidly changing nature of technology within the animation The Irish animation sector provides valuable employment by sector is making it increasingly difficult to find and recruit servicing the needs of many international animation studios. This appropriately qualified staff. Addressing this skills shortage work provides continuity of employment and allows animation will require a multi-pronged approach. talent to hone their skills and gain invaluable experience. Completing these service work projects is often how Irish • The Section 481 Tax Credit must be extended immediately animation companies establish themselves in the marketplace beyond the current 2020 cessation date. The long lead times and how their staff acquire the requisite training and experience on productions means producers need long-term certainty to make original animations. Service work is a vital element of the about the existence and terms of the incentive. Irish animation sector and must be supported to continue growth. CORE POLICY As stated, service projects are a vital part of the Irish animation The Irish animation sector has enjoyed significant success in industry and they are of huge economic and training value. recent years and is responsible for the creation of many high However, many companies also wish to develop and produce their quality jobs. Ireland has achieved a reputation as a hub for own successful animation projects and to create their own IP. animation production with Irish animation companies collaborating They must be supported in this ambition as it will help to improve with all of the major studios in the international animation industry. the reputation of the sector and to increase creativity. It will also This is a valuable source of business and experience for Irish help in the retention of creative talent and ensure that the sector Animators. Fulfilling servicing contracts for international studios is not solely reliant on service work. Examples of Irish Animation is the foundation of the industry and allows Animators to gain companies who have made original animations are Sixteen South significant experience. This experience then allows them to create who made Lily’s Driftwood Bay, Jam Media who made Becca’s their own IP projects and, thus, there is a symbiotic relationship Bunch and Kavaleer who created Kiva Can Do. between service work and the creation of original animation IP. In order to build sustainable animation companies, it is essential Animation companies source finance from the Irish Film Board that we increase funding to the sector and address emerging skills (IFB) and Ireland’s Public Service Broadcasters. In recent years shortages. We must also extend the Section 481 tax credit beyond the funding available both to the IFB and to our Public Service its current cessation date. Broadcasters has decreased substantially. Both of these trends must be reversed to ensure there is enough funding available for ACCESS TO FUNDING the Irish animation sector to realise it’s potential. The reduction in Irish Film Board funding has had a significant effect A further impediment to growth is the shortage of qualified staff. on animation companies competing for this small funding pot. It is The industry is subject to continuous and rapid technological crucial that Irish Film Board funding is reinstated to pre-crash levels changes which means that the skills base needs to be constantly of €20M so that Irish producers can compete on a level playing updated. The Higher Education curriculum requires continuous field with their international counterparts. Animation companies investment in order to train graduates with the relevant skills. The are currently competing for a small share of an insufficient funding industry must be able to access the necessary skills on the jobs pot. This funding shortage must be addressed immediately if the market to allow it to grow and take on new projects. This will ensure Animation sector is to continue to grow. At present the IFB is the only that there is capacity in the sector for further growth. significant source of development funding for Animation companies. We recommend that RTÉ has its funding increased and is compelled Ireland’s Section 481 film and television tax incentive is a major to also support the Animation sector through development funding. driver for growth in the animation industry. Access for Irish companies to Section 481 helps them to attract international Animation companies also rely heavily on commissions from our projects to Ireland. Section 481 needs to be extended immediately Public Service Broadcasters. It is imperative that RTÉ in particular to take account of the long lead time required for animation adopts a policy of a guaranteed annual spend on animation projects. production. This will generate the opportunity for animation companies to tender for more animation projects and will improve the output of the sector. This is a very efficient use of taxpayers money, as RTÉ rarely solely commissions animation projects and instead, provide a small investment which is then leveraged by attracting more investors. Thus, a relatively minimal investment of licence fee money can have a significant impact the animation sector and on jobs created in the sector.
PAGE 36 SCREEN PRODUCERS IRELAND | 2016 ANNUAL REPORT In order to support the animation sector, our public service SECTION 481 broadcasters RTÉ and TG4 need security of funding. This can be Section 481 has a positive impact on the generation of indigenously achieved through the introduction a Household Media Charge. This produced animation content, helps to attract incoming production is required to stabilize funding for our PSB’s and to eliminate the and leads to the creation of high end jobs. Section 481 contributes to current high evasion levels. This stable funding base is essential Ireland’s reputation as a global hub for high-tech digital and creative so that our PSBs can begin to adequately support independent content. The Section 481 tax incentive is due to expire in 2020. animation companies through increasing the level of animation commissioning from Irish companies. The Section 481 Tax Credit must be extended immediately beyond the current 2020 cessation date. The long lead times on A further avenue of funding available to animators is the BAI Sound productions means producers need a long-term certainty about and Vision fund. However, this scheme is hugely oversubscribed the existence and terms of the incentive. and the funding available is not sufficient for the amount of viable projects for which applications are submitted. We recommend doubling the funding awarded through the BAI S&V scheme to allow increased development of animators and all independent producers. SKILLS SHORTAGES Irish animation companies are currently creating much high quality work for international studios, thereby providing a large amount of high quality employment. While there is further room for growth in the international business, the industry also needs to have a strong indigenous sector to create more Irish intellectual property rights, ensure longevity and increase the net benefit to the state
Animation technology is evolving at a rapid rate. It can be difficult for colleges to keep pace and to produce graduates qualified with the appropriate skills. The Animation Skillnet has programmes e.g. the Bridge programme, which helps to alleviate this problem, but further investment in animation college programmes is required. The aim is to ensure that graduates are industry-ready when they leave college and not in need of further training.
In order to address the skills shortage sufficiently, it is necessary to increase the amount of course spaces available and also to ensure that course curriculums reflect the current needs of animation production companies. Irelands ability to produce high quality animation graduates has a knock-on effect not only on the quality of the talent pool available to animation companies, but also on our international reputation as an animation hub. At present, many animation companies are forced to seek staff from overseas. The Irish education system should be producing graduates to fulfil this gap in the jobs market.
It’s important to note that the Games and VFX industries are also strongly reliant on animation skills and on the availability of skilled animators in the labour force. The Games sector, in particular, has been highlighted as a key growth area by Government and it must be recognized that it shares strong links with the animation sector and has many similar needs. Games and VFX have the capacity to create more jobs if their skills needs are addressed.
In order to increase the skills shortages sufficiently it is necessary to increase the amount of course spaces available and also to ensure that course curriculums reflect the current needs of animation companies.
SCREEN PRODUCERS IRELAND | 2016 ANNUAL REPORT PAGE 37 POLICY OF FAIR REGULATION OF BROADCASTERS
KEY POINTS the Irish market have no obligation to produce locally produced • Broadcasters located outside of Ireland, many of whom benefit content in Ireland. This is not equitable. from Irish advertising revenue, have no obligation to spend a International manifestations of the same problem exist in Austria minimum amount on locally produced content. where German broadcasters broadcast and provide “opt-out” • “Opt-out” advertising by UK broadcasters amounted to advertising to the Austrian market but invest little in indigenous approximately 25% of the market, draining €50 million out of Austrian programming. Similarly for Portugal where Spanish the domestic Irish TV market. broadcasters provide “opt-out” advertising and invest little in • SPI proposes amending the Audio-Visual Media Services Portuguese programming. Directive (AVMS) to ensure that channels that sell “opt-out” SPI wants to have this inequity addressed through amending the advertising into other territories are regulated to ensure AVMS Directive to ensure channels that sell “opt-out” advertising minimum spend commitments are made to locally produced into other territories are regulated to ensure minimum spend content in those territories. commitments are made to locally produced content in those • It is currently unfair that broadcasters based in dominant territories. This will be for the benefit of both the Irish viewing media territories are permitted to sell “opt-out” advertising public and the indigenous Irish audio-visual production industry. into small territories like Ireland but are not bound to re-invest This will address the current inequity that exists. in the territory from which they receive this income. PRINCIPLES ON WHICH THIS POLICY IS BASED CORE POLICY The current “country of origin” principle is not fair, particularly for Regulation of broadcasters in Ireland requires change because smaller European territories. it is not a level playing pitch. For example, SKY broadcasts 11 channels into Ireland but has Irish broadcasters have many obligations under their no broadcast regulatory obligations here. SKY sells satellite broadcasting licences and in the case of RTÉ, they also have subscriptions, fixed line broadband and “opt-out” advertising to an obligation to spend a minimum statutory amount on the Irish market. independently commissioned programmes. This is not the case with broadcasters located outside of the jurisdiction, many of In 2014, SPI estimates the revenue earned by SKY INC in Ireland whom sell “opt-out” * advertising into Ireland. This is an unfair was in excess of €500 million. situation which disadvantages PSBs. While SKY has been involved in financing some TV productions The rules governing European broadcasting across territorial made in Ireland, compared to income earned by SKY in Ireland, borders is determined by the Audio-Visual Media Services Directive the amount spent by SKY on TV production in the country is (AVMS Directive). The AVMS Directive dictates that broadcasters be negligible. In 2014 SKY made a commitment to have a programme regulated in the country in which they are established and not the commissioning editor located in their Dublin office for three days country or countries into which they broadcast. This is known as every month to engage with Irish independent producers. This the “country of origin” principle. promise did not materialise. This indicates that SKY has little or no editorial or commissioning interest in Ireland. While the “country of origin” principle deals adequately with the complex scenario of broadcasters having to comply with different “Opt-out” advertising sold by UK broadcasters transmitting into regulations in every territory into which they broadcast, it does not Ireland has had a major negative effect on all Irish broadcasters address the inequity being experienced by broadcasters located in advertising income. There are now 34 TV channels selling “opt-out” smaller European territories, where a common language is shared advertising in the Irish market. Sky Media Ireland is the advertising with their nearest and larger neighbour. sales arm of SKY and is the agent for 31 of the channels selling opt- out advertising in Ireland, including 11 SKY TV channels. Media Link Ireland and the UK are good examples in this regard. Irish manages the commercial interests for the three Channel 4 channels broadcasters compete with UK broadcasters for audience and broadcasting into Ireland. advertising revenue. UK broadcasters such as SKY and Channel 4 sell “opt-out” advertising into Ireland. For example, in 2016, the In 2014, the total value of the TV advertising market in Ireland was value of “opt out” advertising sold into Ireland was €50 Million. €217 million. “Opt-out” advertising by UK broadcasters amounted This means substantial advertising revenue which would otherwise to approximately 22% of the market, draining €48 million out of the remain in Ireland is lost to the UK. The UK and major international domestic Irish TV market. This is a major depletion of resources brand broadcasters who sell advertising and other services into available to Irish broadcasters, particularly RTÉ and TV3, to invest in home produced programming for the Irish viewing public.
All Irish broadcasters have obligations to their Irish audiences * Opt-out advertising is the practice of offering localised advertising during the advert breaks meaning that, while the content being viewed is the same, audiences in different regions see different adverts. under broadcasting legislation. RTÉ, as a public service
PAGE 38 SCREEN PRODUCERS IRELAND | 2016 ANNUAL REPORT broadcaster, also has an obligation to a minimum spend on independently commissioned programmes. No such content creation or spend obligations apply to SKY or Channel 4.
International manifestations of the same problem exist in Austria where German broadcasters broadcast and provide “opt-out” advertising to the Austrian market but invest little or nothing in indigenous Austrian programming. Similarly for Portugal where Spanish broadcasters provide “opt out” advertising and invest little in Portuguese programming.
The rules governing European broadcasting across borders is determined by the Audio-Visual Media Services Directive (AVMS Directive). The AVMS Directive dictates that broadcasters be governed in the country from which they broadcast. This is known as the “country of origin” principle.
SPI policy proposes a change to the “country of origin” principle in the AVMS Directive so that broadcasters selling “opt-out” advertising into other jurisdictions are also bound by minimum obligations to invest in and commission locally produced content.
It is currently unfair that broadcasters based in dominant media territories are permitted to sell “opt-out” advertising into small territories like Ireland but are not bound to re-invest in the territory from which they receive this income. This requires change.
SCREEN PRODUCERS IRELAND | 2016 ANNUAL REPORT PAGE 39 POLICY ON IRISH FILM BOARD FUNDING
KEY POINTS The reduction in Irish Film Board funding has had a significant • The Irish Film Board capital funding decreased by over 40% negative effect on the film and television production sector, between 2008 and 2014. particularly indigenous film makers who provide much needed work and opportunities for Irish creative talent. • Reinstating the funding to €20m per annum would increase production expenditure to €84m and would, in turn, have a It is crucial that Irish Film Board funding is reinstated so that Irish positive impact on jobs in the sector. producers can compete on a level playing field with their international counterparts. • The increase in funding would allow Irish producers to compete more effectively with their international counterparts and In 2016 the Irish Film Board invested just over €10 million in would have a positive impact on tourism. production activity. This permitted Irish producers to leverage this funding thereby generating production expenditure of over €53 CORE POLICY million in relation to IFB funded projects in that year. Capital funding for Bord Scannán na hÉireann/Irish Film Board SPI seeks the reinstatement of the Irish Film Board Oireachtas grant urgently needs to be increased. If not, Irish producers will not be to €20 million p/a. able to compete internationally. This increase would permit Irish producers to leverage this funding The national screen agency in all territories plays an integral role in and increase production expenditure to €84 million, thereby increas- the success of the local audio-visual economy. It provides funding ing the number of jobs in the film and television production sector. and support for indigenous productions as well as some incoming productions. PRINCIPLES ON WHICH THIS POLICY IS BASED Between 2008 and 2015 capital funding for the Irish Film Board Since 2008 the capital funding for the Irish Film Board has been has reduced year on year. The percentage decrease since 2008 reduced year on year. The percentage decrease since 2008 to 2015, to 2015, is over 40%. The IFB Oireachtas grant for 2016 is €11.7M. is over 40%. The reduction has had a significant negative effect on By comparison Northern Ireland Screen's annual investment in the film and television production sector. If Ireland is to compete production is budgeted at €16.3M (STG£11.7M). Northern Ireland is on the world stage for film and television productions, its national a market significantly smaller than the Republic of Ireland. screen agency must be adequately funded.
Irish Film Board Oireachtas Grant €’M 2008-2016
2016 11.7
2015 11.2
2014 11.227
2013 11.898
2012 13.15
2011 16
2010 16.5
2009 18.817
2008 20
0 5 10 15 20 25
20
PAGE15 40 SCREEN PRODUCERS IRELAND | 2016 ANNUAL REPORT
10
15
0 2016 2015 2014 2013 2012 2011 2010 2009 2008
Funding 11.7 11.2 11.3 11.9 13.2 16.0 16.5 18.8 20.0 In 2016 the Irish Film Board invested just over €10 million in production activity. This permitted Irish producers to leverage this funding thereby generating production expenditure of over €53 million in relation to IFB funded projects in that year.
The Northern Ireland Comparison The Irish Film Board Oireachtas grant for 2015 was €11.25 million. By way of comparison, for the years 2014-2018 Northern Ireland Screen's annual investment in production is budgeted at €16.3 million (£11.75 million). This in a market significantly smaller than the ROI.
In April 2014 Northern Ireland Screen announced a STG. £43 million, four-year investment plan entitled ‘Opening Doors: A Strategy to Transform the Screen Industries in Northern Ireland’ anticipated to generate STG. £250M return on investment. This is a significant increase in the level of funding under their previous scheme where NI Screen invested STG. £27.3 million over the four years 2010-2014 generating an estimated STG. £121 million return on investment.
If funding for Ireland’s national screen agency the Irish Film Board is not increased, it will jeopardize productions and put Irish producers at a significant disadvantage compared to their international counterparts. Film and television productions made in or about Ireland are important. They are a valuable cultural export with the ability to reach substantial global audiences. Potential Tourism Benefits In 2010, over 6.1 million (CSO) visitors came to the Republic of Ireland generating revenue inflows of €3,556 million (CSO) and resulting in 178,000 jobs (Fáilte Ireland).
In a Fáilte Ireland exit survey done in the same year, of tourists leaving the country, 20% of tourists indicated that films influenced their choice of Ireland as a destination.
While respondents can list multiple influences, the response to film is significant. Over the last 5 years the influence of film has increased from being the 6th, to the 4th most important factor influencing the tourist’s decision to visit Ireland. It is imperative that Ireland continues to be able to compete in order to maintain and grow employment levels in film and television production while also continuing to boost tourism numbers.
SCREEN PRODUCERS IRELAND | 2016 ANNUAL REPORT PAGE 41 POLICY ON CABLE RE-TRANSMISSION AND THE CABLE COPYRIGHT EXEMPTION
KEY POINTS There is currently only one major cable company in Ireland, Virgin • The “Cable Copyright Exemption” in the Copyright Act allows Media. This major corporation benefits from this exemption and is cable companies to retransmit the work of Irish producers subsidised by Irish copyright holders including our public service without adherence to copyright laws. broadcasters. Presently cable operators in Ireland pay approximately €10m • This means that Irish production companies are not fairly paid per annum to other rights holders, e.g. foreign broadcasters and for their works, unlike many of their European counterparts. production companies, composers and record companies. • The Broadcasting Act 2009 allows cable companies to re- CABLE RE-TRANSMISSION transmit Irish channels without paying a fee. Current broadcasting law means that cable companies are not • This means that License Fee payers are subsidising the content required to pay Irish channels a re-transmission fee. This is not offering of cable companies and our national broadcasters are the case in other European territories where broadcasters often at a competitive disadvantage. receive remuneration from re-transmitters for their content. CORE POLICY Programming produced by Irish broadcasters and Irish independent producers forms a significant part of the Irish cable At present, cable companies operating in Ireland are not required offering. The cable companies who benefit from this offering should to pay re-transmission fees to broadcasters or to adhere to be compelled to pay fees for the carriage of natively broadcast copyright laws in relation to the works being transmitted. content. The State should not aid cable companies in avoiding CABLE COPYRIGHT EXEMPTION such payment for quality Irish content. Section 103 of the Irish Copyright and Related Rights Act 2000 The current situation means that Irish broadcasters add (the “Copyright Act”) permits cable operators based in Ireland considerable value to the offering of cable companies without to retransmit works (including audio-visual works) protected by receiving any recompense. Irish license fee payers are effectively copyright that are broadcast in the State and the “must-carry” subsidising the offering of cable companies. channels without obtaining permission from the copyright holders or paying retransmission fees. Section 103 should be changed PRINCIPLES ON WHICH THESE POLICIES ARE BASED so that copyright is preserved in these works when they are CABLE COPYRIGHT EXEMPTION transmitted by a cable company based in Ireland. Breach of EU Copyright Law Obligations This section of the copyright act, also known as the “Cable The continued existence of Section 103 of the Irish Copyright Act Copyright Exemption”, was introduced for two main reasons. First, runs contrary to Ireland’s legal obligations concerning copyright it was believed that the legislation would encourage the rollout of exceptions under the European Information Society Directive more cable services. Secondly, at the time the only cable company 2000, which, as a “maximum harmonisation” instrument, limits EU operating in Ireland was Cablelink. Cablelink was owned by RTÉ Member States’ power to legislate further than what is provided for so to avoid what could have been perceived as “double dipping” in that instrument. it was felt they should be exempt from copyright clearance of Irish broadcasts. As Irish broadcasters (RTÉ, TG4 & TV3) and Irish Articles 5.2 and 5.3 of the Information Society Directive (or independent production companies are copyright owners of much “Infosoc” Directive as it is commonly referred) set out a detailed of what is broadcast from within the State their rights are being and exhaustive list of copyright exceptions that EU Member States restricted by virtue of the exemption and they are losing revenue may choose to implement in to national law. Retransmission by rightfully due to them. cable is not specifically listed among these exceptions nor can it be interpreted to be included within the scope of other exceptions The current law confers an unfair economic advantage on the cable listed and so the S103 cable exception is therefore unlawful and companies operating in Ireland at the expense of Irish independent without a legitimate legal basis. producers and broadcasters. Cable companies operating in other European countries must obey local copyright law. This puts Irish The companies that have suffered the most from this unlawful broadcasters and Irish producers at a disadvantage compared to copyright exception are Irish independent production companies their European counterparts. and Irish broadcasters (RTÉ, TG4 & TV3). Predominantly, they are the copyright holders in these broadcasts and Ireland is the largest Any rationale underpinning the continued existence of Section 103 market for quality, culturally Irish content. Depriving Irish rights of the Irish Copyright and Related Rights Act 2000 is no longer holders of a valuable source of remuneration in such a manner relevant. In fact, it may never have been lawful in the first place on is harmful to its continued creation and the Irish broadcasting the grounds that it seems to violate European Union law. industry in general.
PAGE 42 SCREEN PRODUCERS IRELAND | 2016 ANNUAL REPORT Were Section 103 of the Copyright Act deemed to be inconsistent in an intelligible form by members of the public on the whole of or with Ireland’s EU law obligations the State would be required to in part of the State. used by a significant number of end users as make good on the lost profits of rights holders. their principal means of receiving transmissions of programme material. Breach of EU State Aid Rules For the past fifteen years Section 103 of the Irish Copyright Act (12) RTÉ, TG4 and the television service programme contractor has acted as a de facto State Aid to large non-Irish cable shall ensure that their must-offer services are at all times offered companies based in Ireland instituted by the Irish legislature for broadcast or re-transmission (subject to agreement as to fair, but financed by Irish rights holders. reasonable and non-discriminatory terms of use and payment) by means of every satellite television service. It could be argued that State Aid of this type is illegal as it would seem to be contrary to the Treaties Establishing the European These amendments address the issue that the must offer obligation Union. State Aid in the EU may generally only be granted on which is currently expressed in the 2009 Broadcasting Act can be the basis of cultural grounds or on the basis of research and read as requiring Irish channels to make their free to air television development after having received approval by the European services available to a wide range of platforms with no return or Commission. Alternatively the General Block Exemption Regulation consideration for the content being made. The Act as currently (GBER) is a piece of EU legislation designed to specify further expressed can be read as requiring RTÉ, TG4 and TV3 to make exceptions to this rule and which absolves local governments of their free to air TV services available to a wide range of networks the requirement to notify State Aid to the European Commission with no return being made to the broadcasters. This puts Irish immediately though ultimately any state aid scheme must be channels at a disadvantage when compared to their European approved and ratified by the European Commission. broadcast counterparts who often receive significant remuneration from platforms for their content. It is not equitable and does not We are unaware if Section 103 has received approval in this manner represent good value for money for Irish license fee payers. though if it was found to be inconsistent with the rules governing State Aid in the EU any beneficiaries of the scheme may be required to pay back what they have earned as a result of the unfair market advantages accruing to them (e.g. lost licensing costs) since its introduction.
It is important that section 103 of the Irish Copyright and Related Act 2000 is amended for the benefit of rights holders and to mitigate any risk to the State that the exemption gives rise to. Personal Video Recording Devices Section 101 of the Irish Copyright and Related Rights Act 2000 should also be changed so that copyright is preserved in programmes recorded and stored by cable operators for use by customers on their Personal Video Recorders (PVR’s). Section 101 of the Act currently permits cable operators to provide a commercially valuable service without compensation to the copyright holder.
CABLE RE-TRANSMISSION The Broadcasting Act On a similar note SPI advocates that the introduction of the words “and payment” to Section 77 (11) & (12) of the Broadcasting Act 2009 would further empower Irish broadcasters and rights holders. These changes would read as follows:
(11) Without prejudice to the requirements imposed under sub- section (4), RTÉ, TG4 and the television service programme contractor shall ensure that their must-offer services are at all times offered for re-transmission (subject to agreement as to fair, reasonable and non-discriminatory terms of use and payment) by means of any appropriate network that is available for reception
SCREEN PRODUCERS IRELAND | 2016 ANNUAL REPORT PAGE 43
SPI STRATEGIC PLAN 2017-2020
Our business is to serve the needs of independent film, television, animation and digital producers operating in Ireland.
September 2016
MOBILISING A VISION FOR THE AV SECTOR SPI STRATEGIC PLAN 2017-2020
FOREWORD MISSION/PURPOSE
Screen Producers Ireland (SPI) is the national representative Outward facing, inclusive membership organisation of independent film, television and animation production companies. SPI promotes the growth and sustainability organisation providing leadership through of a working environment conducive to a strong independent policy formation, driving sustainable production sector for its members and the Audio Visual industry as a whole. We address the needs of the sector and, using our enterprise and growth strategies so that knowledge and expertise, we aim to deliver a strong and production companies can thrive to provide sustainable position for Irish screen production companies. We are focused on shaping an independent production sector that high value employment and preserve Ireland’s is comparable to best international standards. We encourage State rich cultural heritage through the creation of organisations charged with developing the industry to put in place development plans and policies for the sector that will maximise high quality content. its potential
The creative industries are one of Irelands great strengths. Irish made productions are enjoyed by audiences around the world. They enhance our reputation, provide high value employment and VISION attract tourism to Ireland. The sector is facing many challenges because of increased complexity of the competitive environment. Technology advancements, changes in audience behaviours, lack To be a strong, respected and trusted of adequate funding of Public Broadcasting and our national screen national representative organisation driving agency together with unfair or antiquated regulation. Irish Government support and the European Commission’s Digital Single sustainable growth strategies that position Market Strategy are important for the screen based creative industries to thrive and develop. Ireland as a centre for IP creation and content creation comparable to best international Our future success is based on renewing and adapting to the ever-changing needs of members, acting as the effective voice standard. for screen producers in Ireland and focusing on achieving best international standards within and across the sector.
Our Strategic Plan address the key challenges that lie ahead. VALUES As Chairman I am focused on and committed to maintaining the momentum and delivering value to members through the Board of SPI and our Executive team. With the support of member To be an organisation focused on member’s companies, we believe we are well placed to deliver our ambition and continued growth in the sector. needs by being collaborative, open, informed As Chairman, I am confident that our creative industries will and flexible to the sector’s needs. continue to make the people of Ireland and global audiences proud in leading the world in the fields of innovation, creativity Leading Expert and art if given the right supports. Respected Accountable
John Hennessy Effective Chairman August 2016
PAGE 46 SCREEN PRODUCERS IRELAND | 2016 ANNUAL REPORT STRATEGIC OBJECTIVES • Establish the case for the early extension and improvement of the film and television tax incentive Section 481. Our vision of the future shall be driven by five strategic objectives • Establish the case to position Ireland as a centre for IP which encapsulate and recognise the challenges that lie ahead. creation and marketing our product to a global market. • Explore additional opportunities for producers including unlocking the value in independent producers’ archive. 1 Establish SPI as a Thought Leader in the AV Sector 2 Position SPI as an Inclusive Communicator for the Sector Establish SPI as a leader organisation through the development of campaigns and a research and policy Develop an inclusive communication plan to position SPI as framework. a leading voice for the sector. Actions 2 Position SPI as the Voice for the Sector • Build links with global media players Like Google and Develop an inclusive communication plan to position SPI Facebook based in Ireland. as the leading voice of the sector. • Establish a communication plan to raise SPI’s profile and brand recognition. 3 Establish SPI as a trusted National Representative • Identify policy synergies with stakeholders and actively Organisation by members and stakeholders communicate. Expand SPI’s reach by seeking to include all independent • Establish and communicate the benefits of the AV sector production companies operating in Ireland and increasing including economic, cultural and tourism benefits. membership numbers. • Establish a sustainable method to effectively communicate with affiliate organisations. 4 Provide Membership Services • Establish and communicate the case for what is required to Position SPI as an organisation which adds value to member be done at a European level to level the playing field and drive companies through policy development and provision of growth of the AV sector in Ireland. services. • Build on links with other European producer associations and identify common goals. 5 Develop a Sustainable Business Model to deliver the Strategic Objectives. 3 Establish SPI’s as a trusted National Representative Develop a sustainable SPI business model. Organisation by members and stakeholders Expand SPI’s reach by seeking to include all independent 1 Establish SPI as a Thought Leader in the AV Sector production companies operating in Ireland and increasing Establish SPI as a leader organisation through campaigns membership numbers. and the development of a research and policy framework. Actions Actions • Expand SPI’s representative function by developing a • Establish a Vision for the audiovisual sector through sustainable marketing plan to attract production companies stakeholder collaboration which will lead to a long term working in all genres including: growth plan for the sector and become the bridge to – Regional/Irish Language broadening the sector's base. – Television • Establish appropriate policy positions including a Creative – Film Industries Policy and communicate these to stakeholders. – Animation – Digital • Increase Government awareness of the challenges facing • Identify affiliate organisations to expand SPI’s reach the sector, the type of Government support needed and the including regulators, Guilds and other relevant representative evidence to back it up. organisations. • Ensure the creation and maintenance of a repository of sectoral data, ensure method and accuracy of data integrity and relevance.
SCREEN PRODUCERS IRELAND | 2016 ANNUAL REPORT PAGE 47 SPI STRATEGIC PLAN 2017-2020
4 Provide Membership Services Position SPI as an organisation which adds value to member companies through policy development and provision of services to include:
Actions • Develop a more collaborative and information sharing interaction between members through membership mentoring and other programs. • Establishing the case for the creation and retention of IP and content ownership. • Arranging member Events which seek to add value to member companies and provide useful networking opportunities. • Maintaining an up to date accessible Resource Library to include template contracts and Guides to Child Protection, Visas, Human Relations and other valuable information. • Negotiating and monitoring Codes of Fair Trading Practice. • Responding to all relevant industry Consultations. • Dealing with Members’ Queries. • Maintaining the SPI Membership Directory.
5 Develop a Sustainable Business Model to deliver the Strategic Objectives. Actions • Review the SPI Business model to expand it’s capability. • Increase the income of the organisation. • Increase staff numbers to provide for research capabilities. • Explore strategic alliances to provide cost savings.
PAGE 48 SCREEN PRODUCERS IRELAND | 2016 ANNUAL REPORT SPI OVERVIEW
FILM AND TELEVISION PRODUCTION, A VALUABLE CULTURAL EXPORT SPI OVERVIEW
Screen Producers Ireland (SPI) is the representative organisation SCREEN PRODUCERS IRELAND MISSION for independent production companies operating in Ireland in Outward facing, inclusive membership organisation providing the film and television industry. As a membership organisation leadership through policy formation, driving sustainable enterprise we promote growth and sustainability of a working environment and growth strategies so that production companies can thrive to conducive to a strong independent production sector. It is our provide high value employment and preserve Ireland’s rich cultural duty to be the most effective voice of independent film, television, heritage through the creation of high quality content. animation and digital producers in Ireland. We address the needs of the sector and using our knowledge and expertise we aim to deliver a strong and sustainable position for Irish production companies. We are focused on shaping an independent production SCREEN PRODUCERS IRELAND sector that is comparable to best international standards. STRATEGIC OBJECTIVES Our vision of the future shall be driven by five strategic objectives We encourage state organisations charged with developing the which encapsulate and recognise the challenges that lie ahead. industry to put in place development plans and policies for the sector to maximise potential. We support the continuance of the 1 Establish SPI as Thought Leaders in the AV Sector Irish film and television production tax incentive, Section 481. Establish SPI as a leader organisation through the We identify potential improvements to the scheme and pursue development of campaigns and a research and policy Government to deliver on stated commitments. We work to ensure framework. that independent producers are provided with fair regulation across all broadcasting platforms. 2 Position SPI as the Voice for the Sector We communicate and negotiate with industry stakeholders Develop an inclusive communication plan to position SPI as including broadcasters, The Irish Film Board, The Broadcasting the leading voice of the sector. Authority of Ireland, Enterprise Ireland, Government Departments and other relevant Irish and international organisations. 3 Establish SPI as a trusted National Representative We develop good communications with relevant unions Organisation by members and stakeholders representing employees in Film & TV Drama, to deliver effective Expand SPI’s reach by seeking to include all independent and competitive collective agreements. production companies operating in Ireland and increasing membership numbers. We host a broad range of industry seminars and events for members on current issues. 4 Provide Membership Services Position SPI as an organisation which adds value to member companies through policy development and provision of services.
5 Develop a Sustainable Business Model to deliver the Strategic Objectives. Develop a sustainable SPI business model.
The strategic objectives of SPI are driven by the needs of the sector and contained within the strategic plan 2017-2020.
PAGE 50 SCREEN PRODUCERS IRELAND | 2016 ANNUAL REPORT SPI BOARD 2016
IRISH STORIES REACH A GLOBALLY CONNECTED AUDIENCE SPI BOARD 2016
BOARD MEMBERS AT 31st DECEMBER 2016 NAME COMPANY Screen Producers Ireland John Hennessy (Independent Chairman) Naoise Barry Pinewood Productions Ireland is governed by an elected Larry Bass Shinawil Maggie Breathnach Red Shoe Productions Board of Directors which Mark Byrne Element Pictures Bernadine Carraher Mind The Gap includes some of Ireland’s Paddy Hayes Magamedia Irial Mac Murchú Nemeton most prominent producers. Stephen Rooke Tile Films Stuart Switzer Coco Television Paul Timpson Studio TM
OVERVIEW OF RESPONSIBILITIES • Keeping an overview of direction and progress Basic principles • Protecting Assets Board members have legal and ethical responsibilities both • Ensuring Accountability as individual Directors and as a collective Board. These • Fulfilling Legal Obligations responsibilities apply to those persons formally registered as Directors with the Companies Registration Office and to ‘de facto’ The Board must also ensure that the organisation complies directors (those, if any, who act as if they are Directors). Board with other statutory and regulatory requirements, such as data decisions can only be made collectively. protection, employment, equality, health, safety and welfare and tax legislation. It must satisfy itself that appropriate policies, The overarching responsibility is that of managing, on an ongoing procedures and practices are in place in relation to these. basis, any strategic, operational, financial and reputational risks to which the organisation may be exposed. There were five meetings of the SPI board held in 2016 including the AGM which was held in June.
SPI Board Attendance 2016 Naoise Barry Larry Bass Maggie Breathnach Mark Byrne Bernadine Carraher David Collins Paddy Hayes James FLynn John Hennessey Jackie Larkin Liam Lavelle Irial Mac Murchú Stephen Rooke Stuart Switzer Paul Timpson
Meeting Dates 2016 April 15th June 23rd SPI AGM September 21st November 8th December 8th Total Board Meetings 3 5 3 5 5 2 3 2 5 2 2 5 5 5 3 Total Attended 2 3 3 5 3 1 2 1 5 1 2 4 5 5 2 No of Meetings missed 1 2 0 0 2 1 1 1 0 1 0 1 0 0 1
In attendance In Absentattendance AbsentNot on the Board Not on the Board
PAGE 52 SCREEN PRODUCERS IRELAND | 2016 ANNUAL REPORT
SPI BOARD 2016
John Hennessy (Independent Chairman) In addition to his role as Chairman of Screen Producers Ireland, John Hennessy is former chairman of the Higher Education Authority (HEA) and has more than 40 years’ experience in the telecommunication industry, holding senior International positions across Swedish multi- national, L M Ericsson Ltd. John was Head of Ericsson UK Operations 2001 to 2004, Managing Director of Ericsson Ireland from 2003 to 2010 and Chairman of the board 2010 to 2013. John has been a member of various Government advisory boards and a member of the governing body of Irish Business and Employer Confederation (IBEC). John was also a board member of the Labour Relations Commission (LRC) from 2007 and Chair of the Audit committee until it was replaced by the WRC in October 2015. John is currently Chairman and board member of Killarney Telecommunications Limited and advisor to several start-up companies in Ireland. Board Member since: 2014 John, an electronic Engineer, holds an MSc in Management, is Chartered Director and a Fellow of the Irish Academy of Engineering.
Naoise Barry Pinewood Productions Ireland Naoise Barry joined Pinewood Productions Ireland in 2015 as Head of Production. The company recently completed principle photography on STAR WARS: THE LAST JEDI, at locations along the Wild Atlantic Way. Prior to joining the Pinewood Group, Naoise spent 14 years at the Irish Film Board, and in his role as Film Commissioner, co-financed international productions, including THE TUDORS, VIKINGS, PENNY DREADFUL, and RIPPER STREET through the IFBs International Production Fund, and attracted a wide range of projects to film on location in Ireland, including LOVE & FRIENDSHIP, STAR WARS: THE FORCE AWAKENS, MRS BROWNS BOYS THE MOVIE, MOONE BOY, and Oscar Nominated ALBERT NOBBS. Naoise sits on the Board of Screen Producers Ireland, and is a member of SPIs Film & TV Drama Committee. He also sits on the IFBs S481 Policy Steering Group.
Board Member since: 2016
Larry Bass ShinAwil Larry established ShinAwiL Productions Ltd. In 1999 and has Executive Produced the Irish versions of the multi award winning series’, The Apprentice that won 2 Irish Film and Television Awards, Dragons’ Den, MasterChef Ireland and most recently the hugely successful Dancing with The Stars. Other recent productions include Home of the Year, What are you Eating?,. Previous credits include Popstars, You’re A Star, Fame The Musical, The Voice of Ireland,Tested on Humans, Along Home Shores and The Obesity Clinic. The ShinAwiL development team is currently in development on original series’ for the Irish, UK and USA market, both scripted and non-scripted. In 2000, Larry was elected to the National Executive of SPI and has served as both Deputy Chairman and Chairman between 2003 and 2005. He was reelected to the board in 2015. He also was the Irish member of CEPI from 2003 to 2006. An advisory board member of FÁS Screen Board member since: 2015 Training Ireland and Entertainment Masterclass, Larry also sat on a jury for the International Emmys, Rose d’Or, BANFF and Real Screen Television Awards. Larry served on the Board of the B.A.I. from 2010 to 2015
PAGE 54 SCREEN PRODUCERS IRELAND | 2016 ANNUAL REPORT Maggie Breathnach Red Shoe Productions Maggie is an award-winning producer and Director of Red Shoe Productions and Board member with SPI since 2016. Maggie is an enduring and committed programme-maker, producing and researching programmes for over eighteen years. She continues to work on the development of various series for the international and Irish markets.
Maggie’s production credits include House of Art – Oireachtas TV, TG4’s flagship Arts and Cultural Affairs Series Imeall, Seamus Heaney Postscript, Ceol Ar An Imeall, Gradam Ceoil 2015 – 2017, Feirm TG4 2014, Mo Mhoirchóir Féin – A Prayer RTÉ Dance on the Box Short Film
Awards include Winner of Best Factual Programme Imeall – Seamus Heaney Postscript - IFTA 2014 Board Member since: 2016 Winner Best Short Documentary at Sky Road Film Festival Imeall Seamus Heaney Postscript – 2014 Winner Television Series of the Year Imeall – Oireachtas Media Award 2013 Nominated for TV Moment of the Year Imeall – IFTA 2012 Joint Audience Award New York Irish Film Festival - Mo Mhóirchoir Féin – x Prayer 2010 Produced by Maggie Breathanch / Directed Dearbhla Walsh
Mark Byrne Element Pictures Mark Byrne has been Head of Business Affairs at Element Pictures since 2012. Recent productions include Lenny Abrahamson’s Academy Award® and Golden Globe® winning Room, The Lobster, winner of the Jury Prize at Cannes 2015. Upcoming productions include Lanthimos’ next feature The Killing of a Sacred Deer and Sebastián Lelio’s Disobedience as well as The Favourite also directed by Lanthimos. Prior to joining Element Pictures, Mark spent 6 years with Bord Scannán na hÉireann/the Irish Film Board, initially as Business & Legal Executive and later as Head of Legal Affairs. In 2006 Mark was co-producer of the IFTA award winning film "Middletown" starring Matthew MacFadyen. Mark is a former board member of the Irish Film Institute and Filmbase and is an alumni of “Inside Pictures”, the film business training and leadership skills development programme created by Qwerty Films and run by the National Film Board Member since: 2014 & Television School in the UK. Mark is also a member of the European Film Academy.
Bernadine Carraher Mind The Gap Films A Science and Business graduate, Bernadine has been operating at Executive and Board level for the past 25 years in the Irish Television industry for corporate, independent and public clients. She has been hands-on across the full gamut of business practice, project/ business financing, production, operational and human capital development of the TV industry, including studio/outside broadcast and complex multi-camera projects, both nationally and internationally. With an incessant focus on delivery, Mind The Gap Films Ltd, has created, developed and produced some of the most memorable independent sector productions for public and private TV networks in Ireland, the UK and the USA. Our latest production, Brendan O’Connor’s Cutting Edge has stormed the schedules and will be returning in the Autumn. We are currently producing Lords & Ladles Series 3 for RTÉ, funded through Section 481 and the BAI Board Member since: 2014 and we are in pre-production on our next major music special for PBS in the US and another two series for Irish TV in 2018..
SCREEN PRODUCERS IRELAND | 2016 ANNUAL REPORT PAGE 55 SPI BOARD 2016
Paddy Hayes Magamedia Paddy is the principal of Magamedia, producers of a catalogue of award-winning TV dramas and documentaries over the past ten years. He is currently a director of the Galway Film Centre and the Media Antenna and he has been selected as the Irish representative on the EAVE European producers’ workshop, 2017. Paddy’s most recent drama EIPIC, was described by the Irish Times as 'one of the best things on Irish TV' and the second season of his award-scooping Corp + Anam received glowing acclaim in 2015. The short film Rúbaí premiered at the Tribeca Film Festival and has scooped nine short film awards internationally since. Most recent documentary credits include Páidí Ó Sé which won the 2015 Celtic Media Festival Spirit Award and an IFTA in 2014. Other documentary productions include Ceolchuairt and Am an Ghátair, both recent IFTA recipients and The Hood & the Collar, Best Short Board member since: 2016 Documentary at the Galway Film Fleadh, 2013. Prior to becoming an Indie, Hayes previously worked with the Irish Film Board and he is the author of 'Breakout', the story of Famous Irish Prison Escapes for the O'Brien Press.
Irial Mac Murchú Nemeton TV Irial Mac Murchú founded Nemeton in 1993 and from small beginnings, the company now employs 50 people. Nemeton specialises in sports productions for which it has won numerous awards and is TG4’s main supplier of its sports coverage. Other clients include RTÉ, Sky Sports, BBC & Channel 7 (Australia). The company recently secured a contract for a major photography web tv company in New York, Adorama TV. Other credits include documentaries: Na Chéad Fight Clubs, Kennedy's Cadets, KLM 607E and The Brothers while sports credits include GAA Beo, Rugbaí Beo, GAA@125 and Laochra Gael. Nemeton also runs a post-graduate Higher Diploma in Television Production (in partnership with Waterford Institute of Technology and Údarás na Gaeltachta) which has been hugely successful throughout the industry supplying graduates in genres such as film, documentaries, Board member since: 2012 web tv and digital marketing.
Stephen Rooke Tile Films Stephen Rooke founded Tile Films Ltd. in 1989. M.D. of the company, over the last thirty years Stephen has gained a reputation as one of Ireland's leading documentary / factual filmmakers. He has directed, produced, executive produced over 200 film and television productions, including drama, docu-drama, documentaties and factual. Stephen's work has featured at film festivals around the world, and broadcasted to over 40 channels internationally, including S4C, BBC, ZDF, SVT, YLE, Channel 4, Smithsonian Channel, Discovery, National Geographic, PBS, History, France 5 and SBS Australia. Recent work includes: Aerial Ireland, Assassins, The Great Guide to the Future, Sacred Sites – Season 1, Wrecking The Rising, Seven Women, Waterloo’s Warriors, Death or Liberty, Paramedics and After Braveheart. Recent awards include the 2017 New York Festivals “Silver Medal” for Sacred Sites: Petra, 2016 World Media Festival “Gold Award”, for Waterloo’s Warriors, the 2015 Board member since: 2012 New York Festivals “Bronze Medal” for Sacred Sites: Ireland, the British Independent Film Festival’s “Best Film” award for Saving the Titanic in 2013 and the 2012 IFTA award for best documentary series with Waterways: The Royal Canal.
PAGE 56 SCREEN PRODUCERS IRELAND | 2016 ANNUAL REPORT Stuart Switzer Coco Television Stuart Switzer is a founding Director of COCO Television and Managing Director since 1998. COCO Television is one of Ireland's leading production companies, producing a wide range of programming for the Irish and International markets. Current productions include First Dates, Room to Improve, Don't Tell the Bride, the St Patrick’s Festival programming, Desperate Houses, The Irish Film and Drama Awards, My Big Day Home or Away. Awards/accolades include ‘Whose holiday is it Anyway’, winner of the European Format in Berlin 2014 and Traders winner of the 7th Orbit Prize at the Brussels International Fantastic Film Festival and the Audience Choice at the Belfast Film Festival. 1916, a 3 x 1 Hour International Documentary Series is an award winning international documentary series. An initiative of the Keough-Naughton Center for Irish Studies at the University of Notre Dame, 1916 will be seen Board member since: 2015 in more than 60 countries, viewed by 75 Million people by the end of 2016, and broadcast by in excess of 90% of US PBS stations. Eliza Lynch Queen of Paraguay premiered in Asuncio and selected to screen at numerous South American Festivals and at the London and Dublin Film Festivals.
Paul Timpson Studio TM Paul is an accomplished Computer graphics professional with over 17 years of experience spending many years working in the VFX and Animation industry in Australia, London and California for some of the most prestigious companies in the world. Early in his career he gained a solid foundation of Graphics fundamentals in companies such as Jim Hensons, Frametore and MPC on shows such as The Golden Compass and Harry Potter: The Order of the Phoenix. He later moved to the US, spending 4 years on productions for Dreamworks SKG (Shrek 4, Megamind, Puss in Boots). Paul has developed an eye for shot quality as well as gaining a grass roots insight into how a production pipeline hangs together effectively. Due to this rare mix of skills, he was chosen by Framestore to revamp the entire companies development programme. Paul specializes in high level VFX techniques and training consultation. He is also the Chair Board member since: 2016 of the Screen Producers Ireland Animation Committee.
SCREEN PRODUCERS IRELAND | 2016 ANNUAL REPORT PAGE 57 PAGE 58 SCREEN PRODUCERS IRELAND | 2016 ANNUAL REPORT SPI COMMITTEES
AV SECTOR IS IRELAND’S WINDOW TO A WORLDWIDE AUDIENCE SPI COMMITTEES COMMITTEES 2016
During 2016, SPI operated three standing committees and one Working Group. SPI FILM & TV DRAMA COMMITTEE 2016 SPI FACTUAL & ENTERTAINMENT COMMITTEE 2016 Committee Members at 31st December 2016 Committee Members at 31st December 2016
NAME COMPANY NAME COMPANY Naoise Barry Pinewood Productions Ireland Dhruba Banerjee Strike Films Johanna Hogan Parallel Films Productions Bernadine Carraher Mind The Gap Films David Collins Samson Films Nuala Cunningham New Decade TV & Film Paul Donovan Deadpan Pictures Cormac Hargaden Loosehorse Television James Fylnn Metropolitan Films Daniel Hegarty Marmalade Films Andrew Freedman Venom Films Mike Keane Midas Productions Macdara Kelleher Fastnet Films Peter Kelly Esras Andrew Lowe Element Films Billy McGrath Sideline Productions Des Martin Freelance Anne McLoughlin Motive Television Tristan Orpen Lynch Subotica Films Stephen Rooke Tile Films Shane Tobin Square One Productions The committee met 5 times during 2016. The committee met 3 times in 2016. Priorities of the committee: • Ensuring stakeholders charged with developing policies to Priorities for the committee: support the film & TV drama sector are adequately funded and • The Committee will work to amplify the voice of the factual informed on all key issues. and entertainment programme sector with the objective of increasing factual and entertainment output across Irish • Ensuring Ireland’s production tax incentive remains channels. internationally competitive for film & TV drama. • The Committee will highlight the importance of the factual and • Ensuring Ireland’s Film & TV drama employee relations entertainment genres. environment is internationally competitive. • The Committee will seek to promote greater awareness of the existence and benefits of independent production sector. SPI ANIMATION COMMITTEE 2016 • The Committee will assist producers to develop the skills Committee Members at 31st December 2016 required to achieve the international export potential of their programming. NAME COMPANY • The Committee will seek to collaborate with RTÉ to devise a set David Cummins Waddell Media of principles on competition between the independent sector Paul McGrath Whackala and the internal unit. Paul Timpson Studio TM Brian Willis Igloo Films • The Committee will encourage RTÉ to devise a dedicated strand or quota for factual programmes. The committee met 4 times during 2016.
Priorities for the committee: • Ensuring Ireland's production tax incentive remains internationally competitive for animation production. • Ensuring stakeholders charged with developing policies to support the animation sector are adequately funded and informed on all key issues
PAGE 60 SCREEN PRODUCERS IRELAND | 2016 ANNUAL REPORT SPI S481 WORKING GROUP 2016 Committee Members at 31st December 2016 NAME COMPANY Naoise Barry Pinewood Productions Ireland operating in practice. In 2017 the Working Group will focus on the James Flynn Octagon Films creation of an industry campaign to advocate for an extension of Jonathan Kelly Philip Lee Solicitors the S481 scheme beyond the sunset date of 2020. The Group will Andrew Lowe Element Pictures continue to consult with Revenue at an operational level to try and David Collins Samson Films ensure the industry is consulted in advance of any changes to S481 Revenue guidelines or policy. The Working Group met 3 times in 2016. Priorities for the working group: The Working Group was initially formed in 2014 to inform SPI’s view on the proposed amendments to the S481 scheme. The amended • To ensure the continuance of the S481 tax incentive in Ireland. S481 scheme was introduced in 2015. In 2016 the S481 Working • To ensure that competitiveness with international fiscal Group continued to meet to discuss how the amended scheme was incentives is maintained.
SCREEN PRODUCERS IRELAND | 2016 ANNUAL REPORT PAGE 61
SPI EXECUTIVE & CORPORATE STRUCTURE
IRISH PRODUCTION SHAPES THE STORY OF IRELAND SPI STRUCTURE EXECUTIVE & CORPORATE STRUCTURE
The Board is the legal employer of all SPI staff. The key employee The CEO reports to the Board and, within that context, has in terms of the Board is the CEO. All staff ultimately report to the an ongoing relationship with the Chairperson who represents CEO. The relationship between the CEO and the Board is pivotal the Board. The Chairperson, on behalf of the Board, provides advice and needs to be underpinned by a high level of mutual respect and and support to the CEO. The Chairperson acts on behalf of the trust. The CEO, who is directly accountable to the Board, manages Board to ensure that the CEO’s performance is appraised annually. the day-to-day running of the organisation, making management decisions that are in accordance with the agreed strategic, In 2016 there was a fulltime staff of 4 including the CEO. operational and annual plans and the direction provided by the Board. The CEO is responsible for operational matters.
THE BOARD OF DIRECTORS
Chairperson Company Secretary JOHN HENNESSY CAROLINE SKINNADER
CEO Committees & Working Groups BARBARA GALAVAN Film & TV Drama Section 481 Animation Factual & Entertainment
Accounts CAROLINE SKINNADER Communictions & Policy Manager JENNIFER KENNEALLY Office Manager LAURA G GRIFFIN
PAGE 64 SCREEN PRODUCERS IRELAND | 2016 ANNUAL REPORT SPI FINANCIALS
S481 INCREASES PRODUCTION ACTIVITY IN THE STATE
SCREEN PRODUCERS IRELAND | 2016 ANNUAL REPORT PAGE 65 Screen Producers Ireland CLG (A company limited by guarantee, without a share capital) INCOME AND EXPENDITURE ACCOUNT Incomefor the year & Expenditure ended 31 December Account 2016 For Year Ended 31 December 2016 2016 2015 Notes € €
Income 4 419,301 409,135
Expenditure (406,534) (406,418) ─────── ─────── Surplus on ordinary activities before interest 12,767 2,717
Interest receivable and similar income 6 380 1,002
Interest payable and similar charges 7 (69) (271) ─────── ─────── Total Comprehensive Income 13,078 3,448 ═══════ ═══════
The company has no recognised gains or losses other than the surplus for the year. The results for the year have been calculated on the historical cost basis. The company's income and expenses all relate to continuing operations.
Balance Sheet Screen Producers Ireland CLG As(A at company 31 December limited by 2016guarantee, without a share capital) BALANCE SHEET as at 31 December 2016 2016 2015 Notes € €
Fixed Assets
Tangible assets 9 6,686 8,909 ─────── ───────
Current Assets
Debtors 10 24,021 88,747
Cash and cash equivalents 224,234 163,216 ─────── ─────── 248,255 251,963 ─────── ───────
Creditors: Amounts falling due within one year 11 (70,287) (89,296) ─────── ───────
Net Current Assets 177,968 162,667 ─────── ───────
Total Assets less Current Liabilities 184,654 171,576 ═══════ ═══════
Reserves
Income and expenditure accountThe notes on pages 12 to 16 form part of the financial statements184,654 171,5768 ─────── ─────── Members' Funds 184,654 171,576 ═══════ ═══════
Approved by the board on 12 April 2017 and signed on its behalf by:
PAGE 66 SCREEN PRODUCERS IRELAND | 2016 ANNUAL REPORT Bernadine Carraher Stuart Switzer Director Director
The notes on pages 12 to 16 form part of the financial statements 9 Screen Producers Ireland CLG Cash Flow(A companyStatement limited by guarantee, without a share capital) For the YearCASH Ended FLOW 31st December STATEMENT 2016 for the year ended 31 December 2016
2016 2015 Notes € € Cash flows from operating activities Surplus for the year 13,078 3,448 Adjustments for: Interest receivable and similar income (380) (1,002) Interest payable and similar charges 69 271 Depreciation 2,223 3,625 Surplus/Deficit on disposal of tangible fixed assets - 2,400 ─────── ─────── 14,990 8,742 Movements in working capital: Movement in debtors 64,726 (47,628) Movement in creditors (18,503) 16,713 ─────── ─────── Cash generated from/(used in) operations 61,213 (22,173) ─────── ─────── Cash flows from investing activities Interest received 380 1,002 Interest element of finance lease rental payments (69) (271) Payments to acquire tangible fixed assets - (3,398) ─────── ─────── Net cash generated from/(used in) investment activities 311 (2,667) ─────── ─────── Cash flows from financing activities Capital element of finance lease contracts (506) (2,024) ─────── ───────
Net increase/(decrease) in cash and cash equivalents 61,018 (26,864) Cash and cash equivalents at beginning of financial year 163,216 190,080 ─────── ─────── Cash and cash equivalents at end of financial year 16 224,234 163,216 ═══════ ═══════
Screen Producers Ireland CLG Notes to(A the company Financial limited Statements by guarantee, without a share capital) continued For the YearNOTES Ended TO 31st THE December FINANCIAL 2016 STATEMENTS for the year ended 31 December 2016
4. INCOME
The income for the year has been derived from:- 2016 2015 € €
Membership 30,813 31,363 RTE Levy 200,000 200,000 TG4 Levy 31,744 31,744 Independent Production Levies 111,744 101,828 BAI Grant 15,000 14,200 Irish Film Board Grant 30,000 30,000 ─────── ─────── 419,301 409,135 ═══════ ═══════
The grant income received from the IFB was used to discharge the operational expenses of the company. The grant income received from the BAI was used to fund specific events and activities agreed with the BAI.
The whole of the company's income is attributable to its market in the Republic of Ireland and is derived from the principal activity of representing the interest of Irish independent film and television producers. 11
5. OPERATING SURPLUS 2016 2015 € € Operating surplus is stated after charging: Depreciation of tangible fixed assets 2,223 3,625 SCREEN PRODUCERSSurplus/(deficit) IRELAND | 2016 ANNUALon disposal REPORT of tangible fixed assets - 2,400 PAGE 67 Auditor's remuneration - audit of individual company accounts 4,305 4,305 ═══════ ═══════
6. INTEREST RECEIVABLE AND SIMILAR INCOME 2016 2015 € €
Bank interest 380 1,002 ═══════ ═══════
7. INTEREST PAYABLE AND SIMILAR CHARGES 2016 2015 € €
Finance lease charges 69 271 ═══════ ═══════
8. EMPLOYEES AND REMUNERATION
Number of employees The average number of persons employed (including executive directors) during the year was as follows:
2016 2015 Number Number
Adminstration 4 4 ═══════ ═══════
The staff costs comprise: 2016 2015 € €
Wages and salaries 228,841 242,869 Social welfare costs 24,855 26,172 ─────── ─────── 253,696 269,041 ═══════ ═══════ 14 Screen Producers Ireland CLG (A company limited by guarantee, without a share capital) NOTES TO THE FINANCIAL STATEMENTS continued for the year ended 31 December 2016
4. INCOME
The income for the year has been derived from:- 2016 2015 € €
Membership 30,813 31,363 RTE Levy 200,000 200,000 TG4 Levy 31,744 31,744 Independent Production Levies 111,744 101,828 BAI Grant 15,000 14,200 Irish Film Board Grant 30,000 30,000 ─────── ─────── 419,301 409,135 ═══════ ═══════
The grant income received from the IFB was used to discharge the operational expenses of the company. Notes to theThe Financial grant income Statements received from the BAI was used to fund specific events and activities agreed with the BAI. For the YearThe Ended whole 31st of the December company's income 2016 is attributable to its market in the Republic of Ireland and is derived from the principal activity of representing the interest of Irish independent film and television producers.
5. OPERATING SURPLUS 2016 2015 € € Operating surplus is stated after charging: Depreciation of tangible fixed assets 2,223 3,625 Surplus/(deficit) on disposal of tangible fixed assets - 2,400 Auditor's remuneration - audit of individual company accounts 4,305 4,305 ═══════ ═══════
6. INTEREST RECEIVABLE AND SIMILAR INCOME 2016 2015 € €
Bank interest 380 1,002 ═══════ ═══════
7. INTEREST PAYABLE AND SIMILAR CHARGES 2016 2015 € €
Finance lease charges 69 271 ═══════ ═══════
8. EMPLOYEES AND REMUNERATION
Number of employees The average number of persons employed (including executive directors) during the year was as follows:
2016 2015 Number Number
Adminstration 4 4 ═══════ ═══════
The staff costs comprise: 2016 2015 € €
Wages and salaries 228,841 242,869 ScreenSocial Producers welfare costs Ireland CLG 24,855 26,172 (A company limited by guarantee, without a share capital) ─────── ─────── NOTES TO THE FINANCIAL STATEMENTS 253,696 continued269,041 ═══════ ═══════ for the year ended 31 December 2016 14 9. TANGIBLE FIXED ASSETS Fixtures, Computer Total fittings and Equipment equipment € € € Cost or Valuation
At 31 December 2016 6,240 9,022 15,262 ─────── ─────── ─────── Depreciation At 1 January 2016 2,970 3,383 6,353 Charge for the year 949 1,274 2,223 ─────── ─────── ─────── At 31 December 2016 3,919 4,657 8,576 ─────── ─────── ─────── Net book value At 31 December 2016 2,321 4,365 6,686 ═══════ ═══════ ═══════ At 31 December 2015 3,270 5,639 8,909 ═══════ ═══════ ═══════
9.1. TANGIBLE FIXED ASSETS PRIOR YEAR Fixtures, Computer Total fittings and Equipment equipment € € € Cost or Valuation PAGE 68 At 1 January 2015 22,127 SCREEN68,248 PRODUCERS IRELAND90,375 | 2016 ANNUAL REPORT Additions - 3,398 3,398 Disposals (15,887) (62,624) (78,511) ─────── ─────── ─────── At 31 December 2015 6,240 9,022 15,262 ─────── ─────── ─────── Depreciation At 1 January 2015 13,902 64,937 78,839 Charge for the year 2,555 1,070 3,625 On disposals (13,487) (62,624) (76,111) ─────── ─────── ─────── At 31 December 2015 2,970 3,383 6,353 ─────── ─────── ─────── Net book value At 31 December 2015 3,270 5,639 8,909 ═══════ ═══════ ═══════ At 31 December 2014 8,225 3,311 11,536 ═══════ ═══════ ═══════
9.2. TANGIBLE FIXED ASSETS CONTINUED
Included above are assets held under finance leases or hire purchase contracts as follows:
2016 2015 Net Net book value book value € €
Fixtures, fittings and equipment 3,946 4,553 ═══════ ═══════
15 Screen Producers Ireland CLG (A company limited by guarantee, without a share capital) NOTES TO THE FINANCIAL STATEMENTS continued for the year ended 31 December 2016
9. TANGIBLE FIXED ASSETS Fixtures, Computer Total fittings and Equipment equipment € € € Cost or Valuation
At 31 December 2016 6,240 9,022 15,262 ─────── ─────── ─────── Depreciation At 1 January 2016 2,970 3,383 6,353 Charge for the year 949 1,274 2,223 ─────── ─────── ─────── At 31 December 2016 3,919 4,657 8,576 ─────── ─────── ─────── Net book value At 31 December 2016 2,321 4,365 6,686 ═══════ ═══════ ═══════ At 31 December 2015 3,270 5,639 8,909 ═══════ ═══════ ═══════
9.1. TANGIBLE FIXED ASSETS PRIOR YEAR Fixtures, Computer Total fittings and Equipment equipment € € € Cost or Valuation At 1 January 2015 22,127 68,248 90,375 Additions - 3,398 3,398 Disposals (15,887) (62,624) (78,511) ─────── ─────── ─────── At 31 December 2015 6,240 9,022 15,262 ─────── ─────── ─────── Depreciation At 1 January 2015 13,902 64,937 78,839 Charge for the year 2,555 1,070 3,625 On disposals (13,487) (62,624) (76,111) ─────── ─────── ─────── At 31 December 2015 2,970 3,383 6,353 ─────── ─────── ─────── Net book value At 31 December 2015 3,270 5,639 8,909 ═══════ ═══════ ═══════ At 31 December 2014 8,225 3,311 11,536 ═══════ ═══════ ═══════
9.2. TANGIBLE FIXED ASSETS CONTINUED
Included above are assets held under finance leases or hire purchase contracts as follows:
2016 2015 Net Net book value book value Screen Producers Ireland CLG € € (A company limited by guarantee, without a share capital) Fixtures, fittings and equipment 3,946 4,553 continued NOTES TO THE FINANCIAL STATEMENTS ═══════ ═══════ for the year ended 31 December 2016
10. DEBTORS 2016 2015 € €
Trade debtors 15,383 83,16415 Prepayments and accrued income 8,638 5,583 ─────── ─────── 24,021 88,747 ═══════ ═══════
11. CREDITORS 2016 2015 Amounts falling due within one year € €
Net obligations under finance leases and hire purchase contracts - 506 Trade creditors 7,083 15,215 Taxation and social welfare (Note 12) 7,377 13,826 Other creditors 192 264 Accruals 12,623 23,097 Deferred Income 43,012 36,388 ─────── ─────── 70,287 89,296 ═══════ ═══════
12. TAXATION AND SOCIAL WELFARE 2016 2015 € €
Creditors: PAYE 1,682 6,332 PRSI 1,495 3,294 Withholding tax 4,200 4,200 SCREEN PRODUCERS IRELAND | 2016 ANNUAL REPORT ─────── ─────── PAGE 69 7,377 13,826 ═══════ ═══════
13. STATUS
The company is limited by guarantee and does not have a share capital. The guarantee is limited to €1 each per member and continues for one year after individual membership ceases.
14. CAPITAL COMMITMENTS
The company had no material capital commitments at the year-ended 31 December 2016.
15. POST-BALANCE SHEET EVENTS
There have been no significant events affecting the company since the year-end.
16. CASH AND CASH EQUIVALENTS 2016 2015 € €
Cash and bank balances 224,234 163,216 ═══════ ═══════
17. APPROVAL OF FINANCIAL STATEMENTS
The financial statements were approved and authorised for issue by the board of directors on 12 April 2017.
16 Screen Producers Ireland CLG (A company limited by guarantee, without a share capital) NOTES TO THE FINANCIAL STATEMENTS continued for the year ended 31 December 2016
10. DEBTORS 2016 2015 € €
Trade debtors 15,383 83,164 Prepayments and accrued income 8,638 5,583 ─────── ─────── 24,021 88,747 ═══════ ═══════
11. CREDITORS 2016 2015 Amounts falling due within one year € €
Net obligations under finance leases and hire purchase contracts - 506 Trade creditors 7,083 15,215 Taxation and social welfare (Note 12) 7,377 13,826 Other creditors 192 264 Accruals 12,623 23,097 Deferred Income 43,012 36,388 ─────── ─────── 70,287 89,296 ═══════ ═══════
12. TAXATION AND SOCIAL WELFARE 2016 2015 € €
Creditors: PAYE 1,682 6,332 PRSI 1,495 3,294 Withholding tax 4,200 4,200 ─────── ─────── 7,377 13,826 ═══════ ═══════
13. STATUS
The company is limited by guarantee and does not have a share capital. The guarantee is limited to €1 each per member and continues for one year after individual membership ceases.
14. CAPITAL COMMITMENTS
The company had no material capital commitments at the year-ended 31 December 2016.
15. POST-BALANCE SHEET EVENTS
There have been no significant events affecting the company since the year-end.
16. CASH AND CASH EQUIVALENTS 2016 2015 € €
Cash and bank balances 224,234 163,216 ═══════ ═══════
17. APPROVAL OF FINANCIAL STATEMENTS
The financial statements were approved and authorised for issue by the board of directors on 12 April 2017.
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PAGE 70 SCREEN PRODUCERS IRELAND | 2016 ANNUAL REPORT SCREEN PRODUCERS IRELAND | 2016 ANNUAL REPORT PAGE 71 SUPPORT CONTACT DETAILS
PRINCIPAL OFFICE CONSULTANTS Screen Producers Ireland Crowe Horwath 77 Merrion Square Accountancy and Business Advisory Practice Dublin 2 Marine House Clanwilliam Court PRINCIPAL BANKERS Dublin 2 Bank Of Ireland Graphite HRM AUDITORS Employment Law Compliance Provider Block W O’Donovan Stewart & Company Ltd., East Point Business Park The Mews Dublin 3 10 Pembroke Place Dublin 2 Janet Hughes LEGAL FIRMS Industrial and Employee Relations Practitioner Beag Beg Philip Lee Solicitors Caherlistrane 7/8 Wilton Terrace County Galway Dublin 2
Mazars JMDL Corporate Consultants Limited Block 3, Harcourt Centre Company Secretarial & Corporate Governance Services Harcourt Road Chater House Dublin 2 5 Pembroke Row Dublin 2
Gareth Kyne IR / HR Consultant Oengus Lodge Newgrange Slane Co. Meath
Dermot O’Brien & Associates Specialist VAT & RCT Consultants Unit 3 Greenmount Office Park Harolds Cross Dublin 6W
PAGE 72 SCREEN PRODUCERS IRELAND | 2016 ANNUAL REPORT ANNUAL REPORT 2016
SCREEN PRODUCERS IRELAND 77 Merrion Square South Dublin 2, D02 DH22
Tel: (01) 662 1114 www.screenproducersireland.com Charity no: CHY14539
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