SPI Annual Report

CONTENTS

Report from the Chair ...... 2 Report from the Chief Executive Officer...... 3 Screen Producers Ireland Overview ...... 4 SPI Board 2014 ...... 5 Committees 2014 ...... 11 SPI Executive & Corporate Structure ...... 13 Industry Funding Overview ...... 15 SPI Financials ...... 23 SPI Progress Report ...... 29 SPI Events List 2014 ...... 32

1 | Page SCREEN PRODUCERS IRELAND | 2014 ANNUAL REPORT Report from the Chair

2014 was my first year as Chairman of Screen Producers Ireland. As Chairman my focus has been maintaining the momentum and progress of SPI in meeting its objectives and ensuring it is an outward facing representative organisation. SPI must be ready and empowered to respond to the variety of challenges that present themselves in promoting and advancing the development of the independent production sector in Ireland. In 2014, the board approved a renewed SPI Strategy Statement for the period 2014 – 2016. In the context of the publicity around Corporate Governance last year, the board commissioned a corporate governance review and published the first SPI Corporate Governance Manual.

Having a fiscal incentive for film and television production has been the bedrock of successive government strategies over the last 21 years. It is a policy that has been one of the main drivers to the expansion of activity levels and generation of significant inward investment for the sector. The knock-on effect of section 481 has been a ten- fold increase in full-time employment in those 21 years. Changes to the scheme were announced in 2013 and we were pleased that our efforts during 2014 were successful to ensure improvements to the scheme and the maintenance of the key component of the early payment mechanism was maintained.

SPI continued to build on our good relationships with stakeholders through meaningful engagement and events. One of the key objectives of our strategy is to position SPI to be able to influence State organisations charged with developing the industry, to maximise its potential. Devising robust and well researched policies is crucial to this end. In 2014 we worked to develop clear policies on the range of issues.

My focus in 2015 will be to ensure the SPI aims and policies are effectively communicated to Government and stakeholders. I want to thank the board for their contribution to the success of SPI last year and the clear leadership provided to the sector. I also want to thank those who served on the SPI committees and working groups who have been a great support to the work of the board in terms of appraising and evaluating the issues of importance and making recommendations. These activities have been foremost in ensuring that the domestic environment is conducive to growth of the independent production sector in Ireland.

John Hennessy Chairman

2 | Page SCREEN PRODUCERS IRELAND | 2014 ANNUAL REPORT Report from the Chief Executive Officer

In 2014 SPI continued its work as an advocate for independent producers and were able to deliver positive results for the sector despite ongoing difficult trading conditions for member companies. During 2014 we hosted thirteen events for members including briefings with RTÉ, TV3, SKY Arts and BAI Sound & Vision. At the direction of the board we completed a comprehensive corporate governance review and published the first SPI Corporate Governance Manual thereby improving procedures and transparency of our operations. We made changes to our internal IT systems which improved efficiencies and will provide cost savings going forward. We developed new SPI branding and a new website, creating tangible benefits for the membership. In 2014 and as a direct result of lobbying by SPI, RTÉ published its new Code of Fair Trading Practice and began to roll out contracts reflecting the fact that producers can now retain ownership of copyright in their productions. SPI held a number of information events in 2014 to inform members of this significant change in practice. In July the Revenue Commissioners published their e-briefing on the treatment for VAT purposes of independent commissions from RTÉ, TG4 and Sound & Vision fund grants. The e-brief brought clarity to a previous proposal from Revenue which threatened to reduce overall commissioning spend in the sector by €6.5M. We made urgent representations to the Revenue Commissioners, the Minister for Communications, Energy & Natural Resources and the Minister for Arts, Heritage and the Gaeltacht and the proposal was reversed. The subsequent Revenue e-briefing was welcomed by SPI and the sector as a whole. Early in 2014, SPI successfully defended a Labour Court case taken by SIPTU. The case sought to clarify the union's interpretation of the SPI/SIPTU Shooting Crew Agreement that all shooting crew had to be members of the union. This view was rejected and the Court clarified that membership of any union is a matter of choice for any individual. This was a welcome outcome for SPI. In 2013 the Government announced that legislative change would be made to Section 481 with effect from 2015. Principle amongst the amendments was a structural change from an investor led model offering up to 28% of eligible spend, to a corporation tax credit model. SPI were instrumental in lobbying for the increase in value to 32% of eligible spend. This ensures that Ireland remains internationally competitive for film and television production and maximises the benefit for indigenous production. We also played an integral role on the Section 481 Industry Technical Committee which was convened to advise Government on implementing the changes. As part of the Technical Committee, SPI successfully influenced positive change and outcomes for independent producers. The changes were approved by the Minister for Finance in December and signed into law in January 2015. S481 is fundamental to the production infrastructure in Ireland. The value of S481 projects certified has increased by approximately 25% year on year since 2011 indicating positive growth during what has been a difficult trading period for many other industries. The total value of S481 certified during 2014 was €231M. This represents an increase of 31% on the 2013 figure of €177M. This is a significant increase in the period, some of which may be accounted for by the change to the scheme between 2014 and 2015 and the fact that some projects certified in 2014 will not start principal photography until 2015. The biggest growth trend can be seen in TV Drama which experienced 195% increase in the value of S481 raised between 2011 and 2014. In the same period Animation grew by 22%, Documentary by 46% and Film by 48%. ( see pg 17 for full analysis).

In December we were pleased to host a consultation for SPI members with Crowe Horwath so that member’s views could be considered in the context of developing the Irish Film Board Strategy for the next 5 years.

Strong policy formation is the basis of our ability to drive change. In this regard, SPI is currently developing clear policies on issues of importance to the independent production sector. Communicating these policies to Government and the sector as a whole will help us become a stronger voice for independent producers.

I would like to thank the board of SPI, the committees and working groups for their support to the executive during 2014. Lastly, we are a small team at SPI and I would like to take this opportunity to thank the staff for all their hard work and commitment to the SPI agenda.

Barbara Galavan CEO

3 | Page SCREEN PRODUCERS IRELAND | 2014 ANNUAL REPORT Screen Producers Ireland Overview

Screen Producers Ireland (SPI) is the representative organisation for independent production companies operating in Ireland in the film and television industry. As a membership organisation we promote growth and sustainability of a working environment conducive to a strong independent production sector. It is our duty to be the most effective voice of independent film, television, 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 sector that is comparable to best international standards. We encourage state organisations charged with developing the industry to put in place development plans and policies for the sector to maximise potential. We support the continuance of the Irish film and television production tax incentive, Section 481. We identify potential improvements to the scheme and pursue Government to deliver on stated commitments. We work to ensure that independent producers are provided with fair regulation across all broadcasting platforms. We communicate and negotiate with industry stakeholders including broadcasters, The Irish Film Board, The Broadcasting Authority of Ireland, Enterprise Ireland, Government Departments and other relevant Irish and international organisations. We develop good communications with relevant unions representing employees in Film & TV Drama, to deliver effective and competitive collective agreements.

We host a broad range of industry seminars and events for members on current issues.

Screen Producers Ireland Mission Membership orientated, focused on shaping an economic and cultural environment that is conducive to the further development of a dynamic creative content production industry, comparable to best international standards.

Screen Producers Ireland Strategic Objectives Our vision of the future is driven by five strategic objectives which encapsulate and recognise the challenges that lie ahead.

1. Support a National Policy Framework

2. Develop a communication plan to position the organisation as the voice of the sector

3. Develop a Membership Framework

4. Align and integrate the TV, Film and TV Drama, Animation and Digital sector’s objectives to advise SPI direction

5. Develop a sustainable business model and align the organisation’s capability to deliver the strategic objectives.

4 | Page SCREEN PRODUCERS IRELAND | 2014 ANNUAL REPORT SPI Board 2014

Screen Producers Ireland is governed by an elected Board of Directors which includes some of Ireland’s most prominent producers.

NAME COMPANY Mark Byrne Element Pictures Bernadine Carraher Mind The Gap Films

David Collins Samson Films James Fly nn Octagon Films John Hennessy Independent Chairman

Andrew Kavanagh Kavaleer Jackie Larkin Newgrange Pictures Liam Lavelle Independent Pictures Irial MacMurchú Nemeton Philip McGovern Big Mountain Productions Stephen Rooke Tile Films

Overview of Responsibilities Basic principles Board members have legal and ethical responsibilities both as individual Directors and as a collective Board. These responsibilities apply to those persons formally registered as Directors with the Companies Registration Office and to ‘de facto’ directors (those, if any, who act as if they are Directors). Board decisions can only be made collectively.

A key overarching responsibility is that of managing, on an ongoing basis, any strategic, operational, financial and reputational risks to which the organisation may be exposed.

• Keeping an overview of direction and progress • Protecting Assets • Ensuring Accountability • Fulfilling Legal Obligations

The Board must also ensure that the organisation complies with other statutory and regulatory requirements, such as data protection, employment, equality, health, safety and welfare and tax legislation. It must satisfy itself that appropriate policies, procedures and practices are in place in relation to these. There were five meetings of the SPI board held in 2014 and the AGM was held in May. SPI BOARD ATTENDANCE 2014 Mark Byrne Bernadine Carraher CollinsDavid DonovanPaul James Flynn John Hennessy Andrew Kavanagh Jackie Larkin Liam Lavelle MacMurchúIrial McGovernPhilip NeillMartha O’ Stephen Rooke

MEETING DATES 2014 March 7th  April 30th  May 26th  May 29th AGM              September 17th            December 10th            Total Board Meetings 3 3 6 3 6 6 6 6 6 6 6 3 6 Total Attended 3 3 6 2 5 6 5 2 5 4 4 2 6 No of Meetings missed 0 0 0 1 1 0 1 4 1 2 2 1 0

In attendance  Absent  Not on the Board

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JOHN HENNESSY | CHAIRMAN

In addition to his role as Chairman of Screen Producers Ireland, John Hennessy is also 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, Ericsson. John was Managing Director of Ericsson Ireland from 2003 to 2010 and Chairman of the board until 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 is also a board member of the Labour Relations Commission (LRC), Chairman and board member of Killarney Telecommunications Limited and advisor to a number of start-up companies in Ireland. John holds an MSc and is Chartered Director.

Board Member since: 2014

MARK BYRNE | ELEMENT PICTURES

Mark Byrne has been Head of Business Affairs at Element Pictures since 2012. Recent productions include “Frank” directed by Lenny Abrahamson and starring Domhnall Gleeson, Maggie Gyllenhaal and Michael Fassbender and “The Lobster” directed by Yorgos Lanthimos starring Colin Farrell, Rachel Weisz and John C Reilly which won the Jury Prize at the 2015 Cannes Film Festival. 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 Board Member since: “Inside Pictures”, the film business training and leadership skills development 2014 programme created by Qwerty Films and run by the National Film & 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, Lords Board Member since: & Ladles, is a major series for RTÉ funded through Section 481 and the BAI and we are in pre-production on our next major music special for PBS in the US. 2014

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DAVID COLLINS| SAMSON FILMS/ ACCOMPLICE FILMS

David Collins runs Samson Films, one of Ireland’s leading independent film companies. Recent credits include Run and Jump (2013) Best Irish Feature at Film Fleadh and the film adaptation of John Banville’s Booker Prize winning novel The Sea (2013) starring Ciarán Hinds and Natacha McElhone, Coming Home (2014) which won Best Documentary at Galway Film Fleadh and other notable credits include the Oscar winning Once (2006) and the Television drama series Bachelor’s Walk and Pure Mule , both produced through Accomplice Television. Current projects in production in 2015 include The Truth Commissioner, Tiger Raid, and A Dark Song.

Board Member since: David is a board member of Screen Producers Ireland and a founding director of the 2006 Lighthouse Cinema in . He is also a member of the European Film Academy. Re-elected: 2009, 2012 Samson has recently been awarded slate funding from Creative Media for a portfolio of film and TV Projects

JAMES FLYNN | OCTAGON FILMS

James Flynn is an independent producer of feature films and television dramas and the principal of Octagon Films. He has produced a number of award-winning indigenous feature films including Nora by Pat Murphy, H3 by Les Blair and Inside I’m Dancing by Damien O’ Donnell. In addition to two Academy Award® nominated projects during 2010, The Door and The Secret of Kells, James’ recent production credits include As If I Am Not There, directed by Juanita Wilson, Ondine by Neil Jordan, Calvary by John Michael McDonagh and Love/Hate Series 1-5 by Stuart Carolan and David Caffrey. James is currently negotiating Board Member since: a U.S version of Love/Hate for cable television. 2008 James was Producer on all four series of The Tudors from 2006 to 2010. Re-elected: 2011,2013 During 2009 - 2013, James was the lead producer of The Borgias Series 1-3 which was written, created and directed by Neil Jordan and was shot in Budapest. James was also Executive Producer on Camelot for Starz Television written by Chris Chibnall and produced by Morgan O’Sullivan. He is an Executive Producer on Series 4 of Vikings, written by Michael Hirst for MGM and The History Channel, which is currently shooting in Wicklow and Dublin. He was Executive Producer on the first three series of Vikings. James was Irish co-producer on the first two series of John Logan’s Penny Dreadful which is lead produced by Neal Street Productions for Showtime. He is currently developing a number of feature film projects including Tomato Red based on the novel by Daniel Woodrell (author of Winter’s Bone), to be directed by Juanita Wilson and which will shoot in Canada in July 2015 and Stuart Carolan’s Skippy Dies based on the novel by Paul Murray.

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ANDREW KAVANAGH | KAVALEER PRODUCTIONS

Andrew began making films under the Kavaleer umbrella in 1998 and incorporated the company in 2001. His background spans fifteen years working at every level within the Irish animation sector, most recently, Andrew’s credits include writing, producing and directing several of Kavaleer’s key slate projects. In additional to his creative and development roles, he also co-manages Kavaleer’s corporate structure and direction of the company with partner Gary Timpson. Andrew’s films have been screened at hundreds of festivals worldwide and have won awards both at home and abroad including two IFTA nominations and four Digital Media Awards. His TV credentials include creator/executive producer credits for the internationally syndicated Garth & Board Member since: Bev (2009), Hasan Everywhere (2009) and the forthcoming show The Draculs . 2012 Wildernuts an animated series directed and written by Andrew was acquired by Re-elected: 2014 Toronto’s Tricon Films & Television. He was twice named on the ‘Forty Under 40’ list of outstanding entrepreneurs by the Sunday Tribune and Sunday Independent, counting him among “the keenest minds and shrewdest entrepreneurs on the block… the potential game-changers of the next decade.”

JACKIE LARKIN | NEWGRANGE PICTURES

Jackie Larkin is a highly experienced producer who has been involved in Ireland’s film and independent television industry for the past 18 years. Jackie is joint managing director of Newgrange Pictures a film company she formed in December 2003 and is currently developing a slate of feature film projects for the international market.

Jackie produced the feature film Kings, starring Colm Meaney. Kings which was Ireland’s first ever entry to the foreign language section of the Academy Awards is one of Ireland’s Board Member since: few bi-lingual films. Other credits include Call Girl (2012), Stella Days (2011) starring 2013 Martin Sheen and A Thousand Times Good Night (2013).

She is a member of ACE the European Association of Producers and graduated from the Media Business School in 2003. She is also a Board member of Screen Producers Ireland.

Element Pictures | Frank Mind the Gap Films | Domestic Divas Kavaleer Productions | Wildernuts

8 | Page SCREEN PRODUCERS IRELAND | 2014 ANNUAL REPORT

LIAM LAVELLE – INDEPENDENT PICTURES

Liam Lavelle works for Independent Pictures and has been in the business for over thirty years. He has produced a wide range of factual, magazine and lifestyle programming for RTÉ, TG4 and BBC NI. He is a former President of the Guild of Agricultural Journalists in Ireland, and an active member of UCD Marian Basketball Club.

Board Member since: 2007 Re-elected: 2010, 2013

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. Board Member since: 2012 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, web tv and digital marketing.

Newgrange Pictures | Independent Pictures | Nemeton TV | GAA Beo A Thousand Times Goodnight ––

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PHILIP MCGOVERN | BIG MOUNTAIN PRODUCTIONS

Philip McGovern along with Jane Kelly runs Big Mountain one of the most innovative content companies in Ireland, exporting worldwide. Philip is an Ex. RTÉ/BBC Executive Producer, working with industry icons such as Janet Street Porter, Lorraine Heggessey, Joe Mulholland and Cathal Goan - executive produced many large scale entertainment, event and popular factual series.

Credits include:

For RTÉ; Nighthawks, Tuesday File, Prime Time Investigates, For One Night only, Never The Same Again, Thou Shalt Not Kill, JMTV, Head To Toe and The Restaurant. Board Member since: 2012 For BBC; Bruce Goes Dancing, Alex Higgins, The show, All Square, What If, DEF 11.

Philip has been CEO of Big Mountain, now in its tenth year, building a portfolio of original fact/ent formats which have been tried and tested and then sold internationally, licensed in many territories and now being produced directly into the USA and UK.

Original series/formats include: Genealogy Roadshow (RTÉ & now in series 3 for PBS coast to coast), Casting for a new FYI reality series (A&E USA), Wild Ireland (ITV1), Addicts Orchestra (C4), Life in the Tenements (Tv3), Life in the Big House (Tv3), The Lost Village (RTÉ), CraftMaster (RTÉ). Music Mentoring/event titles include; JAM (6 seasons RTÉ), Opry (now in season 4 BBC/TG4) and iG (3 seasons BBC).

STEPHEN ROOKE | TILE FILMS

Stephen Rooke founded Tile Films Ltd. in 1989, after obtaining an Advanced Diploma in Media Production from Bournemouth Film School in the U.K. Stephen is Managing Director of the company and the leader of a vibrant production team that brings a mix of creative and production skills to the film-making process. Over the last twenty five years, Stephen has gained a reputation as one of Ireland's leading documentary/factual programme-makers. He has directed/produced/executive produced over 200 film and television documentaries, including five docu-drama feature films, fifteen docu-drama series, twenty documentary/factual series, six one-off documentaries as well as a television drama series. Stephen's film and television work has been seen at many film festivals and on over 40 channels throughout the world, including RTÉ, TG4, UTV, S4C, BBC, ZDF, SVT, YLE, Board Member since: Channel 4, Smithsonian Channel, Discovery, National Geographic, PBS, History, France 5 2012 and SBS Australia. Recent film work includes: Waterloo’s Warriors, Death or Liberty, Paramedics, Sacred Sites – Ireland, After Braveheart, The Lazy Chef, Saving the Titanic , Fighting Irish of the Civil War and Cromwell – God’s Executioner . In February 2012, Stephen won the Irish Film & Television Academy (IFTA) Award for best documentary series with Waterways – The Royal Canal . Other awards are for Saving the Titanic which include Best Feature-length Drama at the Celtic Media Festival, April 2013; best drama-doc at the New York Festivals, April 2013 and Best Feature Film at the British Independent Film Festival, May 2013. His most recent award is for Sacred Sites - Ireland which won a bronze award at the New York Festivals, April 2015

10 | Page SCREEN PRODUCERS IRELAND | 2014 ANNUAL REPORT Committees 2014

During 2014, SPI operated two standing committees and one Working Group.

SPI FILM & TV DRAMA COMMITTEE 2014

NAME COMPANY Ruth Carter Parallel Films David Collins Samson Films Paul Donovan Deadpan Pictures James Flynn Octagon Films Andrew Freedman Venom Films Macdara Kelleher Fastnet Films Andrew Lowe Element Pictures Des Martin Freelance Lesley McKimm Newgrange Pictures Chairperson Tristan Orpen Lynch Subotica Entertainment

The committee met 4 times during 2014

Priorities of the committee were:  Ensuring stakeholders charged with developing policies to support the film & TV drama sector are adequately funded and informed on all key issues.  Ensuring Ireland’s production tax incentive remains internationally competitive for film & TV drama.  Ensuring Ireland’s Film & TV drama employee relations environment is internationally competitive.

SPI ANIMATION COMMITTEE 2014

NAME COMPANY Deirdre Barry Monster Entertainment Andrew Kavanagh Kavaleer Productions Chairperson Paul McGrath Whackala Cliff Parrott Magpie 6 Media Michael Algar Keg Kartoonz Dale Robinson Treehouse Republic Gerry Shirren Cartoon Saloon

The committee met twice during 2014

Priorities for the committee were:  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

11 | Page SCREEN PRODUCERS IRELAND | 2014 ANNUAL REPORT

SPI S481 WORKING GROUP 2014

NAME COMPANY James Flynn Octagon Films Jonathan Kelly Philip Lee Solicitors Andrew Lowe Element Pictures

The Working Group met on ten occasions in 2014 . The Group also participated in three briefing seminars for SPI members and industry stakeholders held in March and October 2014.

Priorities for the working group were:  To ensure the continuance of the S481 tax incentive in Ireland  To ensure that competitiveness with international fiscal incentives is maintained

S481 is essential to Ireland’s production landscape

12 | Page SCREEN PRODUCERS IRELAND | 2014 ANNUAL REPORT SPI Executive & Corporate Structure

The Board is the legal employer of all SPI staff. The key employee in terms of the Board is the CEO. All staff ultimately report to the CEO. The relationship between the CEO and the Board is pivotal and needs to be underpinned by a high level of mutual respect and trust. The CEO, who is directly accountable to the Board, manages the day-to-day running of the organisation, making management decisions that are in accordance with the agreed strategic, operational and annual plans and the direction provided by the Board. The CEO is responsible for operational matters. The CEO reports to the Board and, within that context, has an ongoing relationship with the Chairperson who represents the Board. The Chairperson, on behalf of the Board, provides advice and support to the CEO. The Chairperson acts on behalf of the Board to ensure that the CEO’s performance is appraised annually.

THE BOARD OF DIRECTORS

CHAIRPERSON JOHN HENNESSY COMPANY SECRETARY

COMMITTEE & WORKING GROUPS 1 Film & TV Drama 1 S481 CEO BARBARA GALAVAN 2 Animation 2 Broadcast

MEMBERSHIP & BUSINESS AFFAIRS EXECUTIVE CATHERINE TIERNAN ACCOUNTS CAROLINE SKINNADER

OFFICE MANAGER SUZY MCMAHON

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Principle Office 77 Merrion Square, Dublin 2.

Principal Bankers Bank Of Ireland

Auditors O’Donovan Stewart & Company Ltd., The Mews, 10 Pembroke Place, Dublin 2.

Legal Firms Philip Lee Solicitors 7/8 Wilton Terrace, Dublin 2.

Mazars Block 3, Harcourt Centre, Harcourt Road, Dublin 2.

McInnes Dunne Employment Law Specialists 78 Merrion Square, Dublin 2.

Consultants 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.

Bob Semple Facilitator, Consultant 16 Cairn Hill, Foxrock, Dublin 18.

14 | Page SCREEN PRODUCERS IRELAND | 2014 ANNUAL REPORT Industry Funding Overview

RTÉ Trading conditions for production companies during 2014 remained challenging. In 2013, RTÉ ’s spend on independently produced programmes remained close to the statutory level of €40m (subject to CPI), bringing the net figure which RTÉ was required to spend down to €38.1m The actual expenditure committed to new commissioning activities arising during 2013 was €35.6m (excl. RTÉ attributable overhead) which resulted in 536 hours of programming produced by independent producers. It is estimated that the figures for 2014 will be similar when the RTÉ Independent Productions Annual Report for the year is published.

Screentime ShinAwil Parallel Films | Damo & Ivor Octagon Films | Love/Hate The Voice of Ireland RTÉ One | Top 30 Programmes | 2014

Programming made by Irish independent producers for RTÉ continues to rate very highly and consistently performs successfully across digital and social media platforms. In 2014, 3 of the top 10 and 7 of the top 20 rating programmes on RTÉ One were produced by Irish independent producers. The independent production sector in Ireland continues to deliver quality, diverse, innovative and cost-efficient programming for the national broadcaster. See further details in table below.

RTÉ One : 2014 Top 30 Programmes for All Individuals Any Day/Any Time/Best Episode/Ranked by TVR

Day of Position Programme Date STime (r) TVR 000s Share Week 1 28-11-2014 21:36 Fri 38.6 1593.5 71.9 Indigenous Irish 2 Love/Hate Episode 6 09-11-2014 21:30 Sun 27.9 1150.2 57.1 Independent Production 3 Amber Episode 4 22-01-2014 21:34 Wed 20.8 864.8 46.6 4 Mrs Brown's Boys: Mammy's Gamble 31-12-2014 22:16 Wed 20.3 837.7 49.7 In-House RTE Production 5 Live Final 07-09-2014 15:30 Sun 19.3 796.1 65.7 Mrs Brown's Boys Christmas Special: Mammy's Co-Production/ Enhanced 6 25-12-2014 21:59 Thu 19.1 788.3 39.7 Tickle Acquisition by RTE 7 RTE News: Nine O'clock 02-03-2014 21:00 Sun 17.5 728.0 40.2 8 The Voice Of Ireland 02-02-2014 18:32 Sun 16.9 701.9 41.2 Acquired Programme 9 The Late Late Show 28-02-2014 21:36 Fri 16.8 699.8 47.8 10 Rose Of Tralee 19-08-2014 21:36 Tue 16.8 697.2 47.3 11 Prime Time Inside Bungalow 3 09-12-2014 21:43 Tue 16.3 671.0 41.0 12 04-02-2014 20:04 Tue 16.2 673.3 40.7 13 RTE News: Six One 06-01-2014 18:01 Mon 16.1 670.1 48.5 14 ROG - The Ronan O'Gara Documentary 02-01-2014 21:29 Thu 16.0 664.5 38.3 15 Operation Transformation 04-02-2014 20:32 Tue 14.5 601.3 36.9 16 At Your Service 12-01-2014 20:32 Sun 13.6 566.2 29.5 17 New Years Eve Live 31-12-2014 22:54 Wed 13.2 544.3 40.3 18 Michaella Peru, And The Drugs Run 07-07-2014 21:34 Mon 13.1 543.0 36.8 19 RTE News (Late) 28-11-2014 24:01 Fri 13.1 540.6 48.7 20 Reeling In The Years 03-01-2014 18:33 Fri 12.8 532.6 39.7 21 The Fall 17-12-2014 21:35 Wed 12.6 521.1 34.8 22 The Santa Clause 2 20-12-2014 20:04 Sat 12.6 519.1 35.2 23 Mrs Brown's Boys 09-02-2014 21:28 Sun 12.4 516.8 30.4 24 EastEnders 11-02-2014 19:28 Tue 12.4 515.8 31.6 25 The Nolan's 10-02-2014 21:36 Mon 12.4 514.0 33.4 26 Up For The Match 20-09-2014 21:40 Sat 12.3 507.4 36.4 27 Quirke 16-02-2014 21:29 Sun 12.1 502.8 32.6 28 The Saturday Night Show 01-02-2014 22:08 Sat 12.0 500.4 34.3 29 Tony O'Reilly - The Real Deal 03-11-2014 21:38 Mon 11.9 492.8 33.7 30 Winning Streak 25-01-2014 20:39 Sat 11.7 488.2 31.3

* Source Nielsen/TAM Ireland consolidated: Any Day, Any time, Best Episode, Ranked by TVR, National Individuals 4+, Programme duration greater than 10 minutes, RTÉ only.

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BAI The Broadcasting Authority of Ireland distributes 7% of the value of license fee income annually through the Sound & Vision Fund . In 2014 the BAI awarded €10.5m to 61 television productions out of a total fund of €11.7m over three application rounds. The balance of €1.2m was awarded to 208 radio productions. In addition the BAI awarded €2.26m under Round 2 of the Archiving Scheme to ten organisations for a range of projects. The BAI received approval from the European Commission to extend the scheme to April 2016 with the intention of running a further two rounds of the Archiving Scheme in 2015 and 2016.

Mind the Gap Films | Lords & Ladles Tile Films | Waterloo’s Warriors Element Pictures | Red Rock

Summary S&V Rounds 20,21 & 22 # Projects Genre Award % Total TV 10 Drama€ 3,748,000 36% 29 Documentary€ 3,367,000 32% 6 Animation€ 1,228,457 12% 5 Entertainment€ 1,123,000 11% 11 Education€ 1,057,800 10%

TOTAL 61 € 10,524,257 100%

Summary S&V Rounds 20,21 & 22 # Projects Broadcaster Award % Total TV 16 TG4 € 3,135,100 30% 14 RTÉ € 2,932,000 28% 7 TV3 € 2,520,000 24% 14 CommunityTV € 587,557 6% 2 UTV Ireland € 445,000 4% 5 Setanta € 466,600 4% 2 BBCNI/CBBC € 395,000 4% 1 IrishTV € 43,000 0.4%

TOTAL 61 € 10,524,257 100%

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S481 Productions availing of Section 481 relief are the main contributors to production activity in the State. The value of S481 projects certified has increased by approximately 25% year on year since 2011. The total value of S481 certified in 2014 was €231m, the highest level of investment since the scheme was introduced, although some of the increase in 2014 may be accounted for by the change to the S481 scheme between 2014 and 2015 and some projects certified in 2014 will not start principal photography until 2015. The total number of S481 projects certified during 2014 was 67.

S481 is essential to Ireland’s production landscape; it is of huge benefit to indigenous productions across all genres, Irish co- productions and S481 gives independent producers leverage to attract large incoming productions into Ireland, creating high value industry jobs. The quality of the work being developed and produced in Ireland is at the highest international standard. TV Drama in particular has seen unprecedented growth in recent years.

Section 481 Projects Certified by Revenue Commissioners 2011 - 2014

2011 2012 2013 2014 No of S481 projects 57 52 67 67 S481 Projects Certified € 113,423,118 € 138,539,823 € 177,383,122 € 231,593,595

Animation Total € 31,982,729 € 32,127,088 € 44,942,020 € 39,104,231 Documentary Total € 4,853,720 € 3,797,207 € 2,717,403 € 7,108,573 Film Total € 33,231,456 € 29,243,763 € 35,856,614 € 49,221,388 TV Drama Total € 48,180,934 € 77,800,320 € 99,626,609 € 141,953,421

2011 - 2014 Growth of S481 Projects Certified by Genre 160.0

140.0

120.0

100.0

80.0 € million 60.0

40.0

20.0

0.0 Animation Documentary Film TV Drama 2011 32.0 4.9 33.2 48.2 2012 32.1 3.8 29.2 77.8 2013 44.9 2.7 35.9 99.6 2014 39.1 7.1 49.2 142.0

2011 2012 2013 2014

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Animation The analysis of the S481 figures for Animation highlights the increase in Incoming Animation production from 65% of the total animation S481 projects certified in 2011 to 87% in 2014. Indigenous Irish Animation has not followed the same trend as it decreased 57% from €11m in 2011 to €5m in 2014. Despite the decrease in Irish Animation expenditure, the number of projects only decreased by 1 project, from a total of 6 in 2011 to 5 in 2014. The average spend per project in 2011 was €1.9m and the average spend per project in 2014 is €1m. The decrease in Irish Animation production activity is a worrying trend which highlights the need for additional support for Irish Animation productions.

ANIMATION 2011 - 2014 S481 Projects Certified by Revenue Commissioners

€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 Animation Irish €11,588,733 €10,209,245 €7,447,823 €5,020,803 Animation Incoming €20,393,996 €21,917,843 €37,494,197 €34,083,428 Animation Total €31,982,729 €32,127,088 €44,942,020 €39,104,231

Animation Irish Animation Incoming Animation Total

Peter Rabbit Brown Bag Films

BoulderKavaleer Media Productions Double Z Enterprises AmazingWildernuts World of Gumball Zig & Zag Geromino Productions

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Documentary The total value of S481projects certified for Documentary in 2014 has grown 46% from 2011. The trend for documentary projects does not show year on year growth. In 2012 and 2013 the genre saw a decline in the total amount certified. However in 2014 the total value increased 162% from € 2.7m in 2013 to €7.8m in 2014, the highest total for documentary to date. Documentary still represents the smallest share of the total S481 at 3% of the total S481 value certified over the period 2011 to 2014.

DOCUMENTARY 2011 - 2014 S481 Projects Certified by Revenue Commissioners

€8,000,000 €7,000,000 €6,000,000 €5,000,000

€4,000,000 €3,000,000 €2,000,000 €1,000,000 €- 2011 2012 2013 2014 Documentary €4,853,720 €3,797,207 €2,717,403 €7,108,573

Rough Rider Wildfire Pictures

The Secret Life of the Shannon Crossing the Line Museum of Innocence Venom

After The Dance Waterloo’s Warriors Tile Films Roads entertainment

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Film Total value of S481 projects certified for Film has seen significant growth of 48% from €33m in 2011 to €49m in 2014. The trends for Film show variation in levels year on year over the period which is reflective of the nature of the genre. There was a decrease in the value of S481 certified for Irish Film projects in 2012 at €14m and 2013 at €12m, but a substantial increase in 2014 to €29M. The value of S481 certified for Incoming Film decreased from €23.4m in 2013 to €19.9m in 2014.

The average value of S481 certified for Irish Films in 2014 is €2.4m which suggests that Ireland is currently creating mainly low to medium budget films. The number of Incoming Film projects per year increased from 6 to 14 while the average spend certified per project decreased by 33% from €2.1m in 2011 to €1.4m in 2014. The average certified spend of €1.4m per Incoming Film is lower than the Irish Film average. This suggests that most if not all of the Incoming Film projects are not wholly made in Ireland. There may also be a number of projects which availed of post-production services only.

FILM 2011 - 2014 S481 Projects Certified by Revenue Commissioners €60,000,000

€50,000,000

€40,000,000

€30,000,000

€20,000,000

€10,000,000

€0 2011 2012 2013 2014 Film Irish €20,504,507 €14,362,156 €12,399,328 €29,297,469 Film Incoming €12,726,949 €14,881,607 €23,457,286 €19,923,919 Film Total €33,231,456 €29,243,763 €35,856,614 €49,221,388

Film Irish Film Incoming Film Total

Clockwise:

Samson Films Run & Jump

–––––––––––––––––––

Element Pictures Glass Land

––––––––––––––––––

Fastnet Films Strangerland

–––––––––––––––––––

SP Films Pilgrimage

–––––––––––––––––––––––––

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TV Drama TV Drama has seen unprecedented growth from €48.1m in 2011 to €141.9m certified for S481 in 2014, a threefold increase on 2011. In 2014 TV Drama accounted for 61% of the total S481 amount certified in that year. The trends show that the TV Drama industry continues to grow, illustrating the worldwide trend in the increase in TV Drama production and the high value of recurring TV Drama series.

The value of TV Drama projects certified in 2014 continues to surpass the value of Film projects certified, TV Drama being close to three times the value certified for Film. The amount of S481 certified for TV Drama Local projects has increased by 6% from 2011 while Incoming TV Drama has increased by 330%.

TV DRAMA 2011 - 2014 S481 Projects Certified by Revenue Commissioners €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 TV Drama Local €20,153,467 €24,317,347 €18,562,284 €21,429,352 TV Drama Incoming €28,027,467 €53,482,973 €81,064,325 €120,524,069 TV Drama Total €48,180,934 €77,800,320 €99,626,609 €141,953,421

TV Drama Local TV Drama Incoming TV Drama Total

TV

Penny Dreadful DRAMA Element Pictures Octagon

Klondike Abú Media

Magamedia

Ripper Street Element Pictures

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The Irish Film Board The Irish Film Board capital grant from the Department of Arts, Heritage and the Gaeltacht for 2014 was €11.2m, a 5.2% reduction on 2013 which in turn had been a reduction of 9.5% on 2012. The IFB capital grant allocation for 2015 stabilised at €11.2m.

Irish Film Board Oireactas Grant €'m 2008 - 2014

2014 11

2013 12

2012 13

2011 16

2010 17

2009 19

2008 20

TG4 TG4 was allocated €32.24m grant via the Department of Communications, Energy and Natural Resources in 2015, representing a reduction of €.5m on 2014/2013/2012. Based on the Annual Report 2013, TG4 spent €18.5m on commissioned programmes and €2.9m on dubbing and subtitling costs resulting in 700 hours of new/original programming plus 250 hours of re-voiced material and 400 hours of new subtitling.

TV3 The TV3 schedule comprises approximately 40% Irish produced content. TV3 has a substantial in-house production unit which produces mainly news, current affairs, daytime programming and studio based programming. In recent years, TV3 has increased the volume of commissioning from independent producers. In 2014 TV3 made a major new commission for a soap, 'Red Rock' for transmission in a prime-time slot as of January 2015. Expenditure figures by TV3 on independent production are not published. Under their 2009 contract with the Broadcasting Commission of Ireland (now BAI), TV3 undertook to spend between 15% – 25% of its annual programme budget on independent productions.

SPI Membership A consequence of continued funding reductions in the sector has had a knock on effect on the number of SPI’s member companies. During 2014 the number of members fell to 105 from 114 in 2013. Membership numbers have consistently fallen from 140 in 2009 to 105 in 2014.

For most of the companies who have not renewed their membership during the period, we understand it is not because they don’t want to be members, it’s simply that the membership fee of €300 can be difficult to justify if you are not in production.

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Income & Expenditure Account For Year Ended 31 December 2014

Balance Sheet As at 31 December 2014

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Cash Flow Statement For the Year Ended 31 December 2014

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Notes to the Financial Statements For the Year Ended 31 December 2014

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Film & TV Tax Incentive S481 2014 proved to be a busy year for the development of the amended Irish film and TV tax incentive scheme, S481. As a key stakeholder SPI was a member of the S481 Industry Technical Group which was established to work with the Revenue Commissioners on the changes to the Legislation, Regulations and Guidelines which would be required for the amended scheme to function properly. The Section 481 Industry Technical Group met on seven occasions in 2014. SPI attended all meetings and were involved in all aspects of the process. Our input to the S481 Technical Group was informed by the SPI S481 Working Group. The amended scheme provides for an extension of Ireland’s film and television tax incentive until 2020. Given the long lead time required for production, this is a welcome extension and provides certainty for the sector. The scheme was enhanced in value from 28% up to 32%. A key feature of the Irish tax incentive, the early payment mechanism, was also maintained. The structure was changed from an investor based model to a corporation tax model and an extension of the definition of eligible expenditure to include all personnel, regardless of residency, was also implemented. These changes will ensure that Irish producers remain internationally competitive.

Industry VAT Issue A policy decision was taken by the Revenue Commissioners during 2013 relating to the treatment of VAT on RTÉ and TG4 commissions and also BAI Sound & Vision Fund grants. The decision threatened to reduce overall commissioning spend in the sector by an estimated €6.5M. SPI were instrumental in working with all of the stakeholders to quickly address the issue with the Minister for Communications, the Minister for Arts, Heritage and the Gaeltacht and the Revenue Commissioners. We were pleased, in Q2 when the decision was reversed. The Revenue Commissioners subsequently published their e- briefing on the treatment of VAT in the sector in Q3. The e-briefing brought much needed clarity for producers and their agents.

Consultations SPI participated in the following public and sectorial consultations during 2014 by meeting with and making submissions representing the interests of members. i) Consultation on the BAI Sound & Vision III Scheme Submission deadline 8th January 2014

ii) Public consultation on the Employment & Investment Incentive & Seed Capital Scheme. Consultation period: April 1 st – May 9 th 2014

iii) Sectorial consultation on the Impact Assessment on the proposed introduction of a new RTÉ on demand service. Consultation period: March/April 2014

IFB During 2014, SPI participated in the stakeholder consultation conducted by Crowe Horwath for the IFB. The consultation is intended to inform the IFB strategy for the next 5 years. SPI also hosted a member’s consultation with Crowe Horwath in December 2014. The strategy is due to be published in 2015.

We held a number of briefing meetings with the IFB during 2014 to exchange relevant industry information and communicate issues of importance.

RTÉ Code of Fair Trading Practice In 2014, SPI delivered on it long standing stated aim to introduce copyright retention to contracts governing independent commissions from RTÉ. This came in the form of new contracts being issued by RTÉ providing for producers to be able to retain rights in their productions. The RTÉ Code of Fair Trading Practice had been approved by the Minister for Communications, Energy & Natural Resources in Q4 2013. This Code replaces the old Terms of Trade. This is an important development for the sector which will contribute to the building of stronger companies in the future.

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TG4 Code of Fair Trading Practice During 2014 SPI began a series of meetings with TG4 to discuss their draft Code of Fair Trading Practice. It is the aim of SPI to ensure that their new Code provides for producers to be able to retain rights in productions commissioned by TG4. This work is ongoing and it is scheduled to be completed during 2015.

Corporate Governance 2014 saw a focus on the importance of good corporate governance across all businesses but particularly for businesses in the non-profit sector. Being cognoscente of the importance of good corporate governance, the board of SPI initiated a full corporate governance review of the organisation in 2014. All aspects of SPI’s corporate governance was thoroughly reviewed and amended where necessary. The result is a SPI Corporate Governance Manual which was presented and approved by the SPI board in 2014. The SPI Corporate Governance Manual is now available on the SPI website.

I.T. During 2014 SPI carried out a full review of our IT systems. As a result of the review, the decision was made to move to a cloud based IT system during 2014. This decision provides cost savings going forward, improves security, agility and mitigates risk.

SPI Website During 2014 SPI developed and built a new website. The new website forms part of an overall strategy to increase the profile of SPI and provide enhanced services and improved industry information to our members. The website provides members with the opportunity to individually amend their own company profiles contained in the production company directory, upload images and video clips, access template agreements and SPI presentations, press releases and archive material. There is an extensive resources library available on the site. It is also an invaluable tool for the SPI executive to use when answering queries from members and as a reference point for industry stakeholders and the public.

BAI Sound & Vision Fund Approval by the European Commission of the S&V II Scheme expired in December 2014. As part of the submission to the EC for approval for the next iteration of the scheme, Sound & Vision III, the BAI undertook a consultation on the scheme document. SPI made a detailed submission to the BAI on the Consultation in January 2014 and participated in two stakeholder consultation meetings with the BAI during the year. At the request of SPI, the BAI held a briefing for SPI members in December 2014 ahead of the publication of the S&V III document and outlined the key changes and proposed timetable of deadlines for 2015/2016.

Industrial Relations In 2014 SPI successfully defended a Labour Court case taken by SIPTU. The case related to the SPI/SIPTU Shooting Crew Agreement which was signed in 2010. Since its signing, the SIPTU interpretation that all shooting crew had to be a member of the union had caused difficulties for producers attempting to implement the agreement in practice. It also inhibited our ability to develop a functioning relationship with SIPTU. The case which was brought by SIPTU was heard in January and the outcome was a comprehensive verdict from the Court that SIPTU’s interpretation was not valid. Membership of any union is a matter of choice for any individual.

This was a very good outcome for SPI. It was a good outcome for the preservation of the Shooting Crew Agreement itself and the dispute resolutions clauses in that agreement that have since worked well. In 2014, SPI made a full review of the Shooting Crew Agreement and initiated talks with SIPTU in order to update the agreement. The current agreement remains in place until that process is concluded. In 2014, SPI also initiated talks with the group of unions representing Construction Crew working in the film and TV drama sector. The aim of the talks is to achieve a collective agreement for construction crew. The talks are ongoing and we are hopeful of their conclusion during 2015.

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European Issues SPI is a member of the European Coordination of Independent Producers (CEPI) based in Brussels. The SPI CEO was elected to the board of CEPI in 2012. SPI's membership of CEPI and participation as a board member helps SPI to stay informed of relevant developments for our sector at a European Commission level. European cultural policy determines the rules governing fiscal incentives for Film and television across Europe. Broadcasting regulation in Ireland is also determined at a European level through the Audio-Visual Media Services Directive. Any change to these and other policies have significant effect on how the film and television business operates in member states and SPI believes we need a strong voice at a European level.

SPI Services to Members SPI enhanced its package of services to members in 2014. Details of the package are available at www.screenproducersireland.com

SPI Events 2014 SPI aims to deliver quality events and seminars geared towards the specific business and creative needs of producers and their staff. In 2014, we delivered 14 events including the SPI AGM which was addressed by the Minister for Communications, Energy & Natural Resources. All of the 2014 events were well attended and feedback following the events was positive.

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2014 BAI Briefing Sound & Vision III presentation of key changes to the scheme DEC SPI Members IFB Consult with Crowe Horwath consultation to develop the Irish Film Board's five year plan. Meet TV3 - Director of Content & Commissioning Editors a briefing with Jeff

NOV Ford, Andrew Byrne & Owen McArdle of TV3 on their commissioning plans for 2015

OCT Section 481 Briefings two information briefings in Dublin and Galway to update on the status of the new Section 481 scheme & how it is anticipated to work RTÉ Briefing with Glen Killane, MD RTÉ Television;Paul Loughrey, Head of SEPT Insights, RTÉ Television; Michelle Spillane, Director, RTÉ Global;Bill Malone, Channel Controller, RTÉ Two - covering a range of topics including audience measurement systems, RTÉ Global's new profile & an outline of commissioning

requirements for RTÉ 2.

AUG RTÉ Code of Fair Trading Practice - Barbara Galavan, Catherine Tiernan, SPI and Jonathan Kelly, Philip Lee Solicitors gave a detailed presentation on the new Code. JULY Sky Arts Phil Edgar-Jones, the newly appointed Director of Sky Arts, spoke in detail about the two channels, Irish originated content and his commissioning JUNE plans. AGM - Screen Producers Ireland Minister for Communications, Energy and Natural Resources, Pat Rabbitte, T.D., addressed the AGM. MAY Packaging Scripted & Non Scripted Formats for the US Marketplace with Pat Quinn in collaboration with Screen Training Ireland. Focussing on accessibility to the US market for Irish Independent producers and original formats. APRIL Business Strategy Workshop in collaboration with Dublin Business Innovation Centre - Two part intensive workshops focussing on develping original formats by MARCH Irish production companies for Irish and international broadcasters. Digital Production & Delivery in collaboration with Screen Training Ireland. Seminar addressing current technological changes in film/tv production in the FEB context of best international practice Section 481 Briefing SPI hosted an information briefing for members to update the SPI membership on the status of the new Section 481 Scheme and how it is JAN anticipated to work.

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