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“BBC Studios is classified as a ‘channel provider’ under … the Broadcasting Services Act,” Murray argues in his submission. “[However] Screen Australia’s absurd interpretation of its own terms of trade means that a broadcaster operating multiple TV channels on Foxtel is not considered to be a broadcaster.”
In response to questions from this masthead, a spokesperson for Screen Australia said the agency “was not in breach of its terms of trade”. They added that it had received the new submission from Murray. “As with any submission from industry, we are considering its merits and will respond in due course.”
A spokesperson for the BBC in Australia said: “We are not considered a broadcaster in Australia under the Broadcasting Services Act. We do not hold a broadcast license and do not operate any broadcasting facilities. Foxtel and Fetch are the broadcasters in Australia.”
However, the broadcasting regulator, the Australian Communications and Media Authority, does list BBC Studios Australia and NBC Universal International Networks Australia as “channel providers” in its annual pay TV drama spending and targets reports.
What is at stake is the ability of production entities owned by NBC and the BBC to tap into Screen Australia’s limited funding pool, at the expense of the genuinely independent sector it is ostensibly meant to support.
NBCUniversal owns, operates and programs multiple channels in Australia, including Universal TV, DreamWorks, CNBC, and MSNBC on pay TV, and NBC News Now on the Foxtel-owned news streaming platform Flash. It also wholly owns Matchbox Pictures, which was established as an independent production company in 2008 before being bought out in 2014.
Matchbox is one of Australia’s most prolific, respected and awarded production houses, and is a frequent recipient of funding from Screen Australia and the state-based agencies. In 2021-22 it received more than $3 million from Screen Australia.
This masthead is not suggesting that Matchbox or NBCU has done anything illegal or unethical in applying for that funding.
The British Broadcasting Corporation operates five pay TV channels in Australia, including BBC First, CBeebies, BBC Earth, BBC World News and UKTV. It also operates BBC Brit and BBC Kids on Fetch.
BBC Studios – formerly known as BBC Worldwide – has been producing content in Australia since 2018. Most of its output to date has been in the light entertainment space, making local versions of UK formats such as Dancing With the Stars, Bake Off and The Weakest Link, none of which is eligible for Screen Australia funding.
Until now, the BBC’s efforts in Australia have been confined to light entertainment formats like The Great Australian Bake-Off, but it is planning to move into documentary and drama.
However, it has begun to move into documentary, and in February announced plans to launch a scripted content arm locally. Both documentary and scripted (comedy and/or drama) are potentially eligible for funding support.
A BBC spokesperson confirmed “we have recently received confirmation that our application for some funding for an unscripted project for SBS has been successful. The project is yet to be announced.”
Again, this masthead is not suggesting that BBC Studios has acted illegally or unethically.
Murray also points out in his submission that the current terms of trade largely ignore the streamers, though they are now arguably the most significant “broadcasters” in the market.
Given the acquisition of studio Animal Logic by Netflix in July 2022, there is a strong likelihood the streamer might soon be in the mix for Screen Australia funding for content produced by its wholly owned animation and post-production house.
Murray urges the agency to “add owners or part owners of streaming services” to the list of companies that are ineligible for agency funding.
“There are limited funds available for applicants,” Murray writes. “We are already at a disadvantage in comparison to the large vertically integrated multinationals, without having funding for actual local producers knocked out by broadcasters.”
Screen Australia, NBCU and Matchbox were all approached for comment for this story.
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