NZ’s Spada calls for public funding for locally made formats as production slides

New Zealand producer’s advocacy group Spada is calling on the government to support the ongoing viability of the waning reality television production sector by extending access to the full 40% Screen Production Rebate.

Irene Gardiner

In its submission to the NZ government inquiry on media reform, Spada suggests that adjustments to the Domestic Screen Production Rebate (DSPR) “would improve its impact, both for local platforms and local production.”

The proposed tweaks to the domestic aspect of the DSPR, would allow for formats that traditionally have been excluded from eligibility to rebate funding due to being international adaptations, would be allowed to access it.

Spada wants to address the inequity that has emerged under the current model which allows an international production company filming a format in New Zealand being eligible for 20% SPR but a local production filming an international adaptation of format, is currently not eligible.

The New Zealand screen production sector has witnessed declines in revenue across all broadcasters in the last year due to advertising contraction and increasing competition from online platforms.

Local programming has also been cut, the submission cites an unnamed production company which estimates a “nearly US$15m (NZ$25 million) P/A impact to their business affecting 730 jobs across production, postproduction, and talent, with the reduction in direct commissioning of commercial programming (many of them international formats) from Three and TVNZ.”

Spada’s suggested amendments include reducing the NZ$250k threshold for single episode programme – unscripted for eligibility to the DSPR.

Additionally, Spada’s predident Irene Gardiner is calling for support of a reduction to non-govt funding for television. Currently, for eligibility the rebate, productions must have funding from non-New Zealand government sources. Under eligibility guidelines for feature films, the minimum threshold for non-NZ government funding is 10%, however, for television and other non-feature film productions, the minimum is 25% and often higher.

Spada argues that given the current contraction in the domestic market, this funding model no longer works. “Spada recommends that television also be 10% non-govt funding in line with feature films.”

It is also calling for the widening of the eligibility criteria to include factual or entertainment formats developed in another country but adapted for a New Zealand audience. The current exclusions are based on the argument that it is not NZ generated IP, but Spada argues that the evolution of format adaptations has also changed with market dynamics.

“While the IP may be developed offshore, the local versions of international format productions do reflect our culture – MasterChef New Zealand, The Block NZ, Dancing with the Stars, Married at First Sight New Zealand – feature New Zealanders, and are loved by New Zealanders,” Spada states in its submission.

Spada cites NZ Traitors as an example of  global format adaptation that has come into its own in terms of attracting awards for adaptation and its own global audiences.

“These shows also create jobs and generate a good economic return to our sector and the wider economy.”  The submission also argues that relaxing public funding access for reality formats allows local networks like TVNZ, Three, and Prime to attract a reliable viewership, ensuring ad revenue and continued investment in local content. Supporting the format sector would also speed up the production cycle to market, “instead of developing an entirely new concept, local producers work from an existing framework.”  Additionally, it provides opportunities for crews to gain on the job training and skill development.