The ACMA has released subscription television's new eligible drama expenditure (NEDE) compliance results for the 2021-22 financial year. These results showed that $18.72 million was spent by subscription TV licensees and channel providers on new Australian drama programs in the 2021-22 financial year.
All eight subscription TV licensees and channel providers met the minimum requirements of the scheme in the 2021-22 financial year. The $18.72 million spent by subscription TV licensees and channel providers on new Australian drama programs was an increase on the two previous financial years with $8.75 million spent in the 2020-21 financial year and the $13.74 million spent in the 2019-20 financial year.
The 2021-22 financial year results are a return to the full NEDE requirements for subscription TV licensees and channel providers. Previously, in light of the COVID-19 pandemic, the ACMA decided to exercise forbearance which was implemented via a reduced NEDE target of 5 per cent for FY2019-20 and FY2020-21.
Under the NEDE rules, subscription TV licensees that broadcast drama channels are required to invest 10 per cent of their total expenditure on new Australian drama programs. This requirement can also be met by channel providers - companies that provide drama channels to subscription TV licensees.
The rules provide for the expenditure obligation to be incurred in one year and acquitted in either the same financial year or the following year. This means that any shortfalls and surpluses from the previous year can be carried across the following financial year. In each financial year, licensees and channel providers must, at the very least acquit their previous financial year's shortfall for each drama channel, in order to be compliant with the rules.
For the 2021-22 financial year, subscription TV licensees and channel providers reported amounts of $8.6 million in shortfalls to be made up in the next financial year, and $3.2 million in carried forward expenditure which can be used to acquit next financial year's NEDE obligations.
