The Australian Competition and Consumer Commission has completed its review of the Code of Conduct for Film Exhibition and Distribution and made a series of recommendations to improve its operation.
The review found that the code had led to more communication and discussion in the film industry than ever before.
But it also found that a number of long-standing issues continued to be a concern for many exhibitors. These included problems relating to film hire rates, minimum season lengths and terms of supply. There were also concerns about the dispute resolution procedures under the code.
The ACCC has recommended a number of changes to the code, including that:
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film hire rates should be based on the number of weeks after national release
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there should be a four week limit on minimum seasons for cinemas with less than four screens
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distributors should advise all exhibitors of terms of supply prior to the booking deadline for each film
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a party who does not comply with the outcomes of the dispute resolution procedures should cease to be a signatory to the code
The issue of film hire rates has been one of particular concern to cinema operators in rural and regional communities.
The review also acknowledged the special role of heritage-listed cinemas by recommending the inclusion of a scheme to allow such cinemas to operate more competitively. The ACCC remains a strong supporter of the code and has proposed these changes to ensure its effective operation. It should be noted, however, that if the proposed changes do not address industry concerns, the ACCC has recommended that the Minister for Financial Services and Regulation consider prescribing the code.
The ACCC will continue to monitor the operation of the code, as well as other conduct in the industry.