Contracts

NZ On Air requires a production and funding agreement to be executed for each funded production.

New TV terms of trade for income sharing

NZ On Air has adopted new income sharing terms for its TV production and funding agreement (PFA) as at 1 April 2007. The new terms are as follows and apply to all projects except feature films and others with significant third party equity investment.

Producers retain 75% of programme sales net income shared with NZOA until recoupment (NZ On Air 25%)
Thereafter producers retain 90% (NZ On Air 10%)
Producers retain 90% of all other shared net income from all other exploitation (NZ On Air 10%)
Producers retain 100% income from all exploitation of any programme receiving under $200,000 NZOA funding, provided that the broadcaster contribution is comprised solely of a licence fee.

"Kickstart", NZ On Air's making and marketing initiative, ceased on 1 April 2007. This producer assistance mechanism has been replaced by the new contract terms.

Feature films and other with significant third party equity investment will continue to be negotiated on a case by case basis.

FAQs

A: Can I apply these terms to an existing contract? Yes, provided a letter of variation is executed. Click here to view the standard letter. You need to warrant that there is no money owed to NZ On Air (see D below).

B: How do I get a letter of variation issued?

Download a request for variation here, complete, and email to melanie@nzonair.govt.nz or post to Melanie Chuter, NZ On Air, Box 9744, Wellington

C: How long will that take?

We'll try to issue a letter of variation within 10 working days of receipt. You will sign both copies and return, and we will return a fully executed copy once the documentation is complete.

D: What happens to income received before 1 April 2007?

a) Income received by NZ On Air as at 31 March 2007 is retained by NZ On Air
b) Income received by the producer as at 31 March 2007 but not yet shared with NZ On Air is shared as per the original contract. If a sales report is due or necessary because you have income to share, you will need to enclose the report, plus payment of NZOA's share of sales income, when you return the request for a letter of variation.
c) Income received by the producer from 1 April 2007 may be treated in accordance with the new arrangements provided a letter of variation to the original PFA is executed. For the avoidance of doubt, the income share remains due to NZ On Air as per the original contract unless a letter of variation is fully executed.

E: What if I have several contracts where I want to revise the terms?

We could list separate PFAs on a schedule to a single letter of variation provided you can warrant that no sales income is due to NZ On Air from any and all of the programmes (see D(b) above). Ask us and we'll consider on a case-by-case basis to find the most administratively simple solution.

F: What about new contracts?

New PFAs will have the revised terms included automatically. Click here to view the revised PFA.

G: What about contracts issued to me but not yet fully executed?

You can return the PFA to us and we will reissue with the revised terms. Alternatively you can execute the copy you have and seek a letter of variation later.

H: What about existing PFAs with under $200,000 NZOA funding?

If the contract does not include broadcaster equity (namely, there is only a licence fee) you can apply for a letter of variation as per above.

If the contract includes broadcaster equity, you will need to secure written broadcaster agreement to relinquish that equity and include that agreement with your application for a letter of variation. If the broadcaster does not agree to relinquish its equity, you can still apply for a letter of variation. However, NZ On Air's policy will be to retain 25% of Net income from programme sales until recoupment, and 10% thereafter.

For any further information, contact Melanie Chuter (Legal Affairs Executive) or Glenn Usmar (TV Manager) at (04) 382 9524 or melanie@nzonair.govt.nz

Click on the PDF link below to download an example of a NZ On Air standard Production and Funding Agreement.

Standard Production and Funding Agreement [PDF DOWNLOAD 181KB]

Click on the PDF link below to download an example of a NZ On Air standard Development Agreement.

Development Agreement [PDF DOWNLOAD 52KB]

Click on the PDF link below to download a request for a letter of variation to a contract issued prior to 31 March 2007.

Recoupment Initiation Form [PDF DOWNLOAD 29KB] (What is this?)

Multiple Contracts Initiation Form [PDF DOWNLOAD 72KB]

Click here to view an example of a letter of variation for income sharing in a contract issued prior to 31 March 2007.

Standard Letter of Variation [PDF DOWNLOAD 70KB]