This information guide explains how the licence fees we collect from Pay-TV operators are paid out as retransmission royalties.
WHERE DOES THE MONEY COME FROM?
Retransmission royalties
Retransmission royalties are triggered when a program being broadcast on a free-to-air channel is simultaneously retransmitted over another network.Re-broadcasts
A re-broadcast (i.e. a second or third broadcast of a program) is not a retransmission. There are no secondary royalties for re-broadcasts.Video-on-demand services
There are no secondary royalties for streaming or video-on-demand services. Any royalties payable for S-VOD, T-VOD and A-VOD are typically dealt with in terms of the licensing agreement.Collections to Expenses Ratio
All the money we collect is distributed to members after the deduction of administrative overheads only. The administration fee is referred to in percentage terms and is called the collections to expenses ratio. The overall collections to expenses ratio is detailed in our Annual Reports and is set out below:
| Year | Ratio |
|---|---|
| 2022 | 15% |
| 2021 | 16% |
| 2020 | 15.9% |
Rightsholders should note that if they appoint an agent to collect Screenrights royalties on their behalf, the agent may also charge an administrative or agent’s fee on top of Screenrights’ costs.
Distribution Period
In 2020 Screenrights transitioned from a 6-year to a 4-year distribution period, allowing us four years to distribute royalties. For members this meant that royalties from the 2014, 2015 and 2016 distribution years expired in June 2020.
Data for Royalty Distribution
Screenrights uses data from broadcaster program guides for the main free-to-air channels and their multi channels. The free-to-air channels are:
Television
ABC One (ABC1)
ABC Two (ABC2)
ABC ME
ABC NEWS (ABCNEWS24)
SBS One
SBS Viceland
NITV
SBS Food (formerly SBS Food Network)
Seven
7 Food Network (launched December 2018)
7Two
7Mate
7Flix
Nine
9GO!
Gem
9Life
Ten
10 Bold (formerly One)
10 Peach (formerly Eleven)
Radio
ABC Classic
ABC Goldfields WA
ABC Jazz
ABC Local Stations
ABC News Radio
ABC Regional Stations
Double J
Radio National
Triple J
SBS 1
SBS 2
SBS 3
Royalty Valuation
The money collected from the retransmitters is divided into two pools, one for TV royalties and one for radio royalties. These pools are further divided into individual TV network and radio channel pools.
The amount paid to each program is therefore influenced by the money available in the pool for that TV network.
There are three factors that influence the value of a program retransmitted on TV. These are:
- The ratings of the channel being retransmitted – his is based on the channel’s overall viewership and is different from the individual program rating
- The time of the program broadcast – programs that are broadcast in primetime earn around three times as much as programs that play during the day or late in the evening, which in turn earn three times as much as programs that are broadcast in the middle of the night.
- The duration of the copy – a 60 minute program will receive more than a 30 minute program.
COPYRIGHT SPLITS
Screenrights allocates royalties to different copyright materials that make a program, including film, script, and sound recordings. In Screenrights’ Distribution Policy we refer to this as the Scheme of Allocation.
The current allocation for the Australian Retransmission Service is:
| Copyright | Split |
|---|---|
| Cinematograph Film (‘Film’) | 68.50% |
| Literary & Dramatic Work (‘Script’) | 22.10% |
| Commissioned Sound Recordings | 0.67% |
| Musical Works | 7.40% |
| Library Sound Recordings | 0.21% |
| Commercial Sound Recordings | 1.11% |
REGISTRATION AND PAYMENT
Once you have reviewed your agreements and established that you hold the relevant rights (https://www.screenrights.org/screen-industry/royalty-payments/) you can claim Screenrights royalties by becoming a member and registering your entitlements to collect royalties for films, documentaries and TV shows on MyScreenrights. When you are registering a program, you are warranting to Screenrights that you are entitled to claim the royalties you have specified in your registration.
We recommend registering your claims as soon as practicable after the film, TV show, documentary or other screen project has been released, or after you have received an assignment of rights or have been appointed to collect on another party’s behalf.
DISTRIBUTION POLICY
More detail on how royalties are calculated can be found in our Distribution Policy.