Relationship between the Media Policy Accord 2002-06 and the Film Policy Accord 2003-06 1. DR and TV 2's overall financial commitment to Danish film pursuant to the Media Policy Accord 2002-06 2. DR and TV 2's investment in feature films pursuant to the Media Policy Accord 2002-06 The Ministry of Culture has held a number of meetings with the Danish Producers' Association, the Association of Danish Film Directors, DR, TV 2 and the DFI on the exact terms and conditions for DR and TV 2's investment in features. Against this background the Ministry of Culture will include a provision in the public service contracts to the effect that DR and TV 2's agreements with independent film producers on investment in and/or purchase of broadcast rights for concrete film projects must be based on a standard contract drawn up jointly by the DFI, the TV stations and the Producers' Association on the DFI's initiative. This contract will take account of the following considerations: DR and TV 2's investments are to contribute more to increasing the independent producer's earnings potential from each film project and so reduce the producer's financial risk exposure from film production. Against this background the standard contract will be based on the following: The goal behind DR and TV 2's financial commitment to Danish film is for more, ideally Danish-language films to be shown on the two TV stations. The earmarked funds which DR and TV 2 invest in the production of shorts and documentaries are to be invested as cash injections into productions which are suitable both for TV broadcast and for the DFI's video/DVD distribution and which would normally also receive support from the DFI. DR and TV 2 are free to decide for themselves in which productions they wish to be involved. The new initiative is being set up independently of the DFI's other activities involving the development, production and distribution of films. Independence will be assured through an agreement between the TV stations and the DFI on the objectives and strategies for the new initiative, and it has been decided that the three institutions together will appoint a creative director for the talent scheme. The creative director will take the final decision on support for individual projects within the specified financial budget. One goal is, in collaboration with the film sector, to create better opportunities for talents (e.g. new graduates from the National Film School of Denmark or experienced directors etc.) to get going on their first film production or try out new sides of their talent. The DFI has earmarked DKK 75 million for the scheme for the period 2003-06. DR and TV 2 are transferring their previous commitment to the Dansk Novellefilm short features initiative of DKK 4 million a year each during the period 2003-06 (a total of DKK 32 million from the two TV stations together). The new talent scheme will be based administratively at the DFI so as to minimize the scheme's administration costs.
The Media Policy Accord 2002-06 requires DR and TV 2 to invest an average of DKK 60 million a year each in Danish film during the period 2003-06. Of this DKK 60 million, DKK 35 million is to be invested in full feature films and DKK 7 million in short and documentary films. Both DR and TV 2 have also announced that from 2003 their previous commitment to the Dansk Novellefilm short features initiative of DKK 4 million a year each will be transferred to a new talent development initiative being set up in collaboration with the Danish Film Institute (DFI).
The detailed provisions concerning DR and TV 2's investment in features will be laid down in the public service contracts with DR and TV 2. Among other things, these contracts will specify the number of productions in which DR and TV 2 are to be involved.
DR and TV 2's editorial freedom and financial freedom of action are to be respected as far as possible. The TV station is to be free to decide in which films it becomes involved, the size of its financial commitment to each film, and the form this commitment will take (in terms of the breakdown between broadcast rights and straight investment).
A film's earnings potential in the commercial markets (cinema, video sales and rentals, pay TV, Internet etc.) is to be safeguarded as far as possible through agreements between the independent producer and DR/TV 2 on the timing of the broadcast of the film project on TV.
Departures from the standard contract will only be permitted in special circumstances.
DR and TV 2 may only purchase the TV broadcast rights for their own TV channels.
A limit, normally of five years, is to apply to the expiry of TV broadcast rights.
The holdback period prior to TV broadcast is to comply with the DFI's current terms and conditions.
The repayment of principal and payment of any interest on DR and TV 2's investment in a particular feature are to commence only after the independent producer's own investment in the film is repaid.
The repayment of DR and TV 2's investment is to be complete before the DFI can demand repayment.
When calculating the independent producer's investment and the TV station's investment, the DFI's definition is to be used (definition of "equity").
When distributing any profits (after the independent producer and any other private investors' investment has been repaid), there is to be either a limit on the period during which DR and TV 2 are entitled to receive a share of the film's profits (e.g. five years from the film's première in the cinemas) or a percentage limit on the interest payable on the capital invested (e.g. 50% of TV capital invested).
3. DR and TV 2's investment in short and documentary films pursuant to the Media Policy Accord 2002-06
The detailed provisions concerning DR and TV 2's investment in shorts and documentaries will be laid down in the public service contracts with DR and TV 2.
4. Collaboration between DR, TV 2 and the DFI on talent development
DR, TV 2 and the DFI are together setting up a talent development scheme to give both young untried talents and the more experienced an opportunity to develop in all conceivable genres and film formats.