Australia's film distribution and exhibition industry has been urged to settle its differences under a voluntary code of conduct which includes a dispute resolution mechanism.
'Recently, there have been complaints of unfair behaviour from cinema exhibition interests, particularly in relation to the policies of film distributors,' Australian Competition and Consumer Commission Chairman, Professor Allan Fels, said today.
'As a result the ACCC commissioned an extensive inquiry into the structure and conduct of the industry. 'The report, issued in an edited form today, notes that many independent exhibitors believe that the major film distributors' session/pricing policies and other conduct have disadvantaged the independents.
'The report found that while independent exhibitors are sometimes disadvantaged by the distributors policies, in many instances the distributors' behaviour was consistent with legitimate commercial objectives of film distribution. The ACCC would be concerned should the policies of the major industry participants result in a reduction in competition provided by independent exhibitors. 'But the ACCC was concerned to improve the relationship between distributors and exhibitors.
'The report notes that the independents share of the industry has grown in recent years, generating significant price competition to the benefit of consumers. The ACCC would be concerned if practices in the industry led to the withering or demise of independents. 'The report found no evidence of Trade Practices Act breaches. 'To resolve any differences between parties in the industry, the ACCC has urged the development of a code of conduct and industry-supported dispute resolution mechanism to assist exhibitors and distributors to negotiate.
It is proposed that the overriding principle of the code be that each distributor and each exhibitor deal with each other on a fair and equitable basis at arms length having regard only to legitimate commercial objectives. 'The film industry forum held yesterday and today in Melbourne was called to discuss this proposal and its possible structure.'
Professor Fels welcomed the spirit of cooperation demonstrated by the industry when over 50 cinema distribution and exhibition representatives worked towards a voluntary code of conduct. The operation of the voluntary code of conduct would be reviewed by the ACCC after 12 months.