(1) This section applies if:
(a) a licensee (the first licensee ) provides a subscription TV drama service (the first subscription TV drama service ); and
(b) a person is a channel provider in relation to the subscription TV drama service because the person supplies a channel (the first channel ); and
(c) it is not the case that the channel provider supplies the same or a substantially similar channel to another licensee in circumstances where, apart from any breaks for the purposes of the transmission of incidental matter, the same or substantially similar channel supplied by the channel provider is televised by the other licensee on another subscription TV drama service; and
(d) the sum of:
(i) the channel provider's new eligible drama expenditure (within the meaning of section 103N) in relation to the first subscription TV drama service for a particular financial year (the shortfall year ); and
(ii) the channel provider's carry - forward eligible drama expenditure (within the meaning of section 103N) in relation to the first subscription TV drama service for the shortfall year;
is less than 10% of the channel provider's total program expenditure (within the meaning of section 103N) in relation to the first channel for the shortfall year.
Shortfall amount to be made up next financial year
(2) It is a condition of the first licensee's licence that, for the next financial year (the make - up year ):
(a) the channel provider's make - up expenditure is equal to the shortfall amount; or
(b) the first licensee's make - up expenditure is equal to the shortfall amount; or
(c) the sum of:
(i) the channel provider's make - up expenditure; and
(ii) the first licensee's make - up expenditure;
is equal to the shortfall amount.
(3) In this section:
"channel provider's make-up expenditure" means so much of the total expenditure incurred by the channel provider during the make - up year on new eligible drama programs as the channel provider nominates for the purposes of the application of subsection (2) in relation to the first subscription TV drama service.
"first licensee's make-up expenditure" means so much of the total expenditure incurred by the first licensee during the make - up year on new eligible drama programs not included, or available to be included, in the first channel as the first licensee nominates for the purposes of the application of subsection (2) in relation to the first subscription TV drama service.
"shortfall amount" means the amount by which the sum of:
(a) the channel provider's new eligible drama expenditure (within the meaning of section 103N) in relation to the first subscription TV drama service for the shortfall year; and
(b) the channel provider's carry - forward eligible drama expenditure (within the meaning of section 103N) in relation to the first subscription TV drama service for the shortfall year;
fell short of 10% of the channel provider's total program expenditure (within the meaning of section 103N) in relation to the first channel for the shortfall year.