Fewer Licences Needed

A policy review has contributed to a simpler licensing framework for the film and video industries.

FOR a long time, one of the biggest costs for video retailer Poh Kim Video was, surprisingly, not the thousands of VCDs and DVDs it imported to sell – but the certificates it had to get for every single disc.

The certificates cost 80 cents each, even more than what it costs to produce a disc, said Mr Lim Chee Yong, Director, Poh Kim Video.

Like many other local video distributors and sellers, Poh Kim Video also had to spend much time and money getting multiple licences for the import and distribution of its products.

Fortunately, a simpler business licensing framework requiring fewer licences and certificates came into play in 2009.

Besides time, the revised framework is expected to save the film and video industries substantial administrative costs, licensing fees and security deposits, of up to S$4.1 million. For Poh Kim Video, the review could not have come at a better time. "With the economy doing badly and many people going to the Internet for their movies, demand has dropped steeply," said Mr Lim. "Prices have dropped by half or more, and it would be unimaginable if I still have to buy so many certificates."

Distributors need only one certificate for each DVD box set. (photo courtesy of HMV)

Today, Poh Kim is benefitting from the various certification initiatives. It now spends 20 to 30 percent less than what it used to spend on certificates per month under the old regulations.

The Box Set* and Buy On Demand** initiatives arose from industry feedback. "MDA welcomes more of such suggestions from the industry, so that together we can create a more pro-business environment for the industry to grow," said Mr Michael Yap, Deputy CEO, MDA.

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