PROGRAM RIGHTS

Program rights comprised the following at September 30, 2012 and December 31, 2011:



	September 30, 2012			December 31, 2011
Program rights:
Acquired program rights, net of amortization	$	299,526		$	266,884
Less: current portion of acquired program rights	(111,676		)	(101,741		)
Total non-current acquired program rights	187,850			165,143
Produced program rights – Feature Films:
Released, net of amortization	4,160			3,197
Completed and not released	865			776
In production	2,988			708
Development and pre-production	1,017			279
Produced program rights – Television Programs:
Released, net of amortization	93,278			70,383
Completed and not released	2,822			9,136
In production	15,727			12,457
Development and pre-production	4,730			4,138
Total produced program rights	125,587			101,074
Total non-current acquired program rights and produced program rights	$	313,437		$	266,217

During the third quarter of 2011, we concluded a comprehensive examination of the appropriateness of our program rights policy. This review included a study of the relative value generated by all runs of a license in past periods. We concluded that the existing allocation for films and series with an estimated two runs of 65% on showing the first run and 35% on showing the second run was still appropriate. However, past performance showed that content with an estimated three runs generated more relative value on the third run than our previous estimate. Consequently, from July 1, 2011 these titles were amortized 50% on showing the first run, 28% on showing the second run and 22% on showing the third run. Had we amortized content with an estimated three runs by 60% on the first run, 30% on the second run and 10% on the third run during the first six months of 2012, the program rights amortization charge would have been approximately US$ 3.8 million higher for the nine months ended September 30, 2012, or US$ 0.05 and US$ 0.05 per basic common share and diluted common share, respectively.