Yes- they paid both the pilot and the aircraft hire so the flight is P.T. and needs an AOC
Pinkpilot - That is exactly what authorities in Scandinavian countries require. I have always been surprised to see discussion on the forum that AOC would not be required for Aerial work like photoflights etc.
If a CPL pilots is doing photo or film flight´s without beiing under an AOC then what are the duty hr limits, altitude requirements, is harness needed, who is responsible for permits and so on and so forth. These are all issues specified in the HOM manual.
In Scandinavian and Nordic countries the law in this regard is very straightforward, a AOC is required for Aerial work! In the UK it seems that the rules are sometimes very complicated but it´s really common sense to require AOC for all aerial work be it Aerial work or Public transport (JAR-OPS 3). A private flight is a pilot flying for his own pleasure or building hours while flying self fly hire in some circumstances he can share the direct operating cost of the aircraft with a friend who comes along for a ride but he most surely cannot operate the aircraft to make money!
Edit: To add reply to FL comments, sometimes I feel sorry for you Brits
Meant in the way that your CAA works in mysterious way´s.