1301.0 - Year Book Australia, 2006

ARCHIVED ISSUE Released at 11:30 AM (CANBERRA TIME) 20/01/2006

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Contents >> Chapter 12 - Culture and recreation >> Film and Video

FILM AND VIDEO

FILM AND VIDEO PRODUCTION

The film and video production industry comprises businesses mainly engaged in the production of motion pictures on film or video tape for theatre or television projection. Services such as casting, film editing and titling are also included.

Australia has a well-developed film and video production industry comprising, for the most part, small specialised companies. They produce programmes ranging from feature films to sports coverage, documentaries and television commercials. A relatively small number of Australian companies engage exclusively in film and television drama production. The majority specialise in the production of commissioned programmes such as commercials and corporate communications.

According to the Australian Film Commission (AFC) the major market for Australian audiovisual products is the domestic television broadcast industry. However, export markets are also important for feature films and television dramas, some high-budget documentaries and some commercials.

A survey of businesses involved in film and video production services was conducted by the ABS in respect of 2002-03. At the end of June 2003 there were 2,174 businesses which were primarily engaged in providing film and video production services, and which employed a total of 16,427 people (table 12.16). These businesses generated an income of $1,596.6m and an operating profit before tax of $91.7m in 2002-03. Although total income was 8.3% higher than the 1999-2000 figure of $1,473.8m, income from the production of television programmes was down 16.6% to $393.6m. Income from the production of other completed works also declined from 1999-2000 down 18.2% to $156.7m.

12.16 FILM AND VIDEO PRODUCTION SERVICES
		Units	1999-2000	2002-03

Businesses at end June		no.	1,975	2,174
Total employment at end June		no.	15,195	16,427
Income
	Production of television programmes	$m	^472.2	393.6
	Production of commercials	$m	^186.2	228.4
	Production of other completed works	$m	191.5	156.7
	Other	$m	623.9	817.9
	Total	$m	1,473.8	1,596.6
Total expenses		$m	1,397.9	1,504.8
Operating profit before tax		$m	^76.5	^91.7
Operating profit margin		%	^5.4	^5.9

Source: Television, Film and Video Production, Australia, 2002-03 (8679.0).

Film and video production activity is undertaken not only by film and video production businesses (as shown in table 12.16), but also by film and video distribution businesses and television broadcasting businesses. During 2002-03 businesses undertaking film and video production incurred $1,502.5m in production costs. Productions made specifically for television accounted for most of these costs ($1,140.7m or 75.9%). Production of commercials, station promotions and interstitials accounted for 14.6% ($219.3m) and productions other than for television accounted for 9.5% ($142.4m).

Of productions made specifically for television in 2002-03, the highest total production costs were incurred by news and current affairs programmes ($351.0m) and sport programmes ($305.1m). However, these types of programmes were among the cheapest to produce on a cost per hour basis. The average production costs per hour were $19,700 for news and current affairs, and $13,000 for sport. These figures contrast starkly with the corresponding figures for drama ($246,600) and situation and sketch comedy ($222,700). Details of the proportion of first release commercial broadcast hours allocated to each type of programme are provided in Radio and television broadcasting.

Graph 12.17: AVERAGE COST PER HOUR, By type of production(a) - 2002-03

Businesses undertaking film and video production completed, or were working on, 5,774 productions other than for television in 2002-03, of which 5,057 were corporate, marketing or training productions and 66 were feature films. For feature films, the average cost of production was $1.1m.

The Australian Government provides assistance and encouragement, for the production of high-cost feature films, television dramas and documentaries, through measures such as the investment program of the Film Finance Corporation Australia, the development program of the AFC and the Australian content regulations of the Australian Communications and Media Authority.

Table 12.18 shows the number and value of Australian, co-produced and foreign titles shot in Australia from 2001-02 to 2004-05. The total production value of these titles in 2004-05 was $811m, of which $536m was spent in Australia - close to the 10-year average of $537m. Foreign production accounted for $248m (or 46%) of the amount spent in Australia in 2004-05, well above the 10-year average of $170m. Australian production accounted for a further $248m (46%), but this was well below the 10-year average of $307m. The amount spent in Australia on co-productions in 2004-05 was $40m (8% of the total), which was below the 10-year average of $60m.

12.18 FILM AND VIDEO PRODUCTION
		2001-02			2002-03			2003-04			2004-05

			Total value	Spent in Aust.(a)		Total value	Spent in Aust.(a)		Total value	Spent in Aust.(a)		Total value	Spent in Aust.(a)
Type of film		no.	$m	$m	no.	$m	$m	no.	$m	$m	no.	$m	$m

Features
	Australian(b)(c)	24	131	129	16	49	49	16	134	113	19	61	60
	Co-production(d)	2	39	28	2	22	14	1	7	5	3	45	27
	Foreign(e)	7	374	185	5	256	162	7	432	249	9	482	243
	Total	33	544	341	23	327	225	24	573	366	31	588	330
TV drama
	Australian(b)	38	212	207	38	222	214	35	190	185	29	195	187
	Co-production(d)	6	101	83	4	27	12	3	19	10	4	23	13
	Foreign(e)	5	39	31	12	91	56	5	38	30	1	5	4
	Total	49	352	321	54	339	281	43	247	225	34	223	204
Total
	Australian(b)	62	343	336	54	271	263	51	325	298	48	256	248
	Co-production(d)	8	140	111	6	48	26	4	26	15	7	67	40
	Foreign(e)	12	413	216	17	347	218	12	470	279	10	488	248
	Total	82	896	662	77	666	507	67	821	592	65	811	536

(a) Includes some expenditure on foreign production elements - e.g. fees for non-Australian actors or other individuals while working in Australia. (b) Productions under Australian creative control. (c) Figures for Australian features in 2003-04 include one high-budget animation feature that is being made over a number of years, but in order to be consistent with survey methodology its budget is counted in a single year, not apportioned across the duration of the production. (d) Includes official co-productions and other productions involving shared creative control, that is, with a mix of Australians and foreigners in key creative positions. (e) Productions under foreign creative control with a substantial amount shot in Australia. Source: Australian Film Commission.

Table 12.19 shows the number and value of TV drama productions (Australian and foreign titles) shot in Australia from 2000-01 to 2004-05. From a high of $495m in 2000-01, the value of TV drama productions has fallen each year to be $223m in 2004-05. The number of productions has declined from 62 to 34 over the same time period, mainly due to a reduction in the number of series and serials and the number of telemovies in 2000-01 being unusually high.

12.19 TV DRAMA PRODUCTION
		2000-01		2001-02		2002-03		2003-04		2004-05

		Number	Value	Number	Value	Number	Value	Number	Value	Number	Value
Type of TV drama		no.	$m	no.	$m	no.	$m	no.	$m	no.	$m

Adult
	Mini-series	4	41	-	-	6	49	2	37	4	35
	Series/serials	24	222	28	258	20	122	17	107	15	122
	Telemovies	21	144	9	24	12	69	12	31	6	15
	Total	49	407	37	282	38	240	31	175	25	172
Children's		13	88	12	70	16	100	12	73	9	51
Total		62	495	49	352	54	339	43	248	34	223

Source: Australian Film Commission.

Additional information about film and video production, can be obtained from the AFC web site at <http://www.afc.gov.au/gtp>. Links to nearly 800 Australian film and television web sites are available on the AFC web site at <http://www.afc.gov.au/industrylinks>.

FILM AND VIDEO DISTRIBUTION

The film and video distribution industry comprises businesses mainly engaged in leasing or wholesaling motion pictures on film, video tape or DVD to organisations for exhibition or sale. Agents mainly engaged in leasing and wholesaling films and videos to organisations are also included.

At 30 June 2000 there were 58 businesses in the industry, which employed 1,426 people. In 1999-2000 these businesses generated $1,141.8m in total income and had an operating profit before tax of $103.6m. The main sources of income were the sale, rental or lease of prerecorded video tapes, disks, films and interactive software ($841.1m), and the provision of channels to pay television broadcasters ($169.2m).

MOTION PICTURE EXHIBITION

The motion picture exhibition industry comprises businesses mainly engaged in screening motion pictures on film, video tape or DVD. It also includes businesses mainly engaged in drive-in theatre operation, cinema operation and film or video festival operation.

The ABS conducted a survey on the motion picture exhibition industry in respect of 1999-2000. At the end of June 2000, there were 173 businesses in the industry employing 9,282 people. There were 326 cinema sites and 17 drive-in sites in Australia at this time. While the number of cinema sites remained virtually unchanged from June 1994, the number of drive-in sites reduced from 41 in June 1994 to 28 in June 1997 to 17 in June 2000.
From June 1994, the number of cinema screens more than doubled, from 754 in June 1994 to 1,513 screens in June 2000. Paid admissions to cinemas increased by almost a third, from 60 million paid admissions during 1993-94 to 79 million during 1999-2000.

CINEMA ATTENDANCE

The 2002 Survey of Attendance at Selected Cultural Venues and Events found 69.9% of the Australian population aged 18 years and over (10.1 million people) attended a cinema, drive-in or other public screening of a film at least once in the 12 months prior to interview in 2002 (table 12.20). Attendance at cinemas was significantly higher than in 1999, when the attendance rate was 65.6% (9.2 million people).

12.20 ATTENDANCE AT CINEMAS(a) - 2002
		Attendance rate(b)
		%

Males		68.2
Females		71.6
Persons		69.9
Age group (years)
	18-24	92.1
	25-34	81.0
	35-44	76.7
	45-54	69.9
	55-64	56.7
	65 and over	38.6
Birthplace
	Australia	71.7
	Main English-speaking countries	75.9
	Other countries	58.5

(a) Attendance at least once in the 12 months prior to interview in 2002. (b) The number of people who attended, expressed as a percentage of the number of people in that population group. Source: Attendance at Selected Cultural Venues and Events, Australia, 2002 (4114.0).