ORGANISATIONS
Television, film and video production and post-production services
The ABS survey of Television, Film and Video Production and Post-Production Services conducted in respect of the 2006-07 financial year found that at the end of June 2007 there were:
- 2,492 film and video production and post-production services businesses operating in Australia employing 13,844 people
- 13 subscription television broadcasting businesses employing 3,052 people
- 24 commercial free-to-air television broadcasting businesses (excluding public television broadcasting) employing 6,980 people.
Cultural Funding by Government, Australia, 2006-07 (cat. no. 4183.0) reported that the Australian Government provided total funding of $140.1m for Film and video, while state and territory governments contributed $71.8m.
Film and video production services businesses generated $1,584.2m in income during 2006-07. The majority of this income (71% or $1,131.2m) was earned from the production of television programs ($549.7m), commercials ($245.4m), feature films ($213.7m) and other media content ($122.4m). Income from the provision of production services to other businesses accounted for 21% ($332.3m) of total income.
Post-production services businesses generated $444.0m in income during 2006-07. The majority of this income (91% or $402.3m) was earned from the provision of post-production services to other businesses, such as visual editing services (58% or $255.1m) and duplication services (12% or $51.1m).
Film and video production services businesses incurred $1,461.8m in expenses during 2006-07. Labour costs accounted for just under a third (31% or $453.2m) of total expenses, followed by payments to other businesses for production services (24% or $345.6m), purchases (6% or $87.7m) and rent, leasing and hiring expenses (6% or $79.9m).
Post-production services businesses incurred $395.6m in expenses during 2006-07. Labour costs accounted for 42% ($166.9m) of total expenses, followed by purchases (10% or $39.1m) and depreciation and amortisation (8% or $31.9m).
16.4 SOURCES OF EXPENSES, Film and video production and post-production services - 2006-07 |
|  |
| | Film and video production services | Post-production services | |
| | Expenses | Proportion of total expenses | Expenses | Proportion of total expenses | |
| | $m | % | $m | % | |
| |
| Labour costs | | | | | |
| Wages and salaries | 386.2 | 26.4 | 143.3 | 36.2 | |
| Other | 67.0 | 4.6 | 23.6 | 6.0 | |
| Total | 453.2 | 31.0 | 166.9 | 42.2 | |
| Payments to other businesses/contractors for production services | 345.6 | 23.6 | *10.6 | 2.7 | |
| Payments to other businesses/contractors for post-production services | 78.0 | 5.3 | 26.1 | 6.6 | |
| Other contract, subcontract and commission expenses | 63.1 | 4.3 | 21.2 | 5.4 | |
| Purchases | 87.7 | 6.0 | 39.1 | 9.9 | |
| Rent, leasing and hiring expenses | 79.9 | 5.5 | 23.8 | 6.0 | |
| Depreciation and amortisation | 45.6 | 3.1 | 31.9 | 8.1 | |
| Travelling, accommodation and entertainment | 52.6 | 3.6 | 6.5 | 1.7 | |
| Royalties | 38.4 | 2.6 | 0.6 | 0.1 | |
| Other | 217.7 | 15.0 | 68.9 | 17.3 | |
| Total expenses | 1 461.8 | 100.0 | 395.6 | 100.0 | |
| |
| * estimate has a relative standard error of 25% to 50% and should be used with caution |
| Source: ABS, Television, Film and Video Production and Post-Production Services, Australia, 2006-07 (cat. no. 8679.0). |
Production activity - Not for Television
Film and video production and post-production businesses work on a range of outputs. These can broadly be divided into productions made specifically for television and those made other than for television. Productions made other than for television includes outputs such as feature films, documentaries and educational media. The 2006-07 ABS Survey of Television, Film and Video Production and Post-Production Services reports that during 2006-07, there were 14,269 productions created which were not specifically made for television, at a total production cost of $273.2m. While the majority of these (75%) were educational media, around 67% of total production costs were devoted to the production of 85 feature films.
16.5 PRODUCTIONS MADE OTHER THAN FOR TELEVISION(a) - 2006-07 |
| |
| Businesses at end June 2007(b) | Productions | Total cost of production | Average cost per production(c) | |
| no. | no. | $m | $'000 | |
| |
| Feature films | 78 | 85 | 183.8 | 2 174.3 | |
| Short films | **46 | *79 | 4.8 | *61.2 | |
| Documentaries | 33 | 46 | 1.4 | 31.1 | |
| Corporate, marketing and training media | *107 | *353 | *6.0 | *16.9 | |
| Educational media(d) | 454 | *10 672 | *71.7 | *6.7 | |
| Music media | *27 | **313 | 1.3 | **4.2 | |
| Other | *74 | 2 722 | 4.1 | 1.5 | |
| Total | 652 | *14 269 | 273.2 | 19.1 | |
| |
| * estimate has a relative standard error of 25% to 50% and should be used with caution |
| ** estimate has a relative standard error greater than 50% and is considered too unreliable for general use |
| (a) Includes businesses whose primary activity was film and video production or post-production services. |
| (b) As businesses may have been involved in more than one type of production, the counts of businesses do not sum to the total. |
| (c) As data for 'total cost of production' have been rounded to $m, discrepancies may occur in the 'average cost per production'. |
| (d) Includes media produced for schools, tertiary and other educational institutions. |
| Source: ABS, Television, Film and Video Production and Post-Production Services, Australia, 2006-07 (cat. no. 8679.0). |
The AFC's 2006-07 National Survey of Feature Film and Television Drama Production provides further information on Australian production of feature films. It shows that 27 Australian and co-production feature films began principal photography (the period of major and ongoing shooting) in Australia in 2006-07. This was just above the five year average of 25 films.
The value of production activity (as measured by budget expenditure in Australia) in 2006-07 increased to $231m, well above the 2005-06 figure of $112m and the five-year average of $140 million. This was spent on the production of 27 feature films. Of this, $212m was spent on the Australian production of 24 feature films. This is much higher than the five-year average of $124m but similar to 2003-04.
16.6 AUSTRALIAN AND CO-PRODUCTION: FEATURE FILMS, Production activity - 2002-03 to 2006-07(a) |
| |
| Australian production(b) | Co-production(c) | Total | |
| Year of production | no. | Spend in Aust. ($m) | no. | Spend in Aust. ($m) | no. | Spend in Aust. ($m) | |
| |
| 2002-03 | 17 | 49 | np | 14 | 19 | 63 | |
| 2003-04 | 21 | 196 | np | 5 | 22 | 201 | |
| 2004-05 | 24 | 66 | 3 | 27 | 27 | 93 | |
| 2005-06 | 29 | 100 | 3 | 13 | 32 | 112 | |
| 2006-07 | 24 | 212 | 3 | 19 | 27 | 231 | |
| 5-year average | 23 | 124 | 2 | 16 | 25 | 140 | |
| |
| np not available for publication but included in totals where applicable, unless otherwise indicated |
| (a) Year of production is the year in which prinicpal photography commenced. |
| (b) Projects under Australian creative control where the key elements are predominantly Australian and the project was originated and developed in Australia. |
| (c) Projects where creative control is shared between Australian and foreign partners and there is a mix of Australian and foreign elements in the key creative positions. |
| Source: Australian Film Commission, National Survey of Feature Film and Television Drama Production, 2006-07. |
Foreign investors accounted for 73% of total funding for Australian and co-production feature films in 2006-07 (75% for Australian features only). They contributed $197.8m to 13 titles, with one high-budget local film 'Australia' accounting for the bulk of their investment. It is important to note that foreign investment fluctuates from year to year, depending on the production of such high-budget features as 'Australia' (2006-07) and 'Happy Feet' (2003-04).
Government sources were also a significant source of funds in 2006-07, investing $44.9m in 18 titles. This accounted for 17% of total funding for Australian and co-production features (15% for Australian features only).
16.7 AUSTRALIAN AND CO-PRODUCTION: FEATURE FILMS, Sources of Finance - 2002-03 to 2006-07 |
| |
| Australian and co-production(a) | Australian only(b) | |
| Contribution | Proportion of total finance | No. of films invested in | Contribution | Proportion of total finance | No. of films invested in | |
| $m | % | no. | $m | % | no. | |
Australian government sources(c) | |
| |
| 2002-03 | 29.9 | 42.3 | 11 | 18.9 | 38.6 | 9 | |
| 2003-04 | 34.5 | 15.4 | 12 | 30.6 | 14.0 | 11 | |
| 2004-05 | 33.0 | 29.8 | 14 | 25.4 | 38.3 | 11 | |
| 2005-06 | 50.9 | 41.6 | 22 | 46.4 | 46.3 | 19 | |
| 2006-07 | 44.9 | 16.6 | 18 | 32.5 | 14.9 | 15 | |
| 5-year average | 38.6 | 29.1 | 15 | 30.8 | 30.4 | 13 | |
Australian private investors(d) | |
| |
| 2002-03 | 21.1 | 29.8 | 10 | 21.1 | 42.9 | 10 | |
| 2003-04 | 11.2 | 5.0 | 11 | 11.2 | 5.1 | 11 | |
| 2004-05 | 20.3 | 18.3 | 15 | 20.3 | 30.5 | 15 | |
| 2005-06 | 9.0 | 7.3 | 15 | 8.6 | 8.6 | 14 | |
| 2006-07 | 13.3 | 4.9 | 13 | 13.3 | 6.1 | 13 | |
| 5-year average | 15.0 | 13.1 | 13 | 14.9 | 18.6 | 13 | |
Australian film/TV industry(e) | |
| |
| 2002-03 | 6.7 | 9.5 | 10 | 4.5 | 9.2 | 9 | |
| 2003-04 | 69.5 | 30.9 | 12 | 68.3 | 31.4 | 11 | |
| 2004-05 | 11.0 | 9.9 | 16 | 8.6 | 12.9 | 14 | |
| 2005-06 | 19.9 | 16.2 | 22 | 17.4 | 17.4 | 21 | |
| 2006-07 | 14.2 | 5.3 | 22 | 8.6 | 3.9 | 21 | |
| 5-year average | 24.3 | 14.4 | 16 | 21.5 | 15.0 | 15 | |
Foreign investors | |
| |
| 2002-03 | 13.0 | 18.4 | 7 | 4.5 | 9.2 | 5 | |
| 2003-04 | 109.5 | 48.7 | 7 | 107.5 | 49.4 | 6 | |
| 2004-05 | 46.7 | 42.1 | 8 | 12.1 | 18.2 | 5 | |
| 2005-06 | 42.6 | 34.8 | 12 | 27.8 | 27.8 | 9 | |
| 2006-07 | 197.8 | 73.2 | 13 | 163.6 | 75.1 | 10 | |
| 5-year average | 81.9 | 43.4 | 9 | 63.1 | 35.9 | 7 | |
| |
| (a) A co-production is a project where creative control is shared between Australian and foreign partners and there is a mix of Australian and foreign elements in the key creative positions. |
| (b) Projects under Australian creative control where the key elements are Australian and the project was originated and developed by Australians. |
| (c) Includes Australian state and federal agencies and funding bodies. Comprises equity investments only - distribution guarantees, loan and underwriting are not included. |
| (d) Includes private non-industry sources such as Film Licensed Investment Companies (FLICs), 10B and 10BA investors (Film tax incentives). |
| (e) Includes Australian-based film and TV production companies, distribution companies, commercial free-to-air broadcasters, the ABC and SBS, and pay TV channels. |
| Source: Australian Film Commission, National Survey of Feature Film and Television Drama Production, 2006-07. |
Production activity - Television
Productions made primarily for television refers to outputs such as news, current affairs, light entertainment, variety and drama programs. In addition to film and video production and post-production businesses, businesses in the television industry also spend substantial amounts on such productions. In 2006-07, $1,366.2m was spent on productions made specifically for television, 65% by television broadcasters.
16.8 PRODUCTIONS MADE PRIMARILY FOR TELEVISION - 2006-07 |
| |
| | Businesses at end June 2007(a) | Commercial broadcast hours(b) | Total cost of production | Average cost per hour(c) | |
| | no. | no. | $m | $'000 | |
| |
| Type of production | | | | | |
| Drama(d) | 22 | 448 | 152.9 | 341.5 | |
| Documentaries | 67 | 283 | 39.8 | 140.9 | |
| Situation and sketch comedy | 8 | 146 | 15.1 | 103.6 | |
| Light entertainment and variety | *84 | 5 165 | 306.1 | 59.3 | |
| News and current affairs | *63 | 20 556 | 411.5 | 20.0 | |
| Sport | *50 | 22 181 | 268.4 | 12.1 | |
| Quiz, panel and game shows | 8 | np | 74.8 | np | |
| Children's drama | 12 | 147 | 33.8 | 229.2 | |
| Other children's programs | *23 | 935 | *30.7 | 32.9 | |
| Total | *33 | 1 083 | 64.5 | 59.6 | |
| Other types of productions | 10 | np | 33.0 | np | |
| Total | 272 | 55 546 | 1 366.2 | 24.6 | |
| Productions made by television broadcasters(e) | 20 | 29 064 | 889.3 | 30.6 | |
| Productions made by other businesses(f) | 252 | 26 482 | 476.8 | 18.0 | |
| |
| * estimate has a relative standard error of 25% to 50% and should be used with caution |
| np not available for publication but included in totals where applicable, unless otherwise indicated |
| (a) As businesses may have been involved in more than one type of production, the counts of businesses do not sum to the total. |
| (b) Relates to first release productions only. |
| (c) As data for 'total cost of production' have been rounded to $m, discrepancies may occur in the 'average cost per hour'. |
| (d) Excludes children's programs. |
| (e) Includes commercial free-to-air, subscription and public television broadcasters. Excludes community television broadcasters. Also excludes co-productions between television broadcasters and other businesses. |
| (f) Includes two types of businesses: those whose primary activity was film and video production or post-production services and those whose primary activity was subscription television channel provision with in-house production. Includes co-productions between television broadcasters and other businesses. |
| Source: ABS, Television, Film and Video Production and Post-Production Services, Australia, 2006-07 (cat. no. 8679.0). |
Further insight into the production of television drama programs can be gained from the AFC's National Survey of Feature Film and Television Drama Production. This survey reveals that the value of Australian and co-production TV drama as measured by budget expenditure in Australia, increased in 2006-07 to $253m. This is up on the $205m in 2005-06 and above the five-year average of $217m. Hours produced also increased to 615 hours in 2006-07, up on the 583 hours produced in 2005-06 but just below the five-year average of 623 hours.
The overall increase was due to a rise in the production of Australian adult TV drama programs, specifically series and mini-series.
16.9 AUSTRALIAN AND CO-PRODUCTION: TV DRAMA, Production activity - 2002-03 to 2006-07(a) |
| |
| Australian production(b) | Co-production(c) | Total | |
| Year of production | no. | Hours produced(d) | Spend in Aust. ($m) | no. | Hours produced(d) | Spend in Aust. ($m) | no. | Hours produced(d) | Spend in Aust. ($m) | |
| |
| 2002-03 | 38 | 639 | 214 | 4 | 35 | 12 | 42 | 673 | 225 | |
| 2003-04 | 36 | 583 | 189 | 3 | 39 | 10 | 39 | 622 | 199 | |
| 2004-05 | 29 | 588 | 189 | 4 | 32 | 13 | 33 | 620 | 202 | |
| 2005-06 | 35 | 516 | 182 | 7 | 67 | 23 | 42 | 583 | 205 | |
| 2006-07 | 41 | 581 | 242 | 4 | 34 | 11 | 45 | 615 | 253 | |
| 5-year average | 36 | 581 | 203 | 4 | 41 | 14 | 40 | 623 | 217 | |
| |
| (a) Year of production is the year in which principal photography commenced |
| (b) Projects under Australian creative control where the key elements are Australian and the project was originated and developed by Australians. |
| (c) Projects where creative control is shared between Australian and foreign partners and there is a mix of Australian and foreign elements in the key creative positions. |
| (d) Duration is rounded to 15, 30 or 60 minutes as appropriate. 'Hours produced' therefore refers to 'commercial broadcast hours' rather than actual running time. |
| Source: Australian Film Commission, National Survey of Feature Film and Television Drama Production, 2006-07. |
More information about the National Survey of Feature Film and Television Drama Production is available from the Screen Australia website,
www.screenaustralia.gov.au.
Motion picture exhibition
The census of the Motion Picture Exhibition Industry found 173 businesses operating a total of 326 cinema sites and 17 drive-in sites in June 2000. While the number of motion picture exhibition businesses in Australia declined from 188 to 173 since the last census was conducted in June 1997, the number of cinema screens increased from 1,050 to 1,513 (up by 44%). This growth was primarily due to the introduction of 'megaplex' sites (i.e. cinema sites with 14 or more screens). By comparison, during the same period, the number of drive-in theatre sites and screens fell from 28 to 17 and 36 to 27 respectively.
According to the census of Motion Picture Exhibition Industry, there were 79.4 million paid admissions to cinemas in 1999-2000 which generated gross box office receipts of $678.9m (or 65% of the total income of motion picture exhibitors). Sales of food and beverages contributed a further 17% to business income, while their major expenses were Film hire and Wages and salaries (29% and 14% of total expenses respectively).
The AFC's analysis of data from the Motion Picture Distributors Association of Australia shows that in 2007, 8% of the films screened in Australian cinemas were of Australian origin. By comparison, 54% of the films screened originated in the United States of America.
Furthermore, Australian films accounted for only 4% ($36.0m) of the total box office receipts of Australian cinemas in 2007, down from 5% in 2006 ($40.0m). As the following graph shows, this percentage has fluctuated over time.
16.11 AUSTRALIAN FILMS' SHARE OF THE AUSTRALIAN BOX OFFICE: 1986 to 2007
Video hire industry
The 2000 survey of the Video Hire Industry collected information on businesses mainly engaged in hiring out pre-recorded video cassettes for personal use, and identified 1,166 video hire businesses operating a total of 1,615 outlets.
In 1999-2000, video hire outlets earned about three-quarters (76%) of their income through rental of videos and DVDs. Labour costs accounted for about one-quarter (23%) of total expenses, with the other main expense items being purchases of videos and related goods (18%) and rent, leasing and hiring expenses (17%).
Film and video distribution industry
The main sources of revenue for film and video distribution businesses in 1999-2000 were the Renting and leasing of films to motion picture exhibitors ($289.4m) and Television businesses ($172.5m) and the Sale of pre-recorded video tapes and DVDs to retail outlets ($157.0m). Copyright fees and licences for film and video distribution accounted for about one-quarter (23%) of total expenses.
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