ORGANISATIONS

Television, film and video

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, 2008-09 (cat. no. 4183.0) reported that the Australian Government provided total funding of $115.5m for film and video production and distribution, while state and territory governments contributed $122.7m.

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).

16.3 SOURCES OF INCOME, Film and video production and post-production services - 2006-07
			Income	Proportion of total income
			$m	%
Film and video production services
	Production income from
		Feature films	213.7	13.5
		Television programs	549.7	34.7
		Commercials	*245.4	15.5
		Corporate, marketing and training media	*89.6	5.7
		Educational media	*10.2	0.6
		Music media	*2.1	0.1
		Other	20.5	1.3
		Total	1 131.2	71.4
	Provision of production services to other businesses		332.3	21.0
	Provision of post-production services to other businesses		*25.3	1.6
	Sale of program format rights		3.3	0.2
	Rent, leasing and hiring		*7.6	0.5
	Interest		11.0	0.7
	Other income		73.4	4.6
	Total income		1 584.2	100.0
Post-production services
	Production income		**1.2	0.3
	Provision of production service to other businesses		**11.4	2.6
	Provision of post-production services to other businesses
		Visual editing	255.1	57.5
		Sound editing	20.0	4.5
		Duplication	51.1	11.5
		Transferring	5.0	1.1
		Film laboratory services	-	-
		Other post-production services	-	-
		Total	402.3	90.6
	Sale of program format rights		-	-
	Rent, leasing and hiring		3.7	0.8
	Interest		2.5	0.6
	Other		23.0	5.2
	Total income		444.0	100.0
* 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
- nil or rounded to zero (including null cells)
Source: Television, Film and Video Production and Post-Production Services, Australia, 2006-07 (cat. no. 8679.0).

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
	For post-production services	78.0	5.3	26.1	6.6
	Total	423.6	28.9	36.7	9.3
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: 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 include 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: Television, Film and Video Production and Post-Production Services, Australia, 2006-07 (cat. no. 8679.0).

Screen Australia's 2008-09 National Survey of Feature Film and Television Drama Production provides further information on Australian production of feature films. It shows that 32 Australian and co-production feature films began principal photography (the period of major and ongoing shooting) in Australia in 2008-09, down from the upwardly revised 38 in 2007-08, but was equal to the 5-year average of 32 films.

The value of total production activity (as measured by budget expenditure in Australia) in 2008-09 rose to $358m, well above the 2007-08 figure of $170m and well above the five-year average of $194 million. Of the 32 feature films produced, $341m was spent on the production of 29 Australian feature films. This is well above the five-year average of $169 million.

16.6 AUSTRALIAN AND CO-PRODUCTION FEATURE FILMS, Production activity - 2004-05 to 2008-09(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)
2004-05	26	66	3	27	29	93
2005-06	29	100	3	13	32	112
2006-07	27	214	3	19	30	234
2007-08	33	121	5	49	38	170
2008-09	29	341	3	17	32	358
5-year average	29	169	3	25	32	194
(a) Year of production is the year in which principal photography commenced.
(b) Projects under Australian creative control where the key elements are predominantly 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.
Source: Screen Australia, National Survey of Film and Television Drama Production, 2008-09.

Foreign investors accounted for a total of $224m (57%) of funding for Australian and co-production feature films in 2008-09. This figure included $205m (56%) for Australian only feature films. The foreign investment contribution went towards a total of 14 films, of which 11 were Australian only productions. It is important to note that foreign investment fluctuates from year to year, depending on production schedules.

Government sources were also a significant source of funds in 2008-09, investing a total of $35m in 24 Australian and co-production titles. This accounted for 9% of total funding for Australian and co-production features, and 9% of the funding for the 21 Australian-only feature films.

16.7 Australian and Co-production Feature Films, Sources of Finance - 2004-05 to 2008-09
	AUSTRALIAN ONLY(a)			TOTAL AUSTRALIAN AND CO-PRODUCTION(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
2004-05	25	38	11	33	r29	14
2005-06	46	46	19	51	42	22
2006-07	r32	15	15	45	17	18
2007-08	r39	r30	r17	r43	r19	r20
2008-09	32	9	21	35	9	24
5-yr average	35	28	17	41	23	20
AUSTRALIAN PRIVATE INVESTORS
2004-05	r21	r32	r18	r21	r19	r18
2005-06	9	9	14	9	7	15
2006-07	r15	r7	r16	r15	r5	r16
2007-08	r40	r31	r20	r40	r18	r21
2008-09	5	1	12	5	1	r12
5-yr average	18	16	16	18	10	16
AUSTRALIAN FILM/TV INDUSTRY
2004-05	9	13	14	11	10	16
2005-06	17	17	21	20	16	22
2006-07	9	4	21	14	5	22
2007-08	r30	r23	r23	r37	r16	r23
2008-09	124	34	26	130	33	28
5-yr average	38	18	21	42	16	22
FOREIGN INVESTORS
2004-05	12	18	5	47	42	8
2005-06	28	28	9	43	35	12
2006-07	164	75	10	198	73	13
2007-08	21	r16	6	103	r46	11
2008-09	205	56	11	224	57	14
5-yr average	86	39	8	123	50	12
r revised
(a) Projects under Australian creative control where the key elements are Australian and the project was originated and developed by Australians.
(b) 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.
Source: Screen Australia, National Survey of Feature Film and Television Drama Production, 2008-09 .

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: 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 Screen Australia'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 2008-09 to $308m. This is up on the $257m in 2007-08 and above the five-year average of $245m. Total hours produced fell to 646 hours in 2008-09, down on the 691 hours produced in 2007-08. However, total hours produced in 2008-09 was above the five-year average of 631 hours.

16.9 AUSTRALIAN AND CO-PRODUCTION TV DRAMA, Production activity - 2004-05 to 2008-09(a)
	Australia(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)
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
2007-08	36	606	229	7	85	27	43	691	257
2008-09	39	614	294	3	33	13	42	646	308
5-year average	36	581	227	5	50	18	41	631	245
(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: Screen Australia, National Survey of Feature Film and Television Drama Production, 2008-09.

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

Screen Australia's analysis of data from the Motion Picture Distributors Association of Australia shows that in 2009, 13% of the films screened in Australian cinemas were of Australian origin. By comparison, 50% of the films screened originated in the United States of America. This is the fifth consecutive year it has been below 60% and the third fall in a row. Nevertheless, those films earned 85% ($847.7m) of the total box office for all films released in Australia during 2009.

Australian films accounted for only 5.0% ($54.8m) of the total box office receipts of Australian cinemas in 2009, up slightly from 3.8% in 2008 ($35.5m). As the following graph shows, this percentage has fluctuated over time.

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