FINANCIAL DATA
The 2005-06 ABS Cultural Funding by Government collection reported that the Australian Government provided total funding of $140.0 million for Film and video, while state and territory governments contributed $75.4m.
Data from Get the Picture: What Australians are Making - Production Industry, conducted by the Australian Film Commission, show that overseas investors accounted for 75% of total funding for Australian features in 2006-07. They contributed $164m to ten titles, with one high-budget local film 'Australia' accounting for the bulk of their investment.
Government sources were also a significant source of funds in 2006-07, contributing 15% of total funding for Australian features in 2006-07. The majority of these funds came via the Film Finance Corporation, which invested $37m in Australian features and co-productions.
16.3 AUSTRALIAN FEATURE FILMS, Sources of Finance - 2003-04 to 2006-07 |
|  |
| | Contribution | Proportion of total budget | No. of films invested in | |
| | $m | % | no. | |
| |
| Australian government sources(a) | | | | |
| 2003-04 | 30.6 | 14 | 11 | |
| 2004-05 | 25.4 | 38 | 11 | |
| 2005-06 | 46.4 | 46 | 19 | |
| 2006-07 | 32.5 | 15 | 15 | |
| 5-yr average | 30.8 | 31 | 13 | |
| Australian private institutions(b) | | | | |
| 2003-04 | 11.2 | 5 | 11 | |
| 2004-05 | 20.3 | 31 | 15 | |
| 2005-06 | 8.6 | 9 | 14 | |
| 2006-07 | 13.3 | 6 | 13 | |
| 5-yr average | 14.9 | 19 | 13 | |
| Australian film/TV industry(c) | | | | |
| 2003-04 | 68.3 | 31 | 11 | |
| 2004-05 | 8.6 | 13 | 14 | |
| 2005-06 | 17.4 | 17 | 21 | |
| 2006-07 | 8.6 | 4 | 21 | |
| 5-yr average | 21.5 | 15 | 15 | |
| Foreign sources | | | | |
| 2003-04 | 107.5 | 49 | 6 | |
| 2004-05 | 12.1 | 18 | 5 | |
| 2005-06 | 27.8 | 28 | 9 | |
| 2006-07 | 163.6 | 75 | 10 | |
| 5-yr average | 63.1 | 36 | 7 | |
| |
| (a) Includes Australian state and federal agencies and funding bodies, ans SBS. Comprises equity investments only - distribution guarantees, loans and underwriting are not included. |
| (b) Private investment sources including Film Licensed Investment Companies (FLICs), 10BA and 10B certified projects (Film tax incentives). |
| (c) Includes Australian-based film and TV production companies, distribution companies, commercial free-to-air broadcasters and pay TV channels. |
| Source: Australian Film Commission, National Survey of Feature Film and TV Drama Production, 2006-07, www.afc.gov.au |
In 2007, Australian films accounted for only 4% ($36m) of the total box office receipts of Australian cinemas, down from 4.6% in 2006 ($40m). As graph 16.4 shows, this percentage has fluctuated over time.
16.4 AUSTRALIAN FILMS' SHARE OF THE AUSTRALIAN BOX OFFICE: 1986 to 2007
An ABS survey of businesses in the film and video production industry showed that while the income derived from the production of commercials increased by 23% between 1999-2000 and 2002-03, the income from all other types of film and video production decreased. This meant overall production income was 8% lower in 2002-03 than in 1999-2000. However, increases in income from other sources, particularly post-production and other production services meant the total income for film and video production businesses was greater in 2002-03 than the previous period.
16.5 INCOME AND EXPENSES OF BUSINESSES IN THE FILM AND VIDEO PRODUCTION INDUSTRY, 1999 - 2000 and 2002 - 03 |
| |
| | | 1999-2000 | 2002-03 | |
| | | Value | Percentage contribution | Value | Percentage contribution | |
| | | $m | % | $m | % | |
| |
| Income | | | | | |
| Income from the production of: | | | | | |
| | Feature films | 74.0 | 5.0 | 59.2 | 3.7 | |
| | Television programs | 472.2 | 32.0 | 393.6 | 24.7 | |
| | Commercials | 186.2 | 12.6 | 228.4 | 14.3 | |
| | Corporate, training and marketing media | 72.0 | 4.9 | 70.6 | 4.4 | |
| | Other | 45.5 | 3.1 | 26.9 | 1.7 | |
| | Total | 849.9 | 57.7 | (a)778.6 | 48.8 | |
| Income from the provision of production services to other businesses | 233.1 | 15.8 | 350.9 | 22.0 | |
| Income from the provision of post-production/film laboratory services to other businesses | 262.6 | 17.8 | 360.5 | 22.6 | |
| Other income | 128.2 | 8.7 | 106.5 | 6.7 | |
| Total income | 1 473.8 | 100.0 | 1 596.6 | 100.0 | |
| Expenses | | | | | |
| Labour costs | | | | | |
| | Wages and salaries | 373.5 | 26.7 | 402.4 | 26.7 | |
| | Other | 53.2 | 3.8 | 64.0 | 4.3 | |
| | Total | 426.6 | 30.5 | 466.3 | 31.0 | |
| Payments to other businesses for production services | 250.8 | 17.9 | 215.8 | 14.3 | |
| Payments to other businesses for post-production/film laboratory services | 88.3 | 6.3 | 89.5 | 6.0 | |
| Rent, leasing and hiring expenses | 65.5 | 4.7 | 85.4 | 5.7 | |
| Travelling, accomodation and entertainment expenses | 34.8 | 2.5 | 38.5 | 2.6 | |
| Purchases of film stock and video tape stock | 50.6 | 3.6 | 62.4 | 4.1 | |
| Other purchases | 45.8 | 3.3 | 63.1 | 4.2 | |
| Amortisation of productions | 61.1 | 4.4 | *38.7 | 2.6 | |
| Other | 374.4 | 26.8 | 445.0 | 29.6 | |
| Total expenses | 1 397.9 | 100.0 | 1 504.8 | 100.0 | |
| |
| * estimate has a relative standard error of 25% to 50% and should be used with caution |
| (a) Of the $778.6m received from the production of films and programs etc., $88.9m were commissioned (i.e. the business did not retain the rights to the production). |
| Source: ABS, Television, Film and Video Production, 2002 - 03 (cat. no. 8679.0) and Film and Video Production and Distribution, 1999-2000 (cat. no. 8679.0). |
Film and video production industry
The television industry also has a role in the production of both film and video. While predominantly involved in broadcasting, the television industry spends substantial amounts on productions made specifically for television. In 2002-03, the survey of Television, Film and Video Production found that $1,140.7m was spent on television productions, 71% by television broadcasters.
16.6 PRODUCTION COSTS OF PROGRAMS MADE SPECIFICALLY FOR TELEVISION - 2002-03 |
| |
| Television businesses(a) | Other businesses(b) | Total | |
| $m | $m | $m | |
| |
| Drama | np | np | 159.5 | |
| Situation and sketch comedy | 5.9 | *9.8 | 15.8 | |
| Documentaries | 5.5 | 30.7 | 36.2 | |
| Quiz, panel and game shows | np | np | 17.2 | |
| News and current affairs | 344.3 | 6.7 | 351.0 | |
| Sport | 285.2 | *19.9 | 305.1 | |
| Light entertainment and variety | 88.6 | 45.0 | 133.6 | |
| Other(c) | np | np | *122.3 | |
| Total | 812.4 | 328.4 | 1 140.7 | |
| |
| * 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) Includes commercial free-to-air, subscription and public broadcasters. |
| (b) Includes businesses whose primary activity was film and video production or subscription television channel provision with in-house production. |
| (c) Includes childrens' programs. |
| Source: ABS, Television, Film and Video Production, 2002-03 (cat. no. 8679.0). |
The 2002-03 survey of Television, Film and Video Production found that there were 5,774 films and/or videos created which were not specifically made for television, at a total production cost of $142.4m. While the majority of these (88%) were Corporate, marketing and training media, more than 50% of total production costs were devoted to the production of 66 feature films.
16.7 PRODUCTIONS MADE OTHER THAN FOR TELEVISION - 2002-03 |
| |
| | Productions | Total cost of production | Average cost per production | |
| | no. | $m | $'000 | |
| |
| Type of production | | | | |
| Feature films | 66 | 73.5 | 1 113.8 | |
| Short films | *74 | 2.4 | *32.8 | |
| Documentaries | *37 | *1.7 | *46.5 | |
| Corporate, marketing and training media | 5 057 | 33.9 | 6.7 | |
| Educational media | *185 | *3.8 | *20.7 | |
| Music media | *156 | *2.5 | *15.8 | |
| Other | 199 | 24.5 | *123.1 | |
| Total | 5 774 | 142.4 | 24.7 | |
| |
| * estimate has a relative standard error of 25% to 50% and should be used with caution |
| Source: ABS, Television, Film and Video Production, 2002-03 (cat. no. 8679.0). |
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.
Motion picture exhibition industry
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).
Video hire
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%).
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