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, 2007-08 (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 $91.8m.
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).
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 |
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: 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 2007-08 National Survey of Feature Film and Television Drama Production provides further information on Australian production of feature films. It shows that 34 Australian and co-production feature films began principal photography (the period of major and ongoing shooting) in Australia in 2007-08, up from 27 in 2006-07 and well above the five year average of 29 films.
The value of production activity (as measured by budget expenditure in Australia) in 2007-08 fell to $168m, well below the 2006-07 figure of $231m and just above the five-year average of $162 million. Of the 34 feature films produced, $119m was spent on the production of 29 Australian feature films. This is lower than the five-year average of $139 million.
16.6 AUSTRALIAN AND CO-PRODUCTION, FEATURE FILMS, Production activity - 2003-04 to 2007-08(a) |
|
| Australian production(b) | Co-production(c) | Total |
Year of production | No. | Spend in Aust. ($M) | No. | Spend in Aust. ($M) | No. | Spend in Aust. ($M) |
|
2003-04 | 21 | 196 | 1 | 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 |
2007-08 | 29 | 119 | 5 | 49 | 34 | 168 |
5-year average | 26 | 139 | 3 | 23 | 29 | 162 |
|
(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 Feature Film and Television Drama Production, 2007-08. |
Foreign investors accounted for a total of $103.3m (47%) of funding for Australian and co-production feature films in 2007-08. This figure included $21.4m (17%) for Australian only feature feature films. The foreign investment contribution went towards a total of 11 films, of which six 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 2007-08, investing a total of $62.2m in 22 Australian and co-production titles. This accounted for 28% of total funding for Australian and co-production features, and 41% of the funding for the 21 Australian only feature films.
16.7 AUSTRALIAN AND CO-PRODUCTION FEATURE FILMS, Sources of Finance - 2003-04 to 2007-08 |
|
| 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(c) |
|
2003-04 | 30.6 | 14.0 | 11 | 34.5 | 15.4 | 12 |
2004-05 | 25.4 | 38.3 | 11 | 33.0 | 29.8 | 14 |
2005-06 | 46.4 | 46.3 | 19 | 50.9 | 41.6 | 22 |
2006-07 | 32.5 | 14.9 | 15 | 44.9 | 16.6 | 18 |
2007-08 | 52.8 | 41.2 | 21 | 62.2 | 28.1 | 22 |
5-yr average | 37.6 | 30.8 | 15.4 | 45.1 | 26.3 | 17.6 |
Australian Private Investors(d) |
|
2003-04 | 11.2 | 5.1 | 11 | 11.2 | 5.0 | 11 |
2004-05 | 20.3 | 30.5 | 15 | 20.3 | 18.3 | 15 |
2005-06 | 8.6 | 8.6 | 14 | 9.0 | 7.3 | 15 |
2006-07 | 13.3 | 6.1 | 13 | 13.3 | 4.9 | 13 |
2007-08 | 37.9 | 29.6 | 17 | 38.2 | 17.3 | 18 |
5-yr average | 18.8 | 16.4 | 15.0 | 18.4 | 10.6 | 14.4 |
Australian Film/TV Industry(e) |
|
2003-04 | 68.3 | 31.4 | 11 | 69.5 | 30.9 | 12 |
2004-05 | 8.6 | 12.9 | 14 | 11.0 | 9.9 | 16 |
2005-06 | 17.4 | 17.4 | 21 | 19.9 | 16.2 | 22 |
2006-07 | 8.6 | 3.9 | 21 | 14.2 | 5.3 | 22 |
2007-08 | 16.0 | 12.4 | 18 | 17.6 | 7.9 | 20 |
5-yr average | 25.5 | 18.3 | 17.2 | 26.4 | 14.1 | 18.4 |
Foreign Investors |
|
2003-04 | 107.5 | 49.4 | 6 | 109.5 | 48.7 | 7 |
2004-05 | 12.1 | 18.2 | 5 | 46.7 | 42.1 | 8 |
2005-06 | 27.8 | 27.8 | 9 | 42.6 | 34.8 | 12 |
2006-07 | 163.6 | 75.1 | 10 | 197.8 | 73.2 | 13 |
2007-08 | 21.4 | 16.7 | 6 | 103.3 | 46.7 | 11 |
5-yr average | 66.5 | 37.3 | 7.2 | 100.0 | 49.1 | 10.2 |
|
(a) Projects are under Australian creative control where the key elements are predominantly 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. |
(c) Includes Australian state and Federal agencies and funding bodies. Comprises equity investments only - distribution guarantees, loan and underwriting are not included. Producer offset included from 2007-08. |
(d) Includes private non-industry sources such as Film Licensed Investment Companies, (FLICs), 10B and 10BA investors (Film tax incentives). |
(e) Includes Australian-based distribution companies, free-to-air broadcasters (commercial and public) and subscription channels. |
Source: Screen Australia, National Survey of Feature Film and Television Drama Production, 2007-08. |
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 2007-08 to $256m. This is up slightly on the $253m in 2006-07 and above the five-year average of $223m. Total hours produced also increased to 690 hours in 2007-08, up on the 615 hours produced in 2006-07 and well above the five-year average of 626 hours.
16.9 AUSTRALIAN AND CO-PRODUCTION, TV drama - Production activity - 2003-04 to 2007-08(a) |
|
| Australian production(b) | Co-production(c) | Total |
| No. | Hours produced (d) | Spend in Aust. ($m) | No. | Hours produced (d) | Spend in Aust. ($m) | No. | Hours produced (d) | Spend in Aust. ($m) |
|
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 |
2007-08 | 35 | 605 | 228 | 7 | 85 | 27 | 42 | 690 | 256 |
5-year average | 35 | 575 | 206 | 5 | 51 | 17 | 40 | 626 | 223 |
|
(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, 2007-08. |
More information about the National Survey of Feature Film and Television Drama Production is available from the Screen Australia website,
www.afc.gov.au.
Motion picture exhibition
Screen Australia's analysis of data from the Motion Picture Distributors Association of Australia shows that in 2008, 11% of the films screened in Australian cinemas were of Australian origin. By comparison, 52% of the films screened originated in the United States of America.
Furthermore, Australian films accounted for only 3.8% ($35.5m) of the total box office receipts of Australian cinemas in 2008, down slightly from 4.0% in 2007 ($36.0m). As the following graph shows, this percentage has fluctuated over time.
16.10 AUSTRALIAN FILMS' SHARE OF THE AUSTRALIAN BOX OFFICE: 1987 to 2008