Film, Television and Digital Games, Australia methodology

The statistics presented in this publication were compiled from data collected from a sample of Australian businesses primarily engaged in film and video production, post-production, distribution, exhibition and a census of Australian businesses primarily engaged in providing television broadcasting services, subscription channel provision and digital games development. The collection was conducted as part of the Australian Bureau of Statistics (ABS) business survey program for the 2021–22 reference year. The data were collected under the authority of the Census and Statistics Act 1905. The Income Tax Assessment Act 1936 provides for the ATO to pass information to the Australian Statistician for the purposes of the Census and Statistics Act 1905.

Please refer to ABS Institutional Environment for more information about the institutional environment of the ABS, including its legislative obligations, financing and governance arrangements and mechanisms for scrutiny of ABS operations.

For more information about the institutional environment of the ATO, please refer to Part 4 Management and accountability in the Commissioner of Taxation Annual Report 2021–22.

The main purpose of this collection is to measure the income and expenses, size and structure and production activity of businesses in the film, television and digital game development industries in Australia during the 2021–22 financial year.

Statistics of particular interest include:

• the number of broadcast hours of television produced
• the number of film, video and commercials produced
• production costs
• sources of income
• items of expenditure
• industry value added (IVA)
• employment data
• state/territory data.

Government policy in this area has two aims: industry development (economic), and social/cultural objectives (e.g. the development of local product). The economic data in this collection enable governments and policy analysts to track the progress of industry development initiatives and to evaluate the performance of core funded agencies, with cultural industries being subsidised by Commonwealth and State governments in various ways (e.g. tax incentives, direct grants).

For the 2021–22 reference period, questionnaires were despatched by ABS in September 2022. The estimates are scheduled for release in June 2023, almost twelve months after the end of the reference period.

The ABS aims to produce high quality data from its industry collections while minimising the reporting burden on businesses. To achieve this, extensive effort is put into survey and questionnaire design, collection procedures and processing. Estimates were produced using number raised estimation methodology with a sample of 997 production, post-production, distribution and exhibition businesses, and a census of 56 commercial free-to-air, subscription and public television broadcasters and subscription television channel content providers and 199 digital games developers. Note that the business counts published in this publication are not the same as the number of businesses surveyed due to businesses ceasing trading during the financial year or having been deemed as out of scope.

Two types of error can occur in estimates that are based on a sample survey: sampling error and non-sampling error.

Data for this publication was obtained using different selection methods obtained from a randomly selected, stratified sample of film and video production, post-production, distribution and exhibition businesses and also a census of two other populations: broadcasters and channel providers, and digital game development businesses. Consequently, estimates for film and video production, post-production, distribution and exhibition businesses are subject to sampling variability, that is, they may differ from the figures that would have been produced if the data had been obtained from all businesses in the population. 

Sampling error occurs when a sample, rather than the entire population, is surveyed. It reflects the difference between estimates based on a sample and those that would have been obtained had a census been conducted. One measure of this difference is the standard error. There are about two chances in three that a sample estimate will differ by less than one standard error from the figure that would have been obtained if all businesses had been included in the survey, and about nineteen chances in twenty that the difference will be less than two standard errors. 

Estimates related to the broadcasters and channel providers population and digital game development businesses population were based on a census of these businesses, and hence are not subject to sampling error. 

Another measure of sampling error is the relative standard error (RSE), which is obtained by expressing the standard error as a percentage of the estimate to which it refers. The relative standard error is a useful measure in that it provides an immediate indication of the sampling error in percentage terms, and this avoids the need to refer also to the size of the estimate. Selected data item RSEs at the population level are shown in the table below.
To illustrate, an estimate of total income for film and video production businesses was $4,575.3m. The RSE was estimated to be 5.5%, giving a standard error of approximately $251.6m. Therefore, there are two chances in three that, if all units had been included in the survey, a figure in the range of $4,323.7m to $4,826.9m would have been obtained, and 19 chances in 20 (i.e. a confidence interval of 95%) that the figure would have been in the range of $4,072.0m to $5,078.6m.

The size of the RSE may be a misleading indicator of the reliability of the estimates for (a) operating profit before tax, (b) operating profit margin and (c) industry value added. It is possible for an estimate to legitimately include positive and negative values, reflecting the financial performance of individual businesses. In this case, the aggregated estimate can be small relative to the contribution of individual businesses, resulting in a standard error which is large relative to the estimate. 

The sampling variability for estimates at the state/territory level was generally higher than for Australian level aggregates. Survey estimates for states/territories should therefore be viewed with more caution than national estimates.

Non-sampling error arises from inaccuracies in collecting, recording and processing the data. Every effort was made to minimise reporting error, by the careful design of questionnaires, intensive training of survey analysts and efficient data processing procedures. The imprecision due to non-sampling variability cannot be quantified and should not be confused with sampling variability, which is measured by the standard error.

Differences in accounting policy and practices across businesses and industries can also lead to some inconsistencies in the data provided to compile the estimates. Although much of the accounting process is subject to standards, there remains a great deal of flexibility available to individual businesses in the accounting policies and practices they adopt.
The above limitations are not meant to imply that analysis based on these data should be avoided, only that the limitations should be considered when interpreting the data. This publication presents a wide range of data that can be used to analyse business and industry performance. It is important that any analysis be based upon the range of data presented rather than focusing on one variable.

Non-sampling error also occurs when information cannot be obtained from all businesses selected in the survey. There was an 76.9% response rate from all businesses that were surveyed and found to be operating during the reference period. Data were imputed for the remaining 23.1% of operating businesses. Imputed responses contributed 9.8% to overall total income, varying by population.

The ABS has been conducting collections of film and video production and post-production businesses periodically since 1993–94, television broadcasters since 1996–97 and digital games developers since 2006–07. While the ABS seeks to maximise consistency and comparability over time by minimising changes to the collections, sound collection practice requires ongoing development to maintain the integrity of the data, a collection's relevance to the changing needs of users, and the efficiency of the collection. Additionally, given the irregular frequency of these collections, they are not primarily designed to monitor change over time.

Caution should be used when referencing historical data. Changes made to these collections over time include changes in scope, concepts, data item definitions and classifications. For further information see Changes in methodology.

The estimates from the Film, Television and Digital Games Survey are only available as original series and are not seasonally or trend adjusted. 

Although financial estimates in this release relate to the full twelve months, employment estimates relate to the last pay period ending in June 2022. As such, estimates of values per person employed can be affected by any fluctuations in employment during the reference period. This is particularly relevant when assessing film and video production and post-production estimates owing to fluctuations in employment caused by the project-based nature of film and video production activities. 

Further information about terminology and other technical aspects associated with these statistics can be found in other sections of methodology above, and the Glossary.

Data from the 2021–22 Film, Television and Digital Games Survey are available free of charge on the ABS website.

Number of cinema loyalty club members based in Australia who have an active membership at 30 June 2022.

Fees paid to television broadcasters from businesses with which they are affiliated.

The diminution in the value of productions and program rights over time (generally several years) occurring when productions or program rights are treated as capitalised expenses. The amortisation charge is expensed through the financial statements of the business and excludes program rights expensed during the financial year.

Visual editing services such as 2D and 3D animation. Includes animation services provided during post production on partly or completely animated productions, such as feature films, television programs and other productions.

Office-based production staff working primarily on special effects such as animation and computer generated imagery. Excludes visual effects technicians working on-set.

Airtime for completed first release programs, including time allocated for advertisements. Excludes program re-runs and the production time for commercials, program promotions and online content related to television productions.

Online streaming services offered by free-to-air broadcasters.

Broadcasters and channel providers operating on a profit-making basis and receiving the majority of their income from subscription fees for access to content or a set of channels containing pre-packaged programs ready for broadcasting, or for the sale of airtime. Also includes broadcasters who receive public funding for their operations. For more information see Scope.

The number of businesses operating at the end of June of the given year. For the purposes of this survey, the term 'businesses' includes non-profit organisations. It is possible for a business to operate in multiple states and territories. This will mean the state businesses counts will not add up to the Australia total.

Capitalised payment of wages and salaries and 'on-costs' paid to employees for work done by own employees in creating, manufacturing, constructing, installing or repairing assets including intellectual property, or in developing computer software in-house for use by the business or for rental or lease, including wages paid to own employees to project manage the development of the asset. 'On-costs' include employee entitlements such as superannuation, fringe benefits tax and workers' compensation.

All members with on-screen activity in a production including actors, on-screen presenters, extras, stand-ins and stunt performers.

Persons employed on a non-permanent basis, including persons on fixed term contracts with employee entitlements.

Television drama made specifically for children under the age of 14 (see Drama for more information).

Number of cinema sites and cinema screens operated at 30 June 2022. Includes drive-in theatres and outdoor cinemas.

Activities related to the camera in filming: film stock, film speed, framing, camera movement and lighting.

Commercial free-to-air television broadcasters licensed with the Australian Communications and Media Authority to broadcast. These businesses operate on a profit-making basis and generate the majority of their income from the sale of airtime. For more information see Scope.

Media produced to advertise a product or service to the general public. Includes station and program promotions, which may take the form of interstitials. Also includes community service announcements.

Persons who develop and write computer software as part of the game development process.

Dedicated gaming platforms such as the Sony PlayStation or Microsoft Xbox. Also includes handheld consoles such as Nintendo Switch and Valve Steam Deck.

Media produced to meet a specific need for a corporate client, including media produced for targeted marketing and training purposes. Excludes commercials made for the general public (see Commercials and program promotions).

On-set production support staff.

Depreciation and amortisation allowed on tangible and intangible assets. Includes, for lessees only, depreciation/amortisation in respect of finance leases. Includes depreciation in respect of some operating leases. 

Businesses that generate income predominantly from the development of digital games for a range of formats (multi-platform, consoles, handheld consoles, PC and Mac, mobile phones and virtual and augmented reality). For more information see Scope.

All aspects of digital game development and production (e.g. concept and art design, animation, audio, programming etc.), online game development services and post-production, digital and visual effects (PDV) work on digital games.

Income from the provision of digital game development or production services to other businesses. Includes PDV work on digital games.

Interactive software products made for the consumer entertainment market, involving a gameplay feature. Excludes products primarily designed for the purposes of training or advertising (these should be treated as other software applications).

Digital platforms for release of film, television and video productions including video on demand, streaming services, social media, websites and other online platforms.

Fees received by directors of films which are predetermined prior to the commencement of the film. This income can be a combination of fees, commissions or profit sharing.

Films or programs that provide a creative treatment of actuality other than news, current affairs, sports coverage, magazines, infotainment or light entertainment programs. Includes short documentaries. Excludes dramatised documentaries (included in Drama) and documentaries made specifically for children (included in Other children’s programs).

Programs that have a fully or partially scripted screenplay in which the dramatic elements of character, theme and plot are introduced and developed to form a narrative structure. Includes programs in which actors deliver improvised dialogue based on a scripted outline. Also includes animated drama and dramatised documentaries. Note that Situation and sketch comedy (see definition below) is a subcategory of drama.

Film and video production or post-production businesses that derived or incurred income or production expenses in the survey reference period related to drama or documentary productions.

Media produced primarily for educational purposes. Includes media produced for schools, tertiary and other educational institutions, as well as for the general public.

Number of persons working for businesses during the last pay period ending in June of the given year. Includes working proprietors and partners, employees absent on paid or prepaid leave, employees on workers' compensation who continue to be paid through the payroll, and contract workers paid through the payroll. Excludes non-salaried directors and volunteers. 

Income earned from the end-to-end development and production of digital games during the reference period. Includes sales revenue (including pre-sales and advances from publishers and parent companies), unit sales, subscription and revenue from in-game purchasing and advertising, government funding received for the production of digital games and investment contributions from the public or private sector. Excludes development or production services provided to other businesses.

Executive producers' fees, producers' fees and income from line production as production services to other businesses.

Staff who spend the majority of their time in the role of executive producer, producer or line producer on the set of productions.

Films that are 60 minutes in length or longer, excluding documentaries (included in Film documentaries) and telemovies (included in Other television programs).

Businesses mainly engaged in acquiring the distribution rights and distributing motion pictures, videos and television programs. For more information see Scope.

Businesses mainly engaged in the provision of post-production services and other motion picture and video activities (including specialised motion picture or video post-production services). For more information see Scope.

Businesses mainly engaged in producing motion pictures, videos, television programs and/or commercials and program promotions. For more information see Scope.

Film and video productions other than television programs made primarily for broadcast on television. Excludes commercials and program promotions.

All documentaries excluding those made specifically for television. See Documentaries.

Businesses mainly engaged in screening motion pictures using a variety of visual media. For more information see Scope.

Production services including executive producers' fees, producers' fees, line producer fees, directors' fees, cinematography, rental of facilities and equipment with crew and other production services.

Staff primarily working on the layout, concept and design of a game. This may include writing scripts, specifications or creating storyboards for digital games.

Staff who spend the majority of their time working on general business operations. Includes managers and administrators, IT support staff, human resources and payroll staff, legal and clerical staff.

Greater capital city statistical areas are geographic areas that are designed to represent the functional extent of each of the eight state and territory capital cities.

Income from the sale of airtime or 'space' on television for the broadcasting of advertisers' commercials or sponsors' messages. Includes advertising sales revenue from subscription television channels.

Distribution income earned from the sale of DVD's, Bluerays and other such physical mediums. Also includes Transactional video on demand on a pay-per-view basis.

IVA is an estimate of the difference between the market value of the output of an industry and the purchases of materials and expenses incurred in the production of that output. For the purposes of this collection, all businesses are considered to be market producers.
For market producers, the derivation of IVA is as follows:

• Sales and service income

plus

• Funding from government for operational costs
• Capital work done for own use
• Change in inventories

less

• Purchases of goods and materials
• Other intermediate input expenses

equals
IVA

However, it should be noted that IVA is a measure of economic activity and is not equivalent to operating profit before tax (OPBT). Wage and salary expenses, and most other labour costs, are not subtracted from the IVA calculation, and neither are a number of lesser expenses. On the income side, OPBT includes total income, whereas IVA only includes the sales and service income items mentioned above and government funding for operational costs.

Includes interest paid on loans from banks, finance companies, partners, and related or unrelated businesses, in respect of finance leases and some operating leases. Also includes interest equivalents such as hedging costs and expenses associated with discounted bills. Excludes bank charges other than interest, and capital repayments. 

This item includes infotainment, lifestyle shows, panel shows, variety shows, game shows and reality television. It excludes programming made specifically for children (see Other children’s programs).

Software that enables functionality of a digital game, but does not function as a game on its own. Includes game engines.

Games developed for mobile and web platforms such as iOS and Flash.

Titles developed simultaneously for more than one of the following platforms: console, PC and Mac, mobile and web platforms, other platforms (includes virtual and augmented reality). Note that such titles are excluded from the individual categories for which they are developed.

Programs reporting on current or recent happenings, including film coverage of international, national and local events, reports on weather and essential services. Also includes sports news bulletins and programs that interpret events through interviews or discussion with acknowledged experts.

Production staff who are primarily based in the office. This includes animation, computer generated imagery and visual effects technicians, game designers, computer programmers, development staff, post-production staff and production managers. It excludes non-production staff.

Staff who primarily work on the set of productions, such as cast and crew. Includes actors and on-screen presenters, extras, stand-ins, stunt performers and on-set support staff etc.

Profit before extraordinary items are brought to account and prior to the deduction of income tax and appropriations to owners (e.g. dividends paid), i.e. total income less total expenses plus change in inventories.

The percentage of sales and service income available as operating profit before tax (OPBT), i.e. (OPBT divided by sales and service income) multiplied by 100.

Television programs made specifically for children under the age of 14, excluding drama programs (included in Children’s drama).

All other staff related costs (including employer contributions into superannuation, workers' compensation premiums/costs, fringe benefits tax and payroll tax), excluding wages and salaries. See entry for Wages and salaries.

Film and video production or post-production businesses without income or production expenses in the survey reference period related to drama or documentary productions.

Payments made to related and unrelated businesses and self-employed contractors for selected services not separately itemised.

Games developed for personal computer formats. Includes massively multi-player online role-playing games played on personal computers.

Persons employed on a permanent basis who usually work 35 hours or more per week.

Persons employed on a permanent basis who usually work less than 35 hours per week.

Includes computer generated special effects services, animation services and the rental of PDV facilities and/or equipment with crew.

Income earned from the provision of post-production, digital and visual effects (PDV) services to other businesses. These include visual editing, sound editing, duplication, transferring, film laboratory and other PDV services.

Expenses incurred by a business for film, television, video or digital game production during the reference period including amounts that have been capitalised. Includes all production costs, associated with development, pre-production, shoot and post-production costs. Excludes costs associated with projects for which a business provided freelance production or post-production services to another business responsible for undertaking the production.

All income received during the reference period from production activity. Includes government funding received for production of film, television and video, investment contributions from the public or private sector, license fees received as financing for a production, sales revenue (including advances and pre-sales), minimum guarantee payments and fees received from agencies or clients for the production of commercials and/or other video. Excludes royalties income or income derived from program format rights and income associated with projects for which the business provided freelance production or post-production services to another business responsible for undertaking the production.

Includes production income and royalties income related to film, television and video productions.

Income earned from the provision of production services to other businesses. Includes executive producers' fees, producers' fees, line production, directors' fees, cinematography, rental of facilities and/or equipment with crew and other production services.

Film, video and digital game projects either underway or completed during the survey reference period. Excludes projects that did not progress past the development stage.

Program rights purchased via a licence arrangement from the copyright owner, for a specified period and/or number of screenings. Programs that are licensed for a single screening, such as series and game shows, are treated as current expenses.

Television broadcasters that operate on a 'not-for-profit' basis and whose main source of income is from government funding.

Comprises purchases of materials, components, containers and packaging materials for manufacture or construction, electricity and water and purchases of finished goods for resale. Excludes delivery charges separately invoiced or itemised by suppliers and capitalised purchases.

Payments for the rent, leasing and hiring of land, dwellings, other buildings and structures, motor vehicles, plant, machinery and other equipment (including telecommunication equipment). Includes operating lease payments not captured under interest expenses or depreciation; excludes finance lease payments. ​​​

Income derived from the ownership of land, dwellings, buildings and other structures, motor vehicles, plant, machinery and other equipment. Excludes royalties from mineral leases, income from finance leases and payments received under hire purchase arrangements and rental of facilities and/or equipment with crew.

Income received from other businesses for renting facilities or equipment that come with crew. Excludes the income from renting facilities or equipment without crew.

All geographical areas that don't lie within the Greater capital city statistical areas (see Greater capital city)

Payments made for the use of rights or intellectual property of another business or individual. Includes payments under licensing arrangements, payments for the use of patents and copyrights, including music and literary rights and payments for the use of program format rights. Excludes program rights expensed and expensed computer software license fees.

Income earned by a business for the use of rights or intellectual property that it owns, including feature films, television programs and digital games. This includes payments under licensing arrangements, payments for the use of patents and copyrights and income derived from program format rights. It excludes licence fees received as financing for a production, which are considered to be production income.

Directors of incorporated businesses are directors who received a wage or salary during the reference period. Salaried directors are considered to be employees of the business.

Selected broadcasting related expenses including broadcasting licence fees, affiliation fees, payments to other businesses for the provision of television channels, commissions paid to advertising agencies or brokers for the sale of airtime and transmission expenses.

Films that are shorter than 60 minutes in length, excluding documentaries (included in Documentaries) and telemovies (included in Television programs). Note that this item includes short features, defined as 45-55 minutes in length.

Short, episodic content of around 3-15 minutes created for online consumption and forming part of a web series.

A subcategory of drama (see Drama for more information). Includes both situation comedy programs and programs comprised entirely of sketches that are short self-contained stories. Excludes stand-up comedy programs (included in Light entertainment). Also excludes comedy sketches featured incidentally in other types of programs.

The process of arranging a film's soundtrack to decide its final order and content. During this process pre-recorded sound can also be manipulated or changed to be more suitable for the final product.

A Special Purpose Vehicle is a business created specifically to capture activities related to a single production (e.g. feature film or television series).

Live or delayed broadcasts of competitive sport (excluding replays) and sports preview, summary and talk shows (in which replays of events are incidental). Excludes sports news bulletins (included in News and current affairs).

Television broadcasters operating on a profit-making basis and receiving the majority of their income from subscription fees, and businesses primarily engaged in providing subscription television broadcasters with access to a channel or set of channels containing pre-packaged programs ready for broadcasting. Some of these businesses are also involved in producing television content. For more information see Scope.

Fees paid by viewers to subscription television broadcasters for access to a set of channels. Includes subscriber revenue from the provision of subscription television channels.

A content model where customers pay a fee and are then provided with access to a selection of movies, television programs and other audio-visual content streamed over the internet to certain internet connected devices.

Documentaries made specifically for television. See Documentaries.

Productions made primarily for broadcast on television.

The sum of all expense components.

The sum of all income components.

Comprises wages and salaries (including salary sacrificed earnings paid on behalf of employees and employee share based payments and stock options), employer contributions into superannuation, workers' compensation premiums/costs, fringe benefits tax and payroll tax. Excludes capitalised wages and salaries.

The process of cutting and arranging a film to decide its final order, content and presentation. Includes animation, visual effects, subtitling and other types of visual editing.

The process of adding visual effects to a production.

The gross wages and salaries (excluding capitalised wages and salaries) of all employees of the business. The item includes severance, termination and redundancy payments, salaries and fees of directors and executives, retainers and commissions of persons who received a retainer, bonuses, and annual and other types of leave. Provision expenses for employee entitlements (e.g. provisions for annual leave and leave bonus, long service leave, sick leave, and severance, termination and redundancy payments) are also included, as are salary sacrificed earnings and remuneration of employees in the form of share based payments and stock options. 

Payments related to self-employed persons such as consultants, contractors and persons paid solely by commission without a retainer are excluded. The drawings of working proprietors and partners are also excluded.

A working proprietor of an unincorporated business operates his or her own business (sole proprietorship) while a partner, along with one or more other partners, operates a partnership.