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8679.0 - Film and Video Production and Distribution, Australia, 1999-2000  
Previous ISSUE Released at 11:30 AM (CANBERRA TIME) 29/08/2001   
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MEDIA RELEASE

August 29, 2001
Embargoed: 11:30 AM (AEST)
112/2001

Turnaround In Film, Video Profits

Australia's film and video production industry recorded an operating profit before tax of $77 million (m) for 1999-2000, according to Australian Bureau of Statistics (ABS) figures released today.

The publication, Film and Video Production and Distribution , Australia, 1999-2000, shows the $77m as a turnaround from an operating loss of an equal amount of $77 million recorded in 1996-97. Similarly, Australia's film and video distribution industry recorded an operating profit before tax of $104m which represented a significant increase on $3m recorded in 1996-97.

At the end of June 2000, there were 1,975 businesses in the film and video production industry, employing a total of 15,195 people. New South Wales dominated the film and video production industry with 1,112 businesses accounting for 69% of industry employment and 62% of total industry income.

The total income of businesses in the film and video production industry during 1999-2000 was $1,474m, with income from the production of television programs ($472m) being the main source of income of businesses in the industry, and representing 32% of industry income.

Other income sources included $186m from the production of commercials and $74m from production of feature films. Income from the provision of production services to other businesses generated $233m while income from the provision of post production/film laboratory services to other businesses was $263m, or 18% of the total industry income.

Businesses in the film and video production industry had total expenses of $1,398 million during 1999-2000. The two most significant expenses were labour costs of $427m (31% of total expenses) and payments to other businesses for production services of $251m.

During 1999-2000, businesses in the film and video production industry, film and video distribution industry and the television services industry incurred total film and video production costs of $1,792m. The most significant component of these costs was on productions made specifically for television ($1,315m), of which 61% was accounted for by businesses in the television services industry. The production costs associated with feature films ($149m) during 1999-2000 were incurred on 51 feature film productions, representing an average cost per film of $2.9m.

At the end of June 2000, there were 58 businesses operating in the film and video distribution industry. Businesses in this industry employed 1,426 persons, and 47 of these businesses operated from New South Wales, accounting for 61% of the industry income and 65% of the industry employment.

The total income for businesses in the film and video distribution industry was $1,142m during 1999-2000 with the two main sources of income coming from the rental or lease of pre-recorded video tapes, DVDs, films and video games ($581m) and sales of pre-recorded video tapes and DVDs ($260m). Most of the income from the lease of pre-recorded video tapes, DVDs and films was generated from rentals to motion picture exhibitors ($289m) and to television businesses ($173m).

Businesses in the film and video distribution industry had total expenses of $1,038m. The three major expense items were copyright fees and licences of $236m, advertising expenses of $127m, and program rights used of $124m.

Details are found in Film and Video Production and Distribution, Australia, 1999-2000 (cat. no. 8679.0) available from ABS bookshops. If you would like to purchase a copy please contact the ABS Bookshop in your capital city.

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