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1301.0 - Year Book Australia, 2002  
Previous ISSUE Released at 11:30 AM (CANBERRA TIME) 25/01/2002   
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Contents >> Service Industries >> Film, video and television industries

Film and video production

The ABS conducted its third survey of the film and video production industry, in respect of 1999-2000. Previous surveys were conducted in respect of 1993-94 and 1996-97. This industry covers businesses mainly engaged in the production of motion pictures on film or video tape for theatre or television projection. Also included are businesses mainly providing post production services such as dubbing and sub-titling and editing.

At the end of June 2000 there were 1,975 businesses in the film and video production industry, compared with 2,004 businesses operating at the end of June 1997 (table 21.41). However, employment increased by 58% to 15,195 persons over the three years from 30 June 1997. It should be noted that employment in the industry at the end of June can fluctuate depending on what productions are underway at that time.

The film and video industry generated $1,474m in total income for 1999-2000, an increase of 24% on 1996-97 income of $1,185m. The main source of income was from the production of television programs, at $472m (32% of total industry income). Income from the provision of post production/laboratory services was $263m (18% of total income), while income from the provision of production services to other businesses was $233m, or 16% of total income.

Expenses for the industry during 1999-2000 totalled $1,398m, the most significant expenses being wages and salaries of $374m and payments to other businesses for production services of $251m.

The industry recorded an operating profit before tax of $77m, which represented an operating profit margin of 5.6% for 1999-2000, compared with the small negative operating profit margin for 1996-97.


21.41 FILM AND VIDEO PRODUCTION INDUSTRY

Percentage change
Units
1996-97
1999-2000
%

Businesses at 30 June no.
2,004
1,975
-1.4
Total employment at 30 June
persons
9,591
15,195
58.4
Income -
- Income from the production of television programs$m
377.8
472.2
25.0
- Income from the provision of production services to other businesses$m
122.3
233.1
90.6
- Income from the provision of post-production/laboratory services$m
146.6
262.6
79.1
- Other income $m
537.8
505.9
-5.9
- Total $m
1,184.5
1,473.8
24.4
Expenses -
- Wages and salaries$m
335.7
373.5
11.3
- Payments to other businesses for production services $m
199.8
250.8
25.5
- Other expenses $m
726.1
773.6
6.5
- Total $m
1,261.6
1,397.9
10.8
Operating profit/loss before tax $m
-77.0
76.5
. .
Operating profit margin %
-0.1
5.4
. .

Source: Film and Video Production and Distribution, Australia, 1999-2000 (8679.0).


Table 21.42 shows that the main activity of businesses in the industry was making productions specifically for television ($516m), which accounted for 55% of the total value of production activity in 1999-2000 ($945m). The other major activities were the production of commercials and advertisements ($194m) and feature films ($149m) which accounted for 21% and 16% respectively of total activity.


21.42 FILM AND VIDEO PRODUCTION COSTS - 1999-2000

Type of activity
Value

$m
Contribution to total

%

Productions made specifically for television
516.0
54.6
Commercials and advertisements
194.9
20.6
Feature films
148.6
15.7
Corporate/marketing/training videos
45.0
4.8
Documentaries
4.3
0.5
Music/video clips
3.2
0.3
Other
32.3
3.4
Total
944.3
100.0

Source: Film and Video Production and Distribution, Australia, 1999-2000 (8679.0).


Film and video distribution

In conjunction with the survey of the film and video production industry, the ABS also conducted its third survey of the film and video distribution industry, in respect of 1999-2000. The survey covered employing businesses mainly engaged in leasing or wholesaling motion pictures on film, video tape or DVD to organisations for exhibition or sale. It also includes channel providers to pay television operators.

At the end of June 2000 there were 58 businesses operating in the film and video distribution industry, compared with 66 businesses operating at the end of June 1997 (table 21.43). There were 1,426 persons working in the industry at the end of June 2000, an increase of 6% over employment at June 1997. The majority of persons (74%) in the industry worked on a permanent, full-time basis.

The total income for the industry was $1,142m during 1999-2000, an increase of 17% on the $974m recorded for 1996-97. The two main sources of income were from the rental or lease of pre-recorded video tapes, DVDs, films and video games ($581m) which accounted for 51% of industry income, and sales of pre-recorded video tapes and DVDs ($260m) which accounted for 23% of total income.

Businesses in the film and video distribution industry had total expenses of $1,038m. The three major expenses were copyright fees and licences of $236m (23% of total expenses), advertising expenses of $127m and program rights used of $124m (each 12%).

During 1999-2000, the film and video distribution industry recorded an operating profit before tax of $104m, a significant increase on $3m for 1996-97.

21.43 FILM AND VIDEO DISTRIBUTION INDUSTRY

Percentage
change
Units
1996-97
1999-2000
%

Businesses at 30 June
no.
66
58
-12.1
Employment at 30 June
- Permanent full-time
persons
1,107
1,059
-4.3
- Permanent part-time and casuals(a)
persons
234
366
56.4
- Total
persons
1,341
1,426
6.3
Income -
- Rental/lease of pre-recorded video tapes, DVDs, films and video games
$m
434.1
580.8
33.8
- Sales of pre-recorded video tapes, DVDs, films and video games
$m
254.3
260.3
2.4
- Provision of channels to Pay TV operators
$m
156.0
169.2
8.5
- Other
$m
129.5
131.5
1.5
- Total
$m
973.9
1,141.8
17.2
Expenses -
- Wages and salaries
$m
62.1
66.8
7.6
- Copyright fees/licences for film and video distribution(b)
$m
n.a
235.6
. .
- Advertising expenses
$m
90.1
127.1
41.1
- Program rights.licence fees used
$m
136.1
124.4
-8.6
- Other expenses
$m
682.5
484.5
-29.0
- Total
$m
970.8
1,038.4
7.0
Operating profit/loss before tax
$m
3.1
103.6
. .
Operating profit margin
%
0.3
9.3
. .

(a) For 1996-97, employment at end of June excluded casual employees.
(b) For 1996-97, copyright fees/licences were published under licence fees.

Source: Film and Video Production and Distribution, Australia, 1999-2000 (8679.0).


Motion picture exhibition

The most recent survey of the motion picture exhibition industry was conducted in respect of 1999-2000. This was the fifth time the ABS surveyed the industry, and while the most recent three surveys have shown a decline in the number of businesses, other indicators such as the number of cinema screens, paid admissions and employment have all shown steady increases. This has been primarily due to the emergence of multiplex (3 to 13 screens) and megaplex (14 or more screens) sites.

At the end of June 2000 there were 173 businesses in the motion picture exhibition industry, a reduction from 188 businesses at the end of June 1997, and 224 businesses at the end of June 1994 (table 21.44). However, over the same period, the number of cinema screens increased to 1,519, and paid admissions increased by 8% to 79.4 million, from 73.3 million in 1996-97. Based on the Australian estimated resident population at June 2000, paid admissions represented 4.1 visits per person during 1999-2000, compared to 4.0 visits per person in 1996-97.

Employment in the industry was 9,282 persons at 30 June 2000, an increase of 20% over the 7,739 persons employed at end June 1997. The majority of employees in the motion picture exhibition industry at 30 June 2000 were casuals (7,492), accounting for 81% of total employment.

Total income for the industry for the financial year 1999-2000 was $1,046m, up 26% on 1996-97 income of $832m. Gross box office receipts of $679m were the most significant source of income, representing 65% of total income, while sales of food and beverages ($176m) accounted for 17% of income.

The major expense items for the industry in 1999-2000 were wages and salaries of $130m (14% of total expenses), and film hire and rental which accounted for $268m or 29% of total expenses.

The industry recorded an operating profit before tax of $113m, a 6% decrease since 1996-97 ($120m). The operating profit margin for 1999-2000 was 11.4%, compared to 14.9% for 1996-97 and 12.0% for 1993-94.


21.44 MOTION PICTURE EXHIBITION INDUSTRY

Change on
1996-97
Units
1993-94
1996-97
1999-2000
%

Businesses at 30 June
no.
224
188
173
-8.0
Cinema details -
- Cinema sites at 30 June
no.
329
325
326
0.3
- Cinema screens at 30 June
no.
754
1,050
1,513
44.1
- Cinema seats at 30 June
'000
227
323
373.5
15.6
- Paid admissions during year
'000
60,047
73,262
79,384.3
8.4
- Drive-in theatre sites at 30 June
no.
41
28
17
-39.5
- Drive-in screens at 30 June
no.
52
36
27
-24.9
Total employment at 30 June
no.
5,729
7,739
9,282
19.9
Income -
- Gross box office receipts
$m
447.5
551.8
678.9
23.0
- Sales of food and beverages
$m
105.0
142.1
175.9
23.8
- Other income
$m
82.8
138.3
191.3
38.3
- Total
$m
635.3
832.2
1,046.1
25.7
Expenses -
- Labour costs
$m
99.0
123.1
148.5
20.6
- Film hire/rental
$m
168.1
211.2
268.2
27.0
- Other expenses
$m
293.0
378.9
536.1
41.5
- Total
$m
560.1
713.2
934.3
31.0
Operating profit before tax
$m
75.1
119.9
113.3
-5.5
Operating profit margin
%
12.0
14.9
11.4
. .

Source: Motion Picture Exhibition, Australia, 1999-2000 (8654.0).


Video hire

The first ABS survey of the video hire industry was conducted in respect of 1999-2000. The industry includes all businesses mainly engaged in hiring pre-recorded video cassettes and DVDs for personal use, but excludes businesses which receive only a minor part of their income from the hiring of videos, such as service stations, chemists and newsagents.

At the end of June 2000, there were 1,166 businesses in the video hire industry, operating from 1,228 locations in capital cities and suburbs and 387 locations in rural areas (table 21.45). At the end of June 2000, there were 5,499,400 active video hire store memberships, and the industry recorded 151,897,300 video rental transactions during the year ending 30 June 2000.

At the end of June 2000, there were 11,034 persons employed by the video hire industry, of whom 7,279 (66%) were employed on a casual basis. This high rate of casual employment was reflected in the average labour cost per employee of $12,500.

Total income of the video hire industry in 1999-00 was $595m, with income from the rental of videos the most significant income source, accounting for $444m (75%). Other major sources were income from the rental of video games ($38m), income from the sale of videos and video related material ($36m) and income from the sale of food and beverages ($40m).

The major items of expenditure for the industry during 1999-00 were labour costs which accounted for $129m (23%), and depreciation and amortisation at $103m (19%). Other significant expense items were the rental of premises ($74m) and purchases of videos ($68m).

In 1999-00 the operating profit before tax for the video hire industry was $42m, which translated into an operating profit margin of 7.2%.


21.45 VIDEO HIRE INDUSTRY - 1999-00

Units
Value

Businesses at end June no.
1,166
Locations at end June
- Capital city and suburbsno.
1,228
- Total no.
1,615
Active video hire store membership at end June 2000'000
5,499.4
Video rental transactions for the year ended 30 June 2000 '000
151,897.3
Employment at 30 June -
- Working proprietors and partners of unincorporated businessespersons
741
Employees
- Permanent employeespersons
3,014
- Casualspersons
7,279
- Total employeespersons
10,293
Total employmentpersons
11,034
Income -
- Income from the rental of videos$m
443.8
- Income from the rental of video games$m
38.3
- Sale of videos and video related goods$m
36.3
- Sale of food and beverages$m
40.0
- Other income $m
36.8
- Total $m
595.2
Expenses -
- Labour costs $m
128.9
- Depreciation and amortisation$m
103.4
- Rental of premises$m
74.3
- Purchases of videos$m
67.8
- Other expenses $m
184.3
- Total $m
558.7
Operating profit before tax $m
42.0
Operating profit margin %
7.2

Source: Video Hire Industry, Australia, 1999-2000 (8562.0).


Television services

The ABS conducted its third survey of the television services industry in respect of 1999-2000, following earlier collections in respect of 1993-94 and 1996-97.

At the end of June 2000 there were 41 private sector television broadcasters and 2 public sector television broadcasters operating in Australia (table 21.46). The private sector television broadcasters comprised 34 commercial free-to-air broadcasting businesses and 7 pay television broadcasting businesses.

At the end of June 2000 there were 10,668 persons employed by private sector television broadcasters, of whom 7,807 persons were employed by commercial free-to-air broadcasters, and 2,861 persons were employed by pay television broadcasters.

The total income of $4,182m of private sector broadcasters comprised $3,271m from commercial free-to-air broadcasters and $911m from pay television broadcasters. The major source of income received by commercial free-to-air broadcasters was the sale of airtime ($2,821m), while the main source of income from pay television broadcasters was subscription and membership fees of $789m.

Total expenses of the private sector broadcasters were $4,083m during 1999-2000, of which $2,468m was outlaid by commercial free-to-air broadcasters and $1,616m by pay television broadcasters. The main component of expenses of commercial free-to-air broadcasters was program rights used of $864m; for pay television broadcasters it was payments to channel providers of $470m.

During 1999-2000, the private sector broadcasters recorded an operating profit before tax of $128m.


21.46 TELEVISION SERVICES INDUSTRY - 1999-2000

Units
Commercial free-to-air television
Pay television
Total private sector television broadcasters

Businesses at 30 June no.
34
7
41
Employees at 30 June
Permanent full-timeno.
6,392
2,379
8,771
Permanent part-time and casualsno.
1,415
482
1,897
Total no.
7,807
2,861
10,668
Income -
- Gross income from the sale of airtime$m
2,821.1
. .
2,821.1
- Subscription and membership income$m
. .
789.1
789.1
- Other income $m
449.9
121.7
571.6
- Total $m
3,271.0
910.9
4,181.9
Expenses -
- Wages and salaries$m
302.2
159.4
461.6
- Program rights used/Payments to channel providers$m
863.9
469.8
1,333.7
- Other expenses $m
1,301.4
986.5
2,287.9
- Total $m
2,467.5
1,615.7
4,083.2
Operating profit before tax $m
803.5
-675.8
127.7

Source: Television Services, Australia, 1999-2000 (8559.0).


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