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This section summarises the key financial data of the businesses surveyed, with comparisons to results from the previous survey in 2011-12 where applicable. These data are expressed in current prices and can be found in data cubes 1 and 3-5. Data are summarised for five groups of businesses.
Footnote(s): (a) Includes working proprietors and partners of unincorporated businesses.
FILM AND VIDEO PRODUCTION AND POST-PRODUCTION BUSINESSES
During the reference period film and video production and post-production businesses combined generated $2,701.0m in income. Operating profit before tax of these businesses was $246.6m.
The largest source of income for film and video production and post-production businesses was production income and royalties ($1,719.9m or 63.7%), though this has fallen from 2011-12 levels ($1,813.6m or 71.9%). Growing sources of total income are post-production, digital and visual effects (PDV) services income at $428.4m (or 15.9%) and production services income at $384.0m (or 14.2%). Production services income includes the provision of services such as the rental of facilities and equipment with crew, producers, directors, cinematographers and line production to other businesses. Film and video production and post-production businesses earn most of their PDV services income on two formats, feature films ($215.8m) and commercials and program promotions ($118.5m).
In 2015-16 film and video production businesses generated $2,302.5m in income and incurred $2,120.8m in expenses. Industry value added was $996.3m, an increase of 7.1% since 2011-12.
Television program production income represents 33.2% of total income for film and video production businesses (or $765.5m), followed by feature films production income at 18.6% (or $429.0m) and production services income at 15.8% (or $363.7m). The latter is among the fastest growing sources of income in part due to increased demand from broadcasters and channel providers who are undertaking an increasing amount of production in-house. Compared to 2011-12 film and video production businesses experienced an increase in production services income of 43.1%.
Film and video production businesses experienced a fall in income from television programs production of $182.7m compared to 2011-12, which was partially offset by an increase in production income from feature films of $94.5m. Reasons for the increase in feature film production income include the role of foreign features as suggested by the increase in income sourced from overseas for production income.
Total expenses for film and video production businesses increased by 5.4% from 2011-12, largely driven by an increase of $87.1m in labour costs. For these businesses operating profit before tax and operating profit margins were both slightly up on 2011-12 at $198.5m and 8.8% respectively.
New South Wales is notable when it comes to the contribution of its film and video production businesses, making up a majority of Australia level estimates for total income (58.7%).
Footnote(s): (a) Australian governments includes funding from federal, state and territory governments; (b) Excludes income from royalties.
COMMERCIAL FREE-TO-AIR BROADCASTERS
During 2015-16 commercial free-to-air broadcasters generated $3,961.4m in income and incurred $3,559.0m in expenses. Total industry value added was $1,795.6m. All key financial measures decreased in comparison to 2011-12, though the fall in income (15.0%) was greater than the fall in expenses (2.8%), in part due to the rise in total labour costs of 20.4%. Reasons for the increase in labour costs include the increase in employment required for expanded digital platforms and offerings. Commercial free-to-air broadcasters generated $420.4m in operating profit before tax in 2015-16, a decrease of 57.8% from the 2011-12 period.
During 2015-16 commercial free-to-air broadcasters generated the majority of their income (86.0% or $3,406.6m) from gross sale of airtime, though this is less than the $3,681.5m derived in 2011-12 due to among other things the challenging advertising market for traditional media in 2015-16.
SUBSCRIPTION BROADCASTERS AND CHANNEL PROVIDERS
The total income of subscription broadcasters and channel providers, which includes subscription video-on-demand (SVOD) businesses, was 35.1% higher than the total income for commercial free-to-air broadcasters. The main source of income for subscription broadcasters and channel providers was subscription fees at $4,239.3m (or 79.2% of total income). The increase in total income of 15.0% from 2011-12 was offset by the increase in total expenses of 19.3%, leading to a small fall (4.3%) in operating profit before tax to $493.0m in 2015-16. Among the significant expenditure items were program rights expensed, which totalled $604.4m, and exceeded the total amount of labour costs ($567.6m) in 2015-16.
DIGITAL GAME DEVELOPERS
Digital game developers generated $111.1m in total income in 2015-16, an increase of 24.3% on 2011-12. The largest sources of income were end-to-end digital game development income (excluding Multiplatform) at 40.1% (or $44.6m) and digital game development services income (excluding Multiplatform) at 30.6% (or $34.0m). Multiplatform development accounted for 7.5% (or $8.3m) of total income. Digital game developers reported a combined $86.9m in income from these sources.
Victoria accounted for the majority of digital game developers activity, contributing 56.9% of total Australia level income.
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