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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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SUMMARY OF FINDINGS


INTRODUCTION


FILM AND VIDEO PRODUCTION

This publication presents results, in respect of the 1999-2000 financial year, from an Australian Bureau of Statistics (ABS) survey of 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. These businesses are classified to Class 9111 Film and Video Production, of the Australian and New Zealand Standard Industrial Classification (ANZSIC).

Size of industry

At the end of June 2000, there were 1,975 businesses in the film and video production industry, which was a decrease from the 2,004 businesses operating at the end of June 1997.

Industry value added for the film and video production industry was $607 million.

Sources of income

The total income of businesses in the film and video production industry during 1999-2000 was $1,474 million.

Income from the production of television programs ($472 million) was the main source of income of businesses in the industry, and represented 32% of industry income. Other significant sources of income were income from the production of commercials ($186 million), income from the provision of production services to other businesses ($233 million), and income from the provision of post production/film laboratory services to other businesses ($263 million).

Expenses

Businesses in the film and video production industry had total expenses of $1,398 million during 1999-2000. The two most significant expenses were wages and salaries of $374 million (27% of total expenses), and payments to other businesses for production services of $251 million (18% of total expenses).

Profitability

The industry recorded an operating profit before tax of $77 million, which represented an operating profit margin of 5.4% for 1999-2000. This was a turnaround from the operating loss of $77 million recorded in 1996-97.

Employment

There were 15,195 persons working for businesses in the film and video production industry at the end of June 2000. While this represents a 58% increase on the 9,591 persons recorded at the end of June 1997, it should be noted that employment in the industry can fluctuate depending on what productions are underway at that time.

Table 1.1 KEY FIGURES, Historical comparisons
Film and video production

Units
1996-1997
1999-2000
Percentage change

Businesses at end June
no.
r2,004
1,975
-1.4
Total employment at end June
no.
r9,591
15,195
58.4
Income
Income from the production of television programs
$m
377.8
472.2
25.0
Income from the production of commercials
$m
258.1
186.2
-27.9
Income from the production of other completed works
$m
216.3
191.5
-11.5
Income from the provision of production services to other businesses
$m
122.3
233.1
90.6
Income from the provision of post-production/film laboratory services
$m
r146.6
262.6
79.1
Other income
$m
r63.4
128.2
102.2
Total
$m
r1,184.5
1,473.8
24.4
Expenses
Wages and salaries
$m
r335.7
373.5
11.3
Payments to other businesses for production services
$m
199.8
250.8
25.5
Payments to other businesses for post-production/film laboratory services
$m
83.6
88.3
5.6
Other expenses
$m
r642.5
685.3
6.7
Total
$m
r1,261.6
1,397.9
10.8
Operating profit before tax
$m
r-77.0
76.5
. .
Operating profit margin
%
r-0.1
5.4
. .
Industry value added
$m
na
606.8
na

r figure revised since previous issue
. . not applicable
na not available
Copyright Australian Bureau of Statistics, 2001


INTRODUCTION


FILM AND VIDEO DISTRIBUTION

This publication also presents information about the film and video distribution industry. The information relates to employing businesses mainly engaged in leasing or wholesaling motion pictures on film, video tape and DVD to organisations for exhibition or sale. These businesses are classified to Class 9112, Film and Video Distribution, of the Australian and New Zealand Standard Industrial Classification (ANZSIC).

Size of industry

At the end of June 2000, there were 58 businesses operating in the film and video distribution industry, which was a reduction from the 66 businesses operating at the end of June 1997, and the 69 businesses at the end of June 1994.

Industry value added for the film and video distribution industry was $281 million.

Sources of income

The total income for businesses in the film and video distribution industry was $1,142 million during 1999-2000. This income represented a 17% increase on $974 million recorded in 1996-97.

The two main sources of income were from the rental or lease of pre-recorded video tapes, DVDs, films and video games ($581 million) which accounted for 51% of the industry income, and sales of pre-recorded video tapes and DVDs ($260 million) which accounted for 23% of industry income.

The income from the provision of channels to pay television stations was $169 million, which represented 15% of industry income.

Expenses

Businesses in the film and video distribution industry had total expenses of $1,038 million. Major expense items included copyright fees and licences of $236 million (23% of total expenses), advertising expenses of $127 million (12% of total expenses), and program rights used of $124 million (12% of total expenses).

Wages and salaries of $67 million accounted for 6% of total expenses.

Profitability

The industry recorded an operating profit before tax of $104 million which represented a significant increase on $3 million recorded in 1996-97. This operating profit represented an operating profit margin of 9.3% during 1999-2000.

Employment

At the end of June 2000, there were 1,426 persons working in the film and video distribution industry, an increase of 6% since June 1997. At the end of June 2000, 1,059 persons worked on a permanent full-time basis which represented 74% of total persons working in the industry.

Table 2.1 KEY FIGURES. Historical Comparisons
Film and video distribution

1993-1994
1996-1997
1999-2000
Percentage change 1996-1997 to 1999-2000

Businesses at end June
no.
69
66
58
-12.1
Employment at end June (a)
Permanent full-time
no.
808
1107
1,059
-4.3
Permanent part time and casuals
no.
173
234
366
56.4
Total
no.
981
1,341
1,426
6.3
Income
Income from the rental/lease of pre-recorded video tapes, DVDs, films and video games
$m
324.5
434.1
580.8
33.8
Income from the sale of pre-recorded video tapes, DVDs, films and video games
$m
227.1
254.3
260.3
2.4
Income from the provision of channels to Pay TV operators
$m
6.1
156.0
169.2
8.5
Other income
$m
83.0
129.5
131.5
1.5
Total
$m
640.7
973.9
1,141.8
17.2
Expenses
Wages and salaries
$m
34.2
62.1
66.8
7.6
Copyright fees/licences for film and video distribution (b)
$m
na
na
235.6
na
Program rights/licence fees used
$m
-
136.1
124.4
-8.6
Payments to other businesses for dubbing, duplication and film print costs
$m
46.4
59.2
77.7
31.3
Other operating expenses
$m
520.5
713.4
533.8
-25.2
Total
$m
601.1
970.8
1,038.4
7.0
Operating profit/loss before tax
$m
39.6
**3.1
103.6
na
Operating profit margin
%
6.9
**0.3
9.3
na
Industry value added
$m
na
na
281.1
na

na not available
- nil or rounded to zero (including null cells)
** estimate has a relative standard error greater than 50% and is considered to unreliable for general use
(a) For 1993-1994 and 1996-1997 employment at end June excluded casual employees.
(b) For 1993-1994 and 1996-1997 Copyright fees/licences were published under licence fees.
Copyright Australian Bureau of Statistics, 2001


EXPLANATORY NOTES


INTRODUCTION

1 This publication presents results in respect of the 1999-2000 financial year from a survey of employing businesses engaged in the film and video production and distribution industries.


SCOPE

2 The collection was a survey of all businesses classified to the following two ANZSIC classes.
  • Film and Video production, ANZSIC Class 9111, consists of businesses mainly engaged in the production of motion pictures on film or video tape for theatre and television projection. The class also includes businesses mainly providing production services such as casting, film editing and titling.
  • Film and Video distribution, ANZSIC Class 9112, consists of businesses mainly engaged in leasing or wholesaling motion picture on film or video tape to organisations for exhibition or sale.

3 In addition, this publication also includes details on film and video total production costs. Data on film and video production costs were sourced from a separate survey of businesses in the Television Services industry, as well as the Film and Video production industry and the Film and Video Distribution industry. Businesses in the Television Services industry are classified to ANZSIC Class 9122, Television Services.


IMPROVEMENTS TO COVERAGE

4 Data in this publication have been adjusted to allow for lags in processing new businesses to the ABS business register, and the omission of some businesses from the business register. The majority of businesses affected and to which the adjustments apply, are small in size.

5 Adjustments have been made to include new businesses in the estimates in the periods in which they commenced operations, rather than when they were processed to the business register.

6 Further adjustments have been made for businesses which had been in existence for several years, but, for various reasons, were not previously added to the ABS register.

7 For more information on these adjustments, please refer to the ABS publication Information Paper: Improvements to ABS Economic Statistics, 1997 (Cat. no. 1357.0).


STATISTICAL UNIT

8 The unit for which statistics were reported in the survey was the management unit. The management unit is the highest-level accounting unit within a business, having regard for industry homogeneity, for which accounts are maintained. In nearly all cases it coincides with the legal entity owning the business (i.e. company, partnership, trust, sole operator, etc.). In the case of large diversified businesses, however, there may be more than one management unit, each coinciding with a 'division' or 'line of business'. A division or line of business is recognised where separate and comprehensive accounts are compiled for it.


STATE DATA

9 Data were collected from the Australia-wide operations of each business. Businesses which operated in more than one State or Territory were asked to provide a dissection of the number of locations, total income, employment, and wages and salaries to enable State and Territory statistics to be compiled and comparisons undertaken.


REFERENCE PERIOD

10 Data contained in the tables of this publication relate to all businesses which operated in Australia at any time during the year ended 30 June 2000. Counts of businesses include only those businesses that were operating at 30 June 2000.


BUSINESSES CEASED DURING THE YEAR

11 A small number of businesses ceased business during the 1999-2000 reference period. It is normal ABS procedure to include the contributions of these businesses in the survey output.


RELIABILITY OF DATA

12 The estimates in this publication are subject to sampling and non-sampling error.

13 The estimates in this publication are based on information obtained from a sample of 1,087 businesses in the surveyed population. Consequently, the estimates in this publication are subject to sampling variability, that is, they may differ from the figures that would have been obtained if all units had been included in the survey. One measure of the likely difference is given by the standard error (SE), which indicates the extent to which an estimate might have varied by chance because only a sample of units was included.

14 There are about 2 chances in 3 that a sample estimate will differ by less than one SE from the figure that would have been obtained if a census had been conducted, and approximately 19 chances in 20 that the difference will be less than two SEs.

15 Sampling variability can be measured by the relative standard error (RSE) which is obtained by expressing the SE as a percentage of the estimate to which it refers. The RSE is a useful measure in that it provides an immediate indication of the percentage errors likely to have occurred due to sampling, and this avoids the need to refer also to the size of the estimate.

16 The following table contains estimates of RSEs for a selection of the statistics presented in this publication.


RELATIVE STANDARD ERRORS for Table 1.1, Key figures,
Film and video production

RSE
%

Businesses at end June 2
Total employment at end June 9
Income
Income from the production of television programs 12
Income from the production of commercials 21
Income from the production of other completed works 8
Income from the provision of production services to other businesses 6
Income from the provision of post-production/film laboratory services 10
Other income 2
Total 5
Expenses
Wages and salaries 5
Payments to other businesses for production services 12
Payments to other businesses for post-production/film laboratory services 11
Other expenses 3
Total 5
Operating profit before tax 18
Operating profit margin 13
Industry value added 6

Copyright Australian Bureau of Statistics, 2001


17 As an example of the above, an estimate of total income for the film and video production industry is $1473.8 million and the RSE is 5%, giving a SE of $73.7 million. Therefore, there would be 2 chances in 3 that, if all units had been included in the survey, a figure in the range of $1400.1 million to $1547.5 million would have been obtained, and 19 chances in 20 (i.e. a confidence interval of 95%) that the figure would have been within the range of $1326.4 million to $1621.2 million.

18 Errors other than those due to sampling may occur because of deficiencies in the register of units from which the sample was selected, non-response, and imperfections in reporting by respondents. Inaccuracies of this kind are referred to as non-sampling errors and they may occur in any collection, whether it be a census or a sample. Every effort has been made to reduce non-sampling error to a minimum by careful design and testing of questionnaires, efficient operating procedures and systems, and appropriate methodology.


ACKNOWLEDGMENT

19 ABS publications draw extensively on information provided freely by individuals, businesses, governments and other organisations. Their continued cooperation is very much appreciated; without it, the wide range of statistics published by the ABS would not be available. Information received by the ABS is treated in strict confidence as required by the Census and Statistics Act 1905.


RELATED PUBLICATIONS

20 This publication is one of a series to be issued in respect of 1999-2000 for a range of cultural services industries. Other publications in this series are:

Botanic Gardens, Australia 1999-2000 (Cat. no. 8563.0) -issued April 2001
Motion Picture Exhibition, Australia,1999-2000 (Cat. no. 8654.0) -issued May 2001
Video Hire Industry, Australia,1999-2000 (Cat. no. 8562.0) -issued May 2001
Public Libraries, Australia, 1999-2000 (Cat. no. 8561.0) -issued June 2001
Museums, Australia,1999-2000 (Cat. no. 8560.0) -issued July 2001
Television Services, Australia, 1999-2000 (Cat. no. 8559.0) -issued July 2001
Commercial Art Galleries, Australia, 1999-2000 (Cat. no. 8651.0) -issued August 2001
Performing Arts, Australia,1999-2000 (Cat. no. 8697.0)


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