4172.0 - Arts and Culture in Australia: A Statistical Overview, 2008 (First Edition)  
ARCHIVED ISSUE Released at 11:30 AM (CANBERRA TIME) 26/05/2008   
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Contents >> Financial Data

FINANCIAL DATA

The 2005-06 ABS Cultural Funding by Government collection reported that the Australian Government provided total funding of $140.0 million for Film and video, while state and territory governments contributed $75.4m.

Data from Get the Picture: What Australians are Making - Production Industry, conducted by the Australian Film Commission, show that overseas investors accounted for 75% of total funding for Australian features in 2006-07. They contributed $164m to ten titles, with one high-budget local film 'Australia' accounting for the bulk of their investment.

Government sources were also a significant source of funds in 2006-07, contributing 15% of total funding for Australian features in 2006-07. The majority of these funds came via the Film Finance Corporation, which invested $37m in Australian features and co-productions.

16.3 AUSTRALIAN FEATURE FILMS, Sources of Finance - 2003-04 to 2006-07

Contribution
Proportion of total budget
No. of films invested in
$m
%
no.

Australian government sources(a)
2003-04
30.6
14
11
2004-05
25.4
38
11
2005-06
46.4
46
19
2006-07
32.5
15
15
5-yr average
30.8
31
13
Australian private institutions(b)
2003-04
11.2
5
11
2004-05
20.3
31
15
2005-06
8.6
9
14
2006-07
13.3
6
13
5-yr average
14.9
19
13
Australian film/TV industry(c)
2003-04
68.3
31
11
2004-05
8.6
13
14
2005-06
17.4
17
21
2006-07
8.6
4
21
5-yr average
21.5
15
15
Foreign sources
2003-04
107.5
49
6
2004-05
12.1
18
5
2005-06
27.8
28
9
2006-07
163.6
75
10
5-yr average
63.1
36
7

(a) Includes Australian state and federal agencies and funding bodies, ans SBS. Comprises equity investments only - distribution guarantees, loans and underwriting are not included.
(b) Private investment sources including Film Licensed Investment Companies (FLICs), 10BA and 10B certified projects (Film tax incentives).
(c) Includes Australian-based film and TV production companies, distribution companies, commercial free-to-air broadcasters and pay TV channels.
Source: Australian Film Commission, National Survey of Feature Film and TV Drama Production, 2006-07, www.afc.gov.au


In 2007, Australian films accounted for only 4% ($36m) of the total box office receipts of Australian cinemas, down from 4.6% in 2006 ($40m). As graph 16.4 shows, this percentage has fluctuated over time.

16.4 AUSTRALIAN FILMS' SHARE OF THE AUSTRALIAN BOX OFFICE: 1986 to 2007
Graph: 16.4 AUSTRALIAN FILMS' SHARE OF THE AUSTRALIAN BOX OFFICE: 1986 to 2007


An ABS survey of businesses in the film and video production industry showed that while the income derived from the production of commercials increased by 23% between 1999-2000 and 2002-03, the income from all other types of film and video production decreased. This meant overall production income was 8% lower in 2002-03 than in 1999-2000. However, increases in income from other sources, particularly post-production and other production services meant the total income for film and video production businesses was greater in 2002-03 than the previous period.

16.5 INCOME AND EXPENSES OF BUSINESSES IN THE FILM AND VIDEO PRODUCTION INDUSTRY, 1999 - 2000 and 2002 - 03

1999-2000
2002-03
Value
Percentage contribution
Value
Percentage contribution
$m
%
$m
%

Income
Income from the production of:
Feature films
74.0
5.0
59.2
3.7
Television programs
472.2
32.0
393.6
24.7
Commercials
186.2
12.6
228.4
14.3
Corporate, training and marketing media
72.0
4.9
70.6
4.4
Other
45.5
3.1
26.9
1.7
Total
849.9
57.7
(a)778.6
48.8
Income from the provision of production services to other businesses
233.1
15.8
350.9
22.0
Income from the provision of post-production/film laboratory services to other businesses
262.6
17.8
360.5
22.6
Other income
128.2
8.7
106.5
6.7
Total income
1 473.8
100.0
1 596.6
100.0
Expenses
Labour costs
Wages and salaries
373.5
26.7
402.4
26.7
Other
53.2
3.8
64.0
4.3
Total
426.6
30.5
466.3
31.0
Payments to other businesses for production services
250.8
17.9
215.8
14.3
Payments to other businesses for post-production/film laboratory services
88.3
6.3
89.5
6.0
Rent, leasing and hiring expenses
65.5
4.7
85.4
5.7
Travelling, accomodation and entertainment expenses
34.8
2.5
38.5
2.6
Purchases of film stock and video tape stock
50.6
3.6
62.4
4.1
Other purchases
45.8
3.3
63.1
4.2
Amortisation of productions
61.1
4.4
*38.7
2.6
Other
374.4
26.8
445.0
29.6
Total expenses
1 397.9
100.0
1 504.8
100.0

* estimate has a relative standard error of 25% to 50% and should be used with caution
(a) Of the $778.6m received from the production of films and programs etc., $88.9m were commissioned (i.e. the business did not retain the rights to the production).
Source: ABS, Television, Film and Video Production, 2002 - 03 (cat. no. 8679.0) and Film and Video Production and Distribution, 1999-2000 (cat. no. 8679.0).



Film and video production industry

The television industry also has a role in the production of both film and video. While predominantly involved in broadcasting, the television industry spends substantial amounts on productions made specifically for television. In 2002-03, the survey of Television, Film and Video Production found that $1,140.7m was spent on television productions, 71% by television broadcasters.

16.6 PRODUCTION COSTS OF PROGRAMS MADE SPECIFICALLY FOR TELEVISION - 2002-03

Television businesses(a)
Other businesses(b)
Total
$m
$m
$m

Drama
np
np
159.5
Situation and sketch comedy
5.9
*9.8
15.8
Documentaries
5.5
30.7
36.2
Quiz, panel and game shows
np
np
17.2
News and current affairs
344.3
6.7
351.0
Sport
285.2
*19.9
305.1
Light entertainment and variety
88.6
45.0
133.6
Other(c)
np
np
*122.3
Total
812.4
328.4
1 140.7

* estimate has a relative standard error of 25% to 50% and should be used with caution
np not available for publication but included in totals where applicable, unless otherwise indicated
(a) Includes commercial free-to-air, subscription and public broadcasters.
(b) Includes businesses whose primary activity was film and video production or subscription television channel provision with in-house production.
(c) Includes childrens' programs.
Source: ABS, Television, Film and Video Production, 2002-03 (cat. no. 8679.0).


The 2002-03 survey of Television, Film and Video Production found that there were 5,774 films and/or videos created which were not specifically made for television, at a total production cost of $142.4m. While the majority of these (88%) were Corporate, marketing and training media, more than 50% of total production costs were devoted to the production of 66 feature films.

16.7 PRODUCTIONS MADE OTHER THAN FOR TELEVISION - 2002-03

Productions
Total cost of production
Average cost per production
no.
$m
$'000

Type of production
Feature films
66
73.5
1 113.8
Short films
*74
2.4
*32.8
Documentaries
*37
*1.7
*46.5
Corporate, marketing and training media
5 057
33.9
6.7
Educational media
*185
*3.8
*20.7
Music media
*156
*2.5
*15.8
Other
199
24.5
*123.1
Total
5 774
142.4
24.7

* estimate has a relative standard error of 25% to 50% and should be used with caution
Source: ABS, Television, Film and Video Production, 2002-03 (cat. no. 8679.0).



Film and video distribution industry

The main sources of revenue for film and video distribution businesses in 1999-2000 were the renting and leasing of films to motion picture exhibitors ($289.4m) and television businesses ($172.5m); and the sale of pre-recorded video tapes and DVDs to retail outlets ($157.0m). Copyright fees and licences for film and video distribution accounted for about one-quarter (23%) of total expenses.

16.8 INCOME AND EXPENSES OF BUSINESSES IN THE FILM AND VIDEO DISTRIBUTION INDUSTRY - 1999-2000

Value
Percentage contribution
$m
%

Income
Sales of pre-recorded video tapes and DVDs to:
Video hire stores
100.4
8.8
Retail outlets
157.0
13.8
Direct marketing and other businesses
2.9
0.3
Total
260.3
22.8
Income from the rental/lease of pre-recorded video tapes, DVDs and films to:
Motion picture exhibitors
289.4
25.3
Television businesses
172.5
15.1
Video hire stores
94.9
8.3
Other businesses
24.0
2.1
Total
580.8
50.9
Other income
Income from the provision of channels to pay TV stations
169.2
14.8
Other
131.4
11.5
Total
300.6
26.3
Total Income
1 141.8
100.0
Expenses
Labour costs
Wages and salaries
66.8
6.4
Other
12.4
1.2
Total
79.2
7.6
Selected expenses
Payments to other businesses for dubbing, duplication and film print costs
77.7
7.5
Program rights/licence fees used
124.4
12.0
Copyright fees/licences for film and video distribution
235.6
22.7
Advertising expenses
127.1
12.2
Other operating expenses
236.1
22.7
Total
800.8
77.1
Other costs
158.2
15.2
Total expenses
1 038.4
100.0

Source: ABS, Film and Video Production and Distribution, 1999-2000 (cat. no. 8679.0).



Motion picture exhibition industry

According to the census of Motion Picture Exhibition Industry, there were 79.4 million paid admissions to cinemas in 1999-2000 which generated gross box office receipts of $678.9m (or 65% of the total income of motion picture exhibitors). Sales of food and beverages contributed a further 17% to business income, while their major expenses were Film hire and Wages and salaries (29% and 14% of total expenses respectively).

16.9 INCOME AND EXPENSES OF BUSINESSES IN THE MOTION PICTURE EXHIBITION INDUSTRY - 1999-2000

Value
Percentage contribution
$m
%

Income
Gross box office receipts
678.9
64.9
Sales of food and beverages
175.9
16.8
Screen advertising income
32.5
3.1
Other income
158.8
15.2
Total income
1 046.1
100.0
Expenses
Wages and salaries
129.9
13.9
Other labour costs
18.6
2.0
Rent, leasing and hiring expenses
Film hire
268.2
28.7
Other
118.8
12.7
Total
387.0
41.4
Advertising, marketing and promotion expenses
43.3
4.6
Other operating expenses
196.3
21.0
Purchases of goods for resale
49.1
5.3
Other
110.2
11.8
Total expenses
934.3
100.0

Source: ABS, Motion Picture Exhibition, 1999-2000 (cat. no. 8654.0).



Video hire

In 1999-2000, video hire outlets earned about three-quarters (76%) of their income through rental of videos and DVDs. Labour costs accounted for about one-quarter (23%) of total expenses, with the other main expense items being purchases of videos and related goods (18%) and rent, leasing and hiring expenses (17%).

16.10 INCOME AND EXPENSES OF BUSINESSES IN THE VIDEO HIRE OUTLET INDUSTRY - 1999-2000

Value
Percentage contribution
$m
%

Income
Income from the rental of videos and DVDs
449.7
75.6
Income from the rental of video games
38.3
6.4
Income from the sale of videos and video related goods
36.3
6.1
Income from the sales of food and beverages
40.0
6.7
Other
30.9
5.2
Total income
595.2
100.0
Expenses
Labour costs
128.9
23.1
Rent, leasing and hiring expenses
93.5
16.7
Other selected expenses
87.7
15.7
Purchases
Videos and related goods
99.9
17.9
Food and beverages
27.9
5.0
Other costs
120.8
21.6
Total expenses
558.7
100.0

Source: ABS, Video Hire Industry, 1999-2000 (cat. no. 8562.0).








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