In 2008/09, a total of AUS$358 million was spent in Australia on feature film production (with total budget expenditure of AUS$393 million), up from AUS$170 million in 2007/08. The increase was driven by two big-budget local productions, Zack Snyder's Guardians of Ga’Hoole and Happy Feet 2. The 2008/09 tally is also higher than the rolling five-year average of AUS$194 million.
During the year, 32 Australian features and co-productions began shooting in Australia, which marks a decrease from 38 productions in 2007/08 (but is on a par with the rolling five-year average of 32). A list of the feature film titles included in the Survey can be found here.
Australian productions (defined as those 'under Australian creative control' where 'the key elements are predominantly Australian and the project was originated and developed by Australians', including projects 'under Australian creative control that are 100 per cent foreign financed') accounted for 91% of all productions in the year (29 out of 32) and 95% of Australian expenditure (AUS$365 million out of AUS$358 million).
83% (24 out of 29) Australian productions fell within a budget range of AUS$6 million and under, much the same level as the five-year average.
Three co-productions shot in Australia in 2008/09 (At World’s End [Australia/Germany], The Boys Are Back [Australia/UK] and unofficial Australian/US co-production Beauty and the Beast), with Australian expenditure totalling AUS$17 million. This is lower than in the previous year, when five co-productions shot in Australia with local expenditure totalling AUS$49 million.
The Survey helpfully identifies sources of finance for 2008/09 productions:
- 13 (41%) were financed 'principally by Australian film/TV industry sources, including cashflow against the Producer Offset where it was reported as part of the film’s production finance';
- 11 (34%) were financed 'substantially from direct government sources (primarily Screen Australia, although this also included the state agencies, and the Adelaide and Melbourne Film Festival Funds)';
- 7 (22%) were financed 'principally from foreign sources' (including all three co-productions and four local titles); and
- One (3%) film was financed 'substantially from private sources'.
Source: Screen Australia
In terms of the proportion of total finance from each source, government sources accounted for 9% (AUS$35 million), foreign sources provided 57% (AUS$224 million), Australian film/TV sources ponied up 33% (AUS$130 million) and private sources contributed 1% (AUS$5 million).
Source: Screen Australia
Despite the apparent strength of production activity in 2008/09, it is noteworthy that earlier this week the Screen Producers Association of Australia (SPAA) asked the Australian government for additional support to the tune of AUS$84 million over three years, in an effort to attract institutional investors for feature production (Screen Daily has the story). SPAA maintains the Producer Offset (PO) is not working as envisaged, and extra support is required in the current financial climate.
In contrast, Screen Australia takes encouragement from its Survey findings. “This is an important result for the industry,” Ruth Harley (Screen Australia’s Chief Executive) is quoted as saying in the press release announcing the findings. “2008/09 was the first full year of operation for the Producer Offset, and while a single year’s data makes it difficult to attribute the strong level of Australian production to the effect of the Offset alone, the outlook is encouraging, particularly considering the financial uncertainty that characterised 2008/09".
The debate about whether PO is working or not is set to continue, providing a great example of the way market data can figure in public policy decision making. Within this context, one measure of a competitive film industry (to use the UK Film Council's term) is the level of private investment it can attract on a consistent basis, although as far as I'm aware no state agency anywhere in the world has publicly committed itself to a data collection regime and a set of targets that would put such a metric into practice in any meaningful way. If anyone out there has any thoughts or practical suggestions, I'd love to hear them.
Incidentally, the National Survey of Feature Film and TV Drama Production also provides data on foreign features shot in Australia, Australian TV drama production activity and income from post, digital and visual effects (PDV) services.
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