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Screen Australia Screen Australia THE DRAMA REPORT 09/10 PRODUCTION OF FEATURE FILMS AND TV DRAMA IN AUSTRALIA $731 million total production expenditure 2 per cent up on last year and well above pre-Offset levels 37 Australian features $265 million 29 Offset features $262 million 36 Australian TV dramas $286 million 27 Offset TV dramas $227 million 12 foreign projects $179 million Foreign PDV only $9 million Producer Offset total value $128 million Special focus Cashflowing the Offset © Screen Australia 2010 ISBN: 978-1-920998-12-7 Screen Australia is grateful to all those that contributed data to the compilation of this report. The data provided in this survey has been drawn from a number of sources. Screen Australia has undertaken all reasonable measures to ensure its accuracy and therefore cannot accept responsibility for inaccuracies and omissions. Cover picture: TOMORROW, WHEN THE WAR BEGAN Inset: ME AND MY MONSTERS, Courtesy: Sticky Pictures Contents ABOUT THE REPORT 1 Key terms 2 OVERVIEW 3 ALL DRAMA PRODUCTION 4 THE AUSTRALIAN FEATURE SLATE – DOMESTIC AND CO-PRODUCTION TITLES 5 Feature budget ranges 6 Sources of finance for Australian features 6 THE AUSTRALIAN TV DRAMA SLATE – DOMESTIC AND CO-PRODUCTION TITLES 8 Programs for adults 9 Programs for children 10 FOCUS: TV DRAMA HOURS BY RELEASE DATE 11 Sources of finance for Australian TV drama 12 FOCUS: CASHFLOWING THE OFFSET 13 FOREIGN PRODUCTION 14 DRAMA PRODUCTION BY LOCATION 15 Expenditure by state 15 Location of production company 15 TITLES IN THE 09/10 SLATE 16 PDV SERVICES – FEATURES AND TV DRAMA PRODUCTION 18 METHODOLOGY 20 ABOUT THE REPORT The Drama Report covers the production of feature films and TV drama programs (mini-series, telemovies and series/serials) by financial year. It reports on the operation of the Producer Offset tax rebate for domestic Australian projects and official co-productions, incorporating data gathered through surveys and publicly available sources to give a comprehensive view of drama production activity in Australia and the Offset’s contribution to the annual slate. Data is presented for the past three years, 2007/08 to 2009/10, the period since the introduction of the Offset. Foreign titles are included if they are shot (or substantially shot) in Australia, or carry out post, digital or visual effects (PDV) work in Australia without shooting here. See page 2 for definitions of ‘Australian’, ‘domestic’, ‘co-production’ and ‘foreign’. Feature films and TV dramas represent about 20 per cent of all audiovisual production in Australia. Other areas of activity include documentaries, light entertainment, commercials, music videos, corporate video and TV production such as sport, news and current affairs. See the statistics section of the Screen Australia website for details and for pre-2007/08 data: www.screenaustralia.gov.au/gtp/production.html. THE DRAMA REPORT 2009/10 | SCREEN AUSTRALIA 1 KEY TERMS Analysis of ‘total budgets’ includes all projects ‘Non-Offset projects’ are domestic productions 'Foreign' productions are defined as those that started shooting during the financial which for reasons such as format, level of under foreign creative control, originated and year, with the full budget allocated to the date production expenditure or use of previous developed by non-Australians. This includes principal photography starts; budgets are not tax incentives would not be eligible for the foreign projects with an Australian production apportioned across the duration of the project. Producer Offset. company operating in a service capacity. This indicator is not reported for foreign PDV- only productions as the Australian work may In-house productions are projects by Australian represent only a small proportion of the overall ‘Domestic’ productions include: TV stations where no independent production budget. - Offset projects other than co-productions company is credited as producer or co-producer. As a subset of ‘total budgets’, the amount spent - non-Offset projects under Australian creative in Australia is also analysed; this is particularly control (ie where the key elements are relevant for co-productions and foreign predominantly Australian and the project was PDV (post-production, digital production and productions. Again, all expenditure is allocated originated and developed by Australians). This visual effects) refers to those activities that to the date principal photography or the date includes projects under Australian creative create audio and visual elements for film or PDV work in Australia begins rather than control that are 100 per cent foreign financed. TV drama other than by principal photography, according to the actual date of spending. Note: pick ups or physical elements such as sets and this is not the same as ‘qualifying Australian props and includes animation. It also refers ‘Co-productions’ are official co-productions production expenditure’ (QAPE) for the purpose to the manipulation of those elements and (ie projects made pursuant to an agreement of the Producer Offset: some expenditure in includes sound and visual editing, digital effects, between the Australian Government and the Australia is not QAPE, and QAPE can include creation of computer-generated images (CGI), government of another country). some expenditure on Australian elements film laboratory work and duplication services. outside Australia. QAPE is not reported here. Because official co-productions don’t have to As such, it includes a variety of activities that pass the ‘significant Australian content’ test not only take place after the shoot but also for eligibility for the Producer Offset and may during the earlier stages of a project’s overall ‘Offset projects’ are projects which have be classified as ‘Australian’ for the purposes production. accessed the Producer Offset or, if not of Australian content regulation applying to completed, will access it once completed (they broadcasters, in most cases the report discusses Please note: This report has been compiled have generally been issued with a Provisional domestic and co-production projects as a by Screen Australia’s Producer Offset & Co- Certificate). An Offset project may be either an combined ‘Australian’ slate. eligible domestic production or an official co- production Unit, incorporating data gathered production. from administration of the Offset as well as data gathered by Screen Australia’s Strategy & Research Unit through contact with production companies or from publicly available sources. PDV data is gathered through surveying PDV companies. See also 'Methodology' on page 20. « Wicked Love 2 Overview The annual slate of feature films and TV drama productions consists of Australian titles (including official co-productions) and foreign titles that start production or post, digital or visual effects (PDV) during a given year. 800 FOREIGN $731m $717m π TV drama $694m π Features 700 AUSTRALIAN 600 π TV drama - Children’s m) $547m π TV drama - For adults ($ π Features lia 500 ra st Au 400 in d en 300 Sp 200 100 0 Pre-2007 2007/08 2008/09 2009/10 5-yr average* Note: * 5-year average pre-July 2007 excludes PDV-only expenditure by foreign projects. DRAMA EXPENDITURE OPERATION OF THE IN AUSTRALIA PRODUCER OFFSET • Total expenditure in Australia by the 2009/10 • The Producer Offset came into effect for drama slate was $731 million, a 2 per cent production expenditure incurred from increase since 2008/09, and well above the 1 July 2007. average for the five years to June 2007. Australian feature production accounted for • In 2007/08, 49 per cent of Australian features 36 per cent of 2009/10 expenditure, Australian and 59 per cent of TV drama titles were Offset TV drama for 39 per cent and foreign activity projects, ie they have accessed, or will access, (primarily feature production) for 24 per cent. the Producer Offset on completion. By 2009/10, 78 per cent of the Australian • Expenditure by the Australian slate feature slate and 75 per cent of the TV drama – domestic productions and official co- slate were Offset projects. productions – totalled $552 million, comprising 37 features spending $265 million • Offset features have accounted for 90 per and 564 hours of TV drama (36 titles) spending cent of total spend for Australian features over $286 million. the past three years, while Offset TV dramas accounted for 71 per cent of Australian TV • Australian feature production was down this drama spend and 46 per cent of hours. year, with last year's slate elevated by two high-budget titles. • Children’s programs were more likely than adult TV to be Offset projects, in this case • Expenditure by Australian TV drama for accounting for 80 per cent of expenditure and adults increased but production of children's 68 per cent of hours. programs was down after two strong years. As a result, overall expenditure by the Australian EXPENDITURE BY LOCATION TV drama slate fell. • Victoria accounted for 37 per cent of • Five foreign features and two foreign TV expenditure by this year’s slate, Queensland for dramas started shooting in Australia in 31 per cent and NSW for 26 per cent. 2009/10, accounting for expenditure in Australia of $170 million. This marked a significant rise in expenditure after last year, when there was very little foreign activity. Five PDV-only projects (all features) contributed an additional $9 million. Both the number and the value of PDV-only projects were down on previous years. THE DRAMA REPORT 2009/10 | SCREEN AUSTRALIA 3 All drama production Total expenditure in Australia by the 2009/10 drama slate was $731 million, comprising $552 million by Australian projects and $179 by foreign productions, mainly features. Of the Australian slate, expenditure by Offset projects totalled $489 million – $262 million by Offset features and $227 million by Offset TV drama. Three-year summary 2007/08–2009/10 AUSTRALIAN1 FOREIGN2 TOTAL OFFSET1 NON-OFFSET1 TOTAL AUSTRALIAN NO. TITLES SPEND $M NO. TITLES SPEND $M NO. TITLES SPEND $M NO. TITLES SPEND $M NO.
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