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. TITLES SPEND $M Annual feature slate

2007/08 19 106 20 66 39 172 22 118 61 290

2008/09 24 359 10 8 34 366 13 21 47 387

2009/10 29 262 8 3 37 265 10 178 47 443

3-yr average 24 242 13 26 37 268 15 106 52 373

Annual TV drama slate (see page 8 for details of programs for adults vs children)

2007/08 27 161 19 108 46 269 1 134 47 403

2008/09 34 239 10 89 44 328 4 1 48 329

2009/10 27 227 9 59 36 286 2 <1 38 287

3-yr average 29 209 13 85 42 295 2 45 44 340

Total annual feature and TV drama slate3

2007/08 46 267 39 174 85 442 23 252 108 694

2008/09 58 598 20 97 78 695 17 22 95 717 2009/10 56 489 17 63 73 552 12 179 85 731

3-yr average 53 452 25 111 79 563 17 151 96 714 Offset titles

DOMESTIC1 CO-PRODUCTION1 10-year perspective, 2000/01–2009/10 Spend in Australia: By annual feature slate NO. TITLES SPEND $M NO. TITLES SPEND $M 400 Australian features1 Features 350 Foreign features2 300 2007/08 16 89 3 17 250 2008/09 22 346 2 13 200 150 2009/10 24 232 5 31 $ million 100 3-yr average 21 222 3 20 50 0 TV drama

2007/08 21 141 6 20 2001/02 2009/10 2007/08 2000/01 2002/03 2006/07 2005/06 2008/09 2004/05 2003/04 2008/09 31 226 3 13 Spend in Australia: By annual TV drama slate 2009/10 25 214 2 13 400 Australian TV drama1 3-yr average 26 194 4 15 350 Foreign TV drama2 Total 300 250 2007/08 37 230 9 37 200 150 2008/09 53 572 5 26 $ million 100 2009/10 49 446 7 44 50 0 3-yr average 46 416 7 36

Notes: Figures may not total exactly due to rounding. 2001/02 2009/10 2007/08 2000/01 2002/03 2006/07 2005/06 2008/09 2004/05 1. See page 2 for definitions. 2003/04 2. Includes both productions that started principal photography during the year and foreign productions undertaking only PDV work in Australia. Notes: 3. The annual slate is defined as productions that started principal 1. Australian includes both domestic and co-production. photography during the year. 2. Graphs exclude PDV-only expenditure by foreign projects.

4 The Australian feature slate – domestic and co-production titles

The 2009/10 Australian feature slate comprised completion. Looking at just the last two years, when 37 titles accounting for expenditure in Australia of the Offset has been fully operational, this rises to Features $265 million, very close to the three-year average around three-quarters of all features. down after of $268 million. While this is down on last year’s Several titles were ineligible for the Offset in 2007/08 last year’s result, expenditure had more than doubled that year due to having accessed FFC or AFC funding prior to due to the inclusion of two very high-budget titles. 1 July 2007, and/or Division 10BA, the previous tax high, but incentive which the Offset replaced. Other than these close to Feature co-productions were especially strong this titles, non-Offset features have all been in the low- year, with five titles accounting for an Australian spend budget ranges (see page 6). three-year of $31 million. As a result, Offset features have accounted for 90 per average Of the 37 features in this year’s Australian slate, cent of the total expenditure of Australian features 29 were Offset features. On average around two-thirds made in the last three years (98 per cent for the last (65 per cent) of all the features made in the last three two years, and 99 per cent in 2009/10). years have accessed, or will access, the Offset on

All Australian features

OFFSET FEATURES1 NON-OFFSET FEATURES1 TOTAL

NO. TITLES TOTAL SPEND $M NO. TITLES TOTAL SPEND $M NO. TITLES TOTAL SPEND $M BUDGETS $M BUDGETS $M BUDGETS $M 2007/08 19 175 106 20 76 66 39 252 172 2008/09 24 397 359 10 8 8 34 405 366 2009/10 29 290 262 8 6 3 37 296 265 3-yr average 24 287 242 13 30 26 37 318 268

Offset features

DOMESTIC1 CO-PRODUCTION1

NO. TITLES TOTAL SPEND $M NO. TITLES TOTAL SPEND $M BUDGETS $M BUDGETS $M 2007/08 16 139 89 3 37 17

2008/09 22 372 346 2 25 13

2009/10 24 237 232 5 53 31

3-yr average 21 249 222 3 38 20

Notes: Figures may not total exactly due to rounding. 1. See page 2 for definitions.

Beneath Hill 60 » Photographer: Wendy McDougall

THE DRAMA REPORT 2009/10 | SCREEN AUSTRALIA 5 The Australian feature slate

FEATURE BUDGET RANGES SOURCES OF FINANCE FOR The 2009/10 Australian feature slate saw a higher proportion of titles with budgets greater AUSTRALIAN FEATURES than $6 million than in previous years (41 per cent, up from 21 per cent last year and The Australian film/TV industry provided 23 per cent the year before) as well as a lower proportion under $3 million (41 per cent, the largest proportion of finance to this compared to 47 per cent last year and 59 per cent the year before). There was only one year’s Australian slate, contributing co-production with a budget under $3 million this year, with the rest over $6 million. $147 million to 28 domestic features and Features with budgets less than $1 million would not be eligible for the Producer Offset, all five co-productions. Finance provided as a minimum QAPE of $1 million is required, and the majority of non-Offset features in by producers via the Producer Offset 2009/10 fall into this budget range. (Features with budgets of less than $500,000 are (cashflowed in various ways, see page 13) included in the report only if they have had a festival screening or cinema release, see comprised the largest proportion in this 'Methodology' on page 20.) There were two non-Offset features in the $1–3 million range, category, followed by distribution and both likely to be at the lower end of the range, with QAPE under $1 million. production companies. As noted above, the 2007/08 slate saw several features in the higher budget ranges Foreign investors provided the second- ineligible for the Offset as a result of their pre-Offset financing structure. largest proportion (23 per cent) of finance for this year’s slate, contributing All Australian features $68 million to 13 domestic titles and all five co-productions. Foreign investment can BUDGET OFFSET NON-OFFSET TOTAL vary significantly from one year to the next, RANGE $M 07/08 08/09 09/10 07/08 08/09 09/10 07/08 08/09 09/10 with high-budget, principally foreign-funded titles causing large fluctuations. <1 n.a. n.a. n.a. 8 8 6 8 8 6 Direct government sources accounted 1 to 3 6 6 7 9 2 2 15 8 9 for 17 per cent of overall finance to 3 to 6 7 11 7 0 0 0 7 11 7 the Australian feature slate, providing 6 to 10 3 4 7 1 0 0 4 4 7 $51 million to 25 titles, up from last year’s $35 million for 26 titles. 10 to 20 2 1 5 0 0 0 2 1 5 Most of this funding came from Screen 20+ 1 2 3 2 0 0 3 2 3 Australia, which invested $39 million in Total 19 24 29 20 10 8 39 34 37 19 of the domestic titles and two of the co- % < $1m 0% 0% 0% 40% 80% 75% 21% 24% 16% productions. The state agencies contributed $12 million to 22 features, up on last year’s % < $3m 32% 25% 24% 85% 100% 100% 59% 47% 41% $9 million to 20 features. Film Victoria % $6m+ 32% 29% 52% 15% 0% 0% 23% 21% 41% accounted for over 40 per cent of this amount. In addition, the Adelaide Film % $10m+ 16% 13% 28% 10% 0% 0% 13% 9% 22% Festival and the Melbourne International Offset features Film Festival contributed to one title each. After last year’s drop, private investment BUDGET DOMESTIC CO-PRODUCTION in the feature slate increased this year, RANGE $M 07/08 08/09 09/10 07/08 08/09 09/10 to $30 million for 24 titles (10 per cent of <1 n.a. n.a. n.a. n.a. n.a. n.a. total finance). This was a combination of bank finance and contributions by private 1 to 3 5 6 6 1 0 1 investors. In the absence of Division 10BA 3 to 6 7 11 7 0 0 0 of the Income Tax Assessment Act, which was replaced by the Producer Offset, 6 to 10 3 3 6 0 1 1 some private investment is now being 10 to 20 0 0 2 2 1 3 attracted through the offering of favourable 20+ 1 2 3 0 0 0 recoupment positions to investors. Some projects have also been able to attract Total 16 22 24 3 2 5 private investment from individuals or % < $3m 31% 27% 25% 33% 0% 20% groups of individuals through their subject % $6m+ 25% 23% 46% 67% 100% 80% matter. % $10m+ 6% 9% 21% 67% 50% 60%

Notes: n.a. – not applicable.

6 Contributions to the annual Australian feature slate (domestic & co-production), 2007/08–2009/10

CONTRIBUTION % OF TOTAL NO. FILMS $M FINANCE INVESTED IN Australian direct government sources 1 2007/08 41.4 16% 20 2008/09 35.3 9% 26 2009/10 51.0 17% 25 3-yr average 42.6 13% 24 Australian private investors 2 2007/08 44.8 18% 23 2008/09 4.3 1% 13 2009/10 30.1 10% 24 3-yr average 26.4 8% 20 Australian film/TV industry 3 2007/08 66.8 27% 26 2008/09 153.7 38% 32 2009/10 146.9 50% 33 3-yr average 122.5 10% 30 Foreign investors 2007/08 98.8 39% 11 2008/09 211.3 52% 15 2009/10 67.9 23% 18 3-yr average 126.0 40% 15

Notes: Figures may not total exactly due to rounding. 1. Includes direct funding from Australian state and federal agencies and funding bodies (see page 20). Equity investments only – distribution guarantees, loans and underwriting are not included. 2. Private investment sources including the final titles accessing 10BA and 10B tax incentives. 3. Finance provided by Australian-based producers and production companies (including the Producer Offset cashflowed in various ways, see page 13), distribution companies, free-to-air broadcasters (commercial and public) and subscription TV channels.

Sanctum » Courtesy: NBC Universal

« Red Hill

THE DRAMA REPORT 2009/10 | SCREEN AUSTRALIA 7 The Australian TV drama slate – domestic and co-production titles

Overall, the 2009/10 Australian TV drama slate comprised 564 hours of programs (36 titles), accounting for expenditure in Australia of $286 million. 81 per cent of expenditure was by the adult drama slate and the remainder by programs for children. Total expenditure was slightly below the three-year average of $295 million, and significantly down on last year’s $328 million. This was due to a lower level of children’s production; expenditure by programs for adults continued to increase. Over the last three years, Offset TV drama has averaged 29 titles, 297 hours and total spend of $209 million each year, out of total annual Australian TV drama slate of 42 titles, 648 hours, and total spend of $295 million. Overall, Offset titles have accounted for 71 per cent of expenditure but only 46 per cent of hours, due to the fact that long-form TV drama (over 65 episodes) is not eligible for the Offset, and the QAPE per hour must be above a certain threshold. Children’s programs are more likely to have accessed the Offset than programs for adults, with Offset activity accounting for 68 per cent of children’s drama hours made and 80 per cent of expenditure, compared to 38 per cent of hours and 68 per cent of budgets for adult drama.

All Australian TV drama programs

OFFSET TV DRAMA1 NON-OFFSET TV DRAMA1 TOTAL

NO. TITLES HOURS2 TOTAL SPEND $M NO. TITLES HOURS2 TOTAL SPEND $M NO. TITLES HOURS2 TOTAL SPEND $M BUDGETS $M BUDGETS $M BUDGETS $M

Programs for adults 2007/08 16 181 108 108 12 338 89 88 28 519 197 196 2008/09 21 171 144 144 6 314 73 73 27 486 218 218 2009/10 22 205 187 186 5 244 47 47 27 448 234 233 3-yr average 20 186 146 146 8 299 70 69 27 484 216 215 Programs for children 2007/08 11 130 85 53 7 62 35 20 18 192 120 74 2008/09 13 146 115 95 4 37 18 16 17 183 132 111 2009/10 5 59 49 41 4 57 27 12 9 116 76 53 3-yr average 10 112 83 63 5 52 27 16 15 164 109 79

Total TV drama slate3 2007/08 27 311 193 161 19 400 123 108 46 710 317 269 2008/09 34 318 259 239 10 351 91 89 44 669 350 328 2009/10 27 263 235 227 9 301 74 59 36 564 310 286 3-yr average 29 297 229 209 13 351 96 85 42 648 325 295

Offset TV drama

DOMESTIC1 CO-PRODUCTION1 Notes: Figures may not total exactly due to rounding. NO. TITLES HOURS2 TOTAL SPEND $M NO. TITLES HOURS2 TOTAL SPEND $M 1. See page 2 for definitions. BUDGETS $M BUDGETS $M 2. Commercial broadcast hours rather Programs for adults than actual running time. Individual program duration has been rounded 2007/08 16 181 108 108 0 0 0 0 to 15, 30 or 60 minutes as appropriate 2008/09 21 171 144 144 0 0 0 0 (including commercial breaks). 3. The annual slate is defined as 2009/10 22 205 187 186 0 0 0 0 productions that started principal 3-yr average 20 186 146 146 0 0 0 0 photography during the year. Programs for children 2007/08 5 59 33 33 6 72 52 20 2008/09 10 114 88 82 3 33 27 13 2009/10 3 39 28 28 2 20 21 13 3-yr average 6 70 50 48 4 41 33 15

Total TV drama slate3 2007/08 21 239 141 141 6 72 52 20

2008/09 31 285 232 226 3 33 27 13

2009/10 25 244 215 214 2 20 21 13

3-yr average 26 256 196 194 4 41 33 15

8 By format

Adult programs: π Series and serials π Mini-series π Telemovies Children’s programs: π Children’s programs Hours produced Spend ($m)

2007/08 519 2007/08 $196m 192 $74m

2008/09 486 2008/09 $218m 183 $111m

2009/10 448 2009/10 $233m 116 $53m

0 100 200 300 400 500 600 050 100 150 200 250

PROGRAMS FOR ADULTS Mini-series: Production of mini-series rose again The adult TV drama slate comprised 27 titles this year, with 10 titles, 105 hours and total budgets Adult drama (448 hours) with total budgets of $234 million and of $106 million, all above the three-year averages. slate up, accounting for expenditure in Australia of $233 million. Cost per hour also rose above $1 million. Several While down in hours on the last two years, both total of the titles in this year’s slate were made for the with trend budgets and expenditure in Australia were up. There subscription TV channels (including Cloudstreet, towards Spirited, Killing Time and the second series of Tangle). was a drop in series/serials production, but increases higher in mini-series and telemovies, continuing the recent trend towards higher-production value TV drama for NO. HOURS1 TOTAL TOTAL AV. production adults. Average cost per hour across all categories of (IN-HOUSE) BUDGETS SPEND COST/ ($M) ($M) HR ($M) values; programs for adults increased in 2009/10. There have been no adult TV drama co-productions for the past 2007/08 8 71 61 61 0.861 children’s three years. 2008/09 10 93 87 87 0.934 drama down Series and serials: Series and serials typically 2009/10 10 105 106 106 1.011 after two account for the majority of TV drama hours and 3-yr 9 9 85 85 0.945 strong years expenditure in Australia. average However, production of series/serials dropped again this year, in hours, total budgets and expenditure Notes: Figures may not total exactly due to rounding. in Australia, while cost per hour increased further, 1. Commercial broadcast hours rather than actual running consistent with the trend towards higher production time. Individual program duration has been rounded to 15, 30 values. or 60 minutes as appropriate (including commercial breaks). Three new series titles were introduced this year by Telemovies: After dropping last year, telemovie the ABC (I Rock, Angry Boys and Lowdown). production increased again in 2009/10 to similar levels as 2007/08, with four titles spending $11 million. NO. HOURS1 TOTAL TOTAL AV. (IN-HOUSE) BUDGETS SPEND COST/HR NO. HOURS1 TOTAL TOTAL AV. ($M) ($M) ($M) (IN-HOUSE) BUDGETS SPEND COST/HR 2007/08 16 (4) 442 126 125 0,285 ($M) ($M) ($M) 2007/08 4 (1) 6 10 10 1.707 2008/09 15 (4) 390 126 126 0.324 2008/09 2 3 4 4 1.402 2009/10 13 (4) 337 116 116 0.345 3-yr 15 (4) 389 123 122 0.315 2009/10 4 7 11 11 1.680 average 3-yr 3 (<1) 5 8 8 1.633 average Notes: Figures may not total exactly due to rounding. 1. Commercial broadcast hours rather than actual running Notes: Figures may not total exactly due to rounding. time. Individual program duration has been rounded to 15, 30 1. Commercial broadcast hours rather than actual running or 60 minutes as appropriate (including commercial breaks). time. Individual program duration has been rounded to 15, 30 or 60 minutes as appropriate (including commercial breaks).

THE DRAMA REPORT 2009/10 | SCREEN AUSTRALIA 9 The Australian TV drama slate

PROGRAMS FOR CHILDREN The Australian children’s drama slate fell this year, to 116 hours with total budgets of $76 million and total spend of $53 million. This was down on the three-year averages by about a third. Both domestic and co-production children’s drama activity fell. However children’s drama production tends to be cyclical, partly due to the long production schedules of some titles, and much of the decrease is a balancing of increased production in the last two years (see focus on hours by release date, opposite). The most significant drop this year was in domestic production, which was the source of last year’s higher levels, while co-productions were responsible for the higher levels in 2007/08. Children’s drama production is expected to increase again next year, with around 78 hours worth already scheduled for 2010/11 production, including returning series of Dance Academy and My Place for the ABC, and new titles Lightning Point, Get Ace (both for Ten Network) and Guess How Much I Love You (ABC).

NO. (IN-HOUSE) HOURS1 TOTAL BUDGETS ($M) TOTAL SPEND ($M) AVE COST/HR ($M) Domestic 2007/08 11 107 58 46 0.537 2008/09 14 151 106 98 0.702 2009/10 7 96 55 40 0.574 3-yr average 11 118 73 61 0.617 Co-production 2007/08 7 85 62 27 0.737 2008/09 3 33 27 13 0.821 2009/10 2 20 21 13 1.068 3-yr average 4 46 37 18 0.804 Total 2007/08 18 192 120 74 0.625 2008/09 17 183 132 111 0.723 2009/10 9 116 76 53 0.657 3-yr average 15 164 109 79 0.669

Me and My Monsters Notes: Figures may not total exactly due to rounding. Courtesy: Sticky Pictures 1. Commercial broadcast hours rather than actual running time. Individual program duration has been rounded to 15, 30 or 60 minutes as appropriate (including commercial breaks).

Children's drama production tends to be cyclical, partly due to the long production schedules of some titles

10 Focus: TV drama hours by release date

As an analysis of production activity, the information in this report presents data on projects that started shooting during the financial year, with the full budget allocated to the date principal photography started. To help contextualise some of the peaks and troughs in production activity, hours produced are also presented below based on the year of first broadcast. The dip in production of children’s TV drama in 2009/10, following the previous two years of high activity, is shown against a more even three years of releases, illustrating that the drop in production in 2009/10 is mainly a balancing of the previous two years.

π By production date π By release date Adult Children’s 550 550

450 450

350 350 s s 250 250 Hour Hour

150 150

50 50

-50 -50 2007/08 2008/09 2009/10 2007/08 2008/09 2009/10

Note: Commercial broadcast hours rather than actual running time. Individual program duration has been rounded to 15, 30 or 60 minutes as appropriate (including commercial breaks).

Rescue Special Ops The Australian TV drama slate

SOURCES OF FINANCE FOR Contributions to the annual Australian TV drama As usual, AUSTRALIAN TV DRAMA slate (domestic & co-production), 2007/08–2009/10 the largest The Australian film/TV industry provided the majority CONTRIBUTION % OF TOTAL NO. PROGRAMS proportion of finance for this year’s Australian TV drama slate $M FINANCE INVESTED IN (76 per cent), contributing $234 million to 36 titles. Australian direct government sources 1 of TV drama As usual, the largest proportion of this (and the finance came largest from any sector) came from the commercial 2007/08 18.4 6% 16 from the free-to-air broadcasters. The balance came from 2008/09 42.0 12% 26 public broadcasters, subscription TV, distributors commercial and production companies, including finance provided 2009/10 28.3 9% 21 free-to-air by producers via the Producer Offset (cashflowed in 3-yr average 29.6 9% 21 various ways, see opposite). broadcasters Australian private investors 2 Direct government sources contributed $28 million 2007/08 7.5 2% 2 to 21 programs in the 2009/10 TV drama slate, accounting for 9 per cent of total finance. This was 2008/09 7.2 2% 2 down again after last year’s increase to $42 million, 2009/10 0.3 <1% 2 but still above the previous year’s $18 million. 3-yr average 5.0 2% 2 Screen Australia was the principal source of Australian film/TV industry 3 government finance, providing $14 million to nine titles. Contributions from state agencies remained 2007/08 218.7 69% 32 at last year’s higher level, with $8 million going to 2008/09 252.3 72% 35 17 local productions and two co-productions. Film Victoria accounted for more than 40 per cent of total 2009/10 234.4 76% 36 state agency finance. Additional finance came from the 3-yr average 199.0 61% 57 Australian Children’s Television Foundation and other Foreign investors government departments. 2007/08 71.9 23% 17 Contributions from private investors to this year’s TV drama slate dropped to less than 1 per cent of total 2008/09 48.5 14% 15 finance. 2009/10 46.6 15% 12 Foreign investment contributed $47 million (15 per 3-yr average 55.7 17% 15 cent) to the 2009/10 Australian TV drama slate, much the same as last year but down on 2007/08. Notes: Figures may not total exactly due to rounding. 1. Includes direct funding from Australian state and federal agencies and funding bodies (see page 20). Equity investments only – distribution guarantees, loans and underwriting are not included. 2. Private investment sources including the final titles accessing 10BA and 10B tax incentives. 3. Finance provided by Australian-based producers and production companies (including the Producer Offset cashflowed in various ways, see opposite), distribution companies, free-to-air broadcasters (commercial and public) and subscription TV channels.

« Dance Academy Photographer: Steve Brack

12 Focus: Cashflowing the Offset

The Producer Offset (tax rebate) is available to producers of feature films, television and other projects with ‘significant Australian content’ or official co-productions. It is accessed via the Australian production company’s income tax return once the film is completed. For eligible features, it is worth 40 per cent of ‘qualifying Australian production expenditure’ (QAPE); for other formats, including eligible TV drama, it is worth 20 per cent of QAPE. The Offset has been available for qualifying expenditure undertaken from 1 July 2007. However, some titles in the 2007/08 slate were ineligible due to pre-existing funding arrangements. As the Offset is only accessed on completion of the film, it is necessary for producers to cashflow the portion of the budget that the Offset will eventually contribute. In the first year of its operation (2007/08), the majority of Offset finance was cashflowed by film/TV industry and government sources (the Film Finance Corporation cashflowed the Offset for all its funded titles that year). By 2009/10, we see over 40 per cent of Offset finance being cashflowed by banks and other private sources. Film funds set up specifically for this purpose are also becoming more significant, contributing 15 per cent of Offset finance in 2009/10, compared to 2–3 per cent in the first two years. The film/TV industry itself continues to be a major source, contributing 32 per cent of cashflow finance in 2009/10. In this case, production companies and broadcasters are covering the Offset contribution from their own funds. SOURCES OF OFFSET CASHFLOW FINANCE FOR FEATURES AND TV DRAMA Value

TOTAL TOTAL CASHFLOWED THROUGH: NO. VALUE OF YEAR OF OFFSET OFFSET GOVERNMENT FILM/TV INDUSTRY SPECIFIC FILM FUNDS PRIVATE/BANK LOANS UNKNOWN PRODUCTION TITLES ($M) (INC STATE AGENCIES) NO. TITLES $M NO. TITLES $M NO. TITLES $M NO. TITLES $M NO. TITLES $M 2007/08 46 77 20 22 17 42 1 2 6 11 2 1 2008/09 58 176 14 16 24 131 5 5 11 16 5 5 2009/10 56 128 7 12 20 40 10 19 20 52 1 2 3-yr average 53 127 14 17 20 71 5 9 12 26 3 3

Notes: Some titles cashflowed the Offset with more than one source, so figures for number of titles do not necessarily total. Proportions

% of Offset cashflowed through various sources π Government π Film/TV industry π Specific film funds π Private/bank loans π Unknown

2007/08 28% 55% 2% 14% 1%

2008/09 9% 75% 3% 9% 3%

2009/10 10% 32% 15% 41% 2%

0% 20% 40% 60% 80% 100%

% of titles cashflowing Offset through various sources π Government π Film/TV industry π Specific film funds π Private/bank loans π Unknown

2007/08 43% 37% 2% 13% 4%

2008/09 24% 41% 9% 19% 9%

2009/10 13% 36% 18% 36% 2%

0% 20% 40% 60% 80% 100%

THE DRAMA REPORT 2009/10 | SCREEN AUSTRALIA 13 Foreign production

FEATURES TV DRAMA Foreign In 2009/10, five foreign features started shooting features NO.1 HOURS2 TOTAL SPEND IN in Australia, allocating approximately $169 million BUDGETS3 AUST up again (around two-thirds of their budgets) to expenditure in this country. The production of two high-budget 2007/08 1 (+0) 10 150 134 (+0) after lean titles from the US, Chronicles of Narnia: The Voyage 2008/09 2 (+2) 8 2 1 (+<1) year in of Dawn Treader and Don’t Be Afraid of the Dark, has 2009/10 2 (+0) 3 15 <1 (+0) 2008/09; marked a significant rise in expenditure following a dip in 2008/09 where only six Indian features spent 3-yr average 2 7 56 45 very little $2 million locally. Notes: TV drama A further five titles started PDV work in Australia in 1. Figures preceded by ‘+’ are for foreign productions 2009/10 without shooting here. These titles accounted undertaking only PDV work in Australia. for $9 million in local expenditure, compared to 2. Commercial broadcast hours rather than actual running $19 million from seven titles last year. The 2009/10 time. Individual program duration has been rounded to 15, 30 titles included Sucker Punch, The Sorcerer’s or 60 minutes as appropriate (including commercial breaks). Apprentice and Iron Man 2. Work was also done on 3. Total budgets include only foreign titles shot in Australia – two non-US films,True Legend (Hong Kong) and total budgets for foreign PDV-only titles are not available. Another Year (UK). Two foreign TV drama titles started shooting in NO.1 TOTAL SPEND IN AUST1 Australia in 2009/10: the Korean series Paradise BUDGETS2 Ranch and the French series Foudre, which filmed 2007/08 7 (+15) 190 105 (+13) four episodes in NSW. Foreign TV drama expenditure in Australia was well down on the three-year average 2008/09 6 (+7) 10 2 (+19) despite a rise in the total budgets of these titles. There 2009/10 5 (+5) 250 169 (+9) have been no foreign children’s TV dramas shot in 3-yr average 6 (+9) 150 92 (+14) Australia since 2003/04. There were no foreign TV drama titles undertaking Notes: PDV work in Australia in 2009/10 without shooting See page 2 for definition of foreign. here. 1. Figures preceded by ‘+’ are for foreign productions undertaking only PDV work in Australia. 2. Total budgets include only foreign titles shot in Australia – total budgets for foreign PDV-only titles are not available.

The Federal Government introduced the Refundable Film Tax Offset (RFTO) several years ago to encourage large-budget foreign productions to shoot in Australia, providing a rebate on qualifying expenditure above $15 million. In May 2007, the RFTO was replaced by the Location Offset and the rate was increased from 12 per cent to 15 per cent. Based on estimated expenditure, there were no titles from the 2009/10 slate that would be eligible to apply for the Location Offset, reflecting the contraction in foreign production this year. In the May 2010 Budget, the Federal Government reduced the threshold for the PDV Offset from $5 million to $500,000. The impact of these changes is likely to be reflected in the 2010/11 slate.

« Uninhabited Shooting off Masthead Island, Qld. Photographer: Bill Bennett

14 Drama production by location

500 NSW QLD SA VIC WATAS/NT/ACT Victoria 450 accounted for 400 the greatest 350 share of 300 spending 250 Foreign by the

Spend ($m) 200 Australian 09/10 slate; 150 production 100 companies, 50 however, are 0 mainly based in NSW 2007/08 2008/09 2009/10 2007/08 2008/09 2009/10 2007/08 2008/09 2009/10 2007/08 2008/09 2009/10 2007/08 2008/09 2009/10 2007/08 2008/09 2009/10

EXPENDITURE BY STATE With the two significant foreign productions in this year’s slate,Don’t Be Afraid of the Dark and The Chronicles of Narnia: The Voyage of the Dawn Treader, shooting in Victoria and Queensland respectively, those two states accounted for the highest proportions of expenditure in 2009/10: 37 per cent of total expenditure was in Victoria and 31 per cent in Queensland. There was also solid expenditure by Australian productions, both features and TV drama, in Victoria, and by Australian features in Queensland. TV drama was strong in NSW, with most expenditure relating to domestic productions. Activity in South Australia and Western Australia was also mainly related to Australian titles – features in South Australia (including a large proportion of this year’s feature co-production expenditure), and both features and TV drama in Western Australia.

$M NSW QLD SA VIC WA TAS/NT/ACT 2007/08 249 135 33 256 22 1 2008/09 451 47 29 164 18 4 2009/10 189 226 20 272 23 1

% NSW QLD SA VIC WA TAS/NT/ACT 2007/08 36% 19% 5% 37% 3% <1% 2008/09 63% 7% 4% 23% 3% 1% 2009/10 26% 31% 3% 37% 3% <1%

LOCATION OF PRODUCTION COMPANY As an indication of where production activity is being generated, the report also allocates the budget of each Australian feature and TV drama program to where the production company is based in Australia, rather than where the shoot takes place. Feature film and TV drama activity generated by NSW-based companies continued to account for the majority of production (66 per cent). Total budgets for feature film and TV drama production ($m) by location of Australian production company

$M NSW QLD SA VIC WA ACT/TAS/NT 2007/08 402 51 5 89 22 0

2008/09 521 25 4 184 19 3

2009/10 402 18 23 127 32 2

% NSW QLD SA VIC WA ACT/TAS/NT 2007/08 71% 9% 1% 16% 4% 0% 2008/09 69% 3% 1% 24% 2% <1% 2009/10 66% 3% 4% 21% 5% <1%

THE DRAMA REPORT 2009/10 | SCREEN AUSTRALIA 15 Titles in the 09/10 slate

Australian features Foreign features DOMESTIC The Chronicles of Narnia: Fox 2000 Pictures, Walden Media The Voyage of the Dawn Bad Behaviour Global Alliance Productions, Treader (US) Mediakin, Sterling Cinema Australia, Caldwell Entertainment Don’t Be Afraid of the Dark (US) Miramax Films, Necropia, Gran Via Beneath Hill 60 The Silence Productions Pty Ltd Crook (India) Vishesh Film, Films and Casting Temple Pty Ltd Big Mamma’s Boy Bruno/Lotito Pty Ltd Orange (India) Anjana Productions, Films and Blame Factor 30 Films Pty Ltd, 3 Monkey Casting Temple Pty Ltd Films Pty Ltd We Are Family (India) Dharma Productions, Films and Burning Man Burning Man Productions Pty Ltd Casting Temple Pty Ltd City of the Damned Pittot Films PDV-ONLY The Cup Puzzle Productions Pty Ltd Another Year (UK) Film4, Focus Features, Dealing with Destiny Dalifey Pty Ltd Thin Man Films Dream Children Fat Kid Films Pty Ltd Iron Man 2 (US) Paramount Pictures, Marvel Studios The Eye of the Storm Paper Bark Films Pty Ltd The Sorcerer’s Apprentice (US) Walt Disney Pictures, Jerry Bruckheimer Films, Saturn Films Griff the Invisible Green Park Pictures Pty Ltd Sucker Punch (US) Legendary Pictures, A Heartbeat Away Pictures in Paradise Cruel and Unusual films Here I Am Scarlett Pictures Pty Ltd True Legend (Hong Kong) EDKO Films, Shanghai Film Group, The Killer Elite Omnilab Media Group Focus Features Little Johnny the Movie Instinct Entertainment Pty Limited, Priest (US) Screen Gems, Michael De Luca Studio Moshi Productions, Buckaroo Entertainment Mind Fire Myrtletown Films Pty Ltd

Needle Needle Productions Pty Ltd, Griff the Invisible Filmscope Entertainment Pty Ltd Photographer: Mark Rogers Oakie’s Outback Adventure Whip Cracking Productions Red Dog Woss Group Films, Endymion Films Inc and Woss Red Hill Hughes House Films The Reef Reef Films Pty Ltd Sanctum Sanctum Australia Pty Ltd Sinbad and the Minotaur Limelight International Media Entertainment Pty Ltd Sleeping Beauty Magic Films Pty Ltd South Solitary Macgowan Films Pty Ltd Summer Coda Revival Film Company Swerve Duo Art Productions Tomorrow, When the War Began Omnilab Media Pty Ltd Toomelah Bunya Productions Uninhabited Uninhabited Films Pty Ltd Wog Boy 2: Kings of Mykonos See-Saw Films Pty Ltd, Go Films X Circe Films Pty Ltd CO-PRODUCTIONS Arctic Blast (Australia/Canada) Arctic Productions Pty Ltd, Polar Productions Inc. The Dragon Pearl AMPCO Films, Zhejiang Hengdian (Australia/China) Film Production Co., Ltd. Oranges and Sunshine Sixteen Films, See-Saw Films Pty Ltd (Australia/UK) Santa’s Apprentice Avrill Stark Entertainment Pty Ltd, (Australia/France) Alphanim Lte The Tree (Australia/France) Arbre Films Pty Ltd

16 Australian TV drama Children's DOMESTIC Bananas in Pyjamas series 5 Southern Star Entertainment Pty Ltd Series/Serials Davincibles SLR Productions, Moonscoop, Neo Network, Rai Fiction, Angry Boys Angry Boys Productions Pty Ltd Big Animation City Homicide series 4 Seven Network Operations Limited, Castaway Westway Productions City Homicide Production Office Dance Academy series 1 Werner Film Productions, Dance Home and Away series 23 Seven Network Operations Limited Academy Productions Pty Ltd I Can’t Believe It’s Not Better Foxtel Pty Limited The Elephant Princess Jonathan M Shiff Productions Pty Ltd I Rock Mum’s Spaghetti Pty Ltd, series 2 Australian Broadcasting Corporation Flea Bitten Moody Street Kids Pty Ltd The Jesters series 2 Return Fire Productions The Librarians series 3 The Librarians Pty Ltd, Penelope K By the Way Freehand Productions Pty Ltd, Gristmill Pty Ltd Blink Films Pty Ltd Lowdown High Wire Films CO-PRODUCTIONS Neighbours series 27 FremantleMedia Australia (Melbourne) Children's Packed to the Rafters series 3 Seven Productions Dead Gorgeous Burberry Entertainment Pty Ltd (Australia/UK) Rescue Special Ops series 2 Southern Star Entertainment Pty Ltd Me and My Monsters Sticky Pictures Pty Ltd, Review With Myles Barlow Starchild Productions Pty Ltd (Australia/UK) Tiger Aspect Pictures (SPV) Limited, series 2 Me & My Monsters Ltd Rush series 3 Southern Star Entertainment Pty Ltd, Network Ten Telemovies Foreign TV drama Foudre series 3 (France) Adventure Line Productions Hawke The Film Company Paradise Ranch (Korea) Samhwa Networks, SM Entertainment Offspring Southern Star John Edwards Sisters of War Pericles Film Productions Pty Ltd Wicked Love Playmaker Media Pty Ltd Mini-series Bed of Roses series 3 Ruby Entertainment, Tindale Rd Films No 1 Pty Ltd Cloudstreet Screentime Pty Ltd Cops: L.A.C. COPS Production No 1 Pty Ltd Killing Time FremantleMedia Australia Offspring Southern Star Entertainment Pty Ltd Rake Essential Media and Entertainment Sea Patrol series 4 McElroy All Media Pty Ltd Spirited series 1 Southern Star John Edwards Tangle series 2 Southern Star John Edwards Underbelly: The Golden Mile Screentime Pty Ltd series 3

THE DRAMA REPORT 2009/10 | SCREEN AUSTRALIA 17 PDV services – for features and TV drama production

This section incorporates data from a separate survey of companies providing post-production, digital and Income from visual effects (PDV) services. PDV work on The data focuses on income to companies in the PDV sector and is presented according to when income features and was earned. It is therefore not comparable with the data in the main body of the report. For example, the TV drama income to PDV companies shown here for 2009/10 came from expenditure not only by projects which began in 2009/10 (the ‘2009/10 slate’ referred to in the main body of the report) but also by projects continuing has averaged production from previous years. $159 million annually over Income from Australian PDV work on features and TV drama ($m), 2007/08–2009/10 the past $M AUSTRALIAN FOREIGN TOTAL three years DOMESTIC CO-PRODUCTION SHOT IN AUSTRALIA PDV ONLY IN AUST. Features 2007/08 50 2 9 10 71 2008/09 91 3 1 9 105 2009/10 133 15 1 16 164 3-yr average 92 6 4 12 113 TV drama 2007/08 34 9 <1 0 43 2008/09 42 7 1 <1 50 2009/10 40 5 0 0 45 3-yr average 39 7 0 <1 46 Total 2007/08 85 10 9 10 114 2008/09 133 10 3 9 155 2009/10 173 20 1 16 210 3-yr average 130 13 4 12 159

% share 82% 8% 3% 7% 100%

Note: Figures may not total exactly due to rounding. The wide range of PDV work on recent foreign features Based on this analysis, income from PDV work on and TV dramas carried out by Australian companies features and TV drama was: includes visual effects, sound mixing, foley and ADR, • $114 million in 2007/08 as well as traditional post-production activities such • $155 million in 2008/09 as editing. Visual effects has made up approximately • $210 million in 2009/10 73 per cent of the value of PDV income earned on • an average of $159 million anually over the last foreign features and TV drama over the last three three years. years. The remaining 27 per cent was made up of This represents approximately 22 per cent of total digital and non-digital post-production, including sound feature and TV drama production expenditure in post-production and other digital production such as Australia over this period. scanning and digital colour grading. Services to Australian productions have accounted The Federal Government’s PDV Offset was introduced for the majority (82 per cent) of this work (average to help encourage foreign productions to take $130 million annually) over the last four years, with advantage of Australian PDV expertise, providing a titles including Australia, Legend of the Guardians: 15 per cent rebate on qualifying PDV expenditure. The Owls of Ga’Hoole and Happy Feet 2 . The incentive came into effect from 1 July 2007 with a threshold of $5 million, but this was reduced in the However, foreign productions also use Australian PDV May 2010 Federal Budget to $500,000. Based on companies. Recent examples include Iron Man 2, survey data three projects would have been eligible Sucker Punch, which came to Australia for post only, for the PDV offset in 2009/10 under the reduced as well as The Voyage of the Dawn Treader which threshold, but only one project under the original also shot in Australia. Harry Potter and the Deathly threshold of $5 million. Hallows: Part 1 and The Way Back are two major productions that began post-production in 2008/09 and continued in 2009/10.

18 Income from Australian PDV work on features and TV drama by state ($m), ABOUT THE PDV DATA 2007/08–2009/10

NSW VIC QLD SA WA, TAS,NT, TOTAL Companies identified by Screen ACT Australia as providing PDV services for features and TV drama were surveyed, 2007/08 68 15 22 6 2 114 and this data was used to supplement 2008/09 109 27 5 10 4 155 the main report data. PDV is defined as a set of activities rather than a stage in 2009/10 157 23 8 20 1 210 the production process (see 'Key terms' 3-yr 111 22 12 12 3 159 on page 2). average To provide a sense of the ongoing % share 70% 14% 7% 8% 2% 100% business activity of PDV companies in a given financial year (rather INCOME BY STATE than according to an annual slate of productions or titles), income has been A substantial proportion of PDV work in Australia is undertaken in NSW, which accounted assigned to the year it was earned for 70 per cent ($111 million annually) of spending on PDV in the three years 2007/08 to rather than allocated to the start of the 2009/10. NSW companies provided PDV services for features such as Iron Man 2, Sucker shoot or PDV in Australia. As a result Punch, and The Way Back. the figures in this section may include The balance of PDV work over the period was spread between Victoria at 14 per cent projects that commenced shooting or (average $22 million) of the total, followed by South Australia (8 per cent: $12 million) PDV work in the previous financial years Queensland (7 per cent; $12 million) and the remaining states and territories (2 per cent; and cannot be compared with figures in $3 million). the main body of the report, which are PDV is an area of film activity where the smaller states have been able to consistently based on principal photography or PDV compete with their larger counterparts, with an estimated 42 per cent of expenditure on start date. PDV-only projects being spent in South Australia, compared with 55 per cent in NSW in Note that this data relates to the 2009/10. production of features and TV drama Titles undertaking PDV in Victoria included the features True Legend and Sanctum, and only and so does not cover all PDV TV drama Sumo Mouse. Queensland projects included Animalia and K9. PDV projects activity in Australia. The most recent undertaken in South Australia included the features Harry Potter and the Deathly Hallows: data from the Australian Bureau of Part 1, The Sorcerer’s Apprentice and The Way Back. Statistics indicates that Australian companies received income of $427.6 million in 2006/07 from the provision of PDV services across all audiovisual production, with 43 per cent accounted for by feature films and Tomorrow, When the War Began TV drama. Other areas of PDV activity include commercials and other TV productions.

THE DRAMA REPORT 2009/10 | SCREEN AUSTRALIA 19 Methodology

• Compiled by Screen Australia’s Producer Offset and Co-production Unit, using data collected in the administration of the Producer Offset, incorporating production data gathered by the Strategy and Research Unit through contact with production companies and from publicly available sources. PDV data is gathered through surveying PDV companies. • The following federal and state government funding agencies provide data on titles they have funded and, in the case of state agencies, titles shot and/or post-produced in their state: Screen Australia (including the former Film Finance Corporation Australia and the Australian Film Commission), Screen NSW, Film Victoria, South Australian Film Corporation, Screen Queensland, ScreenWest, Screen Tasmania and Northern Territory Film Office. • In some cases, estimates have been made where data was not available. • Foreign projects are included in the report when a substantial amount is shot in Australia or when PDV work is undertaken in Australia. Where only one or two episodes of a foreign series are shot in Australia or where the spend is less than 10 per cent of the total budget, only the budgets for the episodes shot in Australia are included in the total. • Features with budgets under $500,000 are only included if they have had a screening at a festival or cinema release. • Spending in Australia may include some expenditure on foreign production elements – for example, fees for non-Australian actors or other individuals while working in Australia. Likewise spending in a particular state may include fees for elements from outside the state such as foreign or interstate cast or crew. • When analysing sources of finance, the ABC and SBS are categorised as film and TV industry, rather than as government sources. This reflects industry perception of the public broadcasters as part of the broadcast sector rather than government film agencies. In addition to the federal, state and territory film agencies (listed above), government sources may include direct finance from other government agencies and departments, including the Australian Children’s Television Foundation and the Adelaide and Melbourne Film Festival Funds. • Funding figures from government agencies may not correlate with the figures in this report because this report includes projects according to the start date of principal photography rather than contract dates. • Contributions to TV drama by broadcasters in this report do not correlate with expenditure reported by the Australian Communications and Media Authority in the Broadcasting Financial Results. This report analyses finance sources in place at the start of production while the BFR reports expenditure by the commercial free-to-air broadcasters on screened programs during the year and includes amortisation costs for programs purchased in previous years and programs purchased after completion. For pay TV, ACMA reports annual expenditure by drama channels on 'eligible Australian drama', including licence fees, production expenses and limited pre-production costs. Expenditure on features may be apportioned across financial years. For both free-to-air and pay TV, the ACMA figures can include expenditure on New Zealand programs, following the ‘Australian content’ definition. • Sketch comedy programs are included in line with the Australian Communications and Media Authority’s definition of TV drama under the Australian Content Standard. • Mini-series are defined as: a limited series of drama which is less than 13 hours in total length, with individual episodes at least one commercial broadcast hour in length. • Series of telemovies are counted by the number of individual titles. • Data is updated on an ongoing basis, with the result that some discrepancies with previously published reports may appear. The discrepancies reflect new information or adjustments to methodology. • Figures may not total exactly due to rounding.

20 www.screenaustralia.gov.au THE DRAMA REPORT 2009/10 | SCREEN AUSTRALIA 21 www.screenaustralia.gov.au