Submission for the Inquiry Into the Australian Film and Television Industry

------------ House of Representatives Standing Committee Communications and the Arts Attention: Mr Luke Howarth MP Submission for the Inquiry into the Australian Film and Television Industry Terms of Reference Factors contributing to the growth and sustainability of the Australian film and television industry SUBMITTED BY: Flying Bark Productions Pty Ltd 62-68 Church St, Camperdown NSW 2050 Introduction Flying Bark Productions (FBP) is Australia’s oldest independent production company specialising in the production of animated, and to a lesser extent, live action original content for children and family audiences. In this submission, FBP’s aim to highlight the unique position the company occupies in the Australian film and television industry as the largest SME in the children’s content space and perhaps on some measures, in the greater domestic film and television industry. FBP aims to present the company’s cultural and economic value including some case studies of key projects which have driven success in the domestic and international markets. In addition, we have presented a summary of FBP’s strategic plan for sustained growth for the future and the key factors contributing to, or hindering the implementation of this plan and realisation of company goals. FBP is a proud member of Screen Producers Association (SPA) and the Managing Director, Barbara Stephen has recently been appointed to the SPA committee to represent the unique interests of children’s content producers in the sector. As a member of SPA, FBP fully endorses the recommendations set out in the its submission and urges the committee to recognise the role SPA plays in voicing the commonalities for the independent production SMEs. There are many alternative perspectives regarding priorities for industry, but there are clear commonalities and FBP believes that SPA has performed a critical function in distilling clear recommendations with a view to growing a stronger industry for production businesses and members of the associate organisations. Company Profile: FBP (formerly Yoram Gross Studios) has been in operation for more than 40 years. The company has produced close to 400 commercial hours of iconic Australian content across, television, film, web and most recently exploration into the apps and entertainment virtual reality industry. With an impressive historical library of titles spanning from the early 70s including Dot and the Kangaroo, the original Blinky Bill Movies and Series, Flipper, and The Magic Riddle Flying Bark has successfully navigated its way into a modern future with recent domestic and international successful stories; The Great Adventures of Tashi (ABC, KIKA, nominated for an AACTR and Logie) which is based on the highly successful, Australian classic book series created by Australians by Barbara and Anna Feinberg, Maya the Bee Movie (staring Jackie Weaver, Kodi-Smit McPhee, Richard Roxburgh, Miriam Margolese, Justine Clark), Blinky Bill the Movie CGI (staring Barry Humphries, Toni Collette, Ryan Kwanten, Debra Mailman, Barry Otto and Richard Roxburgh). In addition to these animation titles, Flying Bark is wrapping up on its first live action science-based, narrative sitcom, Oh Yuck (Channel 7 featuring the Umbilical Bros). FBP is also currently producing a modern-day CGI series to follow the local success of the film; The Adventures of Blinky Bill - an adaptation of the feature story with well-known Australian comedian, Akmal Saleh as a lead voice. FBPs Snapshot: • Flying Bark has produced 6 x long-form TV series, 2 feature films and 4 service work projects. During this period Flying Bark has employed in NSW on average per year: - 75-100 unique employees (on fixed-term employment contracts) - 10 permanent full-time staff • FBP Feature Films (Maya the Bee Movie, Blinky Bill Movie) have sold in 176 countries and 100 countries respectively • On average FBP TV series have sold in 100 countries • FBP has engaged in 4 official treaty co-productions with Canada, France (2) and Germany. • Service projects produced for (country origin): China, USA, Germany & Australia Flying Bark Productions within the Industry Context Unique position FBP is predominantly an animation company; our business intersects the television and film industries as a creative independent producer and also with the high-tech industries in a highly competitive international environment where innovation is the norm and smart software-based solutions, atomisation processes and data wrangling is imperative for achieving quality, value and sustainability. FBP is one of the few production companies in Australia which produces IP- owned television, web series and feature films as well as (more recently) animation service productions or fee for service work (defined as productions with little to no intelleCtual property ownership by FBP). This diversifiCation into the broader Creative service industry has enabled the company to provide long- term employment, through a sustainable pipeline of projects. The higher budgets with foreign investment and local PDV Tax Offset has provided opportunities to expand creative and technical skills and improve infrastructure, which was not otherwise feasible under the traditional sole-IP production model. FBP cannot overstate the importance of service production without simultaneously recognising the real opportunity for growth in our business, whiCh is the IP production. Factors impacting long-term growth and sustainability: Original Content (IP) Verses Service Production: The real value for SMEs operating in the film and television industry beyond fees for production (which are often limited being invested to finance production) - is through significant ownership of film assets and participation in future sales revenues. It was a masterstroke of the Australian Government to provide equity/ownership opportunity to local producers through the administering of the Film/TV Offset tax systems for TV and Feature Film (20 and 40% respectively). It’s in the Government and industry’s shared interest to further protect that equity from being traded to international investors and financiers. FBP has enjoyed significant success in exporting its content across the globe, whiCh illustrates an international demand for quality children’s content. To this end an ability to reach and connect with global audience through export of Australian content presents tremendous opportunity for strong economic growth and profitability. In addition, children’s content provides liCensing and merchandise opportunity and additional revenue streams from local and global markets for publishing, toys, brand partnerships for specialised products. Conversely, larger studio films, while supplying short bursts of investment in the local economy (but not always local labour support), do not offer the same potential for long-term, sustainable growth within the seCtor. Further, the stability of these productions is susceptible to shifts in foreign currency, competing incentive offered by international Governments, and lower labour costs and business overhead in emerging economies. In addition, these productions often have a ‘flow on’ effect of driving up labour costs and impacting supply of creative and technical personnel to work on local production (feast and famine). Accordingly, policy makers should be cautious to promote foreign production ahead or in place of local interest, as history has demonstrated the US studios tendency to abandoned ship for places with higher incentives, better value for dollar and flexible labour conditions. Official Treaty Co-Production Models: FBP has benefitted from an ability to finance production using official treaty co- production models particularly in feature film production. Official Co-Productions provide a unique opportunity for producers to share finance, talent, expertise and ensure stories resonate with a broader audience. Commercially co-productions tend to provide a wider platform for exploitation (sales/release) than locally produced content, as finance requires commitment to signifiCant distribution in at least two or three markets (i.e depending on number of co-production partners). This further provides uplift to sales accompanied by greater confidence from buyers in the broader market. Finally, the benefit of official co-production with any EU country is the important EU classification, which allows the content to avoid foreign content restrictions (i.e. France limits the level of foreign content, but an EU classification overrides this restriCtion) improving sales potential as local distributors can also access grants for marketing these films/shows reducing their risks. Growth Opportunity: The Global Market Domestic success is always the first step and necessary ingredient for realising the cultural and commercial benefits of local content production. However, the real potential for economic growth is in capitalising on the enormous wealth of the global Content industry and the vast increase in buying entrants to the market, many of whom require non-studio (independent), alternate content. Recent and well publiCised success of Australian content in global markets, coupled with highly competitive conditions for production and an ever- improving track record – is driving very strong export potential. “Brand Australia” is reputable, and the market has proven that localised quality brands enjoy sustained sucCess - the UK or Denmark being strong examples of the impact quality local production can have on the “image and success” of an

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