House of Representatives Standing Committee of Communications and the Arts
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Submission 113 House of Representatives Standing Committee of Communications and the Arts Inquiry into the Australian film and television industry Submission by Animal Logic Submission 113 The terms of reference for the Inquiry are the factors contributing to the growth and sustainability of the Australian film and television industry 1. History of Animal Logic Established in Sydney in 1991 by Zareh Nalbandian and Chris Godfrey (now a renowned independent Visual Effect Supervisor), the Australian owned Animal Logic is one of the world’s most highly respected digital production studios, producing award-winning design, animation and visual effects for the Australian and international film and television industries from its studios in Sydney, Vancouver and Los Angeles. Over 500 staff are employed in the Sydney studio. For 25 years, Animal Logic has remained committed to innovation, technical and creative excellence, and most importantly, creating a collaborative, storytelling culture with a unique voice. Animal Logic’s film credits include The LEGO® Batman Movie, The LEGO® Movie, Avengers: Age of Ultron, The Great Gatsby, Happy Feet, House of Flying Daggers, Australia, Moulin Rouge and The Matrix. A full list of credits is attached as Annexure “A”. Projects currently in production include The LEGO Ninjago Movie, The LEGO® Movie Sequel, Alien: Covenant, Guardians of the Galaxy Vol. 2 and Peter Rabbit. Animal Logic comprises two key businesses: • Animal Logic Studios, the most successful, independently owned, digital animation studio in the world; and • Animal Logic Entertainment, a company which develops and produces Australian and international films. Over the last five years, Animal Logic has attracted over $350 million in international investment into Australia through projects attracted by the skills base at Animal Logic and the Australian Screen Production Incentives, such as the Post Digital and Visual Effects Offset (PDV Offset), the Producer Offset and the “top up” grants for the Location Offset. Animal Logic Entertainment is developing a strong slate of innovative, commercially minded, story driven projects stamped with the visual and technical innovation that has become the hallmark of the studio’s work. The development slate, while eclectic and diverse, has a core focus on tent pole, 4-quadrant family feature animation and hybrid projects, as well as filmmaker driven and visually arresting live action/VFX films. Animal Logic Entertainment, with Zareh Nalbandian as a producer, is currently in production on a hybrid feature based on the beloved Beatrix Potter character, Peter Rabbit. Financed by Columbia Pictures and directed by Will Gluck, Peter Rabbit is being shot in Australia and the UK, featuring an all-star cast, including James Corden, Rose Byrne and Margot Robbie. Over 350 staff from Animal Logic Studios in Sydney will work on the digital production. 2 Submission 113 Other projects in development with Hollywood Studios include: Fortunately, the Milk (Twentieth Century Fox); Monkeys, Finn and Princesses (Columbia Pictures); Astro Boy (New Line, a division of Warner Bros); and Naruto (Lionsgate). 2. Industry Engagement As an Australian industry leader, Animal Logic is a member of Ausfilm and Australians in Film. Zareh Nalbandian is the Deputy Chair of Ausfilm, a director of the Sydney Film Festival and a member of the University of Technology, Sydney, Vice Chancellor’s Industry Advisory Board. Animal Logic is a sponsor of Tropfest, (the annual short film festival), and the Sydney Film Festival. It also regularly provides speakers for festivals and events, such as the Vivid Festival and Oz Comicon in Australia, and international conferences such as FMX in Germany, Siggraph and the CTN Animation Expo in the USA, Spark CG Summit in Canada, the British Columbia Tech Summit and The Ottawa International Animation Festival in Canada, the Animex International Conference in the UK, and the VIEW conference in Italy. 3. Education, Research and Development Over 10% of Animal Logic’s revenues are invested back into ongoing research and development and training. With a dedicated research and development team of over 35 software developers, the company recognises that the development and ongoing enhancement of innovative technology pipelines, processes and procedures are essential to the sustainability of its Studio business. As part of its research and development, Animal Logic collaborates with other animation studios, and is currently working with Pixar Studios on the development of open sourcing tools for the animation industry. In 2016, with the objective of building Australia’s future digital skills capability, Animal Logic partnered with the University of Technology, Sydney (UTS) to form the UTS Animal Logic Academy. This partnership saw the creation of the Master of Animation and Visualisation degree with classes commencing in 2017. UTS and Animal Logic are also collaborating on digital research and development projects. Animal Logic provides guest lecturers for the Australian Film Television and Radio School, and runs an annual national high school work experience program with students selected based on the sample work submitted.Given the highly skilled workforce required for an animation and digital effects studio, Australian staff need to be supplemented with international crew on 457 temporary skilled labor visas. Animal Logic has employed staff from 31 countries, including the USA, United Kingdom, Canada, France, Austria, Poland, Spain, Germany, Italy, Switzerland, Sweden, Netherlands, Belgium, Portugal, Russia, Malaysia, China, Taiwan, Thailand, South Korea, Philippines, Japan, Indonesia, Singapore, India, Iran, South Africa, Mexico, Columbia, Argentina, Brazil, Chile and Venezuela. Consequently, the engagement of the digital Australian film industry with the education sector is integral to securing a future source of skilled Australian labour and lessening the reliance on imported labour. 3 Submission 113 4. The Future of the Film Industry The Australian visual and digital effects and animation industry is internationally recognised for its talent and depth across a number of companies working on a diverse slate of projects. Whilst not providing an exhaustive list, the industry includes: Rising Sun Pictures in Adelaide (the X-Men series including Logan, the Harry Potter series, Game of Thrones and Thor: Ragnarok); Iloura in Melbourne and Sydney (Ted, Ted 2, Spongebob Square Pants, Game of Thrones, Ghostbusters, Fury Road, Jumanji and Spiderman); Luma in Melbourne (Doctor Strange, Deadpool, Captain America: Civil War, Avengers, Age of Ultron); Cutting Edge in Brisbane and Sydney (Hacksaw Ridge, Underworld: Blood War); and Fin in Sydney (Gods of Egypt, Australia). Australia relies on a constant flow of film productions - digital, live action and hybrid, Australian set stories and internationally set stories, large and low budget, arthouse to popcorn films - to continue to position itself as a key contributor to the international film landscape, and to maintain a healthy and sustainable industry which can continue to invest in facilities, technology and equipment, and develop and retain our skilled Australian labour. The factors contributing to the growth of the Australian film industry include: • Supportive Federal and State Governments through: (a) incentives such as the Federal Government’s Australian Screen Production Incentives; (b) industry support and investment programs administered by Screen Australia; (c) education such as the Australian Film Radio and Television School; (d) research and development tax incentives; and (e) marketing Australia’s capabilities internationally through Government agencies and Ausfilm. • The disproportionate skill level of Australian creatives relative to Australia’s population size, including award winning talent in front of and behind the camera. For example, there are 4 Australian Oscar winners and one Oscar nominee working on the crew of Peter Rabbit. All those awards and nominations were for films produced in Australia. • The investment by Australian film businesses in training, research and development, technology, equipment, and facilities. • The attraction of large budget international live action, digital and animated productions enabling Australian businesses to invest in their businesses and Australian crew and performers to enhance their skills through experiencing film production at an international level. • The collaborative engagement of industry with the education sector, such as Animal Logic with UTS, and Rising Sun Pictures with the University of South Australia. • Australian screen cultural programs and standards administered by Screen Australia and the Australian Communications and Media Authority. • The support of Hollywood studios in investing in productions in Australia since the Australian Screen Production Incentives were introduced and the comfort level those studios have with the production capabilities of Australia. Despite the above, there are factors impeding the growth and sustainability of the Australian film and television industry, which continues to be challenged by: 4 Submission 113 • The uncertainty surrounding the Federal Government policy of awarding one-off grants to some international productions and rejecting others. This creates “winners” and “losers”, and the lack of clarity about the process, the timing, and the likelihood of a positive outcome detracts from Australia’s attractiveness as a production destination. • An international