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Submission 123 Submission 123 5 April 2017 Mr Luke Howarth MP Chair Standing Committee on Communications and the Arts Parliament House Canberra ACT 2600 By email: [email protected] Dear Mr Howarth RE: Inquiry into the Australian film and television industry Thank you for the opportunity to provide input to the committee’s inquiry into issues impacting Australia’s film and television industry – this is a timely investigation and one that should highlight the conditions necessary to ensure its ongoing success. As a leading educator in the area of games development and film visual effects (VFX), Academy of Interactive Entertainment (AIE) has a perspective to offer the Committee grounded in many years’ involvement in industry education/skills. AIE is highly engaged with the industries in which its graduates seek employment opportunities, and is highly regarded by employers in the game development and VFX fields. I enclose for your consideration a submission to the Committee on Communications and the Arts. I would welcome the opportunity for myself or a representative from AIE to appear before the Committee and provide further evidence. Should you have any questions or concerns please don’t hesitate to contact me. Yours sincerely John De Margheriti Executive Chairman & CEO Academy of Interactive Entertainment Submission 123 Inquiry into the Australian film and television industry House of Representatives Standing Committee on Communications and the Arts 5 April 2017 Academy of Interactive Entertainment Submission Submission 123 Table of Contents 1. Terms of Reference ............................................................................................... 3 2. About AIE .............................................................................................................. 3 3. The Australian VFX Industry .................................................................................. 5 4. About the Australian Video Games Industry .......................................................... 5 5. The case for expanding the Producer Offset to Australian electronic games ......... 7 6. AIE Incubator Program – A case study in investment ............................................ 8 7. The Canadian Experience ..................................................................................... 9 Attachment 1: AIE Graduates: Projects and Studios ................................................ 11 Attachment 2: Games in Development through AIE Incubators ............................... 12 1. Terms of Reference The Academy of Interactive Entertainment (AIE) notes the Terms of Reference for the Inquiry into the Australian film and television industry. “The House Standing Committee on Communications and the Arts will conduct an inquiry into: Factors contributing to the growth and sustainability of the Australian film and television industry.” As a leading provider of visual effects (VFX) education, AIE strongly supports the committee’s focus on the important Australian film and television industries. We will provide an overview of our involvement in the VFX sector and our commitment to educating the next generation of VFX artists, compositors and animators. The outstanding success of Australia’s studios working in VFX demonstrates the opportunities created by production incentives. However, we believe that this inquiry is also an opportunity to analyse how the lessons learned from the success of the Australian film and television industry can be applied to Australia’s video games sector. The gaming industry has long argued that the generous incentives which have enabled the Australian film and television industry to thrive could spur a renaissance in Australian electronic game development and enable local studios to compete and gain pre-eminence in the global market. 2. About AIE The Academy of Interactive Entertainment (AIE) is Australia's most awarded 3D animation, game design and visual effects (VFX) educator. In 1996, local industry recognised that there were not enough qualified graduates for growing Australian companies such as Micro Forte, Strategic Studies Group and Beam. As such, AIE was established by industry as a non-profit organisation to provide formal training for artists and programmers in games. AIE pioneered the development of specialist game development and VFX qualifications Page 3 of 15 Submission 123 and continues to innovate through industry partnerships and fostering a vibrant start-up culture among its graduates. AIE’s graduates have literally taken on the world in the games, film and associated industries, working on high profile films and games in Australia and around the globe. AIE has campuses across Australia in Canberra, Sydney, Melbourne and Adelaide. Recently AIE has instituted partnerships in Seattle and Lafayette, USA and established an online educational platform. Attachment 1 outlines some of the major projects and studios that AIE graduates have worked on. AIE has been recognised twice over the past two decades as one of Australia’s leading VET providers. As recently as November 2016, AIE was named 2016 Small Training Provider of the Year at the Australian Training Awards. As a not-for-profit, AIE invests surplus funds back into our students. AIE Courses AIE courses are practical, career-focused and delivered by industry experienced teachers in a creatively-demanding studio environment. AIE serves around 1,000 students at any one time from campuses in Sydney, Melbourne, Adelaide, Canberra and Online. AIE has high completion rates and a strong record of student satisfaction across our courses. Over the past three years, 81 per cent of AIE students have completed their courses. Similarly, between 2013 and 2015, AIE students reported high satisfaction rates, with 90 per cent of students stating they were ‘satisfied with the training’ they had received and 93 per cent stating they would be willing to recommend AIE to another person. A key indicator of AIE’s success is what happens to our students after they complete their courses. A survey of the 2014-2015 AIE cohort found that 80 per cent of students were either employed in the industry, were undertaking further study or had started their own business through the student incubator. AIE has a unique course progression pathway which is focused on career development. AIE students vary from children as young as seven participating in AIE’s STEM-related holiday courses through to the senior cohort of our Graduate Diploma of Management (Learning) course. All of our courses are designed by industry for the industry and we have alumni working around the world in video game studios and VFX companies. The primary qualification AIE offers for potential VFX artists, compositors and animators, is the Advanced Diploma of Screen and Media. This is a 2 year, highly specialised course. In the first year students develop the skills they need to work in VFX and animation including modelling, texturing, rigging, lighting, rendering and compositing. In the second year, students work in a team based on an industry work place, to produce a major screen project. AIE also provides Certificate II and Certificate III courses focusing on visual effects, game design and programming, as well as more rudimentary introductory courses for a number of age and skill levels. Page 4 of 15 Submission 123 3. The Australian VFX Industry While it is difficult to measure the value of visual effects as a single component of a larger industry, Deloitte has estimated that the film and television industry contributed $5.8 billion to Australia’s gross domestic product in 2012-13 and employed approximately 46,600 people on a full time basis.1 Australia is a key contributor to the global VFX industry with leading companies including Animal Logic, Rising Sun, Endemol Australia (previously Southern Star) and Iloura. Two Australians have won the Academy Award for Best Visual Effect, John Cox who won the Academy Award in 1995 for his work on Babe and Steve Courtley who won the Academy Award in 1999 for his work on The Matrix. A number of Australians have been nominated, including Don Oliver who in 2016 was nominated for Mad Max: Fury Road and Jason Pillington who in 2016 was nominated for his work on Deepwater Horizon. Australia’s disproportionate success in the field of VFX is a testament to the artists, compositors and animators who have risen to the top of their field. However, there is no doubt the tax incentives offered by the Australian Federal Government and other incentives from state governments have been critical in creating the impetus for Australian films to keep their VFX production in Australia and overseas productions, including large budget Hollywood films, to send their production work to Australia. That is why AIE has proposed that equivalent incentives be established for the electronic games sector to promote a renaissance in Australia game development. 4. About the Australian Video Games Industry Australia has a rich history of video game development, stretching back to the formation of Beam Software (now Krome Studios Melbourne) in 1977. In 1982, Beam Studios produced a highly successful illustrated text adventure game The Hobbit based on the novel of the same name by JRR Tolkien, which was a groundbreaking development in the Interactive Fiction genre. The statistics on the preponderance of electronic games in Australia are impressive: 98% of Australian homes with children under 8 have a device which can play interactive games; 68% of Australians play interactive games;
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