Drama Report 2013/2014

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Drama Report Production of feature films and TV drama in Australia 2013/14 Highlights

$837 million total production expenditure Up 11 per cent on last year

35 Australian features $297 million Up 18 per cent on last year

49 Australian TV dramas $343 million Down 8 per cent on last year

26 foreign projects $197 million Up 50 per cent on last year

Producer Offset total value $137 million

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Key terms 4

OVERVIEW 5

ALL DRAMA PRODUCTION 6

AUSTRALIAN FEATURE SLATE – DOMESTIC AND CO-PRODUCTION TITLES 8

Feature budget ranges 8

Sources of finance for Australian features 9

AUSTRALIAN TV DRAMA SLATE – DOMESTIC AND CO-PRODUCTION TITLES 10

Programs for adults 12

Programs for children 13

Sources of finance for Australian TV drama 14

FOREIGN PRODUCTION 15

Features 15

TV drama 15

DRAMA PRODUCTION BY LOCATION 16

Expenditure by state 16

Location of production company 17

TITLES IN THE 2013/14 SLATE 18

PDV SERVICES – FOR FEATURES AND TV DRAMA PRODUCTION 21

METHODOLOGY 25

ABOUT THE REPORT activity in Australia and the Offset’s Australia. Other areas of activity include contribution to the annual slate. Data is documentaries, light entertainment, The Drama Report covers the production presented for the past five years, 2009/10 to commercials, music videos, corporate videos of feature films and TV drama programs 2013/14. Foreign titles are included if they and TV productions such as sport, news and (mini-series, telemovies and series/serials) by are shot (or substantially shot) in Australia, or current affairs. See the statistics section financial year. have post, digital or visual effects (PDV) work of the Screen Australia website for details, It reports on the operation of the Producer carried out in Australia without shooting here. www.screenaustralia.gov.au/research/ Offset tax rebate for domestic Australian See page 4 for definitions of ‘Australian’, prod_industry.aspx, and the relevant archives projects and official co-productions, ‘domestic’, ‘co-production’ and ‘foreign’. for pre-2009/10 data. incorporating data gathered through surveys and publicly available sources to give a Feature films and TV dramas represent about comprehensive view of drama production 20 per cent of all audiovisual production in

The Drama Report 2013/14 | Screen Australia 3 The Water Diviner

KEY TERMS

Analysis of ‘total budgets’ includes Certificate.) An Offset project may be as ‘Australian’ for the purposes during the earlier stages of a project’s all projects that started shooting either an eligible domestic production of Australian content regulations overall production. during the financial year, with the full or an official co-production. See applying to broadcasters, in most budget allocated to the date principal definition below. cases the report discusses domestic ‘Location Offset’ is a 16.5 per cent photography started; budgets are and co-production projects as a rebate which supports the production not apportioned across the duration ‘Non-Offset projects’ are domestic combined ‘Australian’ slate. of large-budget film and television of the project. This indicator is productions which for reasons such as projects shot in Australia. not reported for foreign PDV-only format, level of production expenditure ‘Foreign productions’ are defined productions as the Australian or use of previous tax incentives are as those under foreign creative ‘PDV Offset’ is a 30 per cent rebate work may represent only a small not eligible for the Producer Offset. control, originated and developed which supports work on post, digital proportion of the overall budget. This also includes those projects by non-Australians. This includes and visual effects production (PDV) accessing the PDV Offset. foreign projects with an Australian in Australia, regardless of where a As a subset of ‘total budgets’, the production company operating in a project is shot. ‘amount spent in Australia’ is also ‘Domestic productions’ include: service capacity. analysed; this is particularly relevant – Offset projects other than ‘Producer Offset’ is a 40 per cent for co-productions and foreign co-productions ‘In-house productions’ are projects rebate on the qualifying spend of productions. Again, all expenditure – non-Offset projects under by Australian TV stations, where no qualifying Australian films and a 20 is allocated to the date principal Australian creative control independent production company is per cent rebate for other qualifying photography or PDV work in Australia (ie where the key elements are credited as producer or co-producer. media. began rather than to the actual predominantly Australian and date of spending. Note: this is not the project was originated and ‘PDV’ (post, digital and visual effects) Please note: This report has been the same as ‘qualifying Australian developed by Australians). This refers to those activities that create compiled by Screen Australia’s production expenditure’ (QAPE) for includes projects under Australian audio and visual elements for film Producer Offset & Co-production Unit, the purpose of the Producer Offset. creative control that are 100 per or TV drama other than by principal incorporating data gathered from Some expenditure in Australia is not cent foreign financed. photography, pick ups or physical administration of the Offset as well as QAPE, and QAPE can include some elements such as sets and props, data gathered by Screen Australia’s expenditure on Australian elements ‘Co-productions’ are official and includes animation. It also Strategy & Research Unit through outside of Australia. QAPE is not co-productions (ie projects made refers to the manipulation of those contact with production companies or reported here. pursuant to an agreement between elements and includes sound and from publicly available sources. PDV the Australian Government and the visual editing, digital effects, creation data is gathered through surveying ‘Offset projects’ are projects which government of another country). of computer-generated images (CGI), PDV companies. have accessed the Producer Offset Because official co-productions don’t film laboratory work and duplication or, if not completed, will access it See also Methodology on page 25. have to pass the ‘significant Australian services. As such, it includes a once completed. (They have generally variety of activities that not only been issued with a Provisional content’ test for eligibility for the Producer Offset, and may be classified take place after the shoot but also

4 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 and visual effects (PDV) during a given year.

DRAMA EXPENDITURE IN AUSTRALIA Parer’s War yy Total expenditure in Australia by the yy Australian feature production increased 2013/14 drama slate was $837 million, on last year and was above the five-year an 11 per cent increase on the previous average, boosted by the high-budget titles, year, and the highest on record. Australian Gods of Egypt and The Water Diviner. This TV drama accounted for 41 per cent of year’s slate comprised three co-production expenditure, Australian feature films 35 per titles, compared to none last year. cent and foreign activity (primarily feature yy Foreign activity accounted for expenditure production) 24 per cent. in Australia of $197 million in 2013/14, up yy Expenditure by the Australian slate from $131 million last year, primarily due – domestic productions and official to the high-budget US features Unbroken co-productions – totalled $640 million, and San Andreas. Nine foreign features and comprising 595 hours of TV drama (49 two foreign TV dramas started shooting titles) spending $343 million, and 35 in Australia during the year, and 15 foreign features spending $297 million. projects (all features) undertook PDV in yy Australian TV drama expenditure Australia without shooting here. decreased by 8 per cent from last year’s record high. Expenditure by the adult TV EXPENDITURE BY LOCATION slate was above the five-year average, yy Of total 2013/14 drama expenditure, while children’s TV drama expenditure was 42 per cent occurred in NSW, 31 per cent in on par with the average. Victoria and 15 per cent in Queensland.

Foreign and Australian feature and TV drama expenditure

900 $837m

800 $745m $756m $694m 700

600 $561m Foreign Features 500 TV drama 400 Australian

300 Features

Spend in Australia ($m) TV drama – Children’s 200 TV drama – Adult

100

2009/10 2010/11 2011/12 2012/13 2013/14

The Drama Report 2013/14 | Screen Australia 5 All drama production

Total expenditure in Australia by the 2013/14 drama slate was $837 million, comprising $640 million by Australian projects and $197 million by foreign productions.

Five-year summary, 2009/10–2013/14

Australian1 Total Offset1 Non-offset1 Domestic1 Co-production1 Australian Foreign2 Total No. Spend No. Spend No. Spend No. Spend No. Spend No. Spend No. Spend Year titles $m titles $m titles $m titles $m titles $m titles $m titles $m Annual feature slate 2009/10 30 265 12 8 37 242 5 31 42 273 11 180 53 452 2010/11 17 92 5 1 18 56 4 37 22 93 15 77 37 170 2011/12 31 302 3 1 30 272 4 32 34 303 20 90 54 393 2012/13 n.p. n.p. n.p. n.p. 29 251 0 0 29 251 14 110 43 361 2013/14 n.p. n.p. n.p. n.p. 32 288 3 9 35 297 24 196 59 493 5-yr av 28 241 5 2 29 222 3 22 32 243 17 131 49 374 Annual TV drama slate (see page 10 for details of programs for adults vs children) 2009/10 27 232 10 60 35 279 2 13 37 292 2 1 39 293 2010/11 34 267 7 70 40 334 1 3 41 337 3 54 44 392 2011/12 39 226 6 67 43 n.p. 2 n.p. 45 293 5 8 50 301 2012/13 45 298 12 76 51 360 6 14 57 374 2 21 59 395 2013/14 37 244 12 99 47 332 2 11 49 343 2 1 51 344 5-yr av 36 254 9 74 43 318 3 10 46 328 3 17 49 345 Total annual feature and TV drama slate3 2009/10 57 497 22 68 72 522 7 44 79 565 13 180 92 745 2010/11 51 359 12 71 58 390 5 40 63 430 18 131 81 561 2011/12 70 528 9 68 73 n.p. 6 n.p. 79 597 25 98 104 694 2012/13 n.p. n.p. n.p. n.p. 80 611 6 14 86 625 16 131 102 756 2013/14 n.p. n.p. n.p. n.p. 79 620 5 20 84 640 26 197 110 837 5-yr av 64 495 14 77 72 540 6 32 78 571 20 148 98 719

Notes: Figures may not total exactly due to rounding. n.p. Not for publication due to confidentiality reasons. 1. See page 4 for definitions. 2. Includes both productions that started principal photography during the year and foreign productions undertaking only PDV work in Australia. 3. The annual slate is defined as productions that started principal photography during the year.

6 PRODUCTION TRENDS

Annual feature slate: spend in Australia Annual TV drama slate: spend in Australia

Australian features1 Foreign features2 Australian TV drama1 Foreign TV drama2 400 Foreign PDV-only 400 Foreign PDV-only included since 2006/07 included since 2006/07 350 350

300 300

250 250

200 200 $ million $ million

150 150

100 100

50 50

0 0 2013/14 2013/14 2011/12 2011/12 2012/13 2012/13 2004/05 2004/05 2010/11 2010/11 2007/08 2007/08 2009/10 2009/10 2006/07 2006/07 2005/06 2005/06 2008/09 2008/09

Notes: Notes: 1. Australian includes both domestic and co-production. 1. Australian includes both domestic and co-production. 2. Foreign productions undertaking only PDV in Australia have 2. Foreign productions undertaking only PDV in Australia have been included since 2006/07. been included since 2006/07.

Last Cab to Darwin

The Drama Report 2013/14 | Screen Australia 7 Australian feature slate

The 2013/14 Australian feature slate one as a three-way with Canada), and some comprised 35 titles, accounting for high-budget domestic films, including Gods of expenditure in Australia of $297 million1, Egypt and The Water Diviner. Expenditure by Expenditure by domestic an increase from 29 titles spending $251 the domestic slate this year was the highest features in 2013/14 was the million last year. This year’s slate included since 2008/09. three co-productions (all with Germany and highest since 2008/09.

All Australian features

Domestic features1 Co-production features1 Total

Total Total Total No. budgets Spend No. budgets Spend No. budgets Spend titles $m $m titles $m $m titles $m $m 2009/10 37 248 242 5 53 31 42 301 273 2010/11 18 59 56 4 67 37 22 125 93 2011/12 30 328 272 4 44 32 34 372 303 2012/13 29 301 251 0 0 0 29 301 251 2013/14 32 323 288 3 35 9 35 359 297 5-yr av 29 252 222 3 40 22 32 292 243

FEATURE BUDGET RANGES Most domestic features (72 per cent) Co-productions tend to be in the higher budget had budgets below $6 million, which was ranges. Two of the three in this year’s slate comparable with budget levels over the last had budgets over $10 million. five years.

All Australian features (domestic and co-production)

Domestic Co-production Total 09/10 10/11 11/12 12/13 13/14 09/10 10/11 11/12 12/13 13/14 09/10 10/11 11/12 12/13 13/14 < $1m 9 5 7 7 5 0 0 0 0 0 9 5 7 7 5 $1–3m 10 7 9 8 8 1 0 0 0 0 11 7 9 8 8 $3–6m 7 2 7 7 10 0 1 1 0 1 7 3 8 7 11 $6–10m 6 3 2 3 6 1 1 1 0 0 7 4 3 3 6 $10m+ 5 1 5 4 3 3 2 2 0 2 8 3 7 4 5 TOTAL 37 18 30 29 32 5 4 4 0 3 42 22 34 29 35 % < $1m 24% 28% 23% 24% 16% 0% 0% 0% 0% 0% 21% 23% 21% 24% 14% % < $3m 51% 67% 53% 52% 41% 20% 0% 0% 0% 0% 48% 55% 47% 52% 37% % < $6m 70% 78% 77% 76% 72% 20% 25% 25% 0% 33% 64% 68% 71% 76% 69% % $6m+ 30% 22% 23% 24% 28% 80% 75% 75% 0% 67% 36% 32% 29% 24% 31% % $10m+ 14% 6% 17% 14% 9% 60% 50% 50% 0% 67% 19% 14% 21% 14% 14%

Notes: 1. Features with budgets of less than $500,000 are included in the report only if they have had a cinema release or major festival screening. Figures may therefore be revised upwards in future if releases are achieved for additional low-budget films that went into production in 2013/14. See page 25, Methodology.

8 SOURCES OF FINANCE FOR AUSTRALIAN FEATURES Contributions to the annual Australian feature slate (domestic and Foreign investors provided just over half Direct government sources accounted co-production), 2009/10–2013/14 of this year’s total finance for features, for 8 per cent of total finance for the slate, contributing $184 million (51 per cent) providing $30 million to 25 features, a decline Contribution % of total No. films to 17 titles. Foreign investment can vary from last year’s $35 million for 23 films. $m finance invested in significantly from one year to the next, with The majority of funding came from Screen Direct government sources1 high-budget, principally foreign-financed titles Australia, investing $22 million in 17 of the causing large fluctuations. features that went into production during 2009/10 51.0 17% 26 The Producer Offset, cashflowed by the year. The state agencies contributed $7 2010/11 18.3 15% 11 producers in various ways, remained steady, million to 23 features. Almost two-thirds of 2011/12 37.2 10% 25 the total state agency funding came from contributing 26 per cent of finance to the 2012/13 35.2 12% 23 features slate. Most of the Offset cashflow Film Victoria and Screen NSW. The Melbourne 2013/14 29.7 8% 25 in 2013/14 came from the industry itself, International Film Festival contributed to with the larger production companies tending three titles and the Australian Children’s 5-yr av 34.3 12% 22 to find the funds from their own resources, Television Foundation funded one title. Australian private investors2 followed by private sources and bank loans. 2009/10 33.9 11% 29 Other cashflow sources included specific 2010/11 19.6 16% 17 industry funds, the Australian Government’s Export Finance and Insurance Corporation 2011/12 10.5 3% 17 (EFIC) as well as state agencies (see 2012/13 6.3 2% 17 ‘Snapshot 2013/14’ below). 2013/14 15.5 4% 20 The Australian film/TV industry (mainly 5-yr av 17.1 6% 20 distribution companies) contributed $35 million to 31 Australian features. Producer Offset 2009/10 86.7 29% 30 Snapshot 2013/14 2010/11 32.8 26% 17 Finance sources 2011/12 106.0 28% 31 51% Foreign $184M Offset cashflow sources 2012/13 88.7 29% n.p.

60% Distributors, broadcasters 2013/14 93.5 26% n.p. & production companies 5-yr av 81.5 28% 28

3 10% Industry $35M Australian film/TV industry 2009/10 61.3 20% 28 26% Offset $94M 20% Private/bank loans 2010/11 9.7 8% 11 4% Private $16M 18% Specific industry funds 2011/12 26.9 7% 28 8% Government $30M 2% Government 2012/13 79.5 26% 25 2013/14 35.4 10% 31 5-yr av 42.5 15% 25 Foreign investors Notes: Figures may not total exactly due to rounding. n.p. Not for publication due to confidentiality reasons. 2009/10 67.9 23% 18 1. Includes direct funding from Australian state and 2010/11 44.9 36% 9 federal agencies and funding bodies (see page 9). Equity investments only – distribution guarantees, 2011/12 191.4 51% 16 loans and underwriting are not included. 2012/13 91.3 30% 16 2. Private investment sources including the final titles accessing 10BA and 10B tax incentives. 2013/14 184.5 51% 17 3. Finance provided by Australian-based producers and production companies, distribution companies, 5-yr av 116.0 40% 15 free-to-air broadcasters (commercial and public) and subscription TV channels. The Producer Offset, cashflowed in various ways, is listed separately.

The Drama Report 2013/14 | Screen Australia 9 Australian TV drama slate

Overall, the 2013/14 Australian TV drama become more common for adult TV dramas slate comprised 595 hours of programs (49 to be made as co-productions in recent years. titles), accounting for expenditure in Australia At least one was produced in each of the last All indicators for the total of $343 million. The results were down on three years, compared to three in total in the 2013/14 TV drama slate were last year’s high, which was elevated due previous 10 years, when the co-production to increased investment by the ABC and structure was predominantly used by above the five-year averages. record levels of mini-series production. All children’s TV programs. indicators, however, remained above the There were 37 Offset titles, accounting for five-year averages. 71 per cent of expenditure and 40 per cent of The adult drama slate was down marginally hours. Not all TV drama projects are eligible across all measures on 2012/13, while to apply for the Offset. Only the first 65 hours children’s drama activity also decreased of a title (across all seasons) are eligible, following last year’s recovery. and the QAPE per hour must reach minimum There were only two co-productions in this thresholds in order to qualify. year’s TV drama slate, down from six last year – one each for adults and children. It has

All Australian TV drama programs

Offset TV drama1 Non-offset TV drama1 Total Total Total Total budgets budgets budgets No. titles Hours2 $m Spend $m No. titles Hours2 $m Spend $m No. titles Hours2 $m Spend $m Programs for adults 2009/10 22 205 192 191 5 244 47 47 27 448 239 238 2010/11 28 230 218 218 4 259 58 58 32 489 277 276 2011/12 35 213 221 203 3 257 61 61 38 470 282 264 2012/13 36 257 259 250 4 245 55 55 40 502 314 305 2013/14 33 200 234 223 5 265 68 68 38 464 301 290 5-yr av 31 221 225 217 4 254 58 58 35 475 283 275 Programs for children 2009/10 5 59 49 41 5 60 28 13 10 118 77 54 2010/11 6 65 52 49 3 29 13 12 9 94 65 61 2011/12 4 47 41 23 3 33 12 6 7 79 53 30 2012/13 9 88 63 48 8 71 31 21 17 159 94 69 2013/14 4 40 33 21 7 91 53 31 11 131 86 53 5-yr av 6 60 48 37 5 57 27 17 11 116 75 53 Total TV drama slate3 2009/10 27 263 240 232 10 303 75 60 37 566 316 292 2010/11 34 295 270 267 7 288 72 70 41 583 341 337 2011/12 39 260 262 226 6 290 73 67 45 549 335 293 2012/13 45 345 322 298 12 316 85 76 57 661 407 374 2013/14 37 240 267 244 12 356 121 99 49 595 388 343 5-yr av 36 281 272 254 9 310 85 74 46 591 357 328

Notes: Figures may not total exactly due to rounding. n.p. Not for publication due to confidentiality reasons. 1. See page 4 for definitions. 2. 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). 3. The annual slate is defined as productions that started principal photography during the year.

10 All Australian TV drama programs (by domestic/co-production)

Domestic1 Co-production1 Total Total Total Total No. budgets Spend No. budgets Spend No. Budgets Spend titles Hours2 $m $m titles Hours2 $m $m Titles Hours2 $m $m Programs for adults 2009/10 27 448 239 238 0 0 0 0 27 448 239 238 2010/11 32 489 277 276 0 0 0 0 32 489 277 276 2011/12 37 465 273 n.p. 1 5 9 n.p. 38 470 282 264 2012/13 38 490 301 300 2 12 12 5 40 502 314 305 2013/14 37 457 284 283 1 7 17 8 38 464 301 290 5-yr av 34 470 275 272 1 5 8 3 35 475 283 275 Programs for children 2009/10 8 99 56 41 2 20 21 13 10 118 77 54 2010/11 8 81 59 57 1 13 6 3 9 94 65 61 2011/12 6 60 36 24 1 20 17 5 7 79 53 30 2012/13 13 117 71 60 4 43 23 9 17 159 94 69 2013/14 10 118 77 49 1 13 9 3 11 131 86 53 5-yr av 9 95 60 46 2 22 15 7 11 116 75 53 Total TV drama slate3 2009/10 35 547 295 279 2 20 21 13 37 566 316 292 2010/11 40 570 336 334 1 13 6 3 41 583 341 337 2011/12 43 525 309 n.p. 2 25 26 n.p. 45 549 335 293 2012/13 51 606 372 360 6 55 35 14 57 661 407 374 2013/14 47 575 361 332 2 20 27 11 49 595 388 343 5-yr av 43 565 335 318 3 26 23 10 46 591 357 328

Hours produced Spend ($m)

Series/serials Mini-series Telemovies Children’s programs Series/serials Mini-series Telemovies Children’s programs 448 238 2009/10 2009/10 118 54

489 276 2010/11 2010/11 94 61

470 264 2011/12 2011/12 79 30

502 305 2012/13 2012/13 159 69

464 290 2013/14 2013/14 131 53

0 100 200 300 400 500 600 0 100 200 300 400 Hours $m

The Drama Report 2013/14 | Screen Australia 11 PROGRAMS FOR ADULTS The adult TV drama slate comprised year, including ANZAC Girls (ABC), Gallipoli series titles in this year’s slate, including new 38 titles (464 hours) with budgets totalling (Nine) and Deadline Gallipoli (Foxtel). Other titles 8MMM Aboriginal Radio, Black Comedy, $301 million and expenditure in Australia highlights included the political thriller The Soul Mates, This is Littleton and Utopia. This of $290 million. All indicators were down Code (ABC) and returning seasons of The year also saw returning seasons of It’s a Date, marginally from last year, while total budgets Time of Our Lives, The Doctor Blake Mysteries The Moodys (sequel to A Moody Christmas), and expenditure remained above the (both ABC), Love Child (Nine) and A Place to Please Like Me and Upper Middle Bogan. The five-year averages. Call Home (Seven). ABC also made a series specifically for its Multi-part programs (mini-series, series and Series/serials activity recovered somewhat catch-up service, iview: Wastelander Panda: serials) typically account for the majority of this year. Hours were up by 5 per cent after The Chronicle of Isaac and Rose. TV drama hours and expenditure in Australia. hitting a 23-year low last year, and total Telemovie production levels were similar to Production of mini-series generally entails budgets and spend increased by 10 and 11 per last year, with the same number of titles and ‘quality’ programs with up to 13 one-hour cent respectively. This category encompasses hours produced, and slight increases in total episodes. All measures for this format long-form programs (more than 13 hours total budgets and expenditure. This year’s slate decreased, following last year’s result, which duration), as well as multi-part programs included The Killing Field (Seven), the first was the highest ever recorded. However, total with episodes shorter than one commercial in-house telemovie produced since 2007/08. budgets and expenditure remained above the broadcast hour. As with the previous year, The title has been commissioned as a mini- five-year averages. Three of the mini-series most titles in 2013/14 were half-hour formats series and is expected to go into production titles in this year’s slate featured stories from with a total duration of less than six hours. in 2014/15. World War I, in honour of the centenary next Only four of the 18 titles had total running The Seven and Ten networks continued to times of 22 hours or more. The ABC produced account for the lion’s share of hours produced, 12 of the 18 drama and scripted comedy principally due to their flagship serials, Home and Away (Seven) and Neighbours (Ten). Australian TV drama (by format) Drama production for the ABC has been significantly higher since 2011/12, due to an Total Total spend Av. cost/hr increase to the broadcaster’s available finance No. Hours1 budgets ($m) ($m) for drama as part of its 2009–12 triennial ($m) funding agreement. This year production for Series/serials (in-house productions in brackets) the ABC fell from last year’s high-water mark, 2009/10 13 (4) 340 132 132 0.390 but continued to account for the largest share of total budgets of any single broadcaster. The 2010/11 13 (3) 348 126 126 0.362 Seven Network made the highest financial 2011/12 12 (3) 313 100 100 0.318 contribution from a single broadcaster, with 2012/13 13 (2) 308 106 105 0.344 series including Home and Away, Winners & Losers, A Place to Call Home, Kinne (all in- 2013/14 18 (3) 325 117 116 0.359 house) and telemovies, Catching Milat parts 1 5-yr av 14 (3) 327 116 116 0.355 and 2 and The Killing Field. Mini-series (in-house productions in brackets) Subscription television had a strong year with 2009/10 10 102 95 95 0.931 Deadline Gallipoli, two seasons of Wentworth and the Australia/UK co-production, Banished. 2010/11 13 132 138 138 1.046 2011/12 16 139 150 132 1.080 2012/13 22 (2) 186 194 187 1.043 2013/14 15 (1) 132 169 158 1.281 5-yr av 15 (1) 138 149 142 1.080 Telemovies (in-house productions in brackets) 2009/10 4 7 11 11 1.680 2010/11 6 9 13 13 1.450 2011/12 10 18 33 33 1.794 2012/13 5 8 14 14 1.805 Notes: Figures may not total exactly due to rounding. 1. Commercial broadcast hours rather than actual 2013/14 5 (1) 8 16 16 2.037 running time. Individual program duration has been rounded to 15, 30 or 60 minutes as appropriate 5-yr av 6 (<1) 10 17 17 1.755 (including commercial breaks).

12 PROGRAMS FOR CHILDREN Children’s TV drama dropped The 2013/14 Australian children’s drama networks ensure a balance over time. Within slate comprised 131 hours of programs with the 260 hours of C programming, commercial back after last year’s recovery, total budgets of $86 million and Australian television licensees must broadcast at least expenditure of $53 million. All indicators 25 hours of first-release Australian children’s in line with the cyclical nature declined after last year’s recovery, however drama programs each year, and at least 96 of children’s production. total hours and budgets remained above the hours over a three-year period. In 2013/14, five-year averages, while the total number children’s programs made for the Nine of titles produced and expenditure were the Network accounted for the largest share of same. Domestic production activity recorded both hours and budgets, after three years slight increases in total hours and budgets, of little or no activity. Seven produced 26 Tashi while expenditure decreased somewhat. Nine hours (two titles), down from 33 hours (three of this year’s 10 domestic titles involved spend titles) last year, but in line with its activity in on offshore production, which was higher than the previous three years. The Ten Network previous years (between one and seven titles). produced 13 hours (one title) this year, the All but two of the 10 titles were animated. lowest since 2003/04. There was only one co-production title this Children’s TV drama for the ABC was year, Pirate Express (with Canada), compared lower this year following last year’s record to four last year and an average of two per production levels. The national broadcaster year over the last five years. The decline in is attached to a number of children’s titles co-production activity this year has earmarked for production during 2014/15, contributed to the overall drop in the including Little Lunch, the co-production children’s TV drama slate. Winston Steinburger & Sir Dudley Ding Dong Children’s TV drama production is cyclical and returning seasons of Guess How Much I and tends to fluctuate from year to year, as Love You, The New Adventures of Figaro Pho the broadcasting compliance regulations and Nowhere Boys. for the commercial free-to-air television

Children’s TV drama (by domestic/co-production)

Total budgets Total spend Av. cost/hr No. Hours1 ($m) ($m) ($m) Domestic 2009/10 8 99 56 41 0.569 2010/11 8 81 59 57 0.724 2011/12 6 60 36 24 0.599 2012/13 13 117 71 60 0.606 2013/14 10 118 77 49 0.654 5-yr av 9 95 60 46 0.629 Co-production 2009/10 2 20 21 13 1.068 2010/11 1 13 6 3 0.452 2011/12 1 20 17 5 0.865 2012/13 4 43 23 9 0.543 2013/14 1 13 9 3 0.719 5-yr av 2 22 15 7 0.707 Total 2009/10 10 118 77 54 0.651 2010/11 9 94 65 61 0.687 2011/12 7 79 53 30 0.665 Notes: Figures may not total exactly due to rounding. 2012/13 17 159 94 69 0.589 1. Commercial broadcast hours rather than actual running time. Individual program duration has been 2013/14 11 131 86 53 0.660 rounded to 15, 30 or 60 minutes as appropriate (including commercial breaks). 5-yr av 11 116 75 53 0.644

The Drama Report 2013/14 | Screen Australia 13 SOURCES OF FINANCE FOR Contributions to the annual Australian TV drama slate (domestic and AUSTRALIAN TV DRAMA co-production), 2009/10–2013/14 The Australian film/TV industry provided Contribution % of total No. programs the majority of finance for this year’s $m finance invested in Australian TV drama slate (63 per cent), Direct government sources1 contributing $244 million to 47 titles. The largest proportion (and the largest from any 2009/10 28.3 9% 21 sector) came from the commercial free- 2010/11 43.9 13% 30 to-air networks. The ABC provided finance 2011/12 30.9 9% 33 to produce 20 titles. SBS, subscription TV, 2012/13 37.9 9% 33 distributors and production companies 2013/14 27.9 7% 31 provided the rest of the finance. 5-yr av 33.8 9% 30 The Producer Offset, cashflowed by 2 producers in various ways, contributed 11 per Australian private investors cent of finance to the overall slate, adding $44 2009/10 0.3 <1% 2 million to 37 titles. The industry itself was 2010/11 0.1 <1% 1 the dominant source of Offset cashflow, with 2011/12 0.2 <1% 1 the larger production companies tending to 2012/13 0.2 <1% 3 find the funds from their own resources (see ‘Snapshot 2013/14’ below). 2013/14 0.1 <1% 3 The PDV Offset was utilised this year (rather 5-yr av 0.2 <1% 2 than the Producer Offset) by seven Australian Producer Offset titles. It contributed $7 million to these titles 2009/10 43.1 14% 27 – all children’s animations. Notes: Figures may 2010/11 46.5 14% 34 not total exactly due to Direct government sources contributed 2011/12 40.3 12% 39 rounding. $28 million to 31 programs in the 2013/14 2012/13 51.7 13% 45 1. Includes direct TV drama slate, accounting for 7 per cent of funding from total finance. This was down on last year’s 2013/14 43.8 11% 37 Australian state and federal agencies $38 million, and below the five-year average. 5-yr av 45.1 13% 36 and funding bodies Screen Australia was the principal source of PDV offset (see page 25). government finance, with $18 million invested Equity investments 2013/14 6.5 2% 7 only – distribution in 18 titles, a decrease from $27 million for guarantees, loans and Australian film/TV industry3 20 titles last year. This was partly due to the underwriting are not timing of principal photography start dates, 2009/10 197.3 63% 37 included. 2. Private investment and partly due to projects concentrated 2010/11 217.2 63% 40 sources including the in the lower budget ranges requiring less 2011/12 212.4 63% 43 final titles accessing funding from the agency. The state agencies 10BA and 10B tax 2012/13 270.8 66% 57 incentives. contributed $10 million to 30 titles. The 3. Finance provided by majority (61 per cent) came from Film Victoria 2013/14 244.2 63% 47 Australian-based and Screen NSW. 5-yr av 228.4 64% 45 producers and production companies, Foreign investors provided $65 million to 27 Foreign investment distribution companies, free- 2009/10 46.6 15% 12 titles, up on last year and the highest financial to-air broadcasters contribution since 2007/08. Much of the 2010/11 34.5 10% 19 (commercial increase can be attributed to a small number and public) and 2011/12 50.8 15% 17 of titles in this year’s slate with substantial subscription TV 2012/13 46.8 11% 28 channels. The amounts of foreign investment. Producer Offset, 2013/14 65.4 17% 27 cashflowed in various Private investors contributed around ways, is listed 5-yr av 48.8 14% 21 $136,000 to three TV dramas in 2013/14. separately. Snapshot 2013/14 Finance sources 17% Foreign $65M Offset cashflow sources

64% Broadcasters, distributors & production companies 63% Industry $244M

2% PDV Offset $7M 22% Private/bank loans <1% Private <$1M 7% Specific industry funds 11% Offset $44M 6% Government 7% Government $28M 1% Unknown 14 Foreign production

FEATURES and increased its ability to leverage the 30 per cent PDV Offset to attract foreign work. Nine foreign features started shooting in Unbroken and San Andreas Australia in 2013/14 including Unbroken and Based on survey data, nine projects in this San Andreas (both US), The Moon and the year’s slate would have met expenditure (both US) boosted foreign Sun (US/China) as well as The Inbetweeners thresholds for the PDV Offset, and three 2 (UK), allocating expenditure of $159 would have met the Location Offset threshold. shoot expenditure in 2013/14. million locally. This amount is up 59 per cent With the recent announcement that Pirates on 2012/13 and almost double the five- of the Caribbean: Dead Men Tell No Tales will year average. film in Australia, foreign feature expenditure is TV DRAMA Fifteen foreign features commenced PDV off to a good start for 2014/15. Foreign TV drama activity accounted for a work in Australia in 2013/14 without shooting total of $1 million in Australian expenditure in here, accounting for $37 million in local Foreign features 2013/14, down significantly from $21 million expenditure. This was up significantly on Total Spend in 2012/13 and the 5-year average of $17 $10 million in 2012/13 (a year that felt the No.1 budgets in Aust million. Two foreign titles started shooting impact of the high Australian dollar and the ($m)2 ($m) in Australia in 2013/14: the Singaporean TV absence of any large-scale international drama Sudden, and an episode of the popular 2009/10 5 (+6) 250 169 (+10) animated features commencing PDV) and is US comedy Modern Family. No TV drama titles a particularly strong result given that many 2010/11 2 (+13) 8 1 (+76) commenced PDV work in Australia this year. companies were also undertaking PDV work 2011/12 3 (+17) 23 3 (+87) on foreign features shooting in Australia. 2012/13 This year’s titles included Avengers: Age of 6 (+8) 155 100 (+10) Foreign TV drama Ultron; The SpongeBob Movie: Sponge Out of 2013/14 9 (+15) 278 159 (+37) Total Spend in Water; Storks; The Monk; Words and Pictures; 5-yr av 5 (+12) 143 87 (+44) budgets Aust. Alexander and the Terrible, Horrible, No Good, No.1 ($m)2 ($m) Very Bad Day; A Million Ways to Die in the West Notes: 2009/10 2 (+0) 15 1 (+0) and X-Men: Days of Future Past. See page 4 for definition of ‘foreign’. 2010/11 3 The gradual fall in the Australian dollar to 1. Figures preceded by ‘+’ are for foreign productions 2 (+1) 68 54 undertaking only PDV work in Australia. 2011/12 below US$0.90 helped the sector to stabilise 2. Total budgets include only foreign titles shot in 5 (+0) 13 8 (+0) after two years of change and consolidation, Australia – total budgets for foreign PDV-only titles 2012/13 2 (+0) 22 21 (+0) are not available. 2013/14 2 (+0) 8 1 (+0) 5-yr av 3 (+<1) 25 17 (n.p.)

Notes: n.p. Not for publication due to confidentiality reasons. 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. 3. Figures combined for confidentiality reasons.

The Drama Report 2013/14 | Screen Australia 15 Drama production by location

EXPENDITURE BY STATE NSW recorded the largest proportion of contributed 31 per cent of total production drama production activity in 2013/14 expenditure, with foreign feature The Moon (42 per cent), with high levels of both local and the Sun, which undertook both shoot and and foreign production, including for feature post in the state, along with strong TV drama filmsThe Blinky Bill Movie, Gods of Egypt and activity including new titles Fat Tony & Co Unbroken and returning seasons of TV dramas and Gallipoli , as well as returning seasons A Place to Call Home, Home and Away, Love of House Husbands, Neighbours, Offspring, Child and Wonderland. Victorian activity Wentworth and Winners & Losers.

Feature film and TV drama production activity ($m) by location of expenditure

NSW QLD VIC SA WA Tas/NT/ACT $m 2009/10 197 224 277 22 ( 251 ) 2010/11 257 140 136 20 ( 81 ) 2011/12 373 66 223 17 15 1 2012/13 430 23 226 50 22 4 2013/14 351 129 261 73 14 9 % 2009/10 26% 30% 37% 3% ( 3%1 ) 2010/11 46% 25% 24% 3% ( 1%1 ) 2011/12 54% 10% 32% 2% 2% <1% 2012/13 57% 3% 30% 7% 3% 1% 2013/14 42% 15% 31% 9% 2% 1%

Notes: 1. Figures combined for confidentiality reasons.

500 NSW QLD VIC SA WA/Tas/NT/ACT

450

400 Foreign 350 Australian

300 ($m)

250 Spend 200

150

100

0 2011/12 2011/12 2011/12 2011/12 2011/12 2010/11 2010/11 2010/11 2010/11 2010/11 2012/13 2012/13 2012/13 2012/13 2012/13 2013/14 2013/14 2013/14 2013/14 2013/14 2009/10 2009/10 2009/10 2009/10 2009/10

16 Queensland’s share tends to fluctuate and is Total budgets for feature film and TV drama production ($m) by location of contingent on significant foreign production Australian production company activity. In 2013/14, its share rose after hitting a low last year. The recovery can be primarily attributed to foreign features, San NSW QLD VIC SA WA Tas/NT/ACT Andreas and Unbroken. $m Production in South Australia continued to 1 increase and recorded its highest share ever, 2009/10 409 18 131 23 ( 35 ) at 9 per cent. This boost was mainly related 2010/11 306 67 90 ( 41 ) 0 to domestic TV dramas ANZAC Girls, Deadline 2011/12 558 46 98 ( 51 ) 0 Gallipoli, in addition to domestic and foreign 1 features undertaking either shoot and/or post 2012/13 572 20 94 4 ( 19 ) in the state, including local title The 2013/14 607 17 97 11 ( 151 ) Water Diviner. % Expenditure in Western Australia was 2009/10 66% 3% 21% 4% ( 6%1 ) $14 million, down from $22 million last year. Two foreign films,Kung Fu Style and 2010/11 65% 14% 19% ( 1%1 ) 0% Perfect Friends, undertook both shoot and 2011/12 79% 6% 14% ( 1%1 ) 0% post elements in the state. Domestic feature 2012/13 81% 3% 13% 1% ( 3%1 ) productions Kill Me Three Times and Paper Planes were both shot in Western Australia. 2013/14 81% 2% 13% 1% ( 2%1 ) Although the share for other states remained steady, the actual spend increased with Notes: strong domestic TV drama activity including 1. Figures combined for confidentiality reasons. 8MMM Aboriginal Radio (NT), Buzz Bumble (Tas) and The Code (ACT), as well as domestic features Last Cab to Darwin (NT) and Me and My Mates v The Zombie Apocalypse (ACT). Paper Planes 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 highest proportion of production in 2013/14 (81 per cent), followed by Victoria at 13 per cent.

The Drama Report 2013/14 | Screen Australia 17 Titles in the 2013/14 slate

AUSTRALIAN FEATURES Domestic1 According to Ben Adams Noah’s Art Movies Robyn Kershaw Productions Pty Ltd, All About E Girls’ Own Pictures Jason Byrne Productions Pty Ltd, Sucker Backtrack See Pictures Pty Limited Three Card Monte Pty Ltd, Rice and Noodles Pty Ltd The Blinky Bill Movie Greenpatch Productions The System Aryavision Films Bucks Party Rayon Productions Terminus Storm Vision Entertainment Pty Ltd Slaughter FX Pty Ltd, CHARLIE’S FARM Wadda SLFX Pty Ltd Touch Triptych Pictures Pty Ltd Crushed Brim Pictures Turkey Shoot Thatcher Productions Pty Ltd Matchbox Pictures Pty Ltd, UNTITLED Jim Loach Southern Light Alliance Pty Ltd, Cut Snake project Retro Active Films Pty Ltd Met Film Drive Hard Silver Wings Films Pty Ltd The Water Diviner Hopscotch Features Pty Ltd Intertropic Films Pty Limited, Embedded Indefatigable Pictures William Kelly's War Fragile Films, Stolen Productions P/L, Fat Pizza v Housos The Stolen Films, Antichocko Productions Pty Ltd Fell Felix Media Pty Ltd Co-productions Illumination Films Pty Ltd, Elixir (Australia/Germany) Elixir Films Pty Ltd Force of Destiny Paul’s Next Feature Pty Ltd Elixir Films GmbH Mystery Clock Cinema Pty Ltd, Life (Australia/Germany/ See Saw (Life) Productions Pty Ltd Canada) Gods of Egypt Thunder Road Pictures, Summit Entertainment Group Maya the Bee Movie Buzz Studios Pty Limited (Australia/Germany) Hens Night Rayon Productions Infini Infini Movie Pty Ltd FOREIGN FEATURES

Kill Me Three Times KM3T Productions Pty Ltd The Dying of the Light (US) Over Under Media Last Cab To Darwin Last Cab Productions The Inbetweeners 2 (UK) Bwark Productions Ltd The Little Death Ticket To Ride Pty Ltd Kingsman: The Secret Marv Films Macbeth Wyrd Sisters Pty Ltd Service (UK) Me and My Mates vs The Kung Fu Style (China) Vue Group, Sanguineti Media Pty Ltd Zombie Apocalypse Shanghai Hippo Animation Design The Menkoff Method White Hot Productions Inc. Ltd Now Add Honey Gristmill Pty Ltd Maha Maha (India) Sakthi Screens Oddball Productions, The Moon & the Sun (US/ Cosmos Filmed Entertainment, Oddball China) WTFN Entertainment Pty Ltd Lightstream Pictures Pty Ltd, Maodi Group One Less God New Realm Films Pty Limited Perfect Friends (China) Vue Group, Arenamedia Pty Ltd, Paper Planes Shanghai Hippo Animation Design Paper Plane Production Pty Ltd Inc. Ltd Partisan Warp Films Australia Pty Ltd San Andreas (US) Flynn Picture Company Rise Vision Films Pty Ltd Unbroken (US) Universal Pictures, StalkHer OZPIX Entertainment Walden Media, Strangerland Dragonfly Pictures Pty Ltd 3 Arts Entertainment

1. Includes all Australian features that started principal photography in 2013/14. Features with budgets of less than $500,000 are included in the report only if they have had a cinema release or major festival screening, see page 25, Methodology.

18 AUSTRALIAN TV DRAMA Domestic PDV-only Series/serials Alexander and the Terrible, Walt Disney Pictures, 8MMM Aboriginal Radio Brindle Films Pty Ltd, Horrible, No Good, Very Bad 21 Laps Entertainment, Princess Pictures Pty Ltd Day (US) The Jim Henson Company Black Comedy Scarlett Pictures Pty Limited Avengers: Age of Ultron (US) Marvel Studios Danger 5 series 2 Dinosaur Pty Ltd, Captain America: The Winter Marvel Studios Hedone Productions Pty Ltd Soldier (US) Home and Away series 27 Seven Network Operations Limited The Hunger Games: Mockingjay Color Force, It's a Date series 2 Princess Pictures Pty Ltd – Part 1 (US) Lionsgate Kinne Seven Network Operations Limited Jeziorak (Poland) Label Documentary and Feature The Lost Tools of Henry Hoke JDR Screen Film (WFDiF) Maximum Choppage Matchbox Pictures Pty Ltd A Million Ways to Die in the Blue Grass Films, The Moodys Jungleboys FTV Pty Limited West (US) Fuzzy Door Productions, Neighbours series 31 Fremantle Media International Media Rights Capital, Distribution RGB Media Please Like Me series 2 Pigeon Fancier Productions, The Monk (China) Columbia Pictures, John & Josh International Beijing TV Station New Classics Media Soul Mates Van Vuuren Bros Pty Ltd, Ludo Studio Pty Ltd, The SpongeBob Movie: Sponge Disruption Entertainment, Soul Mates TV Pty Ltd, Out of Water (US) Nickelodeon Animation Studio, Soul HQ Pty Ltd Nickelodeon Movies, Paramount Animation, Upper Middle Bogan series 2 Gristmill Pty Ltd Paramount Pictures, Utopia Working Dog Pty Ltd Reel FX Creative Studios Wastelander Panda – Madman Production Company The Chronicle of Isaac and Pty Ltd, Storks (US) Warner Bros Pictures, Rose Epic Films Warner Animation Group Winners & Losers series 4 Seven Network Operations Limited Words and Pictures (US) Latitude Productions, Lascaux Films Wonderland series 2 FremantleMedia Australia X-Men: Days of Future Past Twentieth Century Fox Film Mini-series (US) Corporation, ANZAC Girls Screentime Pty Ltd Marvel Entertainment, The Code Playmaker Media Pty Ltd TSG Entertainment, Bad Hat Harry Productions, Deadline Gallipoli Matchbox Pictures Pty Ltd, Donner’s Company Full Clip Productions LLC * The remaining four titles were confidential at the time of publication. The Doctor Blake Mysteries December Media Pty Ltd series 2 Fat Tony & Co. Screentime Pty Ltd Gallipoli Endemol Australia Pty Ltd House Husbands series 3 Playmaker Media Pty Ltd Love Child series 2 Playmaker Media Pty Ltd Offspring series 5 Endemol Australia Pty Ltd Party Tricks Endemol Australia Pty Ltd A Place to Call Home series 2 Seven Network Operations Limited Time of Our Lives series 2 Jahm Pictures

The Drama Report 2013/14 | Screen Australia 19 Wentworth series 2 FremantleMedia Australia In Your Dreams series 2 Endemol Australia Pty Ltd Wentworth series 3 FremantleMedia Australia Mako Mermaids series 2 Jonathan M Shiff Productions Pty Ltd Telemovies Monster Beach Bogan Entertainment Solutions Catching Milat part 1 Shine (Aust) Pty Ltd Prisoner Zero Prisoner Zero Productions Pty Ltd Catching Milat part 2 Shine (Aust) Pty Ltd Tashi Flying Bark Productions The Killing Field Seven Network Operations Limited Co-productions Parer's War Pericles Films Pty Ltd Adult Schapelle FremantleMedia Australia Banished (Australia/UK) RSJ Films Children’s See-Saw Films Pty Ltd The Adventures of Bubble Bubble Bath Bay Pty Ltd Bath Bay Children’s Buzz Bumble Blue Rocket Productions Pty Ltd, Pirate Express (Australia/ Sticky Pictures Pty Ltd, Canada) Criya Innfotainment, Atomic Cartoons Inc Creating Buzz P/L FOREIGN TV DRAMA Captain Flinn and the Pirate SLR Productions, th Dinosaurs Telegael, Modern Family (US) 20 Century Fox Television USA, Top Draw Animation Steven Levitan Productions, Exchange Student Zero Fragrant Gumtree Entertainment Picador Productions Pty Ltd Sudden (Singapore) MediaCorp Channel 8 Heidi Heidi Productions Pty Limited, Studio 100 Animation SAS

The Little Death

20 PDV services – for features and TV drama production

This section incorporates data from a separate survey of companies providing post, digital and visual effects (PDV) services.

ALL PDV The data focuses on income to companies in companies shown here for 2013/14 came from the PDV sector and is presented according to expenditure not only on projects which began in when income was earned. It is therefore not 2013/14 (the ‘2013/14 slate’ referred to in the comparable with the data in the main body of main body of the report) but also on projects the report. For example, the income to PDV continuing production from previous years.

Income from Australian PDV work on features and TV drama ($m), 2009/10–2013/14

Australian Foreign Total

Co- Total Shot in PDV only in Domestic production Australian Australia Australia Features 2009/10 134 15 149 2 16 166 2010/11 94 2 95 <1 40 135 2011/12 43 2 45 0 59 104 2012/13 67 2 69 6 60 134 2013/14 62 1 62 5 40 106 5-yr av 80 4 84 3 43 129 TV drama 2009/10 41 5 46 0 <1 46 2010/11 40 1 41 0 1 42 2011/12 31 1 32 <1 0 32 2012/13 37 4 41 1 0 41 2013/14 48 1 49 <1 0 50 5-yr av 39 2 42 <1 <1 42 TOTAL 2009/10 175 20 195 2 16 212 2010/11 134 2 136 <1 41 177 2011/12 75 2 77 <1 59 136 2012/13 104 6 110 7 60 176 2013/14 109 2 111 5 40 156 5-yr av 119 7 126 3 43 172 % share 70% 4% 73% 2% 25% 100%

Note: Figures may not total exactly due to rounding.

Income from PDV work on Australian and However, services to Australian productions foreign drama titles totalled $156 million in continued to account for the majority of PDV 2013/14, down 11 per cent on last year’s result work, with titles generating income during the and well below the five-year average of $172 year, including Mad Max: Fury Road, Gods of million. A fall in income earned from PDV-only Egypt and The Water Diviner. foreign features in 2013/14 is predominantly responsible for the drop.

The Drama Report 2013/14 | Screen Australia 21 ANZAC Girls

INCOME BY STATE Queensland (3 per cent; $5 million) and the remaining states and territories (1 per cent; A substantial proportion of PDV work in $2 million). Australia was undertaken in NSW, which accounted for 66 per cent ($113 million PDV projects undertaken in South Australia annually) of spending on PDV in the five years since 2009/10 include the features X-Men: from 2009/10 to 2013/14. During this time, Days of Future Past, The Seventh Son, NSW companies provided PDV services for Gravity, The Incredible Burt Wonderstone, local and international features such as The Prometheus and The Wolverine. Titles Sapphires, The Great Gatsby, The Avengers, undertaking PDV in Victoria in the last five Iron Man 3, The Hunger Games: Catching Fire, years included Kath & Kimderella, Emperor, The Lego Movie and Storks. Ted, After Earth, The SpongeBob Movie: Sponge Out of Water and The Moon and The balance of PDV work over the period the Sun. Queensland projects included was spread between Victoria at 22 per cent TV dramas Oakie’s Outback Adventures, (average $38 million) of the total, followed Lightning Point and Secrets & Lies. by South Australia (8 per cent; $14 million),

Income from Australian PDV work on features and TV drama by state ($m), 2009/10–2013/14

WA, ACT, NSW VIC QLD SA NT, Tas Total $m 2009/10 158 25 8 20 1 212 2010/11 106 46 3 20 2 177 2011/12 87 33 2 14 <1 136 2012/13 125 34 5 8 3 176 2013/14 87 52 4 9 3 156 5-yr av 113 38 5 14 2 172 % share 66% 22% 3% 8% 1% 100%

Note: Figures may not total exactly due to rounding. 22 FOCUS ON FOREIGN PDV-ONLY Foreign PDV-only activity income, 2006/07–2013/14 INCOME Total income ($m) % of total As previously mentioned in the Foreign Production section, the gradual fall in the Australian dollar to below US$0.90 helped CG character animation 100 42% the sector to stabilise after two years of CG effects/effects animation 70 29% change and consolidation, and increased its Compositing 24 10% ability to leverage the 30 per cent PDV Offset Previsualisation, motion capture/control, matte to attract foreign work. paint/CG set, title design, match moving, CG 25 11% Following the acquisition of Fuel VFX in modelling 2012/13, Animal Logic made changes to Sound post 7 3% its company structure, resulting in three Editing (on/offline) 6 3% separate divisions: Animal Logic Animation 0ther (film lab, telecine, duplication, supervision) 6 3% (for projects such as The Lego Movie), Animal Logic VFX (for PDV service work on projects Total 239 100% such as Avengers: Age of Ultron) and Animal Logic Entertainment (for the development Note: Figures may not total exactly due to rounding. of animated, hybrid and effects-driven films, such as the partnership with Simon Cowell’s Foreign PDV-only activity income by year

Syco Entertainment on a Betty Boo film). <1 <1 1 <1 100% 5 3 2 3 4 3 Animal Logic Entertainment also has an 3 10 <1 3 12 4 8 5 office in Los Angeles. Soundfirm expanded <1 1 11 5 into picture post-production and Rising Sun 11 16 4 <1 20 14 12 Pictures undertook PDV work on high-end 80% 8 1 1 domestic television drama. 11 19 17 12 17 Despite a fall from 2012/13, income from 18 foreign titles undertaking PDV without 17 21 43 60% shooting here remained fairly strong in 2013/14 at $40 million. Although down more 24 27 than 30 per cent on the last two years (which included a substantial amount from PDV 40% 29 46 work on Walking With Dinosaurs and The Lego 64 60 Movie) and just below the five-year average 50 24 of $43 million (see table on previous page), 35 42 this is a solid result, as many companies were 20% involved in PDV work on foreign features 23 shooting in Australia such as Unbroken 14 11 and The Moon and the Sun, and large-scale 3 3 Australian features such as Mad Max: Fury 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 Road. The number of titles undertaking PDV service work in 2013/14 was up by 47 per cent Australian companies included visual effects, 0ther (film lab, telecine, duplication, on 2012/13 to 22, with eight titles continuing sound mixing, foley and automated dialogue supervision) work into 2014/15. replacement (ADR), as well as traditional Editing (on/offline) In 2013/14, Australian PDV companies post-production activities such as editing. had the opportunity to work on big-budget Visual effects made up more than 90 per cent Sound post productions such as X-Men: Days of Future of the value of PDV income earned on PDV- Previsualisation, motion capture/control, Past; Avengers: Age of Ultron; Captain only foreign features and TV drama over the matte paint/CG set, title design, match America: The Winter Soldier; The Hunger last eight years. The remaining 10 per cent moving, CG modelling was made up of digital and non-digital post Games: Mockingjay – Part 1; The SpongeBob Compositing Movie: Sponge Out of Water; A Million Ways production, including sound post-production CG effects/effects animation to Die in the West; Storks; The Monk; and and other digital post-production such a Alexander and the Terrible, Horrible, No Good, scanning and digital colour grading. CG character animation Very Bad Day, as well as complete production on projects continuing from previous years, including The Lego Movie, Walking With Dinosaurs and Ai. The wide range of PDV-only work on recent foreign features and TV dramas carried out by

The Drama Report 2013/14 | Screen Australia 23 FOREIGN PDV-ONLY TITLES BY Foreign PDV-only titles by region, 2006/07–2013/14 REGION No. of titles % of titles % of income US productions represent the largest proportion of international PDV work undertaken by Australian businesses on feature film and TV drama projects, Asia 19 19% 29% accounting for more than 50 per cent of titles Europe + US/Asia 3 3% < 1% and 65 per cent of income over the last eight UK 5 5% 1% years. PDV services to Asian productions have also been strong at 19 per cent of titles US 60 59% 65% and 29 per cent of income, driven in part by US/Other 6 6% 1% Australian companies with offices in Asia US/UK 8 8% 3% (Soundfirm) and by titles with large post budgets such as The Monk (China). Total 101 100% 100%

Note: Figures may not total exactly due to rounding.

100% Asia 19 UK 29 Europe + US/Asia 80% 5 3 1 US/Other 6 <1 3 US/UK 1 8 US 60%

ABOUT THE PDV DATA 40% Companies identified by Screen Australia as 65 providing PDV services for features and TV 59 drama were surveyed, and this data was used to supplement the main report data. PDV 20% is defined as a set of activities rather than a stage in the production process (see ‘Key terms’ on page 4). % of titles % of income To provide a sense of the ongoing business by region by region activity of PDV companies in a given financial year (rather than according to an annual slate of productions or titles), income has been assigned to the year it was earned rather than allocated to the start of the shoot or PDV work in Australia. As a result, the figures in this section may include projects that commenced shooting or PDV work in previous financial years and cannot be compared with figures in the main body of the report, which are based on principal photography or PDV start date. Note that this data relates to the production of features and TV drama only and so does not cover all PDV activity in Australia. The most recent data from the Australian Bureau of Statistics indicates that Australian companies received income of $349.7 million in 2011/12 from the provision of PDV services across all audiovisual production, with 46 per cent accounted for by feature films and TV drama. Other areas of PDV activity include commercials and other TV productions.

24 Upper Middle Bogan Methodology

Compiled by Screen Australia’s Producer Offset territory film agencies (listed above), government & Co-production Unit, using data collected in sources may include direct finance from other the administration of the Producer Offset, and government agencies and departments, including the incorporating production data gathered by the Australian Children’s Television Foundation and the Strategy & Research Unit through contact with Adelaide and Melbourne Film Festival Funds. production companies and from publicly available sources. PDV data is gathered through surveying Funding figures from government agencies may not PDV companies. correlate with the figures in this report because this report includes projects according to the start date of The following federal and state government funding principal photography rather than contract dates. agencies provide data on titles they have funded and, in the case of state agencies, titles shot and/or post- Contributions to TV drama by broadcasters in this produced in their state: Screen Australia (including report do not correlate with expenditure reported the former Film Finance Corporation Australia and by the Australian Communications and Media the Australian Film Commission), Screen NSW, Film Authority (ACMA) in the Broadcasting Financial Victoria, South Australian Film Corporation, Screen Results (BFR). This report analyses finance sources Queensland, ScreenWest, Screen Tasmania and in place at the start of production while the BFR Screen Territory. reports expenditure by the commercial free-to-air broadcasters on screened programs during the In some cases, estimates have been made where year, and includes amortisation costs for programs data was not available. purchased in previous years and programs purchased after completion. For subscription television, ACMA Foreign projects are included in the report when a reports annual expenditure by drama channels on substantial amount is shot in Australia or when PDV ‘eligible Australian drama’, including licence fees, work is undertaken in Australia. For other projects production expenses and limited pre-production where only one or two episodes of a foreign series are costs. Expenditure on features may be apportioned shot in Australia, or where the spend is less than 10 across financial years. For both free-to-air and per cent of the total budget, only the budgets for the subscription television, the ACMA figures can include episodes shot in Australia are included in the total. expenditure on New Zealand programs, following the ‘Australian content’ definition. Features with budgets under $500,000 are only included if they have had a cinema release or Sketch comedy programs are included in line with screening at a festival. ACMA’s definition of TV drama under the Australian Content Standard. Spending in Australia may include some expenditure on foreign production elements – for example, In categorising titles as either mini-series or series, fees for non-Australian actors or other individuals Screen Australia has followed the definitions set while working in Australia. Likewise, spending in a out in Division 10BA of the Income Tax Assessment particular state may include fees for elements from Act 1936. outside the state such as foreign or interstate cast or crew. Series of, or related, telemovies are counted as individual titles. When analysing sources of finance, the ABC and SBS are categorised as film and TV industry, rather Data is updated on an ongoing basis, with the result than as government sources. This reflects industry that some discrepancies with previously published perception of the public broadcasters as part of reports may appear. The discrepancies reflect new the broadcast sector rather than government information or adjustments to methodology. film agencies. In addition to the federal, state and

The Drama Report 2013/14 | Screen Australia 25 www.screenaustralia.gov.au