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The Establishment of the Film Sector As a Catalyst for Economic Growth in South Africa: Toward a Sallywood Framework

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The Establishment of the Film Sector As a Catalyst for Economic Growth in South Africa: Toward a Sallywood Framework July 2018 THE ESTABLISHMENT OF THE FILM SECTOR AS A CATALYST FOR ECONOMIC GROWTH IN SOUTH AFRICA: TOWARD A SALLYWOOD FRAMEWORK South African Cultural Observatory The Establishment of the Film Sector as a Catalyst for Economic Growth in South Africa: Toward a Sallywood Framework July 2018 Submitted to the Department of Arts and Culture: Contents Contents ............................................................................................................................ i Tables .............................................................................................................................. v Figures ............................................................................................................................ vi Executive Summary ...................................................................................................... viii 1 Introduction ...............................................................................................................1 2 The Current State and Future Aspirations for the South African Film and TV Sector .3 2.1 Problem Statement ............................................................................................3 2.2 Proposed Solution ..............................................................................................3 2.3 Anticipated Outcome(s) ......................................................................................4 2.4 Vision | Mission | Goals ......................................................................................4 2.5 Sallywood Vision ................................................................................................5 2.6 Mission ...............................................................................................................5 2.7 Goals .................................................................................................................5 2.8 Strategic Objectives ...........................................................................................5 2.9 Approaches ........................................................................................................5 2.10 What Does Success Look Like? .........................................................................6 2.11 Institutional Considerations ................................................................................7 2.12 PESTEL Analysis ............................................................................................. 11 2.13 SA Film Industry Strengths and Challenges by Value Chain Stage .................. 13 2.13.1 Value chain stage 1: Pre-production and development ............................. 13 2.13.2 Value chain stage 2: Production and Post-production ............................... 15 2.13.3 Value Chain Stage 3: Marketing and Distribution ...................................... 17 2.14 Toward a Business Plan ................................................................................... 18 3 Extension of Film and TV Industry as a Catalyst for Economic Growth.................... 21 3.1 The Structure of the Sector .............................................................................. 22 3.2 The Audio-Visual Domain ................................................................................. 24 3.3 The Scope of Sallywood ................................................................................... 27 3.3.1 Toward a Sallywood .................................................................................. 28 3.4 Supply Side: Film and TV Production ............................................................... 30 3.4.1 Government Policy & Support ................................................................... 31 3.4.2 Digitisation and Trends in Film Production ................................................ 37 3.5 Animation and Gaming ..................................................................................... 47 3.5.1 Animation .................................................................................................. 47 3.5.2 Gaming ..................................................................................................... 49 3.5.3 Competition and Market Share .................................................................. 52 3.5.4 Industry Geographic Clustering ................................................................. 55 3.5.5 Skills Development, Human Capital and Transformation ........................... 56 3.6 Demand Side ................................................................................................... 62 3.6.1 Demand for Films in South Africa .............................................................. 62 3.6.2 South African Content Case Studies ......................................................... 66 3.6.3 International Trade in the Audio-Visual Sector .......................................... 67 3.6.4 Audience Trends Research in South Africa ............................................... 70 3.6.5 Modes of Consumption and Ticket Prices ................................................. 74 3.6.6 Stimulating Demand for South African Films ............................................. 77 4 Financial Support and Incentives to Support the Film Industry ................................ 78 4.1 The Financial Support Debate .......................................................................... 78 4.2 Common Forms of Government Support .......................................................... 79 4.3 Problems Encountered ..................................................................................... 80 4.4 Race to the Bottom .......................................................................................... 81 4.5 Current Organisations Developing the Potential of the SA Film Industry .......... 82 4.5.1 The Department of Trade and Industry ...................................................... 82 4.5.2 The National Film and Video Foundation .................................................. 82 4.5.3 The Industrial Development Corporation ................................................... 83 4.6 Film Commissions ............................................................................................ 83 4.6.1 The South African Film Commission ......................................................... 83 4.6.2 Gauteng Film Commission ........................................................................ 84 4.6.3 KwaZulu-Natal Film Commission .............................................................. 84 4.6.4 Wesgro ..................................................................................................... 84 4.7 South African Revenue Service ........................................................................ 85 4.8 Co-production Treaties ..................................................................................... 85 5 Audience Development: The Key to SA’s Film & TV Market Growth? ..................... 85 5.1 South African Audiences – a Story of Fragmentation ....................................... 86 5.2 South African Film and Television Audiences Today ........................................ 87 5.3 Best Practices in Audience Development ......................................................... 90 ii 5.3.1 Why Audience Development? ................................................................... 90 5.3.2 Best Practices: Three Case Studies .......................................................... 91 5.4 Select Audience Development Strategies for Sallywood .................................. 94 5.4.1 Domestic Audience Development ............................................................. 95 5.4.2 Accessing the Region: Reaching African Neighbours and New African Audiences ............................................................................................................. 103 5.4.3 Maintaining an International Profile ......................................................... 103 6 Overview of Case Studies: Understanding the Film Industry in Nigeria, India, Brazil, China, Kenya ................................................................................................................ 105 6.1 Box Office Comparisons ................................................................................. 106 6.2 Historical Overview of Film Industries in Selected Case Study Nations .......... 107 6.3 Number of Screens vs Films Produced .......................................................... 110 6.4 The Current State of the Film Industry in Case Study Nations ........................ 111 6.5 Financing Films .............................................................................................. 114 6.6 Regulatory Environment ................................................................................. 115 6.7 ............................................................................................................................ 117 6.8 Content and Production Process .................................................................... 117 6.9 The Impact of Global North on the Film Industries of Case Study Nations ..... 119 6.10 Distribution ..................................................................................................... 121 6.11 Take Outs for South Africa ............................................................................. 123 7 Conclusion ............................................................................................................ 126 8 References ...........................................................................................................
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