Common Ground Opportunities for Australian screen partnerships in Asia © Screen Australia 2013 CONTENTS ISBN: 978-1-920998-26-4 INTRODUCTION 1 The text in this report is released subject to KEY FINDINGS 2 a Creative Commons BY licence (Licence). This means, in summary, that you may MAPPING CURRENT ACTIVITY 3 reproduce, transmit and distribute the text, provided that you do not do so for Attitudes and experiences 4 commercial purposes, and provided Success factors 5 that you attribute the text as extracted from Common Ground: Opportunities for Opportunities 6 Australian screen partnerships in Asia, Screen Australia, 2013. You must not alter, Challenges 8 transform or build upon the text in this publication. Your rights under the Licence WHERE TO NOW? 10 are in addition to any fair dealing rights Recommendations 11 which you have under the Copyright Act 1968 (Cwlth). TERRITORY PROFILES 12 For further terms of the Licence, please see http://creativecommons.org/licenses/ Mainland China 13 by-nc-nd/3.0/. You are not licensed to Republic of Korea 16 distribute any still photographs or videos contained in this document without the Malaysia 18 prior permission of Screen Australia. Singapore 20 Front cover image: Serangoon Road Indonesia, India, Japan, Thailand 22 APPENDIX – Current engagement and support mechanisms 26 METHODOLOGY 28 ABBREVIATIONS & ACRONYMS IBC NOTES IBC Introduction Australia is in the process of discovering new ways to work with neighbouring countries across Asia. Our evolving economic and cultural engagement with the region has seen an expansion of opportunities for collaboration across different sectors, and the Australian screen production industry is already beginning to take advantage of this. Screen industries in Asia are expanding However, it is also important that screen due to the growing maturity of the sector producers have access to knowledge about and a desire to open up their markets. territory- and sector-specific opportunities, The Dragon Pearl PricewaterhouseCoopers predicts that and advice on how to best form and maintain the filmed entertainment market in the regional networks and partnerships. Asia-Pacific will expand at a 2.6 per cent To this end, Screen Australia has undertaken compound annual rate from $21.6 billion research to better understand how Australian 1 in 2012 to $24.6 billion in 2017. A growing screen businesses have been working in middle class is creating new audiences and the Asian marketplace and identify areas of leading to increasing popularity of platforms further collaboration. The resultant report such as cable television as well as high draws together insights from producers, uptake of social media. broadcasters, financiers and screen agencies This report highlights the benefits that can from across Australia and the Asian region. flow from a genuinely collaborative approach The research focuses on eight territories: to our relationships with Asian partners and China, Republic of Korea (South Korea), markets. Australia has some key advantages Malaysia, Singapore, Thailand, Indonesia, on this front: we are liked and trusted, our India and Japan. These territories skills are valued, we are seen as having were chosen as they have had existing affinity with the region and we create stories relationships with Australian screen with international appeal. industries over the past five years that Australia already has some important we can learn from, such as production common ground with Asian territories. The partnerships, location shooting and content movement of people, ideas and cultural sales.2 products across national boundaries is a Best estimates indicate that the value of defining characteristic of today’s world, and audiovisual (and related services) exports there is considerable potential to capitalise to the focus countries has been around on shared experiences stemming from $50 million per year over the last three years, historical events and the migration of people which represents around a quarter to a third to and from Australia. New patterns in of Australia’s total audiovisual exports for immigration are bringing new relationships, those years. That’s not too bad considering especially with Asia. Cultural and business that English-speaking territories are likely to exchange is now ubiquitous in contemporary be the strongest market for our content, but societies and economies. Screen content is there’s certainly room for improvement. an important element of this exchange, and Common Ground describes recent activity, Australia already has a screen presence new developments and the factors for in the region through co-productions, success evident to date, as well as outlining partnerships and sales, as well as through some key challenges and areas of greatest broadcast platforms such as the Australia potential for expanding on this base. It Network. also contains a set of recommendations The push to strengthen relationships for government agencies and the broader between Australian and Asian region industry, including advice for producers businesses is supported by the Australian seeking to work in the region. Government through a range of measures. Common Ground – Opportunities for Australian screen partnerships in Asia 2013 | Screen Australia 1 Key findings Common Ground explores Australia’s current engagement with the screen production sector across the Asian region – our similarities, our points of difference, what is working well and what we can do to improve our business relationships. The following major findings emerged from the research: y Several territories are undergoing rapid expansion and development of their screen industries, so the opportunities for collaboration with Australia are likely to change significantly over the next five years. Now is the time for the Australian screen industries to strengthen ties, formalise co-production arrangements and develop our knowledge of working together in order to foster and maintain mutually beneficial relationships into the future. y Government has an important role in facilitating an environment of trust and fostering relationships. y Successful collaborations with Asian partners require significant investment from both sides and producers need to commit considerable time and money. y Australian screen producers are generally perceived within the screen industries across Asia as professional, likeable and trustworthy with a level of affinity with the region. y Co-creating stories for both markets from the early development stages or concentrating on content that is universal (such as science, technology and shared history) is key to success in Asian markets. y China, South Korea, Malaysia and Singapore currently offer significant opportunity to Australian screen businesses, with India, Indonesia, Japan and Thailand holding great potential for the future. An overwhelming theme that emerged was the importance of Kakadu genuine collaboration: this will underpin all success. Productive business relationships require a basis in mutual respect, the exchange of ideas and practices, and a genuine engagement with difference. 2 Mapping current activity The past five years have seen the expansion of the To attempt a co-production in Asia, global marketplace. Some Australian screen production you need to be well capitalised. We companies have capitalised on this trend by focusing calculate you need around $300–500k increasingly on Asian markets and establishing mutually to properly develop, finance and bring beneficial working relationships. a co-production to close. This research seeks to tap into the experience of these Since it’s expensive and time- companies, their partners and other key stakeholders consuming to put together a co- across the region to provide insights into the current production, emotion and cost really environment as well future opportunities and how to make drive you to want it to work. However, the most of them. at the pointy end of the process pressure may be put on you to The analysis is based on: compromise your deal. y interviews with 31 Australian producers, agencies and Irrespective of the emotion or cost, organisations with experience working with the focus you have to always be pragmatic and territories be able to walk away in your longer- y interviews with 27 producers, agencies and organisations term best interests. in the focus territories Mario Andreacchio, AMPCO Films, y a survey of 51 Australian production companies that have Australia had projects involving the focus territories in the past five years. Percentage of Australian producer survey respondents who had done business with each territory 0–20% 21–40% 41–60% 61–80% Sth Korea 17% China 63% Japan 29% India 34% Thailand 20% Singapore 49% Malaysia 24% Indonesia 27% Source: Australian producer survey: N=51 Common Ground – Opportunities for Australian screen partnerships in Asia 2013 | Screen Australia 3 Attitudes and experiences I like Australians and The study explored the perceived strengths ATTRIBUTES OF THE AUSTRALIAN I trust them. of the Australian industry in engaging with SCREEN PRODUCTION INDUSTRY Asia and why stakeholders across the focus Harry Cu, SAMG Animation, countries have chosen to work with or would Creative and technical skills Korea consider working with Australian partners. The Australian screen industry has capacity The following factors were consistently cited: for quality storytelling, design and other I tell them you don’t need to go creative aspects of screen production. ATTRIBUTES OF AUSTRALIA