Professional Documents
Culture Documents
PREPARED FOR
BY
20 September 2005
TABLE OF CONTENTS
2. PROJECT ACTIVITIES......................................................................................... 8
2.1 Project Aims........................................................................................................... 8
2.2 Project Activities ................................................................................................ 9
Factors that will influence the level of export earnings for the
sector in the next 5 years include:
Trends Affecting In the last 2 years, the main trends that have affected the
the TVC Production TVC production sector in Brisbane and South East
Sector Queensland included the following:
Opportunities and The TVC sector plays a vital role as a training ground for
Priorities to long form skills as well as being an important income source
Support Growth for production and post production companies, suppliers and
freelance staff.
• Estimate the value of the TVC industry supply chain in Brisbane and
South East Queensland covering location shoots, studio shoots, post
production, services and flow on effects.
Organisation Base
Six in ten of the companies surveyed in the TVC sector (65.0%) have their
base in Queensland.
The length of time companies in the TVC production sector had been
operating covered:
30
30
25
20
15 15
10
10
0
5
14
19
29
9
e
or
an
to
to
to
to
m
th
10
15
20
or
ss
30
Le
Results show that the majority of companies in the industry (65.0%) had been
operating for 10 or more years. Companies in the industry are generally well
established and have a wealth of experience and capabilities in TVC
production.
• 238 part time, casual or contract employees. One major company can
employ up to 300 additional casual employees.
3.4 Value of the TVC Production Industry in Brisbane and South East
Queensland
Company Turnover
While there are a small number of very large companies in the sector, the
majority of companies are small to medium sized businesses. The industry
has a number of experienced directors, production managers and producers
that participate in or form crews as required for TVC productions.
Growth in Turnover
Value of Shoots
There were an estimated 249 TVC shoots in Brisbane and South East
Queensland in 2004/05. Between 80% and 90% of these shoots were
undertaken by production companies and freelancers and 10% to 20% were
undertaken directly by advertising agencies.
Chart 3.5.1 gives a profile of key information on the value of the TVC
production sector.
Chart 3.5.1
Value of TVC Production in 2004/05
$million
150 144.3
120
90
75.6
68.7
60 49.8
30
18.9
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The estimate of $49.8 million for the value of shoots in 2004/05 is a high
estimate.
Information on the value of shoot days varies from $80,000 to $100,000 per
day on average. If a day value of $100,000 is used on average, this is
equivalent to $44.6 million as the overall estimate for 446 shoot days in
2004/05.
As some TVC production activity may not have been identified in the survey,
the high estimate has been used for TVC production value in this report. This
estimate has been confirmed with key industry stakeholders and is regarded
as a reliable estimate of the value of production work undertaken in South
East Queensland in 2004/05.
The value estimate for shoots covers all production activities including:
• Staff costs.
• Location costs.
• Catering.
Post Production
The value of post production in South East Queensland including local shoots,
interstate and international client post production is estimated to be $18.9
million in 2004/05.
Total Value
This gives a total value of $144.3 million to the South East Queensland
economy from TVC production in 2004/05.
The flow on benefits has been estimated using value added multipliers
produced by the Office of the Government Statistician (Queensland Regional
Input-Output Tables, 1996-97).
• Morningside TAFE.
• Mt Nebo.
• Mt Coot-tha.
• Moreton Bay.
• Stradbroke Island.
• Coochiemudlo Island.
• Tangalooma.
• Beewah forest.
• Toowoomba.
Format Used
While it was difficult for many participants to provide accurate data on the mix
of film, video, digital and animated, most production companies reported using
35mm film. Companies also used 16mm, video, digital and some animation.
The following table summarises the percentage of sales for these different
production activities.
ACTIVITY AVERAGE
PERCENTAGE OF
SALES (%)
TVC Production
• Catering 4.8
Other Activities
• Reality TV 1.0
Results also show that companies involved in the TVC production sector
provide a range of other services covering:
• Television production.
• Outside broadcasts.
Security.
Police.
Traffic control.
Nurses.
Wardrobe.
Travel, rental cars and local tradesmen - $15,000 per day of shooting.
Chart 4.2.1
Number of Firms By Percentage of Turnover from TVC
Production, 2004/05
Number of firms
10
8
8
4
4
3
2 2
2
0
%
0%
25
50
75
90
10
to
to
to
to
to
0%
%
26
51
76
91
• Asia:
- Korea (3).
- China.
- Philippines.
- India.
- Indonesia.
- Hong Kong.
- Singapore.
• Americas
- USA (7).
• Europe
- UK (4).
- Spain.
- Italy.
- Russia.
• The Pacific
- Fiji.
Costs
Convenient Access
• The fact that Brisbane is in the same time zone as many east Asian
countries is a major advantage. This allows Brisbane companies to
communicate effectively with international customers.
Welcoming Environment
Marketing
• The ability to retain and further develop crew expertise and capabilities
in Brisbane and South East Queensland.
• In the future, more production work will be done in New Zealand based
on cost advantages. Some companies have reported a loss of work to
New Zealand as a market.
Growth
Work from New Zealand clients has increased, especially in the winter
months.
Less Demand
Work has gone to New Zealand and South Africa because of the
currency and production cost advantages these countries offer.
Capacity Building
Price Pressures
People are expecting the same quality sets, but want to ‘screw you on
the price’.
Change of Focus
TVC’s take second priority when the company is also working on long
form drama production.
There is demand for low budget cameras or very high budget cameras
such as super 16. The rest use HDV or very low quality broadcast
cameras. The demand for middle range equipment seems to have
disappeared.
Growth
Less Demand
Fifteen years ago companies would produce three ads in a series that
would run for a year and then produce another three the next year. Now
companies produce one ad that runs for 2 – 3 years. TVC production
companies should try to get into the global market to secure growth in
market share.
Queensland locations are desirable and can deliver long sunny days.
Companies should respond by increasing promotion of Brisbane and
South East Queensland as a destination for TVC production.
People involved in the industry know about the benefits but potential
international customers need to have access to this information (2).
Price Pressures
The gap between large budget and low budget jobs will widen.
Companies need to ensure they have the right equipment and perhaps
offer super 16 at more attractive rates.
Threats
The main supply chain links in TVC production include the following:
Consumables
Supply of film and tape stock, CDs, DVDs – Sony, Fuji and Kodak.
Equipment
Generators.
Computer suppliers.
Traffic controllers.
Set Materials
Travel – travel companies, Show Travel, Screen & Stage, Qantas and
Virgin Blue.
Catering
Food – Bidvest.
Seafood – Cardinals.
6.2 Brisbane and South East Queensland’s Main Capabilities for TVC
Production
Good Conditions
Longer shoot days – companies are able to shoot for 10 hours a day
rather than 8 hours a day in Sydney and Melbourne (3).
Welcoming Environment
Brisbane City Council makes it easy to shoot in Brisbane and South East
Queensland (3).
Cost Advantages
These advantages deliver a competitive, high quality, easy to use option for
TVC production. The growth in the sector in recent years has developed a
very competitive industry in Queensland. Clients are able to access the quality
of production and service they would expect in other major locations for TVC
production. South East Queensland delivers an enjoyable experience for
clients and also delivers cost savings through lower wages and the 10 hour
shoot day which is possible in South East Queensland.
Cost Advantages
Climate
South East Queensland has very good weather conditions and a diverse
range of locations. Crews can undertake a 10 hour day in South East
Queensland as opposed to an 8 hour day in southern locations such as
Sydney (7 companies).
The weather is warmer which means people are happier. Crews can
shoot 80% of the year – a much higher proportion of the time than in
other locations.
Brisbane and South East Queensland offer a wide range of five star
accommodation and restaurants.
It is much easier to get a large unit such as a film crew onto a location in
South East Queensland because of the cooperation from police, fire
services and State Government. There is an excellent level of
cooperation.
There is a greater level of support from the local community and councils
for filming in South East Queensland – there is a very helpful and
welcoming environment.
There is less Government red tape. However, some felt that it was
getting harder. It is important that Government support is maintained for
TVC production.
Police and fire services need to be thanked for the very effective job they
do in supporting TVC production in South East Queensland.
There are a lot of talented people in the labour pool in Brisbane and
South East Queensland.
Locations
There are diverse locations within a small radius, e.g. beach, forest, city,
country (8 companies).
South East Queensland can offer very high quality post production
facilities.
Marketing
• Brisbane and South East Queensland ‘is the best kept secret’ on TVC
production. It is important to make the market aware of the advantages
through promotion as well as word of mouth recommendation. The
TVC production sector is closely networked. Using the network and
recommending Brisbane and South East Queensland will have some
major benefits.
Cost Advantage
• Promoting the fact that Brisbane and South East Queensland can
deliver a 10.0% or higher cost advantage by shooting in this location
based on the 10 hour shoot day and other more competitive costs.
While some customers recognise this advantage, others need to be
informed of this advantage.
Locations
Government Support
• Brisbane and South East Queensland need to reduce the red tape
associated with TVC production activities.
Facilities
• Some suggested opening existing film and television studios for TVC
production. If studios are not being used for film projects, they could
be made available at a reduced rate e.g. reduce the cost by half to
attract TVC production crews to use these facilities. At present there is
some reluctance to make studios available at a lower cost – this may
create a negative precedent and reduce revenues for studios.
• The lack of dedicated studio facilities for TVC production in South East
Queensland. Existing film studios are too expensive for TVC
productions. Although there is support for a new studio, there are
concerns that the new venture would not be financially viable. The
studio would need to secure television work as well as TVC production
work to be viable. There is no proponent interested in taking this
project forward.
• The need for stronger Brisbane City Council support for the sector.
This includes a full time film and TVC liaison officer. It also covers
greater support for using local companies and crews for Brisbane City
Council advertising production (Council procurement).
COST COMPETITIVENESS
Australia is losing a lot of work to South Some believe there is limited value in
Africa because of the value of the promoting capabilities international if the
Australian dollar. The currency Australian dollar does not improve relative
difference results in cheaper production to other currencies. Decisions are very
costs in South Africa. The South African much made on cost factors for
Government is also very supportive in international customers.
attracting TVC production to South Africa.
Film incentives to attract TVC production.
LOCATION ISSUES
There has been poor weather in South It is important to provide access to city
East Queensland this year and this has locations and encourage a supportive
affected production. environment for TVC production.
Parking restrictions in the city can make Streamline permits issuing to meet market
TVC productions more difficult. requirements.
FACILITIES
There is no studio for TVC production in Some suggested establishing a studio that
the Brisbane metropolitan area. There are will address TVC production requirements.
smaller studios, but no commercial studio
space that directly services Brisbane. Some believe there is demand for a
studio. However, businesses are used to
Some companies have used the RNA paying $1,500 a day ‘for a shed’ and
showgrounds for shoots. However, these would not be prepared to pay a substantial
facilities are not sound proof and not increase. The venture would not work if
available for certain times of the year. companies were charged $4,000 per day.
There is not enough studio space in Brisbane City Council and RNA could
Brisbane. Representations have been collaborate to establish a very attractive
made to the RNA about developing a studio facility. The location of the RNA is
studio at the John Reid Pavillion. central and there are buildings close by for
city scenes. There is also easy access to
Some were concerned that it would not be the train line and streets in Gregory
worthwhile to build a studio – the return on Terrace can be closed off for shoots.
investment would not be achieved. Any
new studio would need to serve TVC as Establishing a studio would bring in
well as drama requirements to be considerable revenue. A TVC studio could
financially viable. also be a tourist attraction. This venture
could be structured as a PPP.
Warner Roadshow Studios is not suitable
due to the high cost of accessing these This would offer employment and the
facilities. opportunity for film, media and animation
graduates from Griffith and QUT to
Sydney’s Fox Studio is not always undertake work experience.
available for TVC productions.
Although there is a demand for this facility,
it is important to develop a low cost
solution. A new facility which charges
unsustainable fees will not be supported
by industry.
MARKETING
Some felt that PFTC needs to be more A more proactive approach to working with
active in supporting TVC productions. the TVC sector in developing and
implementing a long term marketing
Some were concerned that there was a strategy.
more bureaucratic focus at State
Government rather than working
collaboratively with industry.
Brisbane City’s recent campaign shoot for There is a need to support the local
Brisbane Marketing involved a local industry wherever possible in all areas of
advertising agency, but the decision was Government procurement.
used to select an interstate production
company and import a New Zealand
director and photographer. Although this
was facilitated through a local company, it
sent a very negative message to the TVC
production industry in Brisbane.
Brisbane City Council needs to appoint a There is a need for additional staff support
full time staff member for film liaison for film and TVC liaison at Brisbane City
activities. Council. Gold Coast City has 3 staff
undertaking this role.
Some companies were concerned that There is a need for a full time staff
Council may discontinue the film liaison member who is also available on call, 24
position. Companies stressed the need hours a day to assist with both TVC and
to have access to a person in Council to long form film requirements.
facilitate permits and other assistance.
Until Council permits are organised,
companies cannot proceed with
production activities.
STAFFING
Remaining Competitive
• Making sure that the advantages that South East Queensland and
Brisbane currently offer are maintained. It is important to support the
TVC production sector and appreciate the flexibility that already exists
in the industry. It is important to have respect for the advantages that
have already been established.
• Rising costs will have an impact. The cost of film supply will increase.
• If the Australian dollar becomes too strong, a lot of work will go back to
Los Angeles – this will have a negative impact on Brisbane and South
East Queensland.
• Keeping the cost of jobs down. There are young people entering the
industry and bidding for work at significantly lower costs (e.g. $12,000
compared to $40,000 to $60,000). These new players have few
overheads and are trying to win work. This is driving down costs and
making it difficult for other companies with greater overheads to remain
sustainable.
Advertising Trends
Marketing
Technology Changes
Government Support
Facilities/Infrastructure
Marketing
Government Support
• Reducing red tape and providing better access to locations will attract
business.
Facilities/Infrastructure
Government Support
• Employ a full time film liaison officer with experience in the industry at
Brisbane City Council (2 companies).
Capacity Building
7.4 Main Priorities for the TVC Industry in Brisbane and South East
Queensland
The main priorities for developing the TVC production sector in South East
Queensland included the following:
Marketing
Government Assistance
• A full time film liaison person in Brisbane City Council would ensure
that it is a quick and easy process to obtain permits. This will also offer
more flexibility and support for the sector.
Facilities/Infrastructure
Draft No. 1
6 July 2005
INTRODUCTION
Results from this survey will provide an understanding of the value of the TVC production sector and
help to support priorities for growth for this sector. Although this is a significant sector of activity, little
is known about the actual value of activities. By participating in this survey, your feedback will help to
build this information and help to gain support for the TVC industry’s growth and development in
South East Queensland.
The survey will take about 10 to 15 minutes. Would you have time to participate now?
Name: ___________________________________________________________________________
Position: _________________________________________________________________________
Organisation: _____________________________________________________________________
1. ORGANISATION INFORMATION
Queensland based 1
An Australian company with an office in Queensland 2
An international company with an office in Queensland 3
Private company 1
Public company 2
Sole trader 3
Partnership 4
______ years
1
2. ORGANISATION CAPABILITIES AND MARKETS
2.1 What are the main TVC production activities undertaken by your organisation? What
percentage of total sales do these main TVC production activities represent?
Product/Service Percentage of
total sales
2.2 Overall, what percentage of your turnover in 2004/05 covered TVC production activities?
______ %
2.4 (If working with international clients) Which region does your organisation currently export
TVC services to? (Record countries)
Asia 1 ______________________________________________________
Africa 2 ______________________________________________________
Americas 3 ______________________________________________________
Europe 4 ______________________________________________________
2
2.5 What trends and opportunities will influence your level of exporting TVC services in the next 5
years?
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
3.1 Have there been any significant changes in demand for TVC production services in the last 2
years?
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
3.2 (a) Looking outwards in the next 3 years, what are some of the trends, changes or
opportunities which you see influencing demand for TVC production services?
____________________________________ ___________________________________
____________________________________ ___________________________________
____________________________________ ___________________________________
____________________________________ ___________________________________
____________________________________ ___________________________________
____________________________________ ___________________________________
4.1 (a) In 2004/05, what were the number and types of TVC productions your company
undertook?
(b) What was the total number of TVC shoot days in Brisbane and South East Queensland
covering location shoot days, studio shoot days?
(c) What was the average value of shoot days covering wages, consumables and equipment
usage cost?
3
TVC Productions Number of Format Spend
2004/05 Shoot Days
Film Video Digital Animated Value of Shoot Location Costs Catering Costs Post Production Other Costs Total Spend
16/35 Days Covering
Wages,
Consumables
and Equipment
Usage
1. Location only
… … … … … … … … ..
2. Studio only
… … … … … … … … ..
3. Combination
…………………….
4
4.2 What was the location for shoots and post production?
4.3 Were there any other additional services used or flow on economic benefits from TVC
production in 2004/05?
Service/Flow On Value
___________________________________________ ____________________________
___________________________________________ ____________________________
___________________________________________ ____________________________
4.4 What types of companies are the main supply chain linkages in TVC production – the types
of services and companies you use?
____________________________________ ___________________________________
____________________________________ ___________________________________
____________________________________ ___________________________________
4.5 What are the main capabilities within Brisbane and South East Queensland for TVC
production?
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
5
4.6 (a) What are the main competitive advantages or strengths that Brisbane and South East
Queensland offer compared with other destinations for TVC production activities?
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
4.7 (a) Are there any capability, technology gaps or weaknesses in the TVC production sector in
Brisbane and South East Queensland?
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
4.8 What are the main challenges facing the TVC production sector in Brisbane and South East
Queensland in the next 3 years?
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
4.9 (a) What are the main opportunities to increase TVC production activity in Brisbane and
South East Queensland?
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
6
4.10 What are the main priorities for the development of the TVC production sector in South East
Queensland?
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
5.1 Finally, I would like to ask a few questions about employment and sales. This information will
be kept confidential and only aggregated information will be used in the study.
How many employees did your organisation employ in 2004/05 financial year?
5.2 Which of these turnover categories applied to your organisation for the 2004/05 financial
year?
5.3 How do you expect your employment levels will change over the next 3 years?
5.4 How will your business turnover grow over the next 3 years?
7
5.5 Could I confirm the correct contact details for your organisation to be provided in a contact list
to Brisbane City Council? This contact list will cover your contact details and the main TVC
production activities for your organisation.
No 2
Yes 1
Name: ____________________________________________________________________
Title: _____________________________________________________________________
Organisation: _______________________________________________________________
Deborah Wilson Consulting Services complies with the Privacy Act and no individual
information will be kept once the survey is completed. Information will only be passed on to
Brisbane City Council based on individual requests for this information to be passed on for
follow up.