|
|
|
(Last updated: 4 Dec 2008)
Trends and opportunities
The market
According to the Center for Entertainment Industry Data and Research, gross film production expenditures in the US have decreased. Industry sources attribute this decrease in spending to the increase in US runaway productions.
Runaway productions are movie and video productions that are taken overseas by US companies. This is mainly due to economic factors (rather than creative), stemming from increased costs of production in the US, quality and cheaper facilities being made available in other countries, tax incentives offered by overseas countries and exchange rate differences. Canada, the UK and Australia are the largest markets for US runaway productions (Source: IBISWorld).
According to a report published by Washington Production Team, what has recently drawn attention to US filming in Australia is the fact that US productions shot in Australia have been successful at the box office. Such blockbusters include The Matrix Trilogy, Star Wars Episodes 2 and 3, Nim's Island, Superman Returns, Charlotte's Web and Ghost Rider. Foreign film companies are attracted to Australia by a sophisticated film production infrastructure and lower costs.
Australia has a federal offset incentive, called the Australian Screen Production Incentive (ASPI), which may be available to some feature film productions. The ASPI comprises three mutually-exclusive strands, and for overseas-originated productions, offers refundable tax offset (called the Location Offset), which is worth 15 per cent of Qualifying Australian Production Expenditure (QAPE) for qualifying feature films. To qualify, productions must incur at least A$15 million of QAPE, and QAPE must represent at least of 70 per cent of total worldwide production expenditure. If a production incurs at least A$50 million in production expenditure, the 70 per cent requirement does not apply.
The ASPI also offers a Post, Digital and Visual effects (PDV) Offset, which offers a benefit of 15 per cent of qualifying Australian post-production, digital and visual effects expenditure, regardless of where principal photography was undertaken. A minimum of A$5 million of qualifying Australian post-production, digital and visual effects expenditure must be incurred to qualify.
The final strand of the ASPI is the Producer Offset, which applies to projects with Significant Australian Content (SAC) only. This offset offers a benefit of up to 40 per cent for qualifying feature films, but creative control must lie with Australian national
Opportunities
The best opportunities for Australian exporters in the film industry are to attract US film and television production companies to Australian facilities (eg. pre-production, production and post production) and locations.
The entertainment industry comprises the production of:
- first run feature movies
- television programs
- documentaries
- commercials
- infomercials
- training and education movies
- TV shows
- taped sports events and concerts which are distributed by movie and video distribution companies to theatre
- network TV
- cable TV
- video and DVD retailers and rental outlets
- Internet
|
 |
|
|
Tariffs, regulations and customs
Industry standards
An important industry body for the US film industry is The Motion Picture Association of America. The Rating Board of the Classification and Rating Administration is responsible for applying a rating to films released to the public in the USA.
In the USA, unions are very important to the entertainment industry. Most people working on films need to be members of the Screen Actors Guild Inc. or a similar trade union.
|
|
|
|
Marketing your products and services
Market entry
Australians intending to market their intellectual property in the United States should make contact with Screen Australia, which is a federal agency, one of whose goals is to ensure that Australian screen content is accessible both nationally and internationally. Austrade, or the Australian Trade Commission, is the Federal Government’s trade and investment development agency may also provide useful information.
Productions from overseas intending to undertake production or post-production in Australia should make contact with Ausfilm. Ausfilm is a federally-funded body which markets Australia’s locations and incentives to international filmmakers. It has offices in Sydney and Los Angeles.
|
|
|
|
|
Contact details
The Australian Trade Commission (Austrade) is the Australian Government’s trade and investment development agency, operating as a statutory agency within the Foreign Affairs and Trade portfolio.
Austrade assists Australian businesses contribute to national prosperity by succeeding in trade and investment, internationally, and promoting and supporting productive foreign investment into Australia.
Austrade:
- Delivers services that assist Australian businesses initiate, sustain and grow trade and outward investment.
- Promotes Australia as an inward investment destination and, with the States and Territories, supports the inflow of productive foreign direct investment.
- Administers the Export Market Development Grants scheme.
- Undertakes initiatives designed to improve community awareness of, and commitment to, international trade and investment.
- Provides advice to the Australian Government on its trade and investment development activities.
- Delivers consular, passport and other government services in designated overseas locations.
A list of Austrade offices (in alphabetical order of country) is available.
More information
For further information please contact Austrade on 13 28 78 or email info@austrade.gov.au |
|
|
|