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Screen Industry: 2013/14
Embargoed until 10:45am  –  08 April 2015
Commentary

Gross revenue remains constant, while exhibition continues to rise

Total revenue for the screen industry for 2014 was $3.155 billion, only a small $7 million increase from 2013. The growth in the number of businesses in the industry was also stable. Even though the overall revenue was similar to previous years, there were changes within the different formats.

Graph, Gross revenue of screen industry businesses, by sector, 2011 to 2014 financial years.

Revenue from film and video distribution increased 11 percent (to $153 million) in 2014. While film exhibition decreased 6 percent (to $161 million), the number of businesses engaged in this activity rose 22 percent (to 99 businesses).

Graph, Distribution of businesses in the screen industry, by gross revenue range, 2014 financial year.

In the screen industry, 91 percent of businesses earned less than half a million dollars in 2014. This shows the industry is made up of a few large players, and a lot of small businesses. The majority of these were involved in production and post-production, which creates content such as films and television programmes.

Graph, Gross revenue of production and post-production sector businesses, by production format, 2013 and 2014 financial years.

Revenue earned from film production fell 5 percent (to $816 million) in 2014. The number of reported completed films was constant, at 40. Film revenue accounted for almost 57 percent of total production revenue. Non-broadcast media, which includes creations such as internal training materials, had a rise in total revenue from $32 to $48 million. Businesses in this sector completed 28 percent more works than in 2013, even though 9 percent fewer businesses were involved.

Graph, Number of completed screen industry works, by production format, 2013 and 2014 financial years.

 

Please note that the following section has been changed since it was published. Please view Corrections for details.

Financing and funding received – $531 million

Funding received directly from overseas has been relatively constant over the past few years. International sources contributed 43 percent of all production funding and financing in 2014.

Of the $531 million total funding and financing for producing, 47 percent went towards television programmes, a similar proportion to previous years.

Auckland leads TV production, while Wellington leads film

Auckland and Wellington remain the screen industry hubs of New Zealand. Auckland screen revenue was $2,299 million – of which $1,403 million came from from television broadcasting. Wellington had total revenue of $711 million, most of which is generated by film production work.

In 2014, production and post-production revenue (which includes revenue from film and television) were relatively similar for Auckland and Wellington, worth $647 million, and $690 million, respectively. Wellington remains on top for the third consecutive year. While these figures are much closer than in previous years, this amount can vary quite a lot due to the project-based nature of the film industry.

Location vs revenue for production and post-production businesses, by region, 2014 financial year.

While screen businesses may be primarily based in one part of the country, they can carry out their producing activities (production or post-production) in a variety of locations. Auckland remains the most frequently used location, continuing a decade-long trend, with 76 percent of businesses carrying out producing activities there. Wellington had 38 percent of businesses carry out producing activities in the capital in 2014.

International revenue remains stable

International revenue earned from production and post-production activity was $495 million in 2014. This was similar to last year, despite the slight fall in total revenue earned in this sector.

Graph, Gross international revenue, by source country/region, 2013 and 2014 financial years.

Most international revenue continues to come from North America, since this is where most big-budget projects are financed. Revenue earned from Australia increased for the third consecutive year in 2014. Australia is now the source of 6.9 percent of international revenue for production and post-production, compared with 4.0 percent three years ago. The number of businesses receiving revenue from Australia has also increased over the three years.

Some projects are produced through partnerships. In the 2014 year New Zealand businesses worked on 79 co-productions with international partners, up from 60 in 2013. However, despite this increase in co-productions, the number of businesses having a co-production relationship with international companies fell from 33 to 15 in 2014.

Total wage earnings fall 

Many people employed in the screen industry are contractors. The most recently available employment data including contractors is for the year ending March 2013.

In the March 2013 year, total revenue earned by businesses in the screen industry was $3.148 billion, down $142 million from the March 2012 year.

Graph, Earnings from jobs in the screen industry, 2005 to 2013.

Total wages earned by people employed in the screen industry fell $49 million from 2012, to $742 million for the March 2013 year. Most of this fall occurred in the producing sector in 2012, where content such as films and television shows are created. 

The fall in revenue is also mirrored in the fall in the number of people employed in the producing sector. The number of people employed in the producing sector in the year ending March 2013 was 15,500, a 400 fall. Employment in the other screen industry sectors remained stable.

Graph, Employees in the screen industry, 2005 to 2013.  

 

Value added by New Zealand's screen industry

Value added is an indicator of the screen industry’s contribution to New Zealand’s GDP and the economic benefit to New Zealand. It is calculated as sales for the industry, minus the costs of the goods and services purchased. This is a measure of the amount of value added to a product at each stage of the production process.

Value added to end products by the New Zealand screen industry remained relatively constant from the March 2012 year to the March 2013 year, at $1.132 billion, despite a fall in gross revenue earned over this time. This represented a contribution of just over half a percent of total GDP, roughly the same as business expenditure on research and development.

See Research and Development Survey: 2014 for more information.

For more detailed data see the Excel tables in the ‘Downloads’ box.

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