Budget- Funding
The Australian film and television industry have a critical role in representing the stories that aid to stimulate Australia’s cultural identity, and also make a significant economic benefaction to the nation (The Parliament of the Commonwealth of Australia, 2017.)
Across the past four decades Australia has constructed a stable feature production industry. The average number of Australian features produced annually has matured from 14 films per year during the 1970s, to 31 during the 2000s and 38 in the period of 2010-2018 (Screen Australia, 2019.) During the 1970s Australian feature films moderated around $26 million annually, accumulating to over $180 million during the 1980s and 1990s, and further increasing to $274 million in the 2000s (Screen Australia, 2019.) The average budget for Australian features has increased each decade since the 1970s. During the 1970s it was $1.71 million, during the 1980s increased to $6.0 million, and grew to $6.99 million in the 1990s. In the first decade of the 2000s, it increased further to $9.03 million. The average budget in the period of 2010-2018 was $8.57 million (Screen Australia 2019.)
O’Regan (1989) establishes that, during the 1990s the Australian production industry was more internationally integrated than in recent year. Essentially, even the distinct ‘Australian films’ with a low-key budget, an Australian cast, setting and crew such as Muriel’s Wedding (1994) have some international financial investment.
A majority of Australian films were funded through government agencies in the 1970s, including ‘the Australian Film Commission, NSW Film Corporation, South Australian Film Corporation and Victorian Film Corporation, with a small number fully financed by distributors (Screen Australia, 2019). In the 1980s, almost all features were funded through private and largely ‘non-industry’ finance raised under the 10BA tax incentive system. The Income Tax Assessment Act 1936 was amended to attract private investment to the Australian film industry (Screen Australia, 2019.) In the 1990s, direct funding from Government agencies again became the major source of finance, principally from the Film Finance Corporation Australia (FFC), combined with film industry funding (mainly distributors) from Australia and overseas (Screen Australia, 2019.)
The film industry is heavily regulated by the government, given that the screen industries supply a means of mass communications, usually through the use of public spectrum (The Australian Broadcasting Corporation 2017.) New players to the market do not have equal regulatory burden and are increasingly impacting the financial sustainability of the local market.
In 2008 Screen Australia, a Federal Government agency allegated with supporting Australian screen development, production and promotion. It took over the functions and appropriations of its predecessor agencies, the Australian Film Commission (AFC), the Film Finance Corporation Australia (FFC) and Film Australia Limited (Screen Australia, 2019.)
Changing Media Environment
According to the Australian Broadcasting Corporation, ‘The Australian independent production sector has demonstrated the capacity to produce compelling factual and drama narratives about the Australian experience’ (The Australian Broadcasting Corporation, 2006.) However pressure has been placed on the sector’s capacity to thrive and distribute high quality programs, due to decreased international and local financing and increased production costs (Australian Broadcasting Corporation 2006.)
This substanding issue is posing a major threat to the Australian film industry’s sustainability. This declining volume and scope of output threatens the capacity to meet cultural objectives. To reach industry sustainability requires ensuring sufficient opportunities for creative personnel to expand and increase their skills. Essentially, Australia’s core of the production industry as well as the most effective mechanism for reaching an immense and diverse audience, is television production (The Australian Broadcasting Corporation 2006.)
In the past decade the way in which Australians view screen content has changed drastically. This is due to the impact of factors outside of the industry’s control, including the growth of the internet, the approach of tablets and the decrease in the costs of electronics. The Australian media market has competition from overseas markets, in the form of English-speaking programs, in particular the United States and United Kingdom. The capability for the Australian local industry to compete with international productions is restrained by the rising production costs in Australia, and the scale of production from these companies (The Australian Broadcasting Corporation 2017.)
Another factor driving the Australian film industry down, to be the local and global appetite for higher production values, and greater competition for on and off screen talent. According to recent trends Australia is losing its writers, directors and actors due to higher overseas rates of pay, placing pressure on local productions to retain local talent, thus keep the Australian industry successful (The Australian Broadcasting Corporation 2017.)
More Australians are watching screen content across more devices, causing live TV viewings to fail. According to demographics of younger generations there is a significant shift away from broadcast television to online viewings. Australian film industry’s future growth and sustainability is heavily being impacted by significant technological changes and other substanding issues (The Australian Broadcasting Corporation 2017.)
A significant driver of industry disruption over recent years has been the arrival of international subscription video-on-demand player, Netflix, taking over a major share of the market (The Australian Broadcasting Corporation 2017.) On demand platforms such as Amazon Prime, Stan and Netflix have transformed the way Australians access their screen content. Due to this audience disruption, platforms such as cinema and television are no longer ruling. However, they remain a vital part of the industry (The Parliament of the Commonwealth of Australia 2017.)
The effect of these changes includes, fragmenting audiences, rising costs, declining revenues and diminished resources subsidise to a challenging environment for Australian producers and broadcasters. Ultimately, this impacts the number and quality of Australian stories on Australian screens, the economic returns and employment opportunities in the film sector (The Australian Broadcasting Corporation 2017.)
However, the Australian film industry can strive to build sustainability and audience growth through direct and indirect public support. This support must draw increased private sector investment to projects, this may be either domestic or overseas (The Australian Broadcasting Corporation 2006.)
Fisher (2019) illustrates in her study that, movie director Gillian Armstrong, one of Australia’s biggest exports to Hollywood tells her push to grow the local film industry and diversify the talent pool. Armstrong speaks about how Australia can convince more film creatives to stay in Australia, and invest in the local industry. Stating that Australia has the potential to capitalise on the rise of on-demand digital platforms such as Netflix, seeing opportunities to tell stories no one else can. “When we’re good, we’re amazing. And Australians get it and they want to see it and you know it is about our language and our smells, our sounds, it’s the cicadas or whatever,” Gillian Armstrong says.
Personally, I follow the Australian soap opera Neighbours. Each time an actor leaves the show, I do my research, most of the time it’s due to the actor going to Hollywood to pursue their career further. I believe many Australians feel the same way I do about this. I find it sad that Australians are loosing their quality actors to America, therefore decreasing our film industrys chances in excelling.
Referencing
Australian Broadcasting Corporation 2006, Review of Australian Government Film Funding Support, Australian Broadcasting Corporation, Canberra, viewed 18th August 2019, https://about.abc.net.au/wp-content/uploads/2012/06/ABCSubmissionFilmFundingAug2006.pdf
Australian Broadcasting Corporation 2017, Inquiry into the Australian Film and Television Industry, House of Representatives Standing Committee On Communications and the Arts, Canberra, viewed 18th August 2019 [document in downloads]
Fisher A, 2019, ‘Australia’s time in the limelight?,’ SBS, no.1, viewed 19th August 2019, <https://www.sbs.com.au/programs/article/2019/04/18/australias-time-limelight>
O’Regan, T, 2015, ‘Beyond ‘Australian film’? Australian cinema in the 1990s,’ Culture and Communication Reading Room, weblog post, 28th April, viewed 18th August 2019, https://wwwmcc.murdoch.edu.au/ReadingRoom/film/1990s.html
Screen Australia, 2019, Australian Feature Films Sources of Finance, Canberra, viewed 18th August 2019,
Screen Australia, 2019, Australian Film Production Activity, Canberra, viewed 18th August 2019,
The Parliament of the Commonwealth Australia 2017, Report on the inquiry into the Australian film and television industry, House of Representatives Standing Committee on Communications and Arts, Canberra, viewed 18th August 2019
Dejana Ristic 