tvc production economic impact study sept 2005[1]

ECONOMIC IMPACT OF TELEVISION COMMERCIALPRODUCTION IN BRISBANE AND SOUTH EAST

QUEENSLAND

ECONOMIC IMPACT OF TELEVISION COMMERCIAL PRODUCTION INBRISBANE AND SOUTH EAST QUEENSLAND

PREPARED FOR

BRISBANE CITY COUNCIL

BY

DEBORAH WILSON CONSULTING SERVICES

20 September 2005

TABLE OF CONTENTS

1. EXECUTIVE SUMMARY ...................................................................................... 1

2. PROJECT ACTIVITIES......................................................................................... 82.1 Project Aims........................................................................................................... 82.2 Project Activities ................................................................................................ 9

3. SIZE AND VALUE OF THE TVC PRODUCTION INDUSTRY IN BRISBANEAND SOUTH EAST QUEENSLAND ............................................................... 10

3.1 Organisation Information .................................................................................. 103.2 Length of Time Operating in the TVC Industry ................................................. 113.3 Employment in the TVC Production Industry .................................................... 123.4 Value of the TVC Production Industry in Brisbane and South East

Queensland ...................................................................................................... 133.5 Economic Value of TVC Production ................................................................. 133.6 Characteristics of Shoots .................................................................................. 15

4. TVC PRODUCTION ACTIVITIES AND KEY MARKETS ................................. 174.1 Main TVC Production Activities ........................................................................ 174.2 Turnover from TVC Production. ........................................................................ 194.3 Mix of Queensland, Interstate and International Clients ................................... 194.4 Trends Influencing Exports in the Next Five Years ........................................... 21

5. TRENDS AFFECTING OPPORTUNITIES FOR TVC PRODUCTION .............. 235.1 Significant Changes in Demand in the Last Two Years .................................... 235.2 Trends in the Next Three Years ....................................................................... 24

6. CAPABILITIES AND COMPETITIVE ADVANTAGES ..................................... 276.1 Main Supply Chain Links in TVC Production .................................................... 276.2 Brisbane and South East Queensland’s Main Capabilities for TVC

Production ........................................................................................................ 286.3 Brisbane and South East Queensland’s Main Competitive Advantages ........... 296.4 Strengthening Competitive Advantages ........................................................... 326.5 Capability Gaps and Strategies to Address these Gaps.................................... 34

7. CHALLENGES, OPPORTUNITIES AND PRIORITIES .................................... 387.1 Challenges in the Next Three Years ................................................................. 387.2 Main Opportunities for the TVC Production Industry ........................................ 407.3 Assistance Required to Support Growth ........................................................... 427.4 Main Priorities for the TVC Production Industry in Brisbane and South

East Queensland ............................................................................................. 43

APPENDIX 1 - SURVEY QUESTIONNAIRE

Economic Impact of Television Commercial Production in Brisbane and South EastQueensland 1

1. EXECUTIVE SUMMARY

1. Executive Summary covers:• Value of TVC production in Brisbane and South East

Queensland.• Mix of activity.• Companies involved in TVC production activities.• Origin of sales.• Trends affecting the TVC production sector.• Competitive advantages.• Gaps and weaknesses.• Opportunities and priorities to support growth.

Introduction This report presents the findings of a study to assess theeconomic impact of TVC production in Brisbane and SouthEast Queensland. The study identified:

• The value of TVC production in Brisbane and SouthEast Queensland in 2004/05.

• The source of TVC production work.

• The type of TVC production work.

• Recent trends and expected trends in the next 3years.

• Supply chain linkages.

• Opportunities and priorities to support growth in theTVC sector in Brisbane and South East Queensland.

Value of TVCProduction inBrisbane and SouthEast Queensland

Based on survey results and consultation with industryrepresentatives, the value of industry turnover for TVCproduction was $68.7 million in 2004/05.

When the value added multiplier for cultural and recreationalservices is applied, there is an additional $75.6 million in flowon economic benefits to other industry sectors. Whencombined, this totals $144.3 million in direct and indirectrevenue from TVC production in Brisbane and South EastQueensland in 2004/05.

Direct industry revenue in 2004/05 is made up of $49.8million in the value of shoots and $18.9 million in postproduction revenue.


Businesses surveyed expect future growth with 70.0% ofcompanies expecting growth in turnover in the next 3 yearsof an average of 33.1%. Employment growth will be lowerwith only 30.0% of companies expecting employment levelsto grow by an average of 50.0% in the next 3 years.

Mix of Activity In 2004/05, there were an estimated 249 TVC shoots inBrisbane and South East Queensland covering 446 shootdays.

Most (79.6%) were location shoots, 12.4% were studioshoots and 8.0% were combination location and studioshoots.

Shoot sites covered the CBD area, Brisbane suburbs, Bayislands and Moreton Bay, the Gold Coast, Beaudesert,Toowoomba and Sunshine Coast.

CompaniesInvolved in TVCProductionActivities

Industry representatives assisted in identifying the followingprofile of companies undertaking TVC production activities inSouth East Queensland:

• Twelve Brisbane based TVC production houses.

• Forty-one interstate production companies thatundertake TVC productions in Queensland. Twenty-eight of these companies undertook one or two TVCproductions in Queensland in 2004/05.

• Six freelance production managers.

• Six casting directors.

• Three location companies.

• Three companies supplying art department services.

• Four caterers working with TVC production companiesplus a range of food suppliers.

• Nineteen companies supplying a wide range ofproducts and services including film, cameraequipment, post production, travel services, two wayradios and traffic management services.

This gives a total of 53 companies operating in Queenslandin the TVC production industry. Nearly two thirds ofcompanies surveyed (65.0%) had been operating for 10 ormore years. There is a depth of experience and capabilitiesin the Queensland industry.


Origin of Sales Based on survey data, 55.4% of TVC production sales werefrom Queensland clients in 2004/05, 27.4% from interstateclients and 16.3% from international clients.

Three quarters of companies surveyed (75.0%) hadinternational clients. The main export markets were Asia, theUSA, Europe and the Pacific.

Factors that will influence the level of export earnings for thesector in the next 5 years include:

• The value of the Australian dollar.

• The level of marketing to international markets topromote Brisbane and South East Queensland as adestination for TVC production.

• Providing a welcoming environment for internationalclients. This includes direct flights to Brisbane andmaking it as easy as possible for international clientsto work in South East Queensland.

• Maintaining the region’s competitive advantages.

Trends Affectingthe TVC ProductionSector

In the last 2 years, the main trends that have affected theTVC production sector in Brisbane and South EastQueensland included the following:

• While some companies have experienced growth inthe last 2 years, others have experienced a downturnin demand due to decreasing advertising budgets andincreased competition from New Zealand and SouthAfrica.

• Increasing pressure on pricing and increasedcompetition within the industry.

• Growth in the capabilities of the TVC productionsector in Brisbane and South East Queensland.

• Reduced demand for mid range equipment – demandhas increased for low budget cameras and very highbudget camera. There is increased use of HDV forTVC’s.

In the next 5 years, the main trends will include:

• Increased use of digital media.

• Shrinking advertising budgets.


• Increased competitiveness and pressure on pricing.

• Competition from cinema and online advertising –affecting demand for TVC’s.

• The need to more actively market to national andinternational decision makers to secure growth in TVCproduction work for Brisbane and South EastQueensland.

• Increasing population growth in South EastQueensland which may adversely affect coststructures and access to locations. High populationdensity and heavy traffic makes Sydney a lessattractive location for TVC production.

CompetitiveAdvantages

Brisbane and South East Queensland have a number of veryimportant competitive advantages that attract TVCproduction work to the region:

• Good weather conditions and the ability to shoot for10 hours a day compared with 8 hours a day insouthern states.

• South East Queensland’s warmer weather, pleasantenvironment and access to 5 star accommodation andrestaurants makes working in the region a pleasantexperience.

• A welcoming environment and support from BrisbaneCity Council and the State Government for filmproduction. There is less red tape and bettercooperation.

• A strongly supportive environment for film andconsiderable film infrastructure.

• A wide range of varied, high quality locations within ashort distance. These locations are easy to access –there is less traffic compared with Sydney.

It is much easier to obtain street closures in Brisbaneand South East Queensland compared with southerncapitals.

• Excellent quality skills and technical services in SouthEast Queensland covering production and postproduction.


• Lower wages and costs compared with interstatelocations. Brisbane and South East Queensland canbe 10% to 30% less expensive than southern capitals.

Gaps andWeaknesses

The companies surveyed identified the following weaknessesand gaps in the TVC production sector:

• A strong Australian dollar that makes TVC productionin Australia less attractive to international clients.

• Restrictions and permit access problems that make itdifficult to undertake TVC shoots in Brisbane andSouth East Queensland.

• Infrastructure – the lack of dedicated studio facilitiesfor TVC production in South East Queensland.

• The lack of an online, searchable database oflocations available in South East Queensland for TVCshoots.

• The need for dedicated marketing of Brisbane andSouth East Queensland as a location for TVCproduction.

• The State Government has a focus on long formproduction with no support or marketing for TVCproduction.

• The need for stronger Brisbane City Council supportfor the sector. This includes a full time film and TVCliaison officer. It also covers greater support for usinglocal companies and crews for Brisbane City Counciladvertising production.

• The need for training and practical experience todevelop skills for long form and TVC production.

• Some difficulty accessing experienced crew for TVCproduction.

Opportunities andPriorities toSupport Growth

The TVC sector plays a vital role as a training ground forlong form skills as well as being an important income sourcefor production and post production companies, suppliers andfreelance staff.

A successful TVC sector in South East Queensland will havesignificant flow on benefits to long form production and willretain key capabilities in the region.


The study identified a number of strategies and priorities thatwill support growth and sustainability for the TVC productionindustry in Brisbane and South East Queensland:

• A full time position within Brisbane City Council toassist with permits and other requirements andsupport marketing initiatives.

• Establish a TVC Working Group to advise on andassist in implementing marketing and other initiativesto support industry growth at a State and LocalGovernment level.

• Development of marketing material to supportmarketing by individual companies. This includes ashow reel of TVC’s made in South East Queensland,testimonials from current interstate and internationalclients, cost comparison data (Brisbane versus otherlocations) and information on the support andassistance available.

• An ongoing program to reduce red tape andstreamline the approval process for TVC productionsacross the South East Queensland region. Thisincludes evaluating best practice approaches used inother cities with substantial TVC sectors.

• A targeted campaign aimed at creative directors,agency decision makers and marketing managersin Australia. This includes events and promotions atrelevant advertising and marketing events andconferences. It may also include sponsored visits toSouth East Queensland locations.

• Encourage a ‘repeat business’ marketing strategythat continues to attract customers back to South EastQueensland. Brisbane City Council can work withindustry on requirements for this program.

• Establish an online, searchable database of TVClocations in South East Queensland.

• Actively target international markets to attract TVCproduction to South East Queensland. Supportinternational marketing initiatives with relevantmaterial and assistance from QueenslandGovernment Trade and Investment offices in thesetarget locations.


• Infrastructure – revisiting feasibility assessments todetermine whether it is possible to establishdedicated studios in Brisbane to support TVC anddrama production.

• State and Local Governments to work with the filmindustry to raise awareness of South EastQueensland as a production destination. Supportlobbying to increase direct flights to Brisbane andmake it as easy as possible for internationalclients to bring projects to South East Queensland.

• Develop a skills and training plan for the TVCproduction sector to maintain high levels of quality andprofessionalism within the sector. Strategies that allowvocational education and training competencies to beaccredited across a range of projects and tasks willdeliver lasting benefits for the TVC and long formsectors.

• Communicate the value and importance of the TVCproduction sector to Government (Local and State)and to the wider community in South EastQueensland. It is important to secure ongoing supportfor industry activities including location use and roadclosures.


2. PROJECT ACTIVITIES

2. Project Activities covers:• Project aims.• Project activities.

2.1 Project Aims

The aims of the study on the economic impact of television commercialproduction in Brisbane and South East Queensland were to:

• Identify the source of television commercial (TVC) production inBrisbane and South East Queensland.

• Estimate the value of the TVC industry supply chain in Brisbane andSouth East Queensland covering location shoots, studio shoots, postproduction, services and flow on effects.

• Identify the type of production (location shoot, studio shoot, postproduction and combination).

• Identify locations of production activities in South East Queensland.

• Identify the format of production, e.g. film 16/35, video, digital,animated.

• Estimate levels of production covering budget, spend and number ofshoot days.

• Quantify the economic impact through economic multipliers.

• Identify the importance of the TV sector and production.

• Report on production trends.

• Report on supply chain linkages.

• Identify attitudes (and demand) towards Brisbane and South EastQueensland’s capabilities, locations, infrastructure and film andtelevision industry.

• Identify the competitive advantages and possible opportunities forgrowth of the Brisbane based film and television industry.


2.2 Project Activities

A total of 21 interviews were conducted with TVC directors, productioncompanies, production managers, producers, location companies, postproduction companies, film suppliers, equipment suppliers, set designers andbuilders, booking agents, specialist staff supply companies and caterersworking with the TVC production sector in South East Queensland.

Appendix 1 of this report contains a copy of the questionnaire used to obtaininformation from businesses in the TVC production sector.


3. SIZE AND VALUE OF THE TVC PRODUCTION INDUSTRY IN BRISBANEAND SOUTH EAST QUEENSLAND

3. Size and Value of the TVC Production Industry inBrisbane and South East Queensland covers:• Organisation information.• Length of time operating in the TVC industry.• Employment in the TVC production industry.• Value of the TVC production industry in Brisbane and

South East Queensland.• Economic value of TVC production.• Characteristics of shoots.

3.1 Organisation Information

Organisation Base

Six in ten of the companies surveyed in the TVC sector (65.0%) have theirbase in Queensland.

The profile of where companies are based covered:

• Queensland based company (65.0% of companies).

• An Australian company with an office in Queensland (20.0%).

• Sydney based company (10.0%).

• An international company with an office in Queensland (5.0%).

Organisations’ Legal Structure

Organisations reported the following legal structures for their businesses:

• Private company (65.0%).

• Sole trader (20.0% of companies).

• Public company (15.0%).

Profile of Companies in the TVC Production Industry in South EastQueensland

Survey interviews with industry representative identified 53 Queenslandcompanies and 41 interstate companies involved in TVC production activitiesin South East Queensland. This covered:

• Twelve Brisbane based TVC production houses.

• Forty-one interstate production companies that undertake TVCproductions in Queensland. Twenty-eight of these companiesundertook one or two TVC productions in Queensland in 2004/05.


• Six freelance production managers.

• Six casting directors.

• Three location companies.

• Three companies supplying art department services.

• Four caterers working with TVC production companies plus a range offood suppliers.

• Nineteen companies supplying a wide range of products and servicesincluding film, camera equipment, post production, travel services, twoway radios and traffic management services.

3.2 Length of Time Operating in the TVC Industry

The length of time companies in the TVC production sector had beenoperating covered:

• Less than 5 years (5.0% of companies).

• Five to 9 years (30.0%).

• Ten to 14 years (25.0%).

• Fifteen to 19 years (10.0%).

• Twenty to 29 years (15.0%).

• Thirty or more years (15.0%).

Chart 3.2.1 gives a profile of the length of time in business.


Length of Time in Business

5

30

25

10

15 15

Less

than

55 t

o 9

10 to

14

15 to

19

20 to

29

30 or

mor

e0

10

20

30

40Years

Chart 3.2.1

Results show that the majority of companies in the industry (65.0%) had beenoperating for 10 or more years. Companies in the industry are generally wellestablished and have a wealth of experience and capabilities in TVCproduction.

3.3 Employment in the TVC Production Industry

Overall, 20 companies interviewed reported employing 720 people in 2004/05covering:

• 182 full time employees.

• 238 part time, casual or contract employees. One major company canemploy up to 300 additional casual employees.

The numbers of companies in different employment categories included thefollowing:

• Less than 5 employees (50.0% of companies).

• Five to 9 employees (15.0%).

• Twenty to 50 employees (10.0%).

• Fifty or more employees (25.0%).


Expected Changes in Employment

A third of companies surveyed expect growth with 30.0% of companiesexpecting their employment to increase by an average 50.0% in the next threeyears. Three fifths of companies surveyed (60.0%) expected employment toremain largely unchanged. Two companies (10.0%) expected theiremployment levels to fall by an average of 55.0% in the next three years.

3.4 Value of the TVC Production Industry in Brisbane and South EastQueensland

Company Turnover

Eighteen companies surveyed reported an estimated turnover of $32.5 millionin 2004/05 in the TVC production sector.

The number of companies in the Brisbane survey sample by turnovercategory is as follows:

• Less than $100,000 (25.0% of companies).

• $100,000 to $500,000 (20.0%).

• $500,000 to $2 million (35.0%).

• $2 million and over (10.0%).

While there are a small number of very large companies in the sector, themajority of companies are small to medium sized businesses. The industryhas a number of experienced directors, production managers and producersthat participate in or form crews as required for TVC productions.

Growth in Turnover

Businesses are confident of growth with seven in ten companies (70.0%)expecting their turnover to grow in the next 3 years, by an average of 33.1%.About one in five companies (20.0%) expected business turnover to remainlargely unchanged.

One company (5.0%) was unable to make a prediction regarding turnovergrowth in the next 3 years and one company expected turnover to fall, butcould not say by how much.

3.5 Economic Value of TVC Production

Value of Shoots

There were an estimated 249 TVC shoots in Brisbane and South EastQueensland in 2004/05. Between 80% and 90% of these shoots wereundertaken by production companies and freelancers and 10% to 20% wereundertaken directly by advertising agencies.


Based on industry estimates, an average value per shoot is $200,000 for a 2day shoot. This gives an estimate of the value of production shoots of $49.8million.

The 249 shoots in 2004/05 are equivalent to 446 shoot days.

Chart 3.5.1 gives a profile of key information on the value of the TVCproduction sector.

Value of TVC Production in 2004/05

49.8

18.9

68.775.6

144.3

Value o

f sho

ots

Value o

f pos

t pro

ducti

on

Total v

alue -

2004

/05

Flow on

value

Total e

cono

mic va

lue of

TVC

prod

uctio

n in 2

004/0

5

0

30

60

90

120

150$million

Chart 3.5.1

The estimate of $49.8 million for the value of shoots in 2004/05 is a highestimate.

Information on the value of shoot days varies from $80,000 to $100,000 perday on average. If a day value of $100,000 is used on average, this isequivalent to $44.6 million as the overall estimate for 446 shoot days in2004/05.

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. Thisestimate has been confirmed with key industry stakeholders and is regardedas a reliable estimate of the value of production work undertaken in SouthEast Queensland in 2004/05.

The value estimate for shoots covers all production activities including:

• Staff costs.

• Equipment hire costs.


• Film and other consumables.

• Location costs.

• Catering.

• All other costs associated with shoots.

Post Production

The value of post production in South East Queensland including local shoots,interstate and international client post production is estimated to be $18.9million in 2004/05.

Total Value

The total value of TVC production in South East Queensland in 2004/05 is$68.7 million – covering the value of shoots and post production.

The flow on impacts to the economy is estimated at an additional $75.6 millionbased on the value added multiplier for cultural and recreational services1996-97.

This gives a total value of $144.3 million to the South East Queenslandeconomy from TVC production in 2004/05.

The flow on benefits has been estimated using value added multipliersproduced by the Office of the Government Statistician (Queensland RegionalInput-Output Tables, 1996-97).

Value of Selected Activities

Based on survey data collected, the value of a number of component sectorscan be estimated. These estimates include the following:

• Catering – estimated to be $514,000 for 2004/05.

• Camera equipment hire – approximately $3 million for 2004/05.

• Set design and construction – approximately $290,000 in 2004/05.

• Location costs – estimated at between $450,000 and $1.4 million in2004/05.

• Two way radio hire – approximately $95,000 in 2004/05.

3.6 Characteristics of Shoots

Location and Studio Shoots

The mix of location and studio shoots for 2004/05 is as follows:

• 79.6% location shoots.


• 12.4% studio shoots.

• 8.0% combination shoots.

Shoot locations used in Brisbane and South East Queensland included:

• City and CBD locations.

• Brisbane suburbs including St Lucia, West End, Archerfield andPaddington.

• RNA Show grounds.

• Morningside TAFE.

• Mt Nebo.

• Mt Coot-tha.

• Moreton Bay.

• Stradbroke Island.

• Coochiemudlo Island.

• Tangalooma.

• A range of Gold Coast locations.

• Beaudesert and Gold Coast hinterland.

• Sunshine Coast locations.

• Beewah forest.

• Toowoomba.

• Farms in South East Queensland.

• Northern New South Wales.

Other locations reported included Cairns, Western Queensland and theWhitsunday region. Some companies also shot TVC productions interstateand undertook post production in Brisbane.

Format Used

While it was difficult for many participants to provide accurate data on the mixof film, video, digital and animated, most production companies reported using35mm film. Companies also used 16mm, video, digital and some animation.


4. TVC PRODUCTION ACTIVITIES AND KEY MARKETS

4. TVC Production Activities and Key Markets covers:• Main TVC production activities.• Turnover from TVC production.• Mix of Queensland, interstate and international

clients.• Trends influencing exports in the next five years.

4.1 Main TVC Production Activities

Companies provided feedback on the percentage of their sales from differentTVC production activities as well as other activities undertaken by thecompany.

The following table summarises the percentage of sales for these differentproduction activities.

Table 4.1.1 - Proportion of Sales in TVC Production Activities and OtherActivities

ACTIVITY AVERAGEPERCENTAGE OF

SALES (%)

TVC Production

• TVC production 23.5

• Production management 9.5

• TVC production location management 5.5

• Film equipment hire 6.0

• Film supply 1.9

• Other equipment supply for TVCproduction

5.0

• Supply of technicians 5.0

• Set design and construction 9.0

• Film processing 2.0

• Post production for TVC’s 3.0

• Catering 4.8

Other Activities

• Reality TV 1.0

• Outside broadcasts 0.5


ACTIVITY AVERAGEPERCENTAGE OF

SALES (%)

• Feature films 0.5

• Music videos 0.5

The profile of activities reported by companies surveyed reflects the mix ofTVC production activities.

Results also show that companies involved in the TVC production sectorprovide a range of other services covering:

• Television production.

• Feature film production.

• Music video production.

• Outside broadcasts.

Some of the items and expenditure reported by individual companies on theseitems included:

� Voice over, extra cameramen, actors and technical staff.

� Local graphic artists - $10,000 in 2004/05.

� Sign writers - $10,000.

� Purchasing of food - $25,000.

� Security.

� Police.

� Traffic control.

� Nurses.

� Art departments for props and building sets.

� Wardrobe.

� Travel, rental cars and local tradesmen - $15,000 per day of shooting.

� Transport - $8,000 to $10,000 per annum.

� Warehouse logistics - $10,000 to $11,000 per annum.

� Transport - $10,000 to $20,000 per job.


� Helicopter hire - $1,000 per hour.

� Dubbing and duplication - $25,000.

4.2 Turnover from TVC Production

Two fifths of companies surveyed (40.0%) reported 100% of their sales in2004/05 from TVC production activity.

Chart 4.2.1 gives a profile of the number of companies by percentage ofturnover from TVC production activities.

Number of Firms By Percentage of Turnover from TVC Production, 2004/05

3

2 2

4

8

0% to

25%

26%

to 50

%

51%

to 75

%

76%

to 90

%

91%

to 10

0%

0

2

4

6

8

10Number of firms

Chart 4.2.1

4.3 Mix of Queensland, Interstate and International Clients

Companies reported the following profile of TVC production sales in 2004/05:

• Queensland clients – an average of 55.4% of sales.

• Interstate clients – an average of 27.4% of sales.

• International clients – an average of 16.3% of sales.

Of the companies surveyed, 75.0% currently have international clients forTVC production activities. This is a significant finding and confirms thatBrisbane is successful in attracting business from international clients.

Companies surveyed reported 1.0% to 50.0% of TVC production sales tointernational clients.


Those companies with international clients reported sales to variousinternational markets including the following:

• Asia:

- Japan (mentioned by 6 companies).

- Korea (3).

- China.

- Philippines.

- India.

- Indonesia.

- Hong Kong.

- Singapore.

- A range of Asian markets.

• Americas

- USA (7).

• Europe

- UK (4).

- Spain.

- Italy.

- Eastern European countries.

- Russia.

- A range of European markets.

• The Pacific

- New Zealand (2).

- The Pacific region.

- Fiji.


4.4 Trends Influencing Exports in the Next Five Years

Companies identified a range of trends and opportunities that will influencethe level of export of TVC services in the next five years. These trendsincluded the following:

Costs

• The value of the Australian dollar.

Convenient Access

• The opportunities to serve markets close by. Tokyo is a majorinternational market for TVC production.

• Access to direct flights into Brisbane. It is important to make it as easyas possible for international clients to choose Brisbane as a location forTVC production.

• The fact that Brisbane is in the same time zone as many east Asiancountries is a major advantage. This allows Brisbane companies tocommunicate effectively with international customers.

Welcoming Environment

• Providing a welcoming environment for international clients visitingBrisbane for TVC production.

• A welcoming environment in South East Queensland is important –reducing red tape and supporting TVC production with incentives.

Marketing

• The level of active marketing by Brisbane companies into internationalmarkets to encourage clients to consider Brisbane as a TVC productionlocation. At present, there are a number of production companies thatare actively pursuing international clients.

• Brisbane is also developing an increasing number of satisfiedinternational clients who have used the city for TVC production.Companies have found that there is a very positive reaction toBrisbane as a shoot location and this generates repeat business.

• Some reported an increase in activity levels in South East Queenslandand highlighted the need to more actively pursue international clients.The more exposure international clients have to South EastQueensland as a location for shooting, the more work this willgenerate.


Competitive Advantages

• Brisbane and South East Queensland offer a unique mix of locations.The area is very attractive and this is supported by very high levelcapabilities in TVC production. As the message on capabilities iscommunicated effectively to international markets, demand is expectedto increase.

• The ability to retain and further develop crew expertise and capabilitiesin Brisbane and South East Queensland.

• Accessible locations in South East Queensland and turnaround time onpermits are key aspects. It needs to continue to be easier, cheaperand quicker to get permits for shoots in South East Queensland.

• The weather in South East Queensland is favourable – allowing shootsto be undertaken without interference from weather.

• Use of the Internet to support communications and electronic transferof materials will support increased sales to international clients.

• South East Queensland offers a wide range of high quality locationsclose together and close to five star accommodation and restaurants.While price has been a factor in attracting international customers tostart with, the quality of the locations and the capabilities are nowattracting repeat business from these customers, particularlyAmericans.

Competing International Markets

• There has been a trend towards globalisation of advertising production.More work is now being done in New York and London and this ishaving an impact on demand from international clients.

• In the future, more production work will be done in New Zealand basedon cost advantages. Some companies have reported a loss of work toNew Zealand as a market.


5. TRENDS AFFECTING OPPORTUNITIES FOR TVC PRODUCTION

5. Trends Affecting Opportunities for TVC Productioncovers:• Significant changes in demand in the last 2 years.• Trends in the next 3 years.

5.1 Significant Changes in Demand in the Last 2 Years

Companies commented on some significant changes in demand for TVCproduction services in the last 2 years. While some companies reporteddecreasing demand and greater competition from New Zealand and SouthAfrica, other companies reported growth in demand.

Companies reported cost pressures and some shifts in approaches such asless demand for mid range camera equipment – there is demand for high endequipment and low end equipment.

Trends in the last 2 years included:

Growth

� Some companies have had increased demand through increased marketshare, but the industry has not grown (2 companies).

� A 30% increase in demand in the last 1 ½ years and continued growth.

� There has been more demand from international clients.

� Work from New Zealand clients has increased, especially in the wintermonths.

� The number of crew employed has increased significantly.

� The TVC industry in Queensland is very, very successful. ‘The amount ofwork that is coming in is fantastic’.

Less Demand

� There has been a downturn in demand (mentioned by 4 companies).

� Advertising budgets have been reduced (3).

� Demand has been inconsistent, forcing some specialised suppliercompanies, e.g. caterers, to branch out to service other industries.

� Work has gone to New Zealand and South Africa because of thecurrency and production cost advantages these countries offer.


Steady Demand

� The industry activity has been quiet but steady (2).

� Demand overall has remained much the same.

Capacity Building

� Demand could increase in South East Queensland as location and crewfees are more cost effective (2).

� There are greater capabilities – able to do more.

Price Pressures

� The industry is more competitive.

� People are expecting the same quality sets, but want to ‘screw you onthe price’.

Change of Focus

� TVC’s take second priority when the company is also working on longform drama production.

� Demand has decreased because of an increase in high definition filming.

� There is demand for low budget cameras or very high budget camerassuch as super 16. The rest use HDV or very low quality broadcastcameras. The demand for middle range equipment seems to havedisappeared.

5.2 Trends in the Next 3 Years

An increased use of digital media, shrinking advertising budgets andcompetition from other advertising media will all have an impact on demandfor TVC production services in the future. Marketing to international customersand targeting head office decision makers in national markets are importantpriorities for the next 3 years.

While Brisbane and South East Queensland have some significantadvantages, the strong population growth in the region could have a negativeimpact on opportunities in the future.

Trends companies expect to have an impact on TVC production in the next 3years included:

Growth

� TVC production will probably increase as it is becoming more difficultand costly to shoot in Sydney.


Companies should respond by opening studios in Brisbane and workingwith Government (State and Local) regulation and licensing to ensurethat the problems with red tape that occur in Sydney do not happen here.Companies should also assist by educating the public on the importanceof TVC production to the City and the requirements that can be involved,e.g. street closures (3).

� Post production is becoming a very significant component of TVCproduction.

Less Demand

� Advertising budgets are shrinking – there are many competing mediumsfor advertising and television is suffering (3).

� Production companies will do less TVC production and more TV showproduction.

� Fifteen years ago companies would produce three ads in a series thatwould run for a year and then produce another three the next year. Nowcompanies produce one ad that runs for 2 – 3 years. TVC productioncompanies should try to get into the global market to secure growth inmarket share.

Marketing and Building the Market

� Queensland locations are desirable and can deliver long sunny days.Companies should respond by increasing promotion of Brisbane andSouth East Queensland as a destination for TVC production.

People involved in the industry know about the benefits but potentialinternational customers need to have access to this information (2).

� Companies have affiliations interstate and internationally and haveadvertising production done in other locations – there is a ‘head officesyndrome’ which means that Brisbane misses out on the work.Companies need to market themselves and their capabilities to attractthe work to Brisbane.

� Virgin Blue’s head office is in Queensland but their TVC production isdone in other states. If there were more head offices in Queensland,there would be more accounts based in Brisbane.

Price Pressures

� The industry will be more competitive. Companies will need to bestronger in order to compete.

� The gap between large budget and low budget jobs will widen.Companies need to ensure they have the right equipment and perhapsoffer super 16 at more attractive rates.


� The increasing value of the Australian dollar is putting additional costpressures on international business.

Threats

� The increasing population in Queensland will impact on TVC production– a lower population is what makes filming here better and easier.

� An increase in high definition video. High definition video is more costeffective and the quality is beginning to be comparable with film.Companies need to encourage TVC companies to stay with film tosupport demand for film productions.


6. CAPABILITIES AND COMPETITIVE ADVANTAGES

6. Capabilities and Competitive Advantages covers:• Main supply chain links in TVC production.• Brisbane and South East Queensland’s main

capabilities for TVC production.• Brisbane and South East Queensland’s main

competitive advantages.• Strengthening competitive advantages.• Capability gaps and strategies to address these

gaps.

6.1 Main Supply Chain Links in TVC Production

The main supply chain links in TVC production include the following:

Consumables

� Supply of film and tape stock, CDs, DVDs – Sony, Fuji and Kodak.

� Chemicals – Kodak, Redox.

Equipment

� Camera and equipment rental – Panavision, Kodak, Cameraquip.

� Communication devices – Motorola, Bearcom, Tech-Rentals.

� Generators.

Technical Services and Facilities

� Agents for crew – Essential Crew.

� Warner Roadshow Studios (Gold Coast).

� Post production houses – Atlab, Post Lounge, Cutting Edge DigitalSound and Vision and other companies.

� Graphic design companies.

� Computer suppliers.

� Traffic controllers.

Set Materials

� Wood – Finlayson and Brims.

� Polystyrene, acrylics, vinyl, fibreglass, foam, paint – range of localsuppliers.


Travel and Accommodation

� Travel – travel companies, Show Travel, Screen & Stage, Qantas andVirgin Blue.

� Accommodation – various hotels.

� Car rental – Avis, Budget.

� Transport – Ozfilm, Star Wagons, Arana Transport, Couriers Please andother courier companies.

Catering

� Catering – Alpine Film Catering, Loaves and Fishes, Canadian Kitchen,Butlers Caterers, Gusto Caterers and other caterers.

� Meat – Tenderplus, Brisbane Abattoirs.

� Food – Bidvest.

� Seafood – Cardinals.

� Chicken – Creative Cuisine.

� Fruit – Infruit, Brisbane Markets.

In addition to these main supply chain linkages, TVC productions access awide range of local suppliers to meet the requirements on individual TVCshoots.

6.2 Brisbane and South East Queensland’s Main Capabilities for TVCProduction

Brisbane and South East Queensland have a range of capabilities thatcontribute to a very attractive and competitive location for TVC productions.These main capabilities include:

Good Conditions

� Good weather (mentioned by 8 companies).

� Longer shoot days – companies are able to shoot for 10 hours a dayrather than 8 hours a day in Sydney and Melbourne (3).

Welcoming Environment

� Brisbane City Council makes it easy to shoot in Brisbane and South EastQueensland (3).

� Queensland receives more positive comments from clients than Sydneyor Melbourne.


Locations

� Great locations (6).

� Locations are easy to get to (2).

Skills, Expertise and Capabilities

� Excellent technical crews (5).

� Post production capabilities in South East Queensland (3).

� Many professional and capable people in the industry (2).

� Queensland is as good as anywhere else (2).

� Good quality equipment is available (2).

� Creative directors that are world class.

� Vast directing and producing talent.

Cost Advantages

� Filming and wages are cheaper (4).

� If the job has a limited budget, Queensland can usually do it.

� Very competitive against interstate locations.

6.3 Brisbane and South East Queensland’s Main Competitive Advantages

Companies surveyed identified cost advantages, skilled staff and expertise,good technical capabilities and the range of easily accessible locations as themain advantages of Brisbane and South East Queensland for TVC production.

These advantages deliver a competitive, high quality, easy to use option forTVC production. The growth in the sector in recent years has developed avery competitive industry in Queensland. Clients are able to access the qualityof production and service they would expect in other major locations for TVCproduction. South East Queensland delivers an enjoyable experience forclients and also delivers cost savings through lower wages and the 10 hourshoot day which is possible in South East Queensland.

The main competitive advantages mentioned included the following:

Cost Advantages

� Brisbane and South East Queensland is more cost effective. Sydney is15% to 20% more expensive compared with Queensland. Somebelieved that Brisbane is 30% less expensive or more cost effective thanundertaking a shoot in southern centres (6 companies).


� Creative staff are less expensive in South East Queensland.

� It is affordable to undertake a shoot in the centre of the city.

Climate

� South East Queensland has very good weather conditions and a diverserange of locations. Crews can undertake a 10 hour day in South EastQueensland as opposed to an 8 hour day in southern locations such asSydney (7 companies).

� The weather is warmer which means people are happier. Crews canshoot 80% of the year – a much higher proportion of the time than inother locations.

High Quality, Welcoming Environment

� Brisbane offers a film friendly environment. In Sydney, there is acooperative attitude to filming large feature films but if there is arequirement to close a road for a TVC, there is less support than there isin Queensland (3 companies).

� Transportation to locations is easier in South East Queenslandcompared with Sydney. Traffic is much worse in Sydney (2 companies).

� South East Queensland offers significant infrastructure – ‘Brisbane is notHicksville’. There are good hotels and transport available in Brisbaneand South East Queensland.

� Brisbane and South East Queensland offer a wide range of five staraccommodation and restaurants.

� It is much easier to get a large unit such as a film crew onto a location inSouth East Queensland because of the cooperation from police, fireservices and State Government. There is an excellent level ofcooperation.

� There is a greater level of support from the local community and councilsfor filming in South East Queensland – there is a very helpful andwelcoming environment.

� There is less Government red tape. However, some felt that it wasgetting harder. It is important that Government support is maintained forTVC production.

� Brisbane has one council authority compared with several differentcouncils in Sydney. There are more rules and regulations affectingfilming in Sydney compared with Brisbane.


� Brisbane and South East Queensland can offer all of the benefits withoutthe bureaucracy that affects productions in Melbourne and Sydney. TheState Government, through the Pacific Film and Television Commission(PFTC) and the Brisbane City Council provide a very strong and positiveenvironment for long form film production.

� The State Government promotes South East Queensland as a locationfor TVC’s.

� There is much less red tape involved in filming TVC’s in Brisbanecompared with Sydney and Melbourne.

� South East Queensland is a positive location for TVC production.

� International clients including American companies, have come originallybecause of the cheaper dollar, but now come back to South EastQueensland because it is a great location for shooting TVC’s.

� Police and fire services need to be thanked for the very effective job theydo in supporting TVC production in South East Queensland.

� Overall, it is much easier to undertake shoots in South East Queensland.

Skills and Expertise

� Reduced staff turnover in Brisbane and South East Queensland and as aresult, there is a pool of skilled workers.

� The quality of TVC production crews is just as good as it is interstate.

� There is a large population to draw from in South East Queensland –there is a good skills pool.

� The expertise of the technical crew available in South East Queensland.There are very good quality post production staff who are equal to orbetter than staff available in Sydney and Melbourne.

� There are a lot of talented people in the labour pool in Brisbane andSouth East Queensland.

Locations

� There are diverse locations within a small radius, e.g. beach, forest, city,country (8 companies).

� It is easy to undertake filming in South East Queensland. It is also easyto access different locations.


Technical Capabilities

� Good post production capabilities.

� South East Queensland can offer very high quality post productionfacilities.

� Good quality film infrastructure is in South East Queensland.

6.4 Strengthening Competitive Advantages

Companies believed that Brisbane and South East Queensland’s competitiveadvantages can be further strengthened in the following ways:

Marketing

• Promoting South East Queensland as a TVC production basenationally and internationally. There is already very active promotion ofSouth East Queensland as a film venue but there is little targetedpromotion of Brisbane and South East Queensland as a TVCdestination.

• Marketing directly to production companies.

• Developing case studies of companies that have shot TVC’s in SouthEast Queensland. It is important to highlight that these shoots did notexperience any problems, came in on budget, had access to goodquality crews and technicians and had a good time undertaking theshoot.

• Brisbane and South East Queensland ‘is the best kept secret’ on TVCproduction. It is important to make the market aware of the advantagesthrough promotion as well as word of mouth recommendation. TheTVC production sector is closely networked. Using the network andrecommending Brisbane and South East Queensland will have somemajor benefits.

Additional clients are starting to come to South East Queenslandbecause the shoots are more cost effective.

• There also needs to be greater promotion of Queensland as a locationfor TVC’s. Businesses at the lower end of the supply chain that willbenefit from this increased activity, e.g. suppliers, art departments,caterers, etc. Promotion needs to come from the top of the chain. Atpresent there is no body that promotes TVC production in Queensland.PFTC only promotes film activities.


TVC’s generate ‘bread and butter’ income for the industry that alsoserves the film industry. The TVC sector gives people jobs andexperience. All production companies need TVC activity to survive.Up until this time, TVC productions have been regarded as a ‘secondclass’ or less important category of work. There is a need to changethis attitude.

• PFTC promoted Brisbane as a film location very actively 5 years ago,but is not doing as much promotion at the present time. This needs tobe strengthened.

• It is important for production companies to continue to market toSydney clients and international clients. It is important to support themarketing activities of these companies.

Cost Advantage

• Promoting the fact that Brisbane and South East Queensland candeliver a 10.0% or higher cost advantage by shooting in this locationbased on the 10 hour shoot day and other more competitive costs.While some customers recognise this advantage, others need to beinformed of this advantage.

• Targeting clients in Sydney to raise awareness of the opportunities forTVC shoots in South East Queensland. It is important to continue tomaintain the cost effectiveness of Brisbane and South EastQueensland as a location. If this changes, there will be lesscompetitive advantages offered by Brisbane for TVC production.

Locations

• There is a need to create more awareness of the diverse locationsavailable in South East Queensland – clients will travel to areas wheregood locations are available.

• Making locations accessible for TVC production.

Government Support

• There is a perception that TVC production does not need anyassistance. There would be major benefits from providing tax breaksto attract TVC production work to Brisbane and South EastQueensland.

• Making it easy and inexpensive to arrange road closures. Reducingthe costs and reducing red tape will attract more TVC production workto South East Queensland.

A full time position at Brisbane City Council promoting Brisbane andSouth East Queensland as a TVC production location should beconsidered. A part time liaison officer at Brisbane City Council is notenough – this needs to be a full time position.


A full time film liaison officer could assist in fast tracking permits ifnecessary. Sometimes, production companies only get 2 to 3 daysnotice regarding a job. Brisbane should also examine the Gold Coastfee structure approach – making it less expensive to undertake shootsin Brisbane. Council could also liaise with the Queensland PoliceService to assist in reducing fees.

• Brisbane City Council needs to give every assistance to productioncompanies to ensure that there is good access to locations. Reducingthe red tape associated with approvals and processing approvalsquickly will deliver major benefits.

• Brisbane and South East Queensland need to reduce the red tapeassociated with TVC production activities.

Facilities

• Some suggested opening existing film and television studios for TVCproduction. If studios are not being used for film projects, they couldbe made available at a reduced rate e.g. reduce the cost by half toattract TVC production crews to use these facilities. At present there issome reluctance to make studios available at a lower cost – this maycreate a negative precedent and reduce revenues for studios.

• There is a need to make existing studios in South East Queenslandmore accessible if studios are not being used.

6.5 Capability Gaps and Strategies to Address These Gaps

Companies surveyed commented on capability and technology gaps as wellas any weaknesses in the TVC production sector in Brisbane and strategiesto overcome these problems.

The key gaps or weaknesses included:

• Exchange rate – a strong Australian dollar that makes TVC productionin Australia less attractive to international clients.

• Accessibility – restrictions and permit access problems – making itdifficult to undertake TVC shoots in Brisbane and South EastQueensland.

• The lack of dedicated studio facilities for TVC production in South EastQueensland. Existing film studios are too expensive for TVCproductions. Although there is support for a new studio, there areconcerns that the new venture would not be financially viable. Thestudio would need to secure television work as well as TVC productionwork to be viable. There is no proponent interested in taking thisproject forward.

• The need to establish an online, searchable database of locationsavailable in South East Queensland for TVC shoots.


• The need for dedicated marketing of Brisbane and South EastQueensland as a location for TVC production.

• The need for stronger Brisbane City Council support for the sector.This includes a full time film and TVC liaison officer. It also coversgreater support for using local companies and crews for Brisbane CityCouncil advertising production (Council procurement).

• Some difficulty accessing experienced crew for TVC production.

The following table summarises this feedback.

Table 6.5.1 – Summary of Capability Gaps and Weaknesses

CAPABILITY AND TECHNOLOGY GAPSAND WEAKNESSES

STRATEGIES TO ADDRESS GAPS

COST COMPETITIVENESS

Australia is losing a lot of work to SouthAfrica because of the value of theAustralian dollar. The currencydifference results in cheaper productioncosts in South Africa. The South AfricanGovernment is also very supportive inattracting TVC production to South Africa.

Some believe there is limited value inpromoting capabilities international if theAustralian dollar does not improve relativeto other currencies. Decisions are verymuch made on cost factors forinternational customers.

Film incentives to attract TVC production.

LOCATION ISSUES

There has been poor weather in SouthEast Queensland this year and this hasaffected production.

Parking restrictions in the city can makeTVC productions more difficult.

Some residents are becoming lessaccepting of TVC shoots.

It is important to provide access to citylocations and encourage a supportiveenvironment for TVC production.

Streamline permits issuing to meet marketrequirements.

Awareness and education campaign isrequired on the benefits and impact ofTVC production.

A company was not able to securepermission to shoot on Moreton Island.This South East Queensland productionwas lost to Newcastle.

Ensure that there is a welcomingenvironment to retain shoots in South EastQueensland by Government working withindustry when reviewing and developingcompliance and licensing policy.

Brisbane and South East Queenslandhave a range of locations and there is aneffort to provide a welcoming environment.However, more could be done tostreamline the process, reduce red tapeand costs to attract more business.

Developing a very proactive, welcomingenvironment for TVC production in SouthEast Queensland (industry, Government,community and business).




There is no online searchable locationdatabase for South East Queensland.Although PFTC has information aboutlocations, this is not in a searchable onlineform nor provided to TVC clients.

There is an opportunity for a privatecompany to establish a database oflocations.

FACILITIES

There is no studio for TVC production inthe Brisbane metropolitan area. There aresmaller studios, but no commercial studiospace that directly services Brisbane.

Some companies have used the RNAshowgrounds for shoots. However, thesefacilities are not sound proof and notavailable for certain times of the year.

There is not enough studio space inBrisbane. Representations have beenmade to the RNA about developing astudio at the John Reid Pavillion.

Some were concerned that it would not beworthwhile to build a studio – the return oninvestment would not be achieved. Anynew studio would need to serve TVC aswell as drama requirements to befinancially viable.

Warner Roadshow Studios is not suitabledue to the high cost of accessing thesefacilities.

Sydney’s Fox Studio is not alwaysavailable for TVC productions.

Some suggested establishing a studio thatwill address TVC production requirements.

Some believe there is demand for astudio. However, businesses are used topaying $1,500 a day ‘for a shed’ andwould not be prepared to pay a substantialincrease. The venture would not work ifcompanies were charged $4,000 per day.

Brisbane City Council and RNA couldcollaborate to establish a very attractivestudio facility. The location of the RNA iscentral and there are buildings close by forcity scenes. There is also easy access tothe train line and streets in GregoryTerrace can be closed off for shoots.

Establishing a studio would bring inconsiderable revenue. A TVC studio couldalso be a tourist attraction. This venturecould be structured as a PPP.

This would offer employment and theopportunity for film, media and animationgraduates from Griffith and QUT toundertake work experience.

Although there is a demand for this facility,it is important to develop a low costsolution. A new facility which chargesunsustainable fees will not be supportedby industry.

MARKETING

Some felt that PFTC needs to be moreactive in supporting TVC productions.

Some were concerned that there was amore bureaucratic focus at StateGovernment rather than workingcollaboratively with industry.

A more proactive approach to working withthe TVC sector in developing andimplementing a long term marketingstrategy.




SUPPORT FOR THE TVC INDUSTRY

Brisbane City’s recent campaign shoot forBrisbane Marketing involved a localadvertising agency, but the decision wasused to select an interstate productioncompany and import a New Zealanddirector and photographer. Although thiswas facilitated through a local company, itsent a very negative message to the TVCproduction industry in Brisbane.

There is a need to support the localindustry wherever possible in all areas ofGovernment procurement.

Brisbane City Council needs to appoint afull time staff member for film liaisonactivities.

There is a need for additional staff supportfor film and TVC liaison at Brisbane CityCouncil. Gold Coast City has 3 staffundertaking this role.

Some companies were concerned thatCouncil may discontinue the film liaisonposition. Companies stressed the needto have access to a person in Council tofacilitate permits and other assistance.Until Council permits are organised,companies cannot proceed withproduction activities.

There is a need for a full time staffmember who is also available on call, 24hours a day to assist with both TVC andlong form film requirements.

STAFFING

On some shoots, directors haveexperienced crew shortages.

It is important to maintain a pool of skilledlabour to support effective TVC productionin Brisbane and South East Queensland.

This is achieved through training, creationof employment opportunities andincreasing levels of production.


7. CHALLENGES, OPPORTUNITIES AND PRIORITIES

7. Challenges, Opportunities and Priorities covers:• Challenges in the next 3 years.• Main opportunities for the TVC production industry.• Assistance required to support growth.• Main priorities for the TVC industry in Brisbane and

South East Queensland.

7.1 Challenges in the Next Three Years

Companies identified a number of main challenges facing the TVC productionsector in Brisbane and South East Queensland in the next 3 years:

Remaining Competitive

• Continuing to win the work.

• Continuing to deliver a good quality outcome.

• Making sure that the advantages that South East Queensland andBrisbane currently offer are maintained. It is important to support theTVC production sector and appreciate the flexibility that already existsin the industry. It is important to have respect for the advantages thathave 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 toLos Angeles – this will have a negative impact on Brisbane and SouthEast Queensland.

• Keeping the cost of jobs down. There are young people entering theindustry and bidding for work at significantly lower costs (e.g. $12,000compared to $40,000 to $60,000). These new players have fewoverheads and are trying to win work. This is driving down costs andmaking it difficult for other companies with greater overheads to remainsustainable.

Advertising Trends

• Shrinking advertising budgets and a more competitive market as aresult of this pressure. Companies will need to find cheaper ways toshoot ads. Companies will need to poach more from interstatecompanies, but this is not a long term solution (3 companies).

• There are competitive pressures having an impact on the advertisingmarket. More advertising is being done in cinemas and online. This isreducing the demand for commercial TVC production.

• The decreasing volume of Australian long form film and televisionproductions results in more competition for less work.


Building Industry Capability

• The industry can be very fragmented.

• Keeping up with technology trends.

• Ensuring sustainability of the industry.

• The ability to service a diminishing market as there is pressure onadvertising budgets.

• Ensuring that filming done in South East Queensland uses Queenslandcrews. Some of the time, interstate crews travel to Queensland toshoot in South East Queensland.

Marketing

• The distance of Brisbane and South East Queensland from clientcompanies can be a disadvantage and discourage companies fromshooting in South East Queensland.

• Marketing South East Queensland as a preferred destination for TVCproduction and keeping the work demand at a consistent level. A lot ofsupply companies have expensive equipment and make largerepayments on this equipment. If there is a lack of consistent work,there will be a loss of capabilities and capacity in the local market. Ifthis occurs, some equipment capabilities will be lost from the regionand it will be more expensive to freight equipment from Sydney.

• There is a still a way to go in terms of promoting Brisbane as a TVCdestination. More needs to be done to continue to attract work toSouth East Queensland.

Technology Changes

• Technology changes and post production costs will have an impact onthe industry.

Government Support

• There can be a lack of coordination between State Government andLocal Government across the South East Queensland region. There isa need for coordinated support for the TVC production industry.


7.2 Main Opportunities for the TVC Production Industry

Establishing a new studio in Brisbane to meet the needs of the TVCproduction sector, proactive marketing, retaining Brisbane’s currentcompetitive advantages and increasing Government support for the industrywill generate future opportunities for growth.

The main opportunities to increase TVC production activity in Brisbane andSouth East Queensland included the following:

Facilities/Infrastructure

• Establishing a studio in Brisbane that is suitable for TVC production. Itis also important to raise awareness in the marketplace of Brisbane asa TVC production centre.

• Establishing a new studio would boost the capabilities in the region.Three or four sound stages and some smaller studios for commercialproduction would be beneficial.

Marketing

• Undertaking targeted marketing to interstate production managers.This includes visits to South East Queensland to show clients andproduction managers the range of facilities, capabilities and locationsavailable.

• The main opportunity is to attract international clients. Sydney andMelbourne clients already choose South East Queensland as adestination and are aware of the benefits. However, in tackling theinternational market, the Australian dollar needs to be attractive –making Brisbane and South East Queensland a cost effective option.

• Greater awareness that there is an option to shoot TVC productions inSouth East Queensland. Compared with the cost of shooting inSydney, Queensland offers a more cost effective solution.

• Getting the message about Brisbane and South East Queensland toproduction companies as well as advertising agencies and creativepersonnel. Agency and creative directors often make the decision onlocation shoots. These decisions can be made very early in theprocess. By the time production companies receive the brief, thedecision on location has already been made.

• It may be necessary to establish another body, other than PFTC, topromote South East Queensland as a TVC destination in Asianmarkets.

• Attracting international clients to South East Queensland to undertakelocation TVC shoots.


• Having the right people marketing Queensland as a TVC productiondestination.

• Raising the awareness of South East Queensland as a TVC productioncentre.

• Publicising the advantages that Queensland offers a TVC production.It is important to retain these cost advantages.

• Creating a show reel of commercials shot in South East Queensland.This could be used to promote South East Queensland anddemonstrate the quality of shoots undertaken. The company oftenshows customers ads shot in South East Queensland and customersare not aware that Brisbane has been used as the location.

• Generating a word of mouth recommendation campaign. It is importantto make people aware of the large companies that have shot ads inSouth East Queensland.

• Growing the profile of Brisbane and South East Queensland ininternational markets, particularly Tokyo. Department of StateDevelopment Trade and Innovation has offices in a range of differentmarkets and could assist in raising the profile of Brisbane as adestination.

• Having confidence in the local market and promoting the location tocustomers.

• Most of the large advertising agencies are based in Sydney andMelbourne and these cities are usually chosen for TVC shoots. Thereis a need to attract agencies to Queensland. Branch offices foragencies will generate flow on demand for TVC production.

Government Support

• State and Federal Government assistance is very important to ensurethat the TVC production sector survives and prospers in the future.

• Tax incentives would attract more TVC production work to Brisbaneand South East Queensland.

• Reducing red tape and providing better access to locations will attractbusiness.

• Making it easy to do business for TVC productions in Brisbane andSouth East Queensland.


7.3 Assistance Required to Support Growth

The assistance or infrastructure needed to support this growth in Brisbaneand South East Queensland includes the following:


• Establishing a TVC production studio in the Brisbane City area.

• Some companies felt it was vital to establish a studio. The region ismissing out on work because of the lack of facilities. Graduates alsoneed practical experience and skills development to build sets andparticipate in productions.

• A new studio would be good, but it would be difficult to justify a newfacility.

• Funding would be needed for any new studio. There are noproponents willing to undertake this project at the present time. Thishas been investigated before for long form, but nothing has happenedas a result of those assessments.

Government Support

• Employ a full time film liaison officer with experience in the industry atBrisbane City Council (2 companies).

• Greater flexibility from Council in providing permits and approvals.Often companies do not receive a lot of notice about jobs. Generally,Council is very good, however improving flexibility would be a benefit.

• Government needs to have a strong understanding of the infrastructurerequirements for the industry and the needs of different parties in thesupply chain for TVC production.

• Industry representatives believe more support for marketing andpromoting TVC production is required from PFTC. PFTC focuses onthe major revenue streams of drama and feature films. PFTC needs tobe more proactive. PFTC can make recommendations to customersabout capabilities in South East Queensland.

• Remove the red tape.

• South Bank can be a difficult location to use for shoots. There is apolicy of only allowing shoots for a certain number of days. Thisincludes reality shows and documentaries. When My Restaurant Ruleswas being filmed it was basically impossible to use this location forother shoots. This needs to be addressed.


Marketing

• Promote the industry in a united way. Although individual companiesneed to undertake their own marketing, there is a need to provideconsolidated information on TVC production capabilities and marketthis to interstate and international clients. A collaborative approach tomarketing can benefit the industry.

Capacity Building

• Casting is limited and there are some equipment gaps. However,South East Queensland has some equipment that is not available inSydney.

• There is a need for a few comprehensive training and educationprograms to support the TVC production sector in Brisbane and SouthEast Queensland to maintain industry best practice and betterrecognise short term employment cycles.

7.4 Main Priorities for the TVC Industry in Brisbane and South EastQueensland

The main priorities for developing the TVC production sector in South EastQueensland included the following:

Marketing

• More promotion of Brisbane and South East Queensland as a TVCproduction centre is required. This includes targeting internationalmarkets. This can be done at specific times of the year when it wouldbe most appealing to shoot in South East Queensland.

• It is important to continue a high standard of production. South EastQueensland offers excellent quality crew. It can be disappointing forthe local industry when companies bring their own southern crews.Perhaps one strategy is to export Queensland crews to interstatemarkets.

• Active promotion by PFTC on South East Queensland as a destinationfor TVC production.

• International promotion of Australia as a TVC destination. In thenorthern hemisphere winter, Brisbane and South East Queenslandwould be an attractive location for northern hemisphere ads needing asummer location.

• Attract international clients to undertake TVC production in South EastQueensland.

• Market South East Queensland as a TVC production destination.


• Raise the awareness of South East Queensland as a TVC productiondestination amongst interstate and international markets.

• Publicising the advantages of South East Queensland as a TVCproduction location.

• Strengthen the marketing of Brisbane as a destination for TVC shoots.

• Increase the overall support and generate confidence in the localmarket for TVC productions in South East Queensland.

• Target major advertising agencies and encourage these companies toconsider Brisbane and South East Queensland for TVC shootlocations.

Government Assistance

• A full time film liaison person in Brisbane City Council would ensurethat it is a quick and easy process to obtain permits. This will also offermore flexibility and support for the sector.

• Increase Government assistance to encourage companies to shoot inBrisbane and South East Queensland.

• Continue the support for the sector by State Government.

• Fast track the approvals and paperwork process to make Brisbane anattractive destination.

• There is a need for education on film industry requirements withinGovernment. There needs to be greater dialogue between the industryand Local and State Government. Brisbane and South EastQueensland need to be able to process applications for shoots with a 7day turnaround time.

A key contact person within Council or State Government to assist withproduction and planning requirements would be of great benefit.

Council and State Government agencies need to be aware of the needfor a fast turnaround time on approvals.

Skills Development and Staff Retention

• PFTC needs to reinstate the internship program. A lot of peoplegraduate from film school with no practical experience and do not knowthe proper industry protocols. An internship program would allow newgraduates to develop practical industry skills and this will result in amore professional industry. Correctly structured, the needs of aninternship training program could be met by TVC production.


• Build on the existing hub of industry activity. It is important to continueto attract good projects to South East Queensland. Staff in productionand post production companies need a good flow of different projects –building diversity and interest for staff. This is important for retaininggood quality people in South East Queensland. New and betterprojects will help to build skills and capabilities and retain staff in theindustry.

• Improve education and training opportunities for TVC production inSouth East Queensland.


• Investigate the opportunity to establish a studio in South EastQueensland to support TVC production.

APPENDIX 1 - SURVEY QUESTIONNAIRE

1

SCOPING THE ECONOMIC IMPACT OF THE TVC PRODUCTION SECTOR IN BRISBANE ANDSOUTH EAST QUEENSLAND

Draft No. 16 July 2005

INTRODUCTION

Good morning/afternoon, my name is …… from Deborah Wilson Consulting Services. We areconducting a study for Brisbane City Council which will help to identify the size and value of the TVCproduction industry in Brisbane and South East Queensland.

Results from this survey will provide an understanding of the value of the TVC production sector andhelp to support priorities for growth for this sector. Although this is a significant sector of activity, littleis known about the actual value of activities. By participating in this survey, your feedback will help tobuild this information and help to gain support for the TVC industry’s growth and development inSouth East Queensland.

The survey will take about 10 to 15 minutes. Would you have time to participate now?

Name: ___________________________________________________________________________

Position: _________________________________________________________________________

Organisation: _____________________________________________________________________

Phone: ______________________________ Email: ____________________________________

Call back details: __________________________________________________________________

1. ORGANISATION INFORMATION

1.1 First, a few questions about your organisation. Is your organisation:

Queensland based 1An Australian company with an office in Queensland 2An international company with an office in Queensland 3

1.2 Which of these describes your organisation’s legal structure?

Private company 1Public company 2Sole trader 3Partnership 4

1.3 How long has your organisation been operating?

______ years

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2. ORGANISATION CAPABILITIES AND MARKETS

2.1 What are the main TVC production activities undertaken by your organisation? Whatpercentage of total sales do these main TVC production activities represent?

Product/Service Percentage oftotal sales

2.2 Overall, what percentage of your turnover in 2004/05 covered TVC production activities?

______ %

2.3 What proportion of TVC production activities in 2004/05 were for:

Queensland clients ______%

Interstate clients ______%

International clients ______%

2.4 (If working with international clients) Which region does your organisation currently exportTVC services to? (Record countries)

Region Countries Mentioned

Asia 1 ______________________________________________________

Africa 2 ______________________________________________________

Americas 3 ______________________________________________________

Europe 4 ______________________________________________________

Middle East 5 ______________________________________________________

The Pacific 6 ______________________________________________________

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2.5 What trends and opportunities will influence your level of exporting TVC services in the next 5years?

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________

3. TRENDS, CHALLENGES AND OPPORTUNITIES

3.1 Have there been any significant changes in demand for TVC production services in the last 2years?

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________

3.2 (a) Looking outwards in the next 3 years, what are some of the trends, changes oropportunities which you see influencing demand for TVC production services?

(b) How should companies be responding to these changes?

Future Trends and Changes Response from Companies

____________________________________ ___________________________________

____________________________________ ___________________________________

____________________________________ ___________________________________

____________________________________ ___________________________________

____________________________________ ___________________________________

____________________________________ ___________________________________

4. TVC PRODUCTION ACTIVITY

4.1 (a) In 2004/05, what were the number and types of TVC productions your companyundertook?

(b) What was the total number of TVC shoot days in Brisbane and South East Queenslandcovering location shoot days, studio shoot days?

(c) What was the average value of shoot days covering wages, consumables and equipmentusage cost?

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TVC Productions2004/05

Number ofShoot Days

Format Spend

Film16/35

Video Digital Animated Value of ShootDays Covering

Wages,Consumables

and EquipmentUsage

Location Costs Catering Costs Post Production Other Costs Total Spend

1. Location only

……………………..

2. Studio only

……………………..

3. Combination

…………………….

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4.2 What was the location for shoots and post production?

Location of Shoot Location of Post Production

Number Location Number Location

4.3 Were there any other additional services used or flow on economic benefits from TVCproduction in 2004/05?

Service/Flow On Value

___________________________________________ ____________________________

___________________________________________ ____________________________

___________________________________________ ____________________________

4.4 What types of companies are the main supply chain linkages in TVC production – the typesof services and companies you use?

Type of Service Company

____________________________________ ___________________________________

____________________________________ ___________________________________

____________________________________ ___________________________________

4.5 What are the main capabilities within Brisbane and South East Queensland for TVCproduction?

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________

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4.6 (a) What are the main competitive advantages or strengths that Brisbane and South EastQueensland offer compared with other destinations for TVC production activities?

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________

(b) How can these competitive advantages be further strengthened?

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________

4.7 (a) Are there any capability, technology gaps or weaknesses in the TVC production sector inBrisbane and South East Queensland?

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________

(b) How can these gaps be overcome?

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________

4.8 What are the main challenges facing the TVC production sector in Brisbane and South EastQueensland in the next 3 years?

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________

4.9 (a) What are the main opportunities to increase TVC production activity in Brisbane andSouth East Queensland?

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________

(b) What assistance or infrastructure is needed to support this growth?

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________

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4.10 What are the main priorities for the development of the TVC production sector in South EastQueensland?

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________

5. COMPANY PROFILE INFORMATION

5.1 Finally, I would like to ask a few questions about employment and sales. This information willbe kept confidential and only aggregated information will be used in the study.

How many employees did your organisation employ in 2004/05 financial year?

Full time employees __________

Part time employees __________

Casual employees __________

5.2 Which of these turnover categories applied to your organisation for the 2004/05 financialyear?

Less than $50,000 1Between $50,000 - $100,000 2Between $100,000 - $250,000 3Between $250,000 - $500,000 4Between $500,000 - $1 million 5Between $1 million - $2 million 6Between $2 million - $5 million 7Between $5 million - $10 million 8Between $10 million - $20 million 9Greater than $20 million 10

5.3 How do you expect your employment levels will change over the next 3 years?

Will grow by approximately _________% 1

Will remain largely unchanged 2

Will fall by approximately _________% 3

Unable to make prediction at present 4

5.4 How will your business turnover grow over the next 3 years?

Will grow by approximately _________% 1

Will remain largely unchanged 2

Will fall by approximately _________% 3

Unable to make prediction at present 4

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5.5 Could I confirm the correct contact details for your organisation to be provided in a contact listto Brisbane City Council? This contact list will cover your contact details and the main TVCproduction activities for your organisation.

No 2Yes 1

Name: ____________________________________________________________________

Title: _____________________________________________________________________

Organisation: _______________________________________________________________

Street address: _____________________________________________________________

Postal address: _____________________________________________________________

Phone: _____________________ Email: ____________________________________

Fax: _______________________ Website: __________________________________

Thank you for your help with this important study.

Deborah Wilson Consulting Services complies with the Privacy Act and no individualinformation will be kept once the survey is completed. Information will only be passed on toBrisbane City Council based on individual requests for this information to be passed on forfollow up.

tvc production economic impact study sept 2005[1]

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