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ECONOMIC IMPACT OF TELEVISION COMMERCIAL

PRODUCTION IN BRISBANE AND SOUTH EAST


QUEENSLAND
ECONOMIC IMPACT OF TELEVISION COMMERCIAL PRODUCTION IN
BRISBANE 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......................................................................................... 8
2.1 Project Aims........................................................................................................... 8
2.2 Project Activities ................................................................................................ 9

3. SIZE AND VALUE OF THE TVC PRODUCTION INDUSTRY IN BRISBANE


AND SOUTH EAST QUEENSLAND ............................................................... 10
3.1 Organisation Information .................................................................................. 10
3.2 Length of Time Operating in the TVC Industry ................................................. 11
3.3 Employment in the TVC Production Industry .................................................... 12
3.4 Value of the TVC Production Industry in Brisbane and South East
Queensland ...................................................................................................... 13
3.5 Economic Value of TVC Production ................................................................. 13
3.6 Characteristics of Shoots .................................................................................. 15

4. TVC PRODUCTION ACTIVITIES AND KEY MARKETS ................................. 17


4.1 Main TVC Production Activities ........................................................................ 17
4.2 Turnover from TVC Production. ........................................................................ 19
4.3 Mix of Queensland, Interstate and International Clients ................................... 19
4.4 Trends Influencing Exports in the Next Five Years ........................................... 21

5. TRENDS AFFECTING OPPORTUNITIES FOR TVC PRODUCTION .............. 23


5.1 Significant Changes in Demand in the Last Two Years .................................... 23
5.2 Trends in the Next Three Years ....................................................................... 24

6. CAPABILITIES AND COMPETITIVE ADVANTAGES ..................................... 27


6.1 Main Supply Chain Links in TVC Production .................................................... 27
6.2 Brisbane and South East Queensland’s Main Capabilities for TVC
Production ........................................................................................................ 28
6.3 Brisbane and South East Queensland’s Main Competitive Advantages ........... 29
6.4 Strengthening Competitive Advantages ........................................................... 32
6.5 Capability Gaps and Strategies to Address these Gaps.................................... 34

7. CHALLENGES, OPPORTUNITIES AND PRIORITIES .................................... 38


7.1 Challenges in the Next Three Years ................................................................. 38
7.2 Main Opportunities for the TVC Production Industry ........................................ 40
7.3 Assistance Required to Support Growth ........................................................... 42
7.4 Main Priorities for the TVC Production Industry in Brisbane and South
East Queensland ............................................................................................. 43

APPENDIX 1 - SURVEY QUESTIONNAIRE


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 the


economic impact of TVC production in Brisbane and South
East Queensland. The study identified:

• The value of TVC production in Brisbane and South


East Queensland in 2004/05.

• The source of TVC production work.

• The type of TVC production work.

• Recent trends and expected trends in the next 3


years.

• Supply chain linkages.

• Opportunities and priorities to support growth in the


TVC sector in Brisbane and South East Queensland.

Value of TVC Based on survey results and consultation with industry


Production in representatives, the value of industry turnover for TVC
Brisbane and South production was $68.7 million in 2004/05.
East Queensland
When the value added multiplier for cultural and recreational
services is applied, there is an additional $75.6 million in flow
on economic benefits to other industry sectors. When
combined, this totals $144.3 million in direct and indirect
revenue from TVC production in Brisbane and South East
Queensland in 2004/05.

Direct industry revenue in 2004/05 is made up of $49.8


million in the value of shoots and $18.9 million in post
production revenue.

Economic Impact of Television Commercial Production in Brisbane and South East


Queensland 1
Businesses surveyed expect future growth with 70.0% of
companies expecting growth in turnover in the next 3 years
of an average of 33.1%. Employment growth will be lower
with only 30.0% of companies expecting employment levels
to 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 in


Brisbane and South East Queensland covering 446 shoot
days.

Most (79.6%) were location shoots, 12.4% were studio


shoots and 8.0% were combination location and studio
shoots.

Shoot sites covered the CBD area, Brisbane suburbs, Bay


islands and Moreton Bay, the Gold Coast, Beaudesert,
Toowoomba and Sunshine Coast.

Companies Industry representatives assisted in identifying the following


Involved in TVC profile of companies undertaking TVC production activities in
Production South East Queensland:
Activities
• Twelve Brisbane based TVC production houses.

• Forty-one interstate production companies that


undertake TVC productions in Queensland. Twenty-
eight of these companies undertook 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 of food suppliers.

• Nineteen companies supplying a wide range of


products and services including film, camera
equipment, post production, travel services, two way
radios and traffic management services.

This gives a total of 53 companies operating in Queensland


in the TVC production industry. Nearly two thirds of
companies surveyed (65.0%) had been operating for 10 or
more years. There is a depth of experience and capabilities
in the Queensland industry.

Economic Impact of Television Commercial Production in Brisbane and South East


Queensland 2
Origin of Sales Based on survey data, 55.4% of TVC production sales were
from Queensland clients in 2004/05, 27.4% from interstate
clients and 16.3% from international clients.

Three quarters of companies surveyed (75.0%) had


international clients. The main export markets were Asia, the
USA, Europe and the Pacific.

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

• The value of the Australian dollar.

• The level of marketing to international markets to


promote Brisbane and South East Queensland as a
destination for TVC production.

• Providing a welcoming environment for international


clients. This includes direct flights to Brisbane and
making it as easy as possible for international clients
to work in South East Queensland.

• Maintaining the region’s competitive advantages.

Trends Affecting In the last 2 years, the main trends that have affected the
the TVC Production TVC production sector in Brisbane and South East
Sector Queensland included the following:

• While some companies have experienced growth in


the last 2 years, others have experienced a downturn
in demand due to decreasing advertising budgets and
increased competition from New Zealand and South
Africa.

• Increasing pressure on pricing and increased


competition within the industry.

• Growth in the capabilities of the TVC production


sector in Brisbane and South East Queensland.

• Reduced demand for mid range equipment – demand


has increased for low budget cameras and very high
budget camera. There is increased use of HDV for
TVC’s.

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

• Increased use of digital media.

• Shrinking advertising budgets.

Economic Impact of Television Commercial Production in Brisbane and South East


Queensland 3
• 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 and


international decision makers to secure growth in TVC
production work for Brisbane and South East
Queensland.

• Increasing population growth in South East


Queensland which may adversely affect cost
structures and access to locations. High population
density and heavy traffic makes Sydney a less
attractive location for TVC production.

Competitive Brisbane and South East Queensland have a number of very


Advantages important competitive advantages that attract TVC
production work to the region:

• Good weather conditions and the ability to shoot for


10 hours a day compared with 8 hours a day in
southern states.

• South East Queensland’s warmer weather, pleasant


environment and access to 5 star accommodation and
restaurants makes working in the region a pleasant
experience.

• A welcoming environment and support from Brisbane


City Council and the State Government for film
production. There is less red tape and better
cooperation.

• A strongly supportive environment for film and


considerable film infrastructure.

• A wide range of varied, high quality locations within a


short distance. These locations are easy to access –
there is less traffic compared with Sydney.

It is much easier to obtain street closures in Brisbane


and South East Queensland compared with southern
capitals.

• Excellent quality skills and technical services in South


East Queensland covering production and post
production.

Economic Impact of Television Commercial Production in Brisbane and South East


Queensland 4
• Lower wages and costs compared with interstate
locations. Brisbane and South East Queensland can
be 10% to 30% less expensive than southern capitals.

Gaps and The companies surveyed identified the following weaknesses


Weaknesses and gaps in the TVC production sector:

• A strong Australian dollar that makes TVC production


in Australia less attractive to international clients.

• Restrictions and permit access problems that make it


difficult to undertake TVC shoots in Brisbane and
South East Queensland.

• Infrastructure – the lack of dedicated studio facilities


for TVC production in South East Queensland.

• The lack of an online, searchable database of


locations available in South East Queensland for TVC
shoots.

• The need for dedicated marketing of Brisbane and


South East Queensland as a location for TVC
production.

• The State Government has a focus on long form


production with no support or marketing 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 covers greater support for using
local companies and crews for Brisbane City Council
advertising production.

• The need for training and practical experience to


develop skills for long form and TVC production.

• Some difficulty accessing experienced crew for TVC


production.

Opportunities and The TVC sector plays a vital role as a training ground for
Priorities to long form skills as well as being an important income source
Support Growth for production and post production companies, suppliers and
freelance staff.

A successful TVC sector in South East Queensland will have


significant flow on benefits to long form production and will
retain key capabilities in the region.

Economic Impact of Television Commercial Production in Brisbane and South East


Queensland 5
The study identified a number of strategies and priorities that
will support growth and sustainability for the TVC production
industry in Brisbane and South East Queensland:

• A full time position within Brisbane City Council to


assist with permits and other requirements and
support marketing initiatives.

• Establish a TVC Working Group to advise on and


assist in implementing marketing and other initiatives
to support industry growth at a State and Local
Government level.

• Development of marketing material to support


marketing by individual companies. This includes a
show reel of TVC’s made in South East Queensland,
testimonials from current interstate and international
clients, cost comparison data (Brisbane versus other
locations) and information on the support and
assistance available.

• An ongoing program to reduce red tape and


streamline the approval process for TVC productions
across the South East Queensland region. This
includes evaluating best practice approaches used in
other cities with substantial TVC sectors.

• A targeted campaign aimed at creative directors,


agency decision makers and marketing managers
in Australia. This includes events and promotions at
relevant advertising and marketing events and
conferences. It may also include sponsored visits to
South East Queensland locations.

• Encourage a ‘repeat business’ marketing strategy


that continues to attract customers back to South East
Queensland. Brisbane City Council can work with
industry on requirements for this program.

• Establish an online, searchable database of TVC


locations in South East Queensland.

• Actively target international markets to attract TVC


production to South East Queensland. Support
international marketing initiatives with relevant
material and assistance from Queensland
Government Trade and Investment offices in these
target locations.

Economic Impact of Television Commercial Production in Brisbane and South East


Queensland 6
• Infrastructure – revisiting feasibility assessments to
determine whether it is possible to establish
dedicated studios in Brisbane to support TVC and
drama production.

• State and Local Governments to work with the film


industry to raise awareness of South East
Queensland as a production destination. Support
lobbying to increase direct flights to Brisbane and
make it as easy as possible for international
clients to bring projects to South East Queensland.

• Develop a skills and training plan for the TVC


production sector to maintain high levels of quality and
professionalism within the sector. Strategies that allow
vocational education and training competencies to be
accredited across a range of projects and tasks will
deliver lasting benefits for the TVC and long form
sectors.

• Communicate the value and importance of the TVC


production sector to Government (Local and State)
and to the wider community in South East
Queensland. It is important to secure ongoing support
for industry activities including location use and road
closures.

Economic Impact of Television Commercial Production in Brisbane and South East


Queensland 7
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 commercial


production in Brisbane and South East Queensland were to:

• Identify the source of television commercial (TVC) production in


Brisbane and South East Queensland.

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

• Identify the type of production (location shoot, studio shoot, post


production 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 of


shoot 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 East


Queensland’s capabilities, locations, infrastructure and film and
television industry.

• Identify the competitive advantages and possible opportunities for


growth of the Brisbane based film and television industry.

Economic Impact of Television Commercial Production in Brisbane and South East


Queensland 8
2.2 Project Activities

A total of 21 interviews were conducted with TVC directors, production


companies, production managers, producers, location companies, post
production companies, film suppliers, equipment suppliers, set designers and
builders, booking agents, specialist staff supply companies and caterers
working with the TVC production sector in South East Queensland.

Appendix 1 of this report contains a copy of the questionnaire used to obtain


information from businesses in the TVC production sector.

Economic Impact of Television Commercial Production in Brisbane and South East


Queensland 9
3. SIZE AND VALUE OF THE TVC PRODUCTION INDUSTRY IN BRISBANE
AND SOUTH EAST QUEENSLAND

3. Size and Value of the TVC Production Industry in


Brisbane 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 their
base 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 East


Queensland

Survey interviews with industry representative identified 53 Queensland


companies and 41 interstate companies involved in TVC production activities
in South East Queensland. This covered:

• Twelve Brisbane based TVC production houses.

• Forty-one interstate production companies that undertake TVC


productions in Queensland. Twenty-eight of these companies
undertook one or two TVC productions in Queensland in 2004/05.

Economic Impact of Television Commercial Production in Brisbane and South East


Queensland 10
• 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 of


food suppliers.

• Nineteen companies supplying a wide range of products and services


including film, camera equipment, post production, travel services, two
way 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 been
operating 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.

Economic Impact of Television Commercial Production in Brisbane and South East


Queensland 11
Chart 3.2.1
Length of Time in Business
Years
40

30
30

25

20

15 15

10
10

0
5

14

19

29
9

e
or
an

to

to

to

to

m
th

10

15

20

or
ss

30
Le

Results show that the majority of companies in the industry (65.0%) had been
operating for 10 or more years. Companies in the industry are generally well
established and have a wealth of experience and capabilities in TVC
production.

3.3 Employment in the TVC Production Industry

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


covering:

• 182 full time employees.

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

The numbers of companies in different employment categories included the


following:

• 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%).

Economic Impact of Television Commercial Production in Brisbane and South East


Queensland 12
Expected Changes in Employment

A third of companies surveyed expect growth with 30.0% of companies


expecting their employment to increase by an average 50.0% in the next three
years. Three fifths of companies surveyed (60.0%) expected employment to
remain largely unchanged. Two companies (10.0%) expected their
employment 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 East
Queensland

Company Turnover

Eighteen companies surveyed reported an estimated turnover of $32.5 million


in 2004/05 in the TVC production sector.

The number of companies in the Brisbane survey sample by turnover


category 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, the
majority of companies are small to medium sized businesses. The industry
has a number of experienced directors, production managers and producers
that participate in or form crews as required for TVC productions.

Growth in Turnover

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 remain
largely unchanged.

One company (5.0%) was unable to make a prediction regarding turnover


growth in the next 3 years and one company expected turnover to fall, but
could 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 East
Queensland in 2004/05. Between 80% and 90% of these shoots were
undertaken by production companies and freelancers and 10% to 20% were
undertaken directly by advertising agencies.

Economic Impact of Television Commercial Production in Brisbane and South East


Queensland 13
Based on industry estimates, an average value per shoot is $200,000 for a 2
day shoot. This gives an estimate of the value of production shoots of $49.8
million.

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 TVC
production sector.

Chart 3.5.1
Value of TVC Production in 2004/05
$million
150 144.3

120

90
75.6
68.7

60 49.8

30
18.9

e
n

05

04 VC
ts

tio

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oo

4/

5
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20 f T
uc

/0
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od

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of

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pr

ow
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lu

t
os

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Fl
al
Va

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od m
of

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pr no
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To

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

Information on the value of shoot days varies from $80,000 to $100,000 per
day on average. If a day value of $100,000 is used on average, this is
equivalent to $44.6 million as the overall estimate for 446 shoot days in
2004/05.

As some TVC production activity may not have been identified in the survey,
the high estimate has been used for TVC production value in this report. This
estimate has been confirmed with key industry stakeholders and is regarded
as a reliable estimate of the value of production work undertaken in South
East Queensland in 2004/05.

The value estimate for shoots covers all production activities including:

• Staff costs.

• Equipment hire costs.

Economic Impact of Television Commercial Production in Brisbane and South East


Queensland 14
• 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 $18.9
million 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 million


based on the value added multiplier for cultural and recreational services
1996-97.

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

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

Value of Selected Activities

Based on survey data collected, the value of a number of component sectors


can 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 in


2004/05.

• 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.

Economic Impact of Television Commercial Production in Brisbane and South East


Queensland 15
• 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 and


Paddington.

• 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 the


Whitsunday region. Some companies also shot TVC productions interstate
and undertook post production in Brisbane.

Format Used

While it was difficult for many participants to provide accurate data on the mix
of film, video, digital and animated, most production companies reported using
35mm film. Companies also used 16mm, video, digital and some animation.

Economic Impact of Television Commercial Production in Brisbane and South East


Queensland 16
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 different


TVC production activities as well as other activities undertaken by the
company.

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

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


Activities

ACTIVITY AVERAGE
PERCENTAGE 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 TVC 5.0


production

• 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

Economic Impact of Television Commercial Production in Brisbane and South East


Queensland 17
ACTIVITY AVERAGE
PERCENTAGE OF
SALES (%)

• Feature films 0.5

• Music videos 0.5

The profile of activities reported by companies surveyed reflects the mix of


TVC production activities.

Results also show that companies involved in the TVC production sector
provide 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 these


items 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.

Economic Impact of Television Commercial Production in Brisbane and South East


Queensland 18
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 in


2004/05 from TVC production activity.

Chart 4.2.1 gives a profile of the number of companies by percentage of


turnover from TVC production activities.

Chart 4.2.1
Number of Firms By Percentage of Turnover from TVC
Production, 2004/05
Number of firms
10

8
8

4
4
3

2 2
2

0
%

0%
25

50

75

90

10
to

to

to

to

to
0%

%
26

51

76

91

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 for


TVC production activities. This is a significant finding and confirms that
Brisbane is successful in attracting business from international clients.

Companies surveyed reported 1.0% to 50.0% of TVC production sales to


international clients.

Economic Impact of Television Commercial Production in Brisbane and South East


Queensland 19
Those companies with international clients reported sales to various
international 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.

Economic Impact of Television Commercial Production in Brisbane and South East


Queensland 20
4.4 Trends Influencing Exports in the Next Five Years

Companies identified a range of trends and opportunities that will influence


the level of export of TVC services in the next five years. These trends
included the following:

Costs

• The value of the Australian dollar.

Convenient Access

• The opportunities to serve markets close by. Tokyo is a major


international market for TVC production.

• Access to direct flights into Brisbane. It is important to make it as easy


as possible for international clients to choose Brisbane as a location for
TVC production.

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

Welcoming Environment

• Providing a welcoming environment for international clients visiting


Brisbane 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 international


markets to encourage clients to consider Brisbane as a TVC production
location. At present, there are a number of production companies that
are actively pursuing international clients.

• Brisbane is also developing an increasing number of satisfied


international clients who have used the city for TVC production.
Companies have found that there is a very positive reaction to
Brisbane as a shoot location and this generates repeat business.

• Some reported an increase in activity levels in South East Queensland


and highlighted the need to more actively pursue international clients.
The more exposure international clients have to South East
Queensland as a location for shooting, the more work this will
generate.

Economic Impact of Television Commercial Production in Brisbane and South East


Queensland 21
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 level
capabilities in TVC production. As the message on capabilities is
communicated effectively to international markets, demand is expected
to increase.

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

• Accessible locations in South East Queensland and turnaround time on


permits are key aspects. It needs to continue to be easier, cheaper
and quicker to get permits for shoots in South East Queensland.

• The weather in South East Queensland is favourable – allowing shoots


to be undertaken without interference from weather.

• Use of the Internet to support communications and electronic transfer


of materials will support increased sales to international clients.

• South East Queensland offers a wide range of high quality locations


close together and close to five star accommodation and restaurants.
While price has been a factor in attracting international customers to
start with, the quality of the locations and the capabilities are now
attracting repeat business from these customers, particularly
Americans.

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 is
having an impact on demand from international clients.

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

Economic Impact of Television Commercial Production in Brisbane and South East


Queensland 22
5. TRENDS AFFECTING OPPORTUNITIES FOR TVC PRODUCTION

5. Trends Affecting Opportunities for TVC Production


covers:
• 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 TVC


production services in the last 2 years. While some companies reported
decreasing demand and greater competition from New Zealand and South
Africa, other companies reported growth in demand.

Companies reported cost pressures and some shifts in approaches such as


less demand for mid range camera equipment – there is demand for high end
equipment and low end equipment.

Trends in the last 2 years included:

Growth

Some companies have had increased demand through increased market


share, 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 winter
months.

The number of crew employed has increased significantly.

The TVC industry in Queensland is very, very successful. ‘The amount of


work 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 supplier


companies, e.g. caterers, to branch out to service other industries.

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

Economic Impact of Television Commercial Production in Brisbane and South East


Queensland 23
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 crew


fees 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 on
the price’.

Change of Focus

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

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

There is demand for low budget cameras or very high budget cameras
such as super 16. The rest use HDV or very low quality broadcast
cameras. The demand for middle range equipment seems to have
disappeared.

5.2 Trends in the Next 3 Years

An increased use of digital media, shrinking advertising budgets and


competition from other advertising media will all have an impact on demand
for TVC production services in the future. Marketing to international customers
and targeting head office decision makers in national markets are important
priorities for the next 3 years.

While Brisbane and South East Queensland have some significant


advantages, the strong population growth in the region could have a negative
impact on opportunities in the future.

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


years included:

Growth

TVC production will probably increase as it is becoming more difficult


and costly to shoot in Sydney.

Economic Impact of Television Commercial Production in Brisbane and South East


Queensland 24
Companies should respond by opening studios in Brisbane and working
with Government (State and Local) regulation and licensing to ensure
that the problems with red tape that occur in Sydney do not happen here.
Companies should also assist by educating the public on the importance
of 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 TVC


production.

Less Demand

Advertising budgets are shrinking – there are many competing mediums


for advertising and television is suffering (3).

Production companies will do less TVC production and more TV show


production.

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

Marketing and Building the Market

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

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

Companies have affiliations interstate and internationally and have


advertising production done in other locations – there is a ‘head office
syndrome’ which means that Brisbane misses out on the work.
Companies need to market themselves and their capabilities to attract
the work to Brisbane.

Virgin Blue’s head office is in Queensland but their TVC production is


done 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 be


stronger 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 perhaps
offer super 16 at more attractive rates.

Economic Impact of Television Commercial Production in Brisbane and South East


Queensland 25
The increasing value of the Australian dollar is putting additional cost
pressures 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 cost


effective and the quality is beginning to be comparable with film.
Companies need to encourage TVC companies to stay with film to
support demand for film productions.

Economic Impact of Television Commercial Production in Brisbane and South East


Queensland 26
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 Digital


Sound 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 local


suppliers.

Economic Impact of Television Commercial Production in Brisbane and South East


Queensland 27
Travel and Accommodation

Travel – travel companies, Show Travel, Screen & Stage, Qantas and
Virgin Blue.

Accommodation – various hotels.

Car rental – Avis, Budget.

Transport – Ozfilm, Star Wagons, Arana Transport, Couriers Please and


other 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 a


wide range of local suppliers to meet the requirements on individual TVC
shoots.

6.2 Brisbane and South East Queensland’s Main Capabilities for TVC
Production

Brisbane and South East Queensland have a range of capabilities that


contribute 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 day
rather than 8 hours a day in Sydney and Melbourne (3).

Welcoming Environment

Brisbane City Council makes it easy to shoot in Brisbane and South East
Queensland (3).

Queensland receives more positive comments from clients than Sydney


or Melbourne.

Economic Impact of Television Commercial Production in Brisbane and South East


Queensland 28
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 the
main advantages of Brisbane and South East Queensland for TVC production.

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

The main competitive advantages mentioned included the following:

Cost Advantages

Brisbane and South East Queensland is more cost effective. Sydney is


15% to 20% more expensive compared with Queensland. Some
believed that Brisbane is 30% less expensive or more cost effective than
undertaking a shoot in southern centres (6 companies).

Economic Impact of Television Commercial Production in Brisbane and South East


Queensland 29
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 diverse
range of locations. Crews can undertake a 10 hour day in South East
Queensland as opposed to an 8 hour day in southern locations such as
Sydney (7 companies).

The weather is warmer which means people are happier. Crews can
shoot 80% of the year – a much higher proportion of the time than in
other locations.

High Quality, Welcoming Environment

Brisbane offers a film friendly environment. In Sydney, there is a


cooperative attitude to filming large feature films but if there is a
requirement to close a road for a TVC, there is less support than there is
in Queensland (3 companies).

Transportation to locations is easier in South East Queensland


compared with Sydney. Traffic is much worse in Sydney (2 companies).

South East Queensland offers significant infrastructure – ‘Brisbane is not


Hicksville’. There are good hotels and transport available in Brisbane
and South East Queensland.

Brisbane and South East Queensland offer a wide range of five star
accommodation and restaurants.

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

There is a greater level of support from the local community and councils
for filming in South East Queensland – there is a very helpful and
welcoming environment.

There is less Government red tape. However, some felt that it was
getting harder. It is important that Government support is maintained for
TVC production.

Brisbane has one council authority compared with several different


councils in Sydney. There are more rules and regulations affecting
filming in Sydney compared with Brisbane.

Economic Impact of Television Commercial Production in Brisbane and South East


Queensland 30
Brisbane and South East Queensland can offer all of the benefits without
the bureaucracy that affects productions in Melbourne and Sydney. The
State Government, through the Pacific Film and Television Commission
(PFTC) and the Brisbane City Council provide a very strong and positive
environment for long form film production.

The State Government promotes South East Queensland as a location


for TVC’s.

There is much less red tape involved in filming TVC’s in Brisbane


compared with Sydney and Melbourne.

South East Queensland is a positive location for TVC production.

International clients including American companies, have come originally


because of the cheaper dollar, but now come back to South East
Queensland because it is a great location for shooting TVC’s.

Police and fire services need to be thanked for the very effective job they
do 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 a


result, 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 or
better than staff available in Sydney and Melbourne.

There are a lot of talented people in the labour pool in Brisbane and
South East Queensland.

Locations

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

It is easy to undertake filming in South East Queensland. It is also easy


to access different locations.

Economic Impact of Television Commercial Production in Brisbane and South East


Queensland 31
Technical Capabilities

Good post production capabilities.

South East Queensland can offer very high quality post production
facilities.

Good quality film infrastructure is in South East Queensland.

6.4 Strengthening Competitive Advantages

Companies believed that Brisbane and South East Queensland’s competitive


advantages can be further strengthened in the following ways:

Marketing

• Promoting South East Queensland as a TVC production base


nationally and internationally. There is already very active promotion of
South East Queensland as a film venue but there is little targeted
promotion of Brisbane and South East Queensland as a TVC
destination.

• Marketing directly to production companies.

• Developing case studies of companies that have shot TVC’s in South


East Queensland. It is important to highlight that these shoots did not
experience any problems, came in on budget, had access to good
quality crews and technicians and had a good time undertaking the
shoot.

• Brisbane and South East Queensland ‘is the best kept secret’ on TVC
production. It is important to make the market aware of the advantages
through promotion as well as word of mouth recommendation. The
TVC production sector is closely networked. Using the network and
recommending Brisbane and South East Queensland will have some
major benefits.

Additional clients are starting to come to South East Queensland


because the shoots are more cost effective.

• There also needs to be greater promotion of Queensland as a location


for TVC’s. Businesses at the lower end of the supply chain that will
benefit from this increased activity, e.g. suppliers, art departments,
caterers, etc. Promotion needs to come from the top of the chain. At
present there is no body that promotes TVC production in Queensland.
PFTC only promotes film activities.

Economic Impact of Television Commercial Production in Brisbane and South East


Queensland 32
TVC’s generate ‘bread and butter’ income for the industry that also
serves the film industry. The TVC sector gives people jobs and
experience. All production companies need TVC activity to survive.
Up until this time, TVC productions have been regarded as a ‘second
class’ or less important category of work. There is a need to change
this 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 to
be strengthened.

• It is important for production companies to continue to market to


Sydney clients and international clients. It is important to support the
marketing activities of these companies.

Cost Advantage

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

• Targeting clients in Sydney to raise awareness of the opportunities for


TVC shoots in South East Queensland. It is important to continue to
maintain the cost effectiveness of Brisbane and South East
Queensland as a location. If this changes, there will be less
competitive advantages offered by Brisbane for TVC production.

Locations

• There is a need to create more awareness of the diverse locations


available in South East Queensland – clients will travel to areas where
good locations are available.

• Making locations accessible for TVC production.

Government Support

• There is a perception that TVC production does not need any


assistance. There would be major benefits from providing tax breaks
to attract TVC production work to Brisbane and South East
Queensland.

• Making it easy and inexpensive to arrange road closures. Reducing


the costs and reducing red tape will attract more TVC production work
to South East Queensland.

A full time position at Brisbane City Council promoting Brisbane and


South East Queensland as a TVC production location should be
considered. A part time liaison officer at Brisbane City Council is not
enough – this needs to be a full time position.
Economic Impact of Television Commercial Production in Brisbane and South East
Queensland 33
A full time film liaison officer could assist in fast tracking permits if
necessary. Sometimes, production companies only get 2 to 3 days
notice regarding a job. Brisbane should also examine the Gold Coast
fee structure approach – making it less expensive to undertake shoots
in Brisbane. Council could also liaise with the Queensland Police
Service to assist in reducing fees.

• Brisbane City Council needs to give every assistance to production


companies to ensure that there is good access to locations. Reducing
the red tape associated with approvals and processing approvals
quickly will deliver major benefits.

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

Facilities

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

• There is a need to make existing studios in South East Queensland


more 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 well


as any weaknesses in the TVC production sector in Brisbane and strategies
to overcome these problems.

The key gaps or weaknesses included:

• Exchange rate – a strong Australian dollar that makes TVC production


in Australia less attractive to international clients.

• Accessibility – restrictions and permit access problems – making it


difficult to undertake TVC shoots in Brisbane and South East
Queensland.

• The lack of dedicated studio facilities for TVC production in South East
Queensland. Existing film studios are too expensive for TVC
productions. Although there is support for a new studio, there are
concerns that the new venture would not be financially viable. The
studio would need to secure television work as well as TVC production
work to be viable. There is no proponent interested in taking this
project forward.

• The need to establish an online, searchable database of locations


available in South East Queensland for TVC shoots.
Economic Impact of Television Commercial Production in Brisbane and South East
Queensland 34
• The need for dedicated marketing of Brisbane and South East
Queensland 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 covers
greater support for using local companies and crews for Brisbane City
Council 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 GAPS STRATEGIES TO ADDRESS GAPS


AND WEAKNESSES

COST COMPETITIVENESS

Australia is losing a lot of work to South Some believe there is limited value in
Africa because of the value of the promoting capabilities international if the
Australian dollar. The currency Australian dollar does not improve relative
difference results in cheaper production to other currencies. Decisions are very
costs in South Africa. The South African much made on cost factors for
Government is also very supportive in international customers.
attracting TVC production to South Africa.
Film incentives to attract TVC production.

LOCATION ISSUES

There has been poor weather in South It is important to provide access to city
East Queensland this year and this has locations and encourage a supportive
affected production. environment for TVC production.

Parking restrictions in the city can make Streamline permits issuing to meet market
TVC productions more difficult. requirements.

Some residents are becoming less Awareness and education campaign is


accepting of TVC shoots. required on the benefits and impact of
TVC production.

A company was not able to secure Ensure that there is a welcoming


permission to shoot on Moreton Island. environment to retain shoots in South East
This South East Queensland production Queensland by Government working with
was lost to Newcastle. industry when reviewing and developing
compliance and licensing policy.

Brisbane and South East Queensland Developing a very proactive, welcoming


have a range of locations and there is an environment for TVC production in South
effort to provide a welcoming environment. East Queensland (industry, Government,
However, more could be done to community and business).
streamline the process, reduce red tape
and costs to attract more business.

Economic Impact of Television Commercial Production in Brisbane and South East


Queensland 35
CAPABILITY AND TECHNOLOGY GAPS STRATEGIES TO ADDRESS GAPS
AND WEAKNESSES

There is no online searchable location There is an opportunity for a private


database for South East Queensland. company to establish a database of
Although PFTC has information about locations.
locations, this is not in a searchable online
form nor provided to TVC clients.

FACILITIES

There is no studio for TVC production in Some suggested establishing a studio that
the Brisbane metropolitan area. There are will address TVC production requirements.
smaller studios, but no commercial studio
space that directly services Brisbane. Some believe there is demand for a
studio. However, businesses are used to
Some companies have used the RNA paying $1,500 a day ‘for a shed’ and
showgrounds for shoots. However, these would not be prepared to pay a substantial
facilities are not sound proof and not increase. The venture would not work if
available for certain times of the year. companies were charged $4,000 per day.

There is not enough studio space in Brisbane City Council and RNA could
Brisbane. Representations have been collaborate to establish a very attractive
made to the RNA about developing a studio facility. The location of the RNA is
studio at the John Reid Pavillion. central and there are buildings close by for
city scenes. There is also easy access to
Some were concerned that it would not be the train line and streets in Gregory
worthwhile to build a studio – the return on Terrace can be closed off for shoots.
investment would not be achieved. Any
new studio would need to serve TVC as Establishing a studio would bring in
well as drama requirements to be considerable revenue. A TVC studio could
financially viable. also be a tourist attraction. This venture
could be structured as a PPP.
Warner Roadshow Studios is not suitable
due to the high cost of accessing these This would offer employment and the
facilities. opportunity for film, media and animation
graduates from Griffith and QUT to
Sydney’s Fox Studio is not always undertake work experience.
available for TVC productions.
Although there is a demand for this facility,
it is important to develop a low cost
solution. A new facility which charges
unsustainable fees will not be supported
by industry.

MARKETING

Some felt that PFTC needs to be more A more proactive approach to working with
active in supporting TVC productions. the TVC sector in developing and
implementing a long term marketing
Some were concerned that there was a strategy.
more bureaucratic focus at State
Government rather than working
collaboratively with industry.

Economic Impact of Television Commercial Production in Brisbane and South East


Queensland 36
CAPABILITY AND TECHNOLOGY GAPS STRATEGIES TO ADDRESS GAPS
AND WEAKNESSES

SUPPORT FOR THE TVC INDUSTRY

Brisbane City’s recent campaign shoot for There is a need to support the local
Brisbane Marketing involved a local industry wherever possible in all areas of
advertising agency, but the decision was Government procurement.
used to select an interstate production
company and import a New Zealand
director and photographer. Although this
was facilitated through a local company, it
sent a very negative message to the TVC
production industry in Brisbane.

Brisbane City Council needs to appoint a There is a need for additional staff support
full time staff member for film liaison for film and TVC liaison at Brisbane City
activities. Council. Gold Coast City has 3 staff
undertaking this role.

Some companies were concerned that There is a need for a full time staff
Council may discontinue the film liaison member who is also available on call, 24
position. Companies stressed the need hours a day to assist with both TVC and
to have access to a person in Council to long form film requirements.
facilitate permits and other assistance.
Until Council permits are organised,
companies cannot proceed with
production activities.

STAFFING

On some shoots, directors have It is important to maintain a pool of skilled


experienced crew shortages. labour to support effective TVC production
in Brisbane and South East Queensland.

This is achieved through training, creation


of employment opportunities and
increasing levels of production.

Economic Impact of Television Commercial Production in Brisbane and South East


Queensland 37
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 production


sector 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 and
Brisbane currently offer are maintained. It is important to support the
TVC production sector and appreciate the flexibility that already exists
in the industry. It is important to have respect for the advantages that
have already been established.

• Rising costs will have an impact. The cost of film supply will increase.

• If the Australian dollar becomes too strong, a lot of work will go back to
Los Angeles – this will have a negative impact on Brisbane and South
East Queensland.

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

Advertising Trends

• Shrinking advertising budgets and a more competitive market as a


result of this pressure. Companies will need to find cheaper ways to
shoot ads. Companies will need to poach more from interstate
companies, but this is not a long term solution (3 companies).

• There are competitive pressures having an impact on the advertising


market. More advertising is being done in cinemas and online. This is
reducing the demand for commercial TVC production.

• The decreasing volume of Australian long form film and television


productions results in more competition for less work.

Economic Impact of Television Commercial Production in Brisbane and South East


Queensland 38
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 on


advertising budgets.

• Ensuring that filming done in South East Queensland uses Queensland


crews. Some of the time, interstate crews travel to Queensland to
shoot in South East Queensland.

Marketing

• The distance of Brisbane and South East Queensland from client


companies can be a disadvantage and discourage companies from
shooting in South East Queensland.

• Marketing South East Queensland as a preferred destination for TVC


production and keeping the work demand at a consistent level. A lot of
supply companies have expensive equipment and make large
repayments on this equipment. If there is a lack of consistent work,
there will be a loss of capabilities and capacity in the local market. If
this occurs, some equipment capabilities will be lost from the region
and 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 TVC


destination. More needs to be done to continue to attract work to
South East Queensland.

Technology Changes

• Technology changes and post production costs will have an impact on


the industry.

Government Support

• There can be a lack of coordination between State Government and


Local Government across the South East Queensland region. There is
a need for coordinated support for the TVC production industry.

Economic Impact of Television Commercial Production in Brisbane and South East


Queensland 39
7.2 Main Opportunities for the TVC Production Industry

Establishing a new studio in Brisbane to meet the needs of the TVC


production sector, proactive marketing, retaining Brisbane’s current
competitive advantages and increasing Government support for the industry
will generate future opportunities for growth.

The main opportunities to increase TVC production activity in Brisbane and


South East Queensland included the following:

Facilities/Infrastructure

• Establishing a studio in Brisbane that is suitable for TVC production. It


is also important to raise awareness in the marketplace of Brisbane as
a TVC production centre.

• Establishing a new studio would boost the capabilities in the region.


Three or four sound stages and some smaller studios for commercial
production would be beneficial.

Marketing

• Undertaking targeted marketing to interstate production managers.


This includes visits to South East Queensland to show clients and
production managers the range of facilities, capabilities and locations
available.

• The main opportunity is to attract international clients. Sydney and


Melbourne clients already choose South East Queensland as a
destination and are aware of the benefits. However, in tackling the
international 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 in


South East Queensland. Compared with the cost of shooting in
Sydney, Queensland offers a more cost effective solution.

• Getting the message about Brisbane and South East Queensland to


production companies as well as advertising agencies and creative
personnel. Agency and creative directors often make the decision on
location shoots. These decisions can be made very early in the
process. By the time production companies receive the brief, the
decision on location has already been made.

• It may be necessary to establish another body, other than PFTC, to


promote South East Queensland as a TVC destination in Asian
markets.

• Attracting international clients to South East Queensland to undertake


location TVC shoots.

Economic Impact of Television Commercial Production in Brisbane and South East


Queensland 40
• Having the right people marketing Queensland as a TVC production
destination.

• Raising the awareness of South East Queensland as a TVC production


centre.

• 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 and
demonstrate the quality of shoots undertaken. The company often
shows customers ads shot in South East Queensland and customers
are not aware that Brisbane has been used as the location.

• Generating a word of mouth recommendation campaign. It is important


to make people aware of the large companies that have shot ads in
South East Queensland.

• Growing the profile of Brisbane and South East Queensland in


international markets, particularly Tokyo. Department of State
Development Trade and Innovation has offices in a range of different
markets and could assist in raising the profile of Brisbane as a
destination.

• Having confidence in the local market and promoting the location to


customers.

• Most of the large advertising agencies are based in Sydney and


Melbourne and these cities are usually chosen for TVC shoots. There
is a need to attract agencies to Queensland. Branch offices for
agencies will generate flow on demand for TVC production.

Government Support

• State and Federal Government assistance is very important to ensure


that the TVC production sector survives and prospers in the future.

• Tax incentives would attract more TVC production work to Brisbane


and South East Queensland.

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

• Making it easy to do business for TVC productions in Brisbane and


South East Queensland.

Economic Impact of Television Commercial Production in Brisbane and South East


Queensland 41
7.3 Assistance Required to Support Growth

The assistance or infrastructure needed to support this growth in Brisbane


and South East Queensland includes the following:

Facilities/Infrastructure

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

• Some companies felt it was vital to establish a studio. The region is


missing out on work because of the lack of facilities. Graduates also
need practical experience and skills development to build sets and
participate in productions.

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


facility.

• Funding would be needed for any new studio. There are no


proponents willing to undertake this project at the present time. This
has been investigated before for long form, but nothing has happened
as a result of those assessments.

Government Support

• Employ a full time film liaison officer with experience in the industry at
Brisbane 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 infrastructure


requirements for the industry and the needs of different parties in the
supply chain for TVC production.

• Industry representatives believe more support for marketing and


promoting TVC production is required from PFTC. PFTC focuses on
the major revenue streams of drama and feature films. PFTC needs to
be more proactive. PFTC can make recommendations to customers
about capabilities in South East Queensland.

• Remove the red tape.

• South Bank can be a difficult location to use for shoots. There is a


policy of only allowing shoots for a certain number of days. This
includes reality shows and documentaries. When My Restaurant Rules
was being filmed it was basically impossible to use this location for
other shoots. This needs to be addressed.

Economic Impact of Television Commercial Production in Brisbane and South East


Queensland 42
Marketing

• Promote the industry in a united way. Although individual companies


need to undertake their own marketing, there is a need to provide
consolidated information on TVC production capabilities and market
this to interstate and international clients. A collaborative approach to
marketing 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 in
Sydney.

• There is a need for a few comprehensive training and education


programs to support the TVC production sector in Brisbane and South
East Queensland to maintain industry best practice and better
recognise short term employment cycles.

7.4 Main Priorities for the TVC Industry in Brisbane and South East
Queensland

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

Marketing

• More promotion of Brisbane and South East Queensland as a TVC


production centre is required. This includes targeting international
markets. This can be done at specific times of the year when it would
be most appealing to shoot in South East Queensland.

• It is important to continue a high standard of production. South East


Queensland offers excellent quality crew. It can be disappointing for
the local industry when companies bring their own southern crews.
Perhaps one strategy is to export Queensland crews to interstate
markets.

• Active promotion by PFTC on South East Queensland as a destination


for TVC production.

• International promotion of Australia as a TVC destination. In the


northern hemisphere winter, Brisbane and South East Queensland
would be an attractive location for northern hemisphere ads needing a
summer location.

• Attract international clients to undertake TVC production in South East


Queensland.

• Market South East Queensland as a TVC production destination.

Economic Impact of Television Commercial Production in Brisbane and South East


Queensland 43
• Raise the awareness of South East Queensland as a TVC production
destination amongst interstate and international markets.

• Publicising the advantages of South East Queensland as a TVC


production location.

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

• Increase the overall support and generate confidence in the local


market for TVC productions in South East Queensland.

• Target major advertising agencies and encourage these companies to


consider Brisbane and South East Queensland for TVC shoot
locations.

Government Assistance

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

• Increase Government assistance to encourage companies to shoot in


Brisbane and South East Queensland.

• Continue the support for the sector by State Government.

• Fast track the approvals and paperwork process to make Brisbane an


attractive destination.

• There is a need for education on film industry requirements within


Government. There needs to be greater dialogue between the industry
and Local and State Government. Brisbane and South East
Queensland need to be able to process applications for shoots with a 7
day turnaround time.

A key contact person within Council or State Government to assist with


production and planning requirements would be of great benefit.

Council and State Government agencies need to be aware of the need


for a fast turnaround time on approvals.

Skills Development and Staff Retention

• PFTC needs to reinstate the internship program. A lot of people


graduate from film school with no practical experience and do not know
the proper industry protocols. An internship program would allow new
graduates to develop practical industry skills and this will result in a
more professional industry. Correctly structured, the needs of an
internship training program could be met by TVC production.

Economic Impact of Television Commercial Production in Brisbane and South East


Queensland 44
• Build on the existing hub of industry activity. It is important to continue
to attract good projects to South East Queensland. Staff in production
and post production companies need a good flow of different projects –
building diversity and interest for staff. This is important for retaining
good quality people in South East Queensland. New and better
projects will help to build skills and capabilities and retain staff in the
industry.

• Improve education and training opportunities for TVC production in


South East Queensland.

Facilities/Infrastructure

• Investigate the opportunity to establish a studio in South East


Queensland to support TVC production.

Economic Impact of Television Commercial Production in Brisbane and South East


Queensland 45
APPENDIX 1 - SURVEY QUESTIONNAIRE
SCOPING THE ECONOMIC IMPACT OF THE TVC PRODUCTION SECTOR IN BRISBANE AND
SOUTH EAST QUEENSLAND

Draft No. 1
6 July 2005

INTRODUCTION

Good morning/afternoon, my name is …… from Deborah Wilson Consulting Services. We are


conducting a study for Brisbane City Council which will help to identify the size and value of the TVC
production industry in Brisbane and South East Queensland.

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

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

Name: ___________________________________________________________________________

Position: _________________________________________________________________________

Organisation: _____________________________________________________________________

Phone: ______________________________ Email: ____________________________________

Call back details: __________________________________________________________________

1. ORGANISATION INFORMATION

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

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

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

Private company 1
Public company 2
Sole trader 3
Partnership 4

1.3 How long has your organisation been operating?

______ years

1
2. ORGANISATION CAPABILITIES AND MARKETS

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

Product/Service Percentage of
total sales

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

______ %

2.3 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 export
TVC services to? (Record countries)

Region Countries Mentioned

Asia 1 ______________________________________________________

Africa 2 ______________________________________________________

Americas 3 ______________________________________________________

Europe 4 ______________________________________________________

Middle East 5 ______________________________________________________

The Pacific 6 ______________________________________________________

2
2.5 What trends and opportunities will influence your level of exporting TVC services in the next 5
years?

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________

3. TRENDS, CHALLENGES AND OPPORTUNITIES

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

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________

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

(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 company
undertook?

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

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

3
TVC Productions Number of Format Spend
2004/05 Shoot Days

Film Video Digital Animated Value of Shoot Location Costs Catering Costs Post Production Other Costs Total Spend
16/35 Days Covering
Wages,
Consumables
and Equipment
Usage

1. Location only

… … … … … … … … ..

2. Studio only

… … … … … … … … ..

3. Combination

…………………….

4
4.2 What was the location for shoots and post production?

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 TVC
production in 2004/05?

Service/Flow On Value

___________________________________________ ____________________________

___________________________________________ ____________________________

___________________________________________ ____________________________

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

Type of Service Company

____________________________________ ___________________________________

____________________________________ ___________________________________

____________________________________ ___________________________________

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

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________

5
4.6 (a) What are the main competitive advantages or strengths that Brisbane and South East
Queensland offer compared with other destinations for TVC production activities?

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________

(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 in
Brisbane 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 East
Queensland in the next 3 years?

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________

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

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________

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

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________

6
4.10 What are the main priorities for the development of the TVC production sector in South East
Queensland?

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________

5. COMPANY PROFILE INFORMATION

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

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

Full time employees __________

Part time employees __________

Casual employees __________

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

Less than $50,000 1


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

7
5.5 Could I confirm the correct contact details for your organisation to be provided in a contact list
to Brisbane City Council? This contact list will cover your contact details and the main TVC
production activities for your organisation.

No 2
Yes 1

Name: ____________________________________________________________________

Title: _____________________________________________________________________

Organisation: _______________________________________________________________

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 individual
information will be kept once the survey is completed. Information will only be passed on to
Brisbane City Council based on individual requests for this information to be passed on for
follow up.

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