18 DEC 2024

Australia spent $1.7 billion on drama production in 2023/2024

Screen Australia's new research program highlights a steadfast commitment to Australian storytelling, despite ongoing challenges such as reduced international investment, economic volatility, and the strain on children’s content production.

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Screen Australia has announced an expanded research program to empower the local screen industry and related partners. In addition to publishing drama and documentary trends, a new Screen Currency report will provide insights into the economic and cultural value of Australian screen and games production. A suite of audience research projects, the Viewfinder series, will also deepen our understanding of audience behaviour and attitudes, supporting the industry to respond to the evolving media landscape.

As a first component of this program, a new-look interactive version of the Screen Australia Drama Report was released today. The data showed a total of $1.7 billion spent on drama production in Australia, with $929 million dedicated to Australian stories. This marked a 29% total decline compared to last year, primarily due to a reduction in high-budget production activity across international TV and Australian theatrical features.

Global economic conditions continue to impact screen production, with disruption across distribution platforms, business models and audience shifts influencing the market. The past year also saw US industrial action and uncertainty around changes to the Location Offset incentive, which may have led to international projects being impacted during 2023/24.

Screen Australia CEO, Deirdre Brennan, said: “Expenditure of $1.7 billion on 169 Australian and international drama productions represents a solid result after a three-year peak driven by Australia’s status as a COVID-safe filming destination, streaming growth and a number of high-budget theatrical features.”

“The Drama Report is one of many resources providing insights into the opportunities and challenges facing the Australian screen sector. This year’s results confirm key trends in domestic activity, a contraction of free-to-air commercial TV drama and the increasing role of SVOD commissioning. Children’s content continues to face significant pressure and remains reliant on government support, so we’re working to broaden the opportunities for development of Australian kids IP. We will also explore the needs of feature filmmakers working in the $1-5 million budget range, dominant again in this year’s data,” added Brennan.

“We understand how competitive funding is, with Screen Australia supporting 27% of the direct funding applications received for scripted content in 2023/24. In an environment where international financing is also increasingly harder to source, we need to pull together as an industry to ensure the sustainability of the sector,” continued Brennan. “Despite these challenges, we’re optimistic about the future and confident that there will be an uplift in production in the year ahead. Screen Australia will continue to collaborate with industry to identify growth opportunities and ensure Australian screen stories thrive.”

The 2023/24 Drama Report revealed significant trends and insights into Australia’s drama production landscape, highlighting both growth and challenges across various sectors. A total of $1.7 billion was spent on 169 productions, with Australian titles accounting for 55% of this expenditure, primarily within general TV and VOD drama. However, the $929 million spent on Australian titles marks an 18% decrease from the previous year, largely attributed to fewer high-budget Australian theatrical features, such as "Mortal Kombat" in 2022/23, "Furiosa" in 2021/22, and "Elvis" in 2020/21.

In the theatrical feature category, 36 Australian titles commenced production, with total expenditure reaching $214 million. While this represents an increase of two titles from the prior year, it reflects a significant 42% drop in spending, with most features falling within the $1-5 million budget range. Meanwhile, $657 million was invested in 55 Australian general TV and VOD drama titles, maintaining consistency with last year. This includes a notable 17% increase in spending on subscription TV and SVOD platforms, totaling $467 million across 27 titles, alongside a 29% rise in the number of titles. Conversely, FTA TV and BVOD titles saw a 32% decrease in spending, falling to $188 million across 15 titles.

Children’s content continues to face considerable challenges, with only eight titles entering production compared to 12 last year. Expenditure in this category dropped by 29%, and the total hours of children’s content declined by a striking 42%. Financing trends reveal the Producer Offset contributed $245 million to drama production in 2023/24, including $75 million (34%) of financing for Australian theatrical features. However, international investment in Australian features hit its lowest point since 2014/15. Despite this, investment from Australian broadcasters, VOD platforms, and distributors increased by 36%, contributing a third of TV/VOD finance and underscoring a stronger local commitment to production funding. Australian independent and global streaming platforms played a key role, contributing 65% of investment across 26 TV/VOD titles — an increase in both investment value and title count.

Regional expenditure revealed cyclical variations across states and territories. New South Wales led with 47% of total spending, followed by Victoria (19%) and Queensland (18%). Western Australia experienced a surge in activity, with spending tripling to $77 million. Similarly, the combined states and territories — Australian Capital Territory, Northern Territory, and Tasmania — achieved a record spend of $105 million, largely driven by production activity in the Northern Territory and Tasmania.

International production expenditure in Australia totaled $768 million across 70 titles, a 39% decrease from the previous year due to reduced international TV/VOD production. However, PDV (Post, Digital, and Visual Effects) expenditure remained strong at $589 million, down 17% from last year’s record high but still 15% above the five-year average. These figures reflect the dynamic and evolving nature of drama production in Australia, with local investment, state-level growth, and platform contributions driving the industry forward amidst broader challenges.

The commitment to Australian stories remains evident, even as challenges such as declining international investment, economic uncertainties, and pressures on children’s content persist. Screen Australia’s proactive initiatives, including expanded research, support for independent filmmakers, and strategic collaboration with industry stakeholders, signal a strong commitment to fostering innovation and sustainability. As the sector adjusts to evolving audience preferences and market dynamics, the collective efforts of industry players will be crucial in ensuring that Australian screen stories continue to thrive on both local and global stages.

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