Statistics New Zealand screen industry survey shows film production revenue in Wellington fell in 2015. In contrast, television programme production in Auckland increased by $150 million since 2014.
Film production revenue in Wellington fell in 2015, while television programme production in Auckland increased, Statistics New Zealand figures show.
The 2015 screen industry survey shows total revenue from all screen industry businesses in New Zealand was up 2 per cent to $3.22 billion – an increase of $66 million from 2014.
Wellington continued to lead in feature film production, while Auckland-based businesses led television production, which was up $150m on the previous year.
More than three-quarters of all screen industry businesses carried out production activity within the Auckland region.
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Wellington business earned 78 per cent of all post-production revenue, and 90 per cent of the digital graphics, animation, and effects revenue.
However, total revenue from Wellington businesses dropped 15 per cent to $586m, reflecting a 55 per cent decline in film production revenue in the Wellington region.
Wellington Regional Economic Development Agency chief executive Chris Whelan said film production was a project-based industry, and revenue streams were inherently ‘lumpy’.
“Today’s data relates to a year immediately following the conclusion of one of Wellington’s ‘mega-projects’, so a relative reduction in revenue is to be expected.”
He credited the Government’s reformed incentives programme.
In August last year, government changes to the screen industry were introduced that saw screen incentive grants and New Zealand Film Commission taking over Film New Zealand.
Changes to grants were expected to bring more work for medium sized production companies in New Zealand, stabilising the industry, which was often reliant on big budget movies.
It was timely and had helped Wellington attract a number of major production and post-production projects to the region, whose impacts stretched from the last financial year into this, Whelan said.
“In terms of facilities, locations and expertise, Wellington’s credentials as a feature film destination are second-to-none. We are in demand for current and future projects, and film production – including the occasional mega-project – is set to be an important contributor to the Wellington economy for the foreseeable future.”
Statistics New Zealand senior manager Nicola Growden said 45 per cent of screen businesses had their main office in the Auckland region, and 46 per cent in the Wellington region.
Only 4 per cent of the total screen industry revenue in 2015 was earned by businesses with their main office in other parts of New Zealand.
Growth in revenue was particularly strong from producing commercials in 2015, which earned $545m, compared with $160m in 2014, she said.
“There was strong growth in revenue from Asian countries (up $14m) and from Australia, while revenue from North America decreased.”
This was driven by an increase in contracting income, rather than income from producing,” Growden said.
The survey found funding and financing for producing was stable.
Feature films received 38 per cent of the funding and financing, while 58 per cent was for television programmes.
Many people employed in the screen industry where contractors, and may work multiple jobs throughout one year, both within the screen industry and outside it.
The most recently available employment data, for the year ending March 2014, shows 14,200 people were employed in the screen industry, working a total of 25,400 jobs. The figures includes contractors.
The 2014 data shows the total wages earned fell from $742m in 2013 to $710m.
Of people working in the screen industry in 2014, 68 per cent were aged under 40.
Green Party economic development spokesman, James Shaw said National’s promise to create jobs in New Zealand’s movie industry had failed to deliver.
“[John] Key promised 3000 new jobs in 2010 when he weakened New Zealand’s labour laws and gave Warner Bros $95m in grants and subsidies to secure the filming of the Hobbit here.
“Since this time, the screen industry has shed 3,400 jobs.”
Statistics New Zealand 2015 screen industry survey:
- About 35 feature films completed in 2015, down from 40 in 2014.
- Other Production formats (including short films, music videos, and web series) increased to 900 – up from 420 in 2014.
- Revenue received by production and post-production businesses increased 13 per cent, to $1040m, while international revenue increased 4 per cent, to $515m.
- New Zealand screen industry businesses spent $63m on production and post-production activities outside New Zealand – up from $21m from 2014.
- Overall expenditure on producing decreased by 4 per cent to $771m, from $799m in 2014 and almost half of all expenditure was spent in Auckland.
- About 95 per cent of businesses in the screen industry made less than $1m in total revenue.
- International co-productions continued to grow, with 106 completed in 2015 – a 34 per cent increase.
- Australia was the most common country of origin for the 25 businesses that had international co-production partners.
- Funding and financing received from broadcasters grew to $87m, up $30m from 2014.
- Funding and financing received for television programmes rose 33 per cent in 2015, to $335m.
- NZ on Air funding and financing for productions rose 11 per cent to $105m, while funding and financing from Te Māngai Pāho dropped 10 per cent to $35m.