Australian and co-productions: TV drama: Sources of finance

Direct government sources contributed $43 million to 25 programs in the 2008/09 Australian and co-production TV drama slate, accounting for 13 per cent of total finance, and more than doubling last year’s contribution of $21 million to 16 titles (7 per cent of total finance). This was also above the five-year average of $35 million, although as a proportion of total finance it was on average.

Screen Australia was the principal source of government finance, providing $30 million to 19 Australian titles. Contributions from state agencies rose to $8 million for 18 local titles and one co-production, up from $6 million for 15 titles last year. This year, Film Victoria and the Pacific Film and Television Commission accounted for more than 60 per cent of financing from the states.

The Australian film/TV industry provided the majority of finance for this year’s combined TV drama slate (71 per cent), contributing $231 million to 42 titles. This is up on last year’s contribution of $203 million and well above the five-year average of $178 million. As usual, the largest contribution from the industry (and the largest from any sector) came from the commercial free-to-air broadcasters. The balance came from public broadcasters, subscription TV, distributors and production companies, including cashflowing of the Producer Offset. Increases in finance from each of these industry sources contributed to the overall increase from the sector this year.

The public broadcasters, ABC and SBS, contributed $27 million to 11 Australian productions and two co-productions this year, above their five-year average contribution of $22 million.

Six titles for adults and three children’s programs were financed by subscription TV channels, including several new titles, a second series of Chandon Pictures and a third series of Satisfaction.

Contributions from private investors dropped slightly to $7 million, or two per cent of the total funding for the Australian and co-production TV drama slate. The primary source of private investment has been through Division 10BA of the Income Tax Assessment Act, which closed to new applicants in July 2007, although the concessional status for investment in productions holding a valid 10BA certificate was available until 30 June 2009.

Foreign investment contributed $46 million (14 per cent) to the slate this year, down from last year’s $72 million (24 per cent), but close to the five-year average of $47 million (18 per cent). Most of this ($29 million) went to Australian titles. However, co-productions financed a greater proportion of their budgets from foreign sources – 64 per cent compared to 10 per cent.

Contributions to the annual Australian and co-production TV drama slate, 2004/05–2008/09

Notes:
Figures may not total exactly due to rounding.
See Notes on survey methodology for changes to the categorisation of the Producer Offset contributions.
1. Includes direct funding from Australian state and federal agencies and funding bodies (see Notes on survey methodology). Comprises equity investments only – distribution guarantees, loans and underwriting are not included.
2. Private investment sources including FLICs, 10BA and 10B.
3. Includes Australian-based producers, production companies, distribution companies, free-to-air broadcasters (commercial and public) and subscription TV channels. Producer Offset included from 2007/08 (see Producer Offset).