The Australian screen production industry is experiencing a significant decline. According to the most recent Screen Australia report, spending on drama and scripted material plummeted by 29% to A$1.7 billion for the fiscal year ending June 2024.
This decline is caused by several global variables. Prolonged labor strikes in the United States, economic uncertainty, and changes in international production tactics have all impacted. International TV and streaming productions, which peaked at A$575 million during the COVID-19 pandemic, have dropped to barely A$122 million.
Screen Australia CEO Deirdre Brennan characterized the results as “a solid outcome” following an unusual three-year high in which Australia was viewed as a safe filming destination during the pandemic. However, the paper identifies substantial problems in several production areas.
Spending on theatrical movies has dropped drastically, from A$794 million in 2021/22 to only A$214 million this year. Major international films like Mortal Kombat, Elvis, and Mad Max: Fury Road no longer contribute to the local industry’s statistics.
Despite the overall slump, there are some encouraging signals. Investment from Australian broadcasters, local streaming providers, and distributors increased by 36%. Notably, local streamer Stan invested in 12 productions, which is three times more than its nearest competitor.
Matthew Deaner, CEO of Screen Producers Australia, expressed his alarm over the issue. He emphasized the immediate necessity for government intervention. “These figures highlight an ongoing disappointment from international streaming services that have disrupted the existing screen ecosystem,” Deaner told the audience.
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Local content quota regulation for international streaming providers continues to be a major problem. Originally scheduled to take effect in July 2024, no significant progress has been achieved. The persistent uncertainty around prospective levy rates on streaming revenues continues to impact industry investment.
Children’s programming is especially vulnerable, with investment dropping from A$81 million to A$58 million over the previous year. Screen Australia understands this difficulty and is dedicated to exploring new avenues for creating Australian children’s content.
The Producer Offset has contributed A$245 million to drama projects, with A$75 million dedicated exclusively to Australian theatrical movies. Brennan remains optimistic about a production resurgence the following year despite the hurdles.
Screen Australia intends to launch a new “Screen Currency” study and a “Viewfinder” research series to obtain additional insights. These programs aim to better understand audience behavior and industry dynamics.
