$3 billion from the screen industry

April 11th, 2013 at 9:00 am by David Farrar

Stats NZ announced:

Revenue from filmmaking in New Zealand took off in 2012, powering the screen industry beyond $3 billion, Statistics New Zealand said today.

“This is the first time since the survey began in 2005 that the screen industry has surpassed $3 billion. The breakthrough has been aided by a surge in feature film revenue, which rose almost 50 percent in 2012 to more than $1 billion,” screen industry statistics manager Hamish Hill said.

“Forty feature films were completed in New Zealand in 2012, five more than in 2011. This shows New Zealand’s film industry is expanding from its success in creating and producing world-class content.”

I wonder what it would have been if haters working for the Australian union had won?

$3 billion of revenue is a great achievement for the screen industry. Long may it last and grow.

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27 Responses to “$3 billion from the screen industry”

  1. Mike Readman (353 comments) says:

    How do you get a job in it? Have to know somebody I suppose.

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  2. eszett (2,271 comments) says:

    I wonder what it would have been if the Hobbit haters working for the Australian union had won?

    The question should be, how much did the millions that the government forked out actually add to the $3b.
    By the time the money was negotiated, the Australian Unions had long lost.

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  3. skyblue (193 comments) says:

    It is starting to become clear that a lot of decisions made by our National led govt are starting to bear fruit, such as the Hobbit legislation.
    The fact the losers on the other side only bleat on about GCSB etc shows they are not strong on debating economic matters. JKs comments about N. Korea was a diplomatic masterstroke in light of China’s thoughts on N. Korea at present. Not the disaster Red Russ et al have stated. The only thing that would top this off is if JK asks for Red Russ’s Tibetian flag back and gets it!

    Manufacturing is improving despite the exchange rate and against a back drop of the lingering GFC in EU especially we are doing really well as a country.

    Keep up the good work John and do what you need to do, even if it is off the cuff.

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  4. Harriet (4,010 comments) says:

    “….I wonder what it would have been if the Hobbit haters working for the Australian union had won?…..$3 billion of revenue is a great achievement for the screen industry. Long may it last and grow…..”

    They were playing us all for fools, as they were just acting underpaid:

    “…..Acting is the most minor of gifts and not a very high-class way to earn a living. After all, Shirley Temple could do it at the age of four….” ― Katharine Hepburn :cool:

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  5. sparky (235 comments) says:

    Fantastic achievement. Thank you John Key.

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  6. Lance (2,309 comments) says:

    ezette wrote
    “how much did the millions that the government forked out actually add to the $3b.”

    What did the govt ‘fork out’ ? From what I understand they collected a bit less tax that would not have been collected at all if such an accommodation was not made. No ‘forking out’ at all.

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  7. eszett (2,271 comments) says:

    No ‘forking out’ at all.

    Seriously? Taking in less tax is not forking out?

    It is starting to become clear that a lot of decisions made by our National led govt are starting to bear fruit, such as the Hobbit legislation.

    That’s exactly the impression that David wanted to create, but not presenting much evidence for it.
    However, my point was that it’s not that clear at all that it’s bearing any fruit at all. Certainly not from this post.

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  8. kowtow (6,709 comments) says:

    mike readman,how to get a job.

    I believe it’s called the “casting couch”.

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  9. eszett (2,271 comments) says:

    lol, kowtow :-)

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  10. peterwn (2,935 comments) says:

    Mike Readman – you borrow your parents’ super 8 movie camera as a kid and play around making movies. You will have to do jobs, collect and sell bottles etc to pay for the film and processing. Alternatively look for jobs as movie extras. Another option is to gain extreme proficiency in some sport such as soccer, golf, etc, or in many other enterprises (property investment, merchant banking, etc). If you are extremely talented at what you do you will get noticed and that will set a career path rolling. Too many people have an excessive sense of entitlement and envy and complain about those who have been successful and want them taxed to the last cent to pay for their own ‘entitlement’.

    Actually there will be a great growth industry if the Government changes in 2014. Labour will start conducting inquiries into everything that moves and will require lots of bitter and twisted and envious people to conduct these inquiries.

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  11. Harriet (4,010 comments) says:

    ‘forking out’ ‘grants’ ‘taking less tax’

    Whatever you call it – it’s still a subsidy to do business!

    However…..it’s a pretty good case that if you lower company taxes – and have the goods to export – you’ll create jobs, create profit, and create tax.

    …anyway….that’s how Winnie sees it. :cool:

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  12. Auberon (816 comments) says:

    Now add in the tourism numbers the Hobbit films are generating, and factor in probably the most valuable yet so far underestimated asset the Key government negotiated into the deal: every DVD and every official download of the film has a NZ tourism promotional trailer directed by Sir Peter Jackson. The visitors that trailer will drive our way over the coming years will pay for the tax rebates many times over.

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  13. mandk (693 comments) says:

    Look what could happen if we don’t nurture our film indutry talent:
    “The total value of feature film and TV drama production in 2011/12 (Australian and foreign) was $623 million” (ScreenAustralia)
    $623 million, including TV drama production, is miniscule, compared to NZ with only a fifth of the population.

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  14. Jim (385 comments) says:

    “No ‘forking out’ at all.”

    Seriously? Taking in less tax is not forking out?

    Let me clear that up for you because it’s a little complicated: they didn’t take less tax than if the production had been made elsewhere. Perhaps the effective rate was less.

    Here’s a simple example using 20% and 33% purely for example:

    What’s 20% of $1,000,000 ?
    What’s 33% of $0 ?

    Which is more?

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  15. mandk (693 comments) says:

    Mike Readman (313) Says:

    April 11th, 2013 at 9:23 am
    How do you get a job in it? Have to know somebody I suppose
    ———————————————————–

    Skills and creativity help. If you get the chance, pay a visit to the Weta Cave in Miramar. The range of talent in Wellywood is awe-inspiring.

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  16. Fisiani (855 comments) says:

    National knows the value of investments. Labour/Greens bleat about the cost.
    National supports the film industry. Labour/Greens would have closed it.
    National is taking the country forward. Labour/Greens complain about every reform.
    Why is National only on 47% . It should be on 74%

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  17. wreck1080 (3,523 comments) says:

    It teeters on a knife edge though.

    At the whim of Hollywood this 3 billion could drop to less than a hundred million in less than a year.

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  18. Lance (2,309 comments) says:

    @Fisiani
    Because there are whole bunch of people in NZ who want their cake and to eat it to.
    They don’t want mining, oil drilling etc but complain Aus has higher incomes than us to name but one example.
    There are people who think we can tax our way to success to name another.

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  19. PTM (41 comments) says:

    @Lance
    I hear on good authority that in late 2014 our salvation will come courtesy of a huge increase in the print industry where there will be a monumental increase in jobs available for a government printing contract.
    The RFP will be published probably in December 2014 and the successful printshop will be required to expand exponentially to supply large quantities of cash on a monthly basis for the payment of all Government services, subsidies, welfare expenditure, and infrastructure projects.
    The gains from the film industry will pale into insignificance by comparison to what will be achieved by the new regime.

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  20. mandk (693 comments) says:

    wreck1080

    Perhaps not that much and not that quickly, but Yes, we are talking about an industry that is footloose to a large degree (what became of the Aus film industry?).

    We should be thinking about what incentive structure is needed to make our 3 billion industry a 10, 20 or 30 billion industry.

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  21. Jack5 (4,223 comments) says:

    Let’s get the figures right. The film industry, subsidised by tax incentives, brought in gross revenue considerably less than the amount DPF quotes, and the political PR’s are pushing. It’s a welcome new industry, but let’s keep it in perspective.

    The gross revenue of what Statistics NZ calls the screen business was $2.806 billion.

    Of this $1.144 billion came from television broadcasting, $163m from film and video distribution, and $153m from film exhibition (ie cinemas).

    The gross revenue of the new film industry was $1.347 billion, of which $863 million came from production and came $483 million from post production. This gross $1.347 billion will be before overseas and other costs.

    MandK, at 10.04, is likely comparing apples with oranges. He quotes Australian “value” while the NZ figures are about “gross revenue”. Can he be more specific please?

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  22. Sir Cullen's Sidekick (523 comments) says:

    I guess Helen Kelly and Robyn Malcolm would have earned that 3 billion by growing grass ….

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  23. RRM (8,988 comments) says:

    Fisiani – exactly!

    And people on the left fail to appreciate( / acknowledge?) how little of the welfare state Key & English have dismantled.

    Any thinking past Labour voter should have no problem at all with the direction the Govt is taking the country in.

    It’s similar enough to what we had before, except with tighter budgeting and a competent business guy at the wheel…

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  24. The Scorned (719 comments) says:

    While I’m opposed to Government being involved in business or back scratching at all……If in this case NZ got back far more than was put out I would call that a positive result in the current context…

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  25. mandk (693 comments) says:

    Jack5

    There might be small definitional differences, but we are talking apples vs apples.
    Both the StatsNZ and the ScreenAustralia data focus on expenditure.

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  26. Jack5 (4,223 comments) says:

    Hi MandK:

    The Aussie film production industry has been hurt by the high Australian dollar, according to the link below.

    Could the soaring kiwi do the same to the NZ film production industry?

    http://www.abc.net.au/7.30/content/2011/s3126201.htm

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  27. mandk (693 comments) says:

    I think a bigger problem for the Aus film industry is that it couldn’t retain its talent.
    That’s why I was arguing that we need to find the right incentive structure to grow ours.

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