A sharp downward trend has enveloped the Australian film and television industry as Screen Australia releases its latest Drama Report. Total industry expenditure has plummeted by 29% for the 2023-24 financial year, marking a significant decrease to AUD1.7 billion ($1.08 billion) across 169 productions.
This downturn is particularly noticeable following a three-year peak catalyzed by Australia's earlier status as a COVID-safe filming destination, coupled with the burgeoning demand for streaming content and the production of high-budget theatrical films. The figures reveal not just declines across the board, but point to specific areas like the free-to-air drama sector, which has seen spending shrink by 32%.
Investment directed toward Australian titles fell by 18% from AUD1.128 billion to merely AUD929 million, resulting in the number of productions also contracting from 120 to 99. Despite these setbacks, subscription TV and streaming video on demand (SVOD) services managed to weather the storm, showcasing a resilient 17% increase across 27 titles.
Describing the $1.7 billion expenditure as "a solid result" after the preceding peak period, Screen Australia's CEO Deirdre Brennan remains optimistic. "There will be an uplift in production in the year ahead," she said, emphasizing her confidence amid these alarming trends. Local streaming service Stan stepped up as the leading commissioner during this difficult period, financing 12 titles. Contrastingly, major international platforms such as Netflix and Binge each contributed to just four titles, indicating limited international engagement.
Screen Producers Australia (SPA) CEO Matthew Deaner did not mince words, branding the investment decline as "a collapse" of the year-on-year investment for Australian screens. "No government can overlook this decline and conclude all is well," Deaner stated, reflecting on the industry's struggle to adapt to new dynamics imposed by unregulated streaming platforms. These latest figures have pointed to what he describes as "anongoing letdown for Australians from international streaming businesses," which have failed to contribute proportionately to the local content ecosystem.
The report also uncovers several troubling trends, with female-led projects hit particularly hard; the expenditure on Australian theatrical features dropped by 42% to AUD214 million, even as the number of titles increased slightly. Among all budgets, productions within the AUD1-5 million range dominated the industry, even as international investment in local features sank to its lowest level since the 2014-15 fiscal year.
Children's television received particularly harsh treatment, with only eight child drama titles produced this year—down from 12 the previous year. Expenditure for this sector dropped by 29%, alongside a drastic 42% decrease in production hours. SPA has called for urgent government intervention, advocating for increased funding for major public broadcasters like the ABC and SBS and regulatory actions for streaming content.
Deaner elaborated on the long-term effects of these setbacks, noting this marks the first time in nearly 70 years the Australian screen content platforms have operated without effective local content regulations. He issued a warning to industry stakeholders: without immediate action to stabilize the sector, the country's drama falls beneath heightened vulnerability.
When investigating the finances from state to state, New South Wales led the charge with 47% of total expenditures, followed by Victoria at 19% and Queensland at 18%. Western Australia recorded notable growth, tripling its budget to AUD77 million, whereas the Northern Territory and Tasmania achieved record combined spending levels totaling AUD105 million, alongside the Australian Capital Territory.
The Digital Post Production segment, encompassing post, digital, and visual effects spending reached AUD589 million across both Australian and international titles—down 17% from the preceding record but still 15% above the five-year average. A range of broader economic influences, including the US industrial action, remain contributing factors for the decline particularly within international television production, where expenditures saw a staggering 39% drop to AUD768 million across 70 productions.
Despite the gloom, there is room for cautious optimism. Brennan highlighted the possibility of industry recovery: "Expenditure of $1.7 billion on 169 productions remains noteworthy after witnessing the three-year peak driven by our COVID-safe environment, streaming expansion, and several high-budget theatrical features.” Yet, she acknowledged the challenges, particularly for children’s content, which continues to depend heavily on government aid.
Efforts are underway to broaden opportunities for developing Australian children's intellectual properties, and feature filmmakers dealing within the $1-5 million range are also being taken under consideration for support. Collaboration within the industry is imperative for addressing the current climate, and Screen Australia remains determined to pursue productive avenues for growth.
Overall, as Australia’s screen industry grapples with fallouts from this significant drop, it remains intertwined with economic conditions, shifting viewership trends, and regulatory uncertainties. Actionable steps would likely be deemed necessary to breathe life back to what has historically been seen as one of the nation’s most cherished cultural outputs.
