Australian Screen Industry Investment Plummets, Report Shows

Screen Australia‘s latest Drama Report reveals a sharp 29% drop in total industry expenditure for 2023-24, with spending falling to AUD1.7 billion ($1.08 billion), across 169 productions. The decline follows a three-year peak period driven by Australia’s previous status as a COVID-safe filming destination, streaming growth, and high-budget theatrical features.

The downturn spans multiple sectors, including a significant reduction in free-to-air drama and theatrical features. Investment in Australian titles decreased by 18%, dropping from AUD1.128 billion to AUD929 million, with the number of productions falling from 120 to 99. Free-to-air drama took a significant hit with a 32% decline in spending, while subscription TV and SVOD showed resilience with a 17% increase in expenditure across 27 titles.

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Screen Australia CEO Deirdre Brennan characterized the $1.7 billion expenditure as “a solid result” following the previous peak period. She noted the agency is “optimistic about the future and confident that there will be an uplift in production in the year ahead.”

Local streaming service Stan emerged as a leading commissioner with 12 titles, while international platforms showed limited engagement. Netflix and Binge each backed four titles, with Paramount+ and Prime Video contributing to two projects each.

Screen Producers Australia (SPA) CEO Matthew Deaner highlighted the impact of unregulated streaming platforms on the industry. “These figures lay bare what is an ongoing letdown for Australians from international streaming businesses that have disrupted the existing screen ecosystem,” Deaner said.

The report highlighted several challenging areas, including a 42% decline in Australian theatrical feature expenditure to AUD214 million, despite an increase in the number of titles. Features in the AUD1-5 million budget range dominated production, while international investment in Australian features hit its lowest point since 2014/15. Children’s content faced particular pressure, with only eight drama titles produced in 2023/24, down from 12 the previous year. The sector saw a 29% drop in expenditure and a 42% decrease in production hours.

SPA underlined the need for government intervention, calling for streaming service content regulations and increased funding for public broadcasters ABC and SBS. The organization plans to engage with major parties ahead of the upcoming election to address industry challenges.

Deaner expressed concern about the industry’s trajectory, noting this marks the first time in nearly 70 years that Australia’s screen content platforms have operated without effective local content rules. The organization warns that without immediate action to stabilize the sector, Australian drama faces increased vulnerability in coming years.

State-by-state production spending showed New South Wales leading with 47% of total expenditure, followed by Victoria (19%) and Queensland (18%). Western Australia saw notable growth, with spending tripling to AUD77 million, while the Northern Territory and Tasmania drove a record combined spend of AUD105 million with the Australian Capital Territory.

The report also revealed that PDV (post, digital and visual effects) expenditure reached AUD589 million across Australian and international titles, down 17% from the previous year’s record but still 15% above the five-year average.

Global economic conditions, U.S. industrial action, and uncertainty around Australia’s Location Offset incentive contributed to the overall decline, particularly impacting international TV production, which saw expenditure drop 39% to AUD768 million across 70 productions.

In a separate report, the Australian Communications and Media Authority (ACMA) revealed that streaming platforms increased their investment in Australian content. SVOD providers spent AUD341 million on Australian programs in 2023-24, up from AUD324 million the previous year. The data, collected from Prime Video, Disney+, Netflix, Paramount+ and Stan, showed growth primarily in adult drama and light entertainment, though children’s programming and documentaries saw decreased expenditure.

The ACMA report also noted that streaming platforms invested an additional AUD200 million in Australian-related programs that partially met local content criteria, including foreign productions filmed in Australia and projects utilizing local production facilities.