Countrywide, new content delivery channels are booming due to falling prices of DVDs, computers and cell phones
South Africa faces impediments to increasing its market share as a globally competitive film-making destination
The AV industry has had a positive economic effect on the local economy
South African AV Industry Overview
There are several factors influencing the growth of the national audio-visual industry
One of the main impediments to growing the local industry has been poor audience development
South Africa has an internationally recognised comprehensive and progressive legal framework
There have been a few initiatives to reduce bureaucracy and inconsistent application of rules
There have been a few initiatives to reduce bureaucracy and inconsistent application of rules (contd.)
There are a number of commercial and government organisations offering film production financing in South Africa
The Large Budget Film and TV Production Rebate is the prime investment incentive available to both foreign and local big budget producers
Other incentives are available to support the industry in South Africa
As at 24 April 2007, R124 million had been paid from the Large Budget Film and TV Production Rebate Scheme
Efficiency of the Rebate Scheme:
The cost of production in South Africa is relatively cheap compared to developed countries, such as in the European Union
South Africa has a vibrant service industry catering to all aspects of the audio-visual industry …
… and a variety of small to medium-sized fully equipped studio spaces
The studio facilities available in South Africa have technical infrastructure and equipment that is ideal for commercials and low budget films.
A number of technically advanced studios are required in a country so as to attract international productions e.g. both Ireland and Australia have state-of-the art technical infrastructure, which is used to attract big-budget productions. To compete with these countries, South Africa would need to invest in such infrastructure e.g. the Dreamworld Film Complex:
The Cape Town Dreamworld Film Complex is expected to open in 2008. The complex will include four soundstages, four backlots and premises for production, post-production and supply companies. The Dreamworld project should open up opportunities for both local and international filmmakers as it meets international standards for studios.
For post-production projects, security and access to facilities is a big issue due to piracy. Shortening the theatre to DVD window in the country would be a key measure to mitigate the threat of piracy.
South Africa has well-developed public infrastructure with modern facilities and services available in all major centres
South Africa has a relatively advanced telecommunication industry with one fixed line operator, three cellular network operators and international links fed via submarine cable and satellite networks:
There is conflicting data available on the global competitiveness of Telkom’s rates
Upgrading of national broadcasting infrastructure from analogue to digital at an estimated cost of R2bn will eventually lead to greater efficiencies in the sector and enhance new content delivery channels.
Transportation compares favourable with first world countries – excellent road, rail, sea and air travel services.
South Africa has 3 international airports linking it to more than 59 cities around the world.
Major public and private hospitals have outpatient and casualty facilities for all health care.
South Africa’s diverse physical environment makes it an attractive location
Limited skills data on the South African AV market has restricted our evaluation of the skills set within the industry
Employment figures in the Commercials sector show a a general decline in overall numbers …
A comparison of two locally produced movies shows a high degree of employee transformation, with most employees working as freelancers
There are also skills gaps that have been identified by stakeholders as needing urgent redress to ensure the continued growth of the local industry
Several public and private sector organisations are providing training programmes to help address identified skills gaps
Tertiary institutions are also playing a key role in developing the skills required by the AV industry
From a global perspective, the business environment in South Africa is generally perceived to be supportive of businesses and is conducive for growth
Gauteng AV Industry Overview
Gauteng AV Industry Overview
Gauteng has the largest cinema audiences nationally, reflecting its strong movie-going culture …
… but cinema facilities are concentrated in the wealthier northern suburbs of Johannesburg and Tshwane
The Gauteng audiovisual production industry achieved revenue of approximately R1,1 billion in 2006 …
… and is generating a total of over R2 billion a year in economic activity due to multiplier effects
Gauteng’s audiovisual industry is dominated by television series production
Most popular South African TV shows are Gauteng-based
Commercials production in Gauteng is dominated by local production
Gauteng accounts for the bulk of locally produced films
Gauteng accounted for approximately 85% of all local film productions in 2006:
The Province is strong in the initial stages of the value chain (pre-production, production and post-production),
In other Provinces, particularly the Western Cape, Eastern Cape and KZN, servicing of international film productions is dominant.
Gauteng does however provide post-production services for international film productions:
E.g. Blood Diamond, Catch a Fire, The Interpreter, The Flyer etc.
Access to distribution channels remains a constraint for local filmmakers:
Alternate distribution channels for locally-produced content e.g. DVDs and cellphones, could address this issue in the future.
Gauteng AV Industry Overview
Gauteng is perceived as having strong technical skills, with easy access to both the wider South African and international skill pools
Gauteng is strong in technical infrastructure, particularly in the Auckland Park-Randburg corridor