Film and television drama production in Australia reached a record high of $2.7 billion in the last financial year, marking a significant increase from $1.7 billion the previous year. This surge, detailed in Screen Australia’s annual Drama Report released on March 2024, reflects a robust recovery in the industry following disruptions from Hollywood strikes and the tapering of production activities spurred by the COVID-19 pandemic.
The 43 percent year-on-year increase in expenditure is largely attributed to a rise in international projects. The report highlighted that $1 billion was spent on 20 international feature films filmed in Australia during the 2024-25 period. Australian productions contributed $1.1 billion, while $510 million was allocated to post-production work for projects that did not film in the country.
Queensland Leads the Charge
Queensland emerged as the dominant state for production, capturing a 34 percent share of overall spending, up from 16 percent the previous year. New South Wales followed with 31 percent, and Victoria accounted for 27 percent. This shift underscores the strategic importance of various Australian locations in attracting international film projects.
The report comes in the wake of the Australian federal government’s introduction of local content obligations for streaming services with over 1 million subscribers. The aim of these regulations is to ensure ongoing support for Australian scripted content, which has been a concern among local filmmakers. While the government seeks to standardize content obligations across platforms, streaming services argue that they are already investing significantly in local productions.
According to Screen Australia, subscription television networks and video-on-demand services spent $492 million on local content, contributing to 18 titles across platforms such as Stan, Netflix, and Apple TV+. The government estimates that the total obligation for qualifying streaming services would range from $175 million to $200 million annually, based on their subscriber numbers and projected expenditures.
Shifts in Production Dynamics
The Australian Communications and Media Authority (ACMA) recently reported that streaming services spent a record $309.7 million on adult drama in the same financial year. Notably, the figures from Screen Australia and ACMA differ, with the former capturing total drama expenditure while the latter focuses solely on streaming services’ contributions.
Concerns have been raised about the potential inflationary effects of the new regulations, which may lead to increased competition for talent and resources. The Drama Report indicates a decrease in the total number of titles produced across all platforms, including free-to-air and subscription services. Nevertheless, the cost per hour of drama production saw a significant rise. The average cost for free-to-air television increased from about $685,000 last year to $860,000 this year, partly due to the cancellation of the low-cost series *Neighbours*. For cable and streaming platforms, costs escalated from $3.6 million to $5.1 million per hour.
Children’s programming has faced challenges, with only five new titles entering production in the 2024-25 financial year, resulting in a total expenditure of $34 million. This figure represents a decline from $58 million the previous year and is considerably below the five-year average of $61 million.
Deirdre Brennan, CEO of Screen Australia, remarked on the evolving landscape of screen production. She stated, “While there is moderate growth in local drama expenditure, fewer TV titles entered production across free-to-air, subscription video on demand, and children’s content, showing ongoing shifts in commissioning behavior.” She emphasized that these trends present both challenges and opportunities for the industry.
Kate Marks, CEO of Ausfilm, expressed optimism regarding the international production activities in Australia. She noted that alongside the $1 billion in foreign film production, an additional $302 million was invested in two international subscription-video-on-demand projects filmed in Australia. Marks highlighted that the record level of international production activity, supported by generous tax incentives, contributes to a sustainable ecosystem for Australian storytelling.
As the Australian drama production landscape continues to evolve, the interplay between local and international projects will likely shape the future of the industry, reinforcing its resilience and competitiveness on a global scale.
