Post on 16-Jan-2016
description
transcript
IPO/SASFEDpresentation to the
Portfolio Committeeon
Trade and Industry
Friday 16th October 2009
Why are we here?
• Our industry is unusual:– Cultural, social, political impact– Economic impact– High profile, local and international– Unquantifiable benefits
• It faces a crisis• It has significant growth potential
We must act now to defuse the crisis -to allow the growth to materialise.
Our industry• Includes film, TV, commercials, corporate, documentaries, wildlife.• High-growth in past 5 years – included in ASGISA• Estimated employment:
– Direct: 25 000– Indirect: 100 000
• High multiplier – estimated 2.5 times• Estimated turnover R 8 billion p.a.• Very specialised, emotional• 80% SMMEs.
“It’s like herding cats…”
Quick guide
ProductionProduction Post-production
Post-productionCreativeCreative DistributionDistribution
DVD•Formal•Pirated(7%)
TV•SABC•E-tv•MNET(70%)
FILM•Local•Foreign(15%)
WWW & MOBILE(7%)
SKILLS
COSTS
•Writing•Planning•Art•Design
•Actors•Camera•Sound•Lighting•Make-up•Wardrobe•Art/Design•Admin•Finance•Catering•Security•Transport
•Editing•Sound•Graphics•IT
•Marketing•Sales•PR
•Script dev.•Legal•Tax•Pitching
(10 %)
•Cameras•Lighting•Studio•Set•Props•Travel•Accommodation•Crew•Cast•Legal•Accounting•Insurance
(60%)
•Edit suites•Sound studio•Music•Duplication•Graphics•Storage
(20%)
•Advertising•PR•Duplication•Transport
(10%)
REVENUE
Crisis? What crisis?
• The recession– Ad volumes down 15% or more– Severe drop in film investment
• SABC melt-down– R500 million virtually ‘frozen’– Recession has compounded problem
• Incentive competition– SA lagging as a destination– Currency strength
‘Triple-whammy’
How bad is it?
• Production sector– SABC cash flow crisis – historical and future– Big and small players closing down/cutting back
• Post-production sector– Volume drops up to 70%– Established players closing down– Equipment being sold (to offshore)
• Service sector– Foreign films dropped for first time in 5 years (back to
2004 level)
On the brink of de-industrialisation…
What growth in the future?• Digital
– Proliferation of channels (from 6 to 40) will need local content• Local model
– Jerusalema/Tsotsi/White Wedding/Yizo-Yizo• International model
– District 9/Blood Diamond/Hotel Rwanda• Services
– 20 years of skills history already in place– Foreign investment of R2.5 billion Iast 5 years
Growth from 2010 should outperform the economy
Government is proactive already• Initiatives
– DTI, IDC, NFVF, Sec 24(f), Film Offices
• Many current collaborative projects– DTI Rebate and Film Fund– IDC film finance, proposed SABC bridging finance– BBBEE structure for industry– SARS discussions on Sec. 24(f) re-vamp– SABC restructuring
– DTI Sector Development Strategy of 2005 has been crucial to the industry.
So what are we asking for?
Support your agencies -in their efforts to support us
• Accept that we “punch above our weight” in the economy• Approve short-term assistance in the crisis
– Distressed Industry– SABC bridging
• Enhance structures for growth– Roll-out 2005 Sector Development Strategy’s other projects– Refine rebates– New funding structures (IDC & DTI)– Re-vamp stalled Sec 24(f)– Revisit Lottery plans– Funds for working committees
Thank you
(and please remember)
… pay your TV licence,go to the movies, and
don’t buy pirated DVDs.