Australia Yearbook - 2001

Chapter 21—Service industries 777
In spite of the increase in income, the operating
profit before tax of the industry declined from
$40m in 1993–94 to only $3m in 1996–97. Pay
television channel provider businesses were a
major contributor to this turnaround, recording
a loss in 1996–97 of $21m.
21.38 FILM AND VIDEO PRODUCTION
ACTIVITY—1996–97
Contribution
Value to total
Type of activity
$m
%
Productions made specifically
for television 532.6 54.5
Commercials and
advertisements 196.8 20.1
Feature films 192.4 19.7
Corporate/marketing/training
videos 40.7 4.2
Documentaries 2.9 0.3
Short films 0.7 0.1
Other 11.0 1.1
Total 977.1 100.0
Source: Film and Video Production and Distribution,
Australia, 1996–97 (8679.0).
Motion picture exhibition
The ABS conducted a survey of the motion
picture exhibition industry for 1996–97, the first
survey of the industry since 1993–94. In the
intervening three years, the industry experienced
very significant growth in terms of income and
employment, as shown in table 21.40.
30 June 1997, a fall of 16%, most other measures
showed significant increases. The number of
screens increased by 39% to 1,050 screens at
30 June 1997, while the number of seats available
increased from 227,000 at 30 June 1994 to
323,000 at 30 June 1997. Overall the number of
paid admissions increased by 22% from 60.0
million in 1993–94 to 73.3 million in 1996–97.
The latter represents 4 visits per person, based on
the Australian population of 18.5 million persons
at the end of June 1997. Cinemas operated by the
eight largest businesses (all with income greater
than $8m) had 74% of these paid admissions.
Employment in the industry was 7,739 persons at
30 June 1997, an increase of 35% on the 5,729
persons employed at June 1994. Of the former,
the majority (80%) were employed part-time.
Total income of the industry for the financial
year 1996–97 was $832m, an increase of 31% on
that recorded in 1993–94. Box office receipts
were the major component of income,
accounting for 66% ($552m), while sales of food
and beverages accounted for 17% of income.
The major items of expenses for the industry in
1996–97 were labour costs, which accounted for
$123m (17%) and film hire/rental which
accounted for $211m (30%). After deduction of
expenses, the industry experienced an operating
profit before income tax of $120m, representing
an operating profit margin of 14.9%, up
marginally on 12.0% in 1993–94.
While the number of businesses declined from
224 at 30 June 1994 to only 188 businesses at
21.39 FILM AND VIDEO DISTRIBUTION INDUSTRY—1996–97
Units 1993–94 1996–97 % change
Businesses at 30 June no. 69 66 –4.3
Employment at 30 June
Full-time persons 808 1 107 37.0
Part-time persons 173 234 35.3
Total persons 981 1 341 36.7
Income
Rental/lease income $m 324.5 434.1 33.8
Sales $m 227.1 253.2 11.5
Subscriber income $m . . 156.0 . .
Other $m 89.1 130.6 46.6
Total $m 640.7 973.9 52.0
Expenses
Labour costs $m 34.2 62.1 81.6
Other expenses $m 566.9 908.7 60.3
Total $m 601.1 970.8 61.5
Operating profit/loss before tax $m 39.6 3.1 –92.2
Operating profit margin % 6.9 0.3 . .
Source: Film and Video Production and Distribution, Australia, 1996–97 (8679.0).