CAPE FILM COMMISSION by qfc86623

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									Impact Assessment report

       Breakfast Briefing
         2 March 2007
                       Schedule
Welcome -Mr Edmund Jeneker (Absa/Chair of Provincial Leadership Forum)

Introduction & Context - Laurence Mitchell (CFC)

Overview of Impact Study - Barry Standish & Antony Boting (UCT GSB)

Break- Full Hot Breakfast

Advocate Charles Frank (Dept of Labour)

City of Cape Town Endorsement - Cllr Simon Grindrod (Mayoral Committee)

The Impact on the US – Paul Patin (US Consulate)

The Way forward for the CFC 2007- 2010 Laurence Mitchell (CFC)

Closing (Mike Smit)
            Who is the
      Cape Film Commission?
“The CFC is the Official Mandated
    Representative of the City of
   Cape Town and the Province of
        the Western Cape;


 for the Economic Development,
    Marketing and Promotion of
      the Film Industry, through
       Growth, Integration and
           Transformation.”
       What we need to deliver

To reposition the Western Cape and Cape Town
  as a globally competitive film destination,
  thereby:


•   creating sustainable jobs,
•   boosting tourism,
•   driving the development of local content,
•   creating business opportunities and
•   the development of core skills.
            How are we delivering

By providing all our stakeholders with superior, specialised
  services & information by:

•   Growth and Development focussed
•   Improving the Business Environment
•   Customer needs driven
•   People-centred Development & Training
•   BBBEE and Transformation
•   Competent Management & Empowered Staff
•   Generating Key Economic Returns
•   Preparing for 2010
        Our Strategy
        To reposition the CFC to achieve accelerated growth
        in the services and content sectors whilst adhering to
        the triple bottom-line principle.

        Growth Through Transformation, and Transform through Growth


1.GR0WTH                2.INTERGRATION             3.TRANSFORMATION
a) Marketing            a) Research                a) Skills Development
b) Investment           b) Locations &Permitting   b) Training
c) Enterprise Dev       c) Infrastructure          c) BBBEE
d) Audience Dev         d) Rebate & Incentives     d) Equity
e) All-year industry    e) Film Friendliness
         Implementation of Strategy
1.   Competitiveness of
     Enterprises:

a)   Destination Marketing Project
b)   New Market Development: Cape      3. Audience Development
     Town to Tokyo Festival and        a)   Development Research Project
     Cineposium
                                       b)   Ikapa Youth Film Festival
c)   Locations Management
                                       4. Artistic Skills Development
2.   Skills Acquisition and            a)   Sithengi
     Development:                      b)   FULO
                                       c)   Go See Expo
a)   Hollywood Hearts
b)   Development: Youth & Audience –
     Youth Film Indaba and IYFF
c)   Library Business Corners
        Implementation of Strategy
5.   Investment, Recruitment & Marketing

a)   Cannes Lions Advertising Festival
b)   Cannes Film Festival
c)   Association of Film Commissioners International AFCI Cineposium 06
d)   Ministerial Outward Bound mission to India
e)   Boards Summit Advertising- NYC 2007
f)   Filmmart – Asian Festival – HK 2007
g)   AFCI Locations EXPO- LA
h)   Advertising; Web site; media and materials
i)   Inward Bound Missions: LA; Korea; Japan; UK; NY; Washington; USA
     East Coast; USA Central; Namibia and Mozambique
       Context: Impact assessment Report

    Micro Economic Development Survey (MEDS from
     PGWC)

    Dramatic Changes:
a)   Growth in Regional Business
b)   Changes in Global Repositioning
c)   Changes in Demand


    Independent Base Line Study Required: City of
     Cape Town
        Objectives of Impact Assessment
                    Research
   Act as Baseline to future studies

   Gap Analysis for Industry purposes

   Estimate future Growth, capacity, development, skills
    and infrastructure

   Find levers to create a sustainable and well managed
    film Industry for Cape Town and the Western Cape
A Strategic Economic Analysis of the
    Western Cape Film Industry
           Baseline Study 2006




              Barry Standish
              Antony Boting
              Order of Presentation
• Size of the Industry / Taking the Pulse
• Value Chain Analysis
     – Per Sector
     – Key Costs
     – Cost Sensitivities


• Economic Contribution
                            Value Chain




                                                            Finished
 Concept




                                                            Product
           Pre Production   Production    Post Production
Size of the Industry / Taking the Pulse


                              Value Chain




                                                                       Finished
  Concept




                                                                       Product
             Pre Production   Production       Post Production




            Permits - √        Crewing Agents - √   Laboratories - √
            Insurance - x      Car Hire - x
                               Casting Agents - x
                               Equipment Hire - x
               Size of the Industry
             Size of sector (Turnover) =
Number of Productions x Average Budget per Production


                                             Number of Productions
    Source                            Long form Commercials       Stills
    Cape Town Film Permit Office          80         627          1,912
    Crewing Agents                        22         577
    Film Laboratories                      7         559
    SAASP members                                                 1,500
    non-SAASP                                                      600
    Estimated Number of Productions       30         600          2,100
    Average Budget (R millions)         R 37.2      R 1.45        R 0.3
  Industry Turnover
                          Industry Turnover




                                          Feature Films,
                                            R 1,121.1
                     Stills, R 659.8




     International
     Commercials,                Service
                                                                 Made for TV,
        R 168.4                Commercials,
                                                                   R 217.5
                                 R 654.2
                                                              Local
                                                           Commercials,
                                                             R 151.5




                                  Number of     Average cost      Turnover
                                  Productions      (Rm)             (Rm)
Long form                              30           44.6          R 1,338.6
Local Commercials                     168            0.9           R 151.5
Service Commercials                   368            1.8           R 654.2
International Commercials              64            2.6           R 168.4
Stills                               2,100           0.3           R 659.8
Provincial Total                     2,730                        R 2,972.5
Cape Town Total                                                   R 2,275.7
        Order of Presentation

• Size of the Industry / Taking the Pulse

• Value Chain Analysis
  – Per Sector
  – Key Costs
  – Cost Sensitivities

• Economic Contribution
                               Value Chain
                            Process Turnover by Type of Production




         Other                                                         Stills
                                                                       Commercials
                                                                       Long Form

Post Production




    Production




Pre-Production



              0.0   200.0      400.0    600.0        800.0   1,000.0   1,200.0       1,400.0
                                            R millions
                        Value Chain for All Forms
          Video Tape Post
   Purchase Film Footage
        Preview Expenses
                  Film Post
          Titles & Opticals
       Film Lab Expenses
                 Projection
          Recce / Scouting
                     Editing
  Sound (Post Production)
                     Writing
          Production Fees
                    Casting
                  Producer
                      Music
                 Insurance
      Picture Film / Dailies
                 Visual Efx
            Transportation
              Studio Rental
                   Catering
           Art Department
          Set Construction
Location Fees and Permits
        General Expenses
               Vehicle Hire
               Set Lighting
                     Talent
                   Camera
            Travel & Living
                      Crew

                           0.0%   2.0%   4.0%   6.0%   8.0%   10.0%   12.0%   14.0%   16.0%   18.0%   20.0%
 Cost Sensitivities
10% Depreciation in the Rand

    Features        7.97%
    Local           7.91%
    Service         7.72%
    International   8.08%
    All             7.76%
    Stills          8.06%
   Cost Sensitivities
10% Increase in Salaries & Wages

      Features        3.9%
      Local           3.7%
      Service         4.5%
      International   4.3%
      All             4.3%
      Stills          4.3%
                  Cyclical Demand for Personnel
              10,000


               9,000


               8,000


               7,000


               6,000
Job Numbers




               5,000


               4,000


               3,000


               2,000


               1,000


                  0
                       Jan   Feb   Mar   Apr   May   Jun   Jul   Aug   Sep   Oct   Nov   Dec
Projected Demand for Personnel

     Demand for personnel         2006    2007    2008     2009     2010
     3% Growth
                 Crew Numbers     2,263   2,331   2,401    2,473     2,547
               Talent Numbers     1,519   1,564   1,611    1,660     1,709
         Other jobs in economy    5,114   5,268   5,426    5,589     5,756
              Total Direct Jobs   8,896   9,163   9,438    9,721    10,013
     6% growth rate
                 Crew Numbers     2,263   2,399   2,543     2,695    2,857
               Talent Numbers     1,519   1,610   1,706     1,809    1,917
         Other jobs in economy    5,114   5,421   5,746     6,091    6,457
              Total Direct Jobs   8,896   9,430   9,996    10,596   11,231
     10% growth rate
                 Crew Numbers     2,263   2,489    2,738    3,012    3,313
               Talent Numbers     1,519   1,671    1,838    2,021    2,224
         Other jobs in economy    5,114   5,626    6,188    6,807    7,488
              Total Direct Jobs   8,896   9,786   10,764   11,841   13,025
        Order of Presentation

• Size of the Industry / Taking the Pulse

• Value Chain Analysis
  – Per Sector
  – Key Costs
  – Cost Sensitivities

Economic Contribution
              Economic Contribution
Contribution to SA GDP, WC GGP & CT GGP

SA GDP        Pre production   Production   Post production   Other   Total
Long form          27.5          1,632.3         79.7          36.3     1,775.7
Commercials        51.0            942.6         38.8         216.9     1,249.3
Stills             89.1            713.4           -           63.9       866.4
Total             167.5          3,288.2        118.5         317.1     3,891.4

WC GGP        Pre production   Production   Post production   Other   Total
Long form            5.3           314.3         15.3          7.0        341.9
Commercials        15.7            290.2         12.0         66.8        384.6
Stills             26.2            209.8           -          18.8        254.8
Total              47.2            814.3         27.3         92.6        981.3

CT GGP        Pre production   Production   Post production   Other   Total
Long form            3.9           229.7         11.2          5.1        249.8
Commercials        11.5            212.0           8.7        48.8        281.1
Stills             19.1            153.3           -          13.7        186.2
Total              34.5            595.0         20.0         67.6        717.1
              Economic Contribution
          Direct and Indirect Job Creation

Direct Jobs     Pre production   Production   Post production   Other   Total
Long form                25          1,491             73         33        1,623
Commercials           121            2,229             92        513        2,955
Stills                 -             1,447           -           310        1,758
Total                 146            5,168          165          857        6,335

Indirect Jobs   Pre production   Production   Post production   Other   Total
Long form                19          1,158             57         26        1,259
Commercials              34            629             26        145          833
Stills                 -               509           -           109          618
Total                    53          2,295             82        279        2,710

Total Jobs      Pre production   Production   Post production   Other   Total
Long form                45          2,649          129            59       2,882
Commercials           155            2,858          118           658       3,788
Stills                 -             1,956           -            419       2,375
Total                 199            7,463          247         1,136       9,046
Impact Assessment report
        Breakfast
Please email any questions you may have to:
        info@capefilmcommission.co.za
The Way Forward…
Film Industry Analysis
CFC Development Project                                                                                                                                                 V 0.1
Updated: 26.2.07
                                                                                                    Industry Sector

                           Private Video   Corporate                   Commercial       Director                              Longform
                                                       Stills Sector                                Made for TV Documentary                  Longform   New Media   Gaming
                              & Stills      Video                      Facilitation     Based                                 Facilitation



    Concept Creation

    Development &
    Financing
V
a
    Pre Production
l
u
e
    Production
C
h
a
i   Post Production
n

    Sales &
    Distribution

    Broadcast and
    Exhibition

    Related Suppliers                                                            Notes
    Infrastructure and locations                                                 Related industry sectors include:
    Facilities and studios                                                        Theatre and live performance
    Equipment                                                                     Music, recorder and live
    Business services
    Support service
             The Way Forward…
    Demand for:

a)   Skills
b)   New Capacity/ Infrastructure
c)   Enterprise Development
d)   Extension of Value Chain

    Therefore forms thrust of interventions- necessary
     partners include NFVF;ABSA;DTI; DOL;
     DEDT;SABC; National Skills Fund and EU Funders
         The Way Forward Cont…

    Marketing Strategy

a)   Refocus strategy to accommodate new markets and
     product offerings
b)   Focus on Commercials, Stills and Co- production

    Locations Strategy

a)   New Systems
b)   Upgrading Resources including personnel
c)   New Permitting
              Additional Initiatives

-   International Film Finance Conference

-   AFCI Cineposium

-   Animation Conference

-   WIFT Projects

-   2010

								
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