While fewer commercials were produced, these commercials also cost slightly more to produce. This, the report shows, is largely due to the affect of the recession which is placing increased pressure on margins as evident in the increase in tracked expenditure and turnover.
The 2009 survey, which is carried out for the Commercial Producers Association South Africa (www.cpasa.tv) by Evolutions Research Solutions, is sponsored by the Gauteng Film Commission (www.gautengfilm.org.za/) in the interests of obtaining comprehensive and sustained data on the country's audio-visual industry sector.
Significantly, Gauteng showed the greatest market share increase regarding the number of commercials filmed in the province in a year-on-year comparison of 19 tracked companies, reflecting an increasing awareness of the province's vast diversity and quality of film locations.
The Commercial Producers Industry Survey 2009 is based on income derived from commercial production in the period 1 May 2008 to 30 April 2009. As the survey sample comprises 34 commercial production companies, mostly members of the CPA, it is assumed that expenditure, income and turnover by the entire industry are at least and definitely more than what is presented by the survey results.
The total billable value for all commercial productions during the 2008/9 period was just under R970 million (R969 182 258.70), while expenditure measured totalled over R697 million (R697 506 614.04).
The overall number of commercials produced showed a notable decrease of 14% from the previous year in a year-on-year comparison of 19 tracked companies, while shoot days decreased 19% and the average turnover per commercial increased by about 21% in 2008/9. Due to this last factor and other cost containment measures, the total turnover generated in 2008/9 increased by 4.37% from 2007/8, despite expenditure increasing by 2.68% over the same period.
The respondents reported that they produced 672 commercials in the 2008/9 period, including 63 commercials shot in high definition (a 485% increase, showing the increasing popularity and acceptance of HD as a film medium), totalling 1399 shoot days, an average of 2.08 days per commercial. The average budget per commercial, for all types produced, was just under R1.5 million (R1 442 235.00).
Of all commercials produced, a reported 53% originated from SA. The total number of local (originated by SA agencies and produced by SA director based production companies) commercials is the highest (353 commercials out of the 672 total), but these were shot in fewer shoot days and generated less turnover than service (originated by foreign agencies, produced by foreign production companies with the assistance of SA service companies) commercials.
International/SA commercials (originated by foreign agencies, which are produced and directed by SA director based companies) made up the smallest component in the industry but have the highest average daily budget.
The two most popular locations continue to be Gauteng and the Western Cape. In terms of the number of commercials filmed in each province by the 19 tracked companies, Gauteng's market share increased to 50.1% from 47.86%, while the Western Cape decreased to 45.44% from 45.91%.
The split of number of commercials produced by Johannesburg head office production companies, compared to Cape Town head office production companies, is also interesting, with the former producing an average of 32 commercials per company compared to an average of 15.13 for the latter.
Johannesburg companies focused on local commercials whereas Cape Town companies focused on service commercials, generating higher turnover (R583 221 463.32 compared to R385 960 795.38 for Johannesburg head office production companies).
An interesting trend overall is the substantial use of freelance labour on commercial productions, with the industry providing freelance employment of an estimated 62 289.68 person-days for the 2008/9 period, and with an average number of freelance crew per commercial at about 45 (ie with equal weighting for the three types of commercials produced).
One of the key findings of the survey is that BBEEE should remain an industry priority, as it is still in the early stages of implementation within the sector. It is interesting to note that the industry is making relatively good progress from an employment equity perspective, with previously disadvantaged individuals comprising 40% of full-time employees and 89% of part-time employees within production companies.
Further, transformation within areas such as the freelance talent and crew base is steadily increasing.
