South African Cultural Observatory National Conference Presentation 24-25 May 2017 Presented by: Tsietsi Themane

Contents About the NFVF Enabling Legislation Value Proposition Vision & Mission Role of film in economic growth Objectives Of EIA Value Chain Definition Summary of Findings Conclusion 2

Enabling Legislation National Film and Video Foundation Act 73 of 1997 as amended by the Cultural Laws Amendment Act 36 of 2001. NFVF is a Schedule 3A Public Entity in terms of the PFMA. Section 3 of the NFVF Act sets out mandates as follows: To promote and develop the film and video industry To provide and encourage the provision of, opportunities for persons, especially from disadvantaged communities, to get involved in the film and video industry To encourage the development and distribution of local film and video products To support the nurturing and development of and access to the film and video industry To address historical imbalances in the infrastructure and distribution of skills and resources in the film and video industry 3

Unique Value Proposition Leader Enabler Development funding Training Leveraging production funding Facilitating international productions Global exposure and positioning 4

Vision: Mission: Vision & Mission To be a leader towards a sustainable audio-visual content* industry that represents the nation’s aspirations and celebrates our diversity. Mission: To collaborate with all stakeholders to enable the development and promotion of a transformed and thriving South African audio-visual content industry. * Audio-visual = All film (content transmitted through various platforms, e.g cinema, television, online, and other digital means), television, etc. excluding Music Videos, Reality TV, adult content, etc. 5

FILM INDUSTRY RELATIONS 6

Role of Film in society Importance of film culturally and economically Increase revenue through sales of goods Create Jobs Increase disposable income Culturally 7

Role of Film in society Importance of film culturally and economically Provides a sense of identity Allows for the sharing of history and diversity of the country Enlightens future generation and preserve generation 8

Objectives of the Study The NFVF commissioned Deloitte to research and determine the economic benefits of the South African Film Industry. Calculation of Economic Indicators: * Size of the industry; * Number of companies that are doing business in the industry; * Number of individuals employed in the industry (permanent employees and freelancers); * Direct and indirect taxes that the industry pays; and * The economic multiplier effect. Full value chain analysis of the South African Film Industry. 9

Scope of the Study The scope of the study : * : feature films, documentaries, TV series, TV films, animation series and animation films & broadcaster commissions * Films that were produced during the period 1 January 2013 to the 31 December 2015; * Legitimate film project distribution; traditional and new distribution platforms; *Films that conducted either all or part of their production within South Africa including foreign films that have been short and/or post produced in South Africa in so far as it relate to the Qualifying South African Expenditure. ***Key Economic Indicators cannot be shared as the study has not been officially released to the public. This definition closely follows the DTI’s classification of qualifying projects in the DTI’s Film Incentive. * Thus, commercials, stills, projects commissioned by broadcasters and shortform film / animation projects are excluded. 10

Definitions: Value Chain Pre-production Production Post-production Distribution Word Definition Pre-Production The cost of development, funding and shoot preparations for the film. Production The costs incurred to shoot the film, including stock footage. In the case of animation, the actual animation and programing costs incurred to complete the film. Post-production The costs incurred to transform the footage (digital or film stock) into the finished film. Distribution The costs incurred to release and promote the finished film across cinema, DVD, CD, video-on-demand (“VOD”), mobile, online and TV platforms. 11

Summary of the 2013 Baseline findings 12

Methodology Pre-production Production Post-production Distribution Industry engagement were conducted with practitioners who have produced a film/documentary in the year under review (1 January 2013 to 31 December 2015) 13

Current Economic Landscape 14

Policies supporting environmemnt 15

Findings 16

17

Financing 18

Activity per segment 19

Findings 20

Employment 21

Growth constraints 22

PUBLIC v/s PRIVATE FUNDING 23

TOTAL ECONOMIC IMPACT 24

TOTAL ECONOMIC IMPACT 25

Lack of business acumen especially from smaller companies Growth Constraints Lack of business acumen especially from smaller companies Competition from other countries-(incentives and subsidies) Low demand for local products Insufficient skills in scriptwriting Limited production budgets 26

Conclusion & Recommendations 27

Overall recommendations 28