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

2. 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

3. 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

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

5. 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

6. FILM INDUSTRY RELATIONS6

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

8. 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

9. 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

10. 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

11. 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

12. Summary of the 2013 Baseline findings12

13. 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

14. Current Economic Landscape14

15. Policies supporting environmemnt15

16. Findings 16

17. 17

18. Financing 18

19. Activity per segment 19

20. Findings 20

21. Employment 21

22. Growth constraints 22

23. PUBLIC v/s PRIVATE FUNDING23

24. TOTAL ECONOMIC IMPACT 24

25. TOTAL ECONOMIC IMPACT 25

26. 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

27. Conclusion & Recommendations27

28. Overall recommendations28