1 / 10

IPO/SASFED presentation to the Portfolio Committee on Trade and Industry

IPO/SASFED presentation to the Portfolio Committee on Trade and Industry. Friday 16 th October 2009. Why are we here?. Our industry is unusual: Cultural, social, political impact Economic impact High profile, local and international Unquantifiable benefits It faces a crisis

gitano
Download Presentation

IPO/SASFED presentation to the Portfolio Committee on Trade and Industry

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. IPO/SASFEDpresentation to thePortfolio CommitteeonTrade and Industry Friday 16th October 2009

  2. Why are we here? • Our industry is unusual: • Cultural, social, political impact • Economic impact • High profile, local and international • Unquantifiable benefits • It faces a crisis • It has significant growth potential We must act now to defuse the crisis - to allow the growth to materialise.

  3. Our industry • Includes film, TV, commercials, corporate, documentaries, wildlife. • High-growth in past 5 years – included in ASGISA • Estimated employment: • Direct: 25 000 • Indirect: 100 000 • High multiplier – estimated 2.5 times • Estimated turnover R 8 billion p.a. • Very specialised, emotional • 80% SMMEs. “It’s like herding cats…”

  4. Quick guide SKILLS REVENUE • Actors • Camera • Sound • Lighting • Make-up • Wardrobe • Art/Design • Admin • Finance • Catering • Security • Transport • DVD • Formal • Pirated • (7%) • Writing • Planning • Art • Design • Editing • Sound • Graphics • IT • TV • SABC • E-tv • MNET • (70%) • Marketing • Sales • PR Production Creative Post- production Distribution • FILM • Local • Foreign • (15%) • Script dev. • Legal • Tax • Pitching • (10 %) • Cameras • Lighting • Studio • Set • Props • Travel • Accommodation • Crew • Cast • Legal • Accounting • Insurance • (60%) • Edit suites • Sound studio • Music • Duplication • Graphics • Storage • (20%) • Advertising • PR • Duplication • Transport • (10%) WWW & MOBILE (7%) COSTS

  5. Crisis? What crisis? • The recession • Ad volumes down 15% or more • Severe drop in film investment • SABC melt-down • R500 million virtually ‘frozen’ • Recession has compounded problem • Incentive competition • SA lagging as a destination • Currency strength ‘Triple-whammy’

  6. How bad is it? • Production sector • SABC cash flow crisis – historical and future • Big and small players closing down/cutting back • Post-production sector • Volume drops up to 70% • Established players closing down • Equipment being sold (to offshore) • Service sector • Foreign films dropped for first time in 5 years (back to 2004 level) On the brink of de-industrialisation…

  7. What growth in the future? • Digital • Proliferation of channels (from 6 to 40) will need local content • Local model • Jerusalema/Tsotsi/White Wedding/Yizo-Yizo • International model • District 9/Blood Diamond/Hotel Rwanda • Services • 20 years of skills history already in place • Foreign investment of R2.5 billion Iast 5 years Growth from 2010 should outperform the economy

  8. Government is proactive already • Initiatives • DTI, IDC, NFVF, Sec 24(f), Film Offices • Many current collaborative projects • DTI Rebate and Film Fund • IDC film finance, proposed SABC bridging finance • BBBEE structure for industry • SARS discussions on Sec. 24(f) re-vamp • SABC restructuring • DTI Sector Development Strategy of 2005 has been crucial to the industry. So what are we asking for?

  9. Support your agencies -in their efforts to support us • Accept that we “punch above our weight” in the economy • Approve short-term assistance in the crisis • Distressed Industry • SABC bridging • Enhance structures for growth • Roll-out 2005 Sector Development Strategy’s other projects • Refine rebates • New funding structures (IDC & DTI) • Re-vamp stalled Sec 24(f) • Revisit Lottery plans • Funds for working committees

  10. Thank you(and please remember)… pay your TV licence,go to the movies, anddon’t buy pirated DVDs.

More Related