Dear Media Colleague
Trust this finds you well
Please find a presser issued on behalf of the KZN Film Commission on the boom in the film industry which has yielded millions of rands in revenue, and has become the new employer and economic benefactor for our communities and society.
Some critical facts:
- During the 2016/17 financial year, the film industry in South Africa had a R5.4 billion contribution to the GDP, compared to the R3.5 Billion in 2013.
- The operations of the film industry in South Africa raised the level of production by approximately R12.2 billion, an overall positive impact.
- Of the 106 films released in South Africa in the first half of 2017, 10 were local titles, raking in R30m, or 5% of the total box office taking of R568m.
- A direct impact of R4.4 billion on economic production lead to an increase of approximately R12.2 billion on total production in the economy.
- The total number of jobs crafted amounted to 21.626
Attention: News Editors/Business/Entertainment Reporters
KZNFC promotes business for film industry
KwaZulu-Natal, South Africa, March 7, 2018: The KwaZulu-Natal Film Commission (KZNFC) is bringing together business and critical stakeholders to take advantage of opportunities available in the film and television sector, yielding millions of rands in revenue.
Local and foreign filmmakers are taking advantage of the country’s diverse, unique locations – as well as low production costs and the favourable exchange rate, which make it cheaper to make a movie here than in Europe or the United States.
Job creation, opportunities for entrepreneurs, incentives for producers, boosting local tourism, and robust infrastructure, abound, as the main factors behind the boom.
Carol Coetzee, Chief Executive officer for the KZNFC said: “The film industry has excellent potential for growth and is regarded as a catalyst for both direct and indirect employment of people from different sectors of the economy.”
In the first half of 2017, of the 106 films released in South Africa, 10 were local titles, raking in R30m, or 5% of the total box office taking of R568m. In the last financial year, the South African film industry had a R12.2bn impact on the local economy – direct impact of R4.4bn on economic production, an indirect impact of R4.9bn and an induced benefit of R3bn.
In a 2017 report, PricewaterhouseCoopers (PwC), a global professional services firm, forecasted that South Africa’s entertainment and media industry would reach a total revenue of R177, 9 billion by 2021.
The KZNFC is determined to play its part in ensuring that the forecasted figures become a reality.
Coetzee said: “We strive to consistently improve in supporting film producers and local artists and companies that want to build this industry. Our focus is to grow filmmaking in KwaZulu-Natal and in doing so, attract investment which benefits the broader South African society.”
Currently, filmmaking in KwaZulu-Natal offers opportunities to businesses in the following industries: air transport, food and beverages, hospitality, textiles, music, transportation, tourism, finance, insurance, real estate, utilities and medical services, carpentry, electronics, digital technology, sports and leisure, household goods & appliances, clothing and accessories, to name a few.
The commission also believes another critical opportunity, for example, for business, is to increase brand awareness of South African films.
Coetzee said: “The KZNFC is poised to develop audiences, understand what they want and implement strategies to engage with them. Product placement in film provides a huge opportunity for business to access the industry, businesses can use this platform to create brand awareness.”
In 1995, when the country first became a viable location venue for movie and television production, the industry employed around 4 000 people. This has grown to around 25 000 people, according to the National Film and Video Foundation.
South African broadcasters also distribute local productions to the rest of Africa through direct sales and bartering, where content is exchanged for advertising airtime. This has helped increase the demand for locally produced television content.
The Department of Trade and Industry offers industry-specific incentives to encourage local-content generation as well as attract international productions.
Coetzee said there were also foreign film and television production and post production incentives offered such as tax reductions.
“This will encourage and attract large-budget films and television productions and post-production work. This contributes towards employment creation, enhancement of South Africa’s international profile, and increase the country’s creative and technical skills base.”
The South African Revenue Service, through Section 12.0 of the Income Tax Act, provides for an exemption from normal tax, specifically income derived from the exploitation rights of a film.
Issued by FBI Communications on behalf of the KwaZulu-Natal Film Commission
Interviews and queries, contact Lungile Duma 031 325 0200 / 0733397395
For more information visit:
Facebook: KwaZulu-Natal Film Commission
Twitter: @kwazulufilm under the hashtag: #KZNFCBoostingFilm #BusinessofFilm
NOTE TO EDITORS:
About KwaZulu-Natal Film Commission (KZNFC)
The KwaZulu-Natal Film Commission is mandated to promote and market the province as global destination for film production- to develop, promote and market, locally and internationally, the film industry in the province and to facilitate investments in the film industry in the province.