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Video Postproduction Services in Australia Industry Market Research Report Now Updated by IBISWorld
  • USA - English


News provided by

IBISWorld

Dec 13, 2014, 14:00 ET

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IBISWorld Market Research
IBISWorld Market Research

Operators in the industry remain highly capable and sophisticated, boding well for the future as conditions recover.

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Melbourne, Australia (PRWEB) December 14, 2014 -- For the majority of the past five years, weak downstream demand from feature film producers, TV program producers and commercial producers has negatively affected operators in the Video Postproduction Services industry in Australia. This has resulted in reduced requirements for services such as visual effects, animation, subtitling and sound editing. The strong Australian dollar over the past five years has made it more difficult to attract foreign projects. According to IBISWorld industry analyst Nick Flores, “greater accessibility to technology has also decreased demand for sophisticated and expensive postproduction studios.” The industry is forecast to generate revenue of just $352.1 million in 2014-15, following an annualised decline of 2.7% over the past five years. The industry is poised for a modest recovery, with industry revenue forecast to rise by 1.1% in 2014-15.

Over the past five years, demand from commercial producers has tumbled as companies have become increasingly conservative in their advertising expenditure in a bid to cut costs. It has become harder for feature film and TV program producers to gain access to finance, which has decreased the available budgets for projects. “Weak demand has resulted in heavy price competition,” says Flores. Many unprofitable businesses have exited the industry or been acquired by major players as the top end of the market has consolidated. The increased capabilities of major players such as Animal Logic have resulted in some visual effects and animation businesses servicing big-budget feature film projects. Operators in the industry remain highly capable and sophisticated, boding well for the future as conditions recover. The industry has a low level of market share concentration. Major companies include Deluxe Australia Pty Ltd and Animal Logic Pty Ltd.

Conditions are expected to improve over the next five years. Rising business confidence will increase the spending of commercial producers. A forecast depreciation of the Australian dollar and stronger tax offsets for postproduction work will make the Video Postproduction Services industry more attractive against foreign competitors. The recovery will only be mitigated by the continually rising accessibility of technology. Simpler and less-expensive technology will enable postproduction work to be taken in-house by production companies, thus decreasing industry demand. Rising demand from 3D films is expected to support industry prospects.

For more information, visit IBISWorld’s Video Postproduction Services industry in Australia report page.

Companies in this industry primarily provide postproduction services and other motion picture and video activities. This includes specialised motion picture or video postproduction services such as editing, film/tape transfers, titling, subtitling, credits, closed captioning and computer-produced graphics, animation and special effects. The industry also includes companies that develop and process motion picture film.

Follow IBISWorld on Twitter: http://twitter.com/#!/ibisworldau

IBISWorld industry Report Key Topics

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
International Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Industry Globalisation
Major Companies
Operating Conditions
Capital Intensity
Technology & Systems
Revenue Volatility
Regulation & Policy
Industry Assistance
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.

Gavin Smith, IBISWorld, http://www.ibisworld.com, +61 396553838, [email protected]

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