annual report 2015/16 · hollywood producers looking to shoot in australia; they saw a need to...

Annual Report 2015/16

2 AUSFILM | Annual Report 2015/16 AUSFILM | Annual Report 2015/16 1

C ONTENTS 1 . A U S F I L M O V E R V I E W A N D H I S T O R Y Page 42 . C H A I R M A N ’ S R E P O R T 63 . C E O ’ S R E P O R T 8

4 . M A R K E T I N G & P R O M O T I O N S 1 0 4 . 1 M A R K E T I N G E V E N T S & M I S S I O N S 1 1 4 . 1 . 1 A U S F I L M W E E K , L O S A N G E L E S 4 . 1 . 2 A U S F I L M PA R T N E R W I T H A U S T R A L I A 4 . 1 . 3 A U S T R A L I A C H I N A F I L M I N D U S T R Y E X C H A N G E 4 . 1 . 4 T O R O N T O I N T E R N AT I O N A L F I L M F E S T I VA L 4 . 1 . 5 B U S A N I N T E R N AT I O N A L F I L M F E S T I VA L 4 . 1 . 6 S U N D A N C E F I L M F E S T I VA L 4 . 1 . 7 A F C I L O C AT I O N S E X P O 4 . 1 . 8 I N T E R N AT I O N A L C H I N E S E F I L M F E S T I VA L

4 . 2 S P O N S O R S H I P 1 6 4 . 2 . 1 G ’ D AY U S A I N C L U D I N G : - A U S T R A L I A R O C K S T H E P I E R - N E W P O R T B E A C H F I L M F E S T I VA L - PA L M S P R I N G S S H O R T F I L M F E S T I VA L 4 . 2 . 2 A U S T R A L I A N S I N F I L M 4 . 2 . 3 S C R E E N F O R E V E R C O N F E R E N C E 4 . 2 . 4 A U S T R A L I A N D I R E C T O R S G U I L D

4 . 3 M A R K E T I N G M I X 1 8 4 . 3 . 1 A U S F I L M C O R P O R AT E I D E N T I T Y R E B R A N D 4 . 3 . 2 C A M PA I G N S - M O R E B A N G F O R Y O U R B U C K 4 . 3 . 3 P R I N T M A R K E T I N G - A U S F I L M P U B L I C AT I O N & M E M B E R D I R E C T O R Y - FA C T S H E E T S - S I G N A G E - P R O M O T I O N A L I T E M S 4 . 3 . 4 D I G I TA L C O M M U N I C AT I O N S - C L I E N T M O N T H LY N E W S L E T T E R S - S O C I A L M E D I A - S H O W R E E L S - W E B S I T E

4 . 4 M E D I A & P U B L I C I T Y 2 4 4 . 4 . 1 A D V E R T I S I N G 4 . 4 . 2 P U B L I C R E L AT I O N S

CONTENTS 5 . P R O D U C T I O N A C T I V I T Y & AT T R A C T I O N 6 5 . 1 P R O D U C T I O N S AT T R A C T E D 5 . 2 N E W C O N TA C T S A N D L E A D S 5 . 3 FA M I L I A R I Z AT I O N T O U R S 5 . 4 L A M E E T I N G S

6 . I N D U S T R Y C O L L A B O R AT I O N A N D A D V O C A C Y 2 8 6 . 1 I N D U S T R Y C O L L A B O R AT I O N 6 . 2 ADVICE AND INFORMAT ION 6 . 3 A D V O C A C Y

7 . M E M B E R S H I P 30 7 . 1 M E M B E R G A I N S A N D L O S S E S 7 . 2 C L I ENT INTRODUCT IONS AND MEET INGS 7 . 3 M E M B E R A N D C L I E N T C O M M U N I C AT I O N 7 . 4 O U T L O O K

8 . G O V E R N A N C E 3 2 8 . 1 A U S F I L M U S A 8 . 2 F U N D I N G A G R E E M E N T 8 . 3 A C C O U N T I N G 8 . 4 F I N A N C E , A U D I T & R I S K 8 . 5 B O A R D M E E T I N G S 9 . A P P E N D I C E S 3 3 9 . 1 O R G A N I S AT I O N C H A R T 9 . 2 A U S F I L M B O A R D

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Hacksaw Ridge - photo by Mark Rogers © Icon Film Distribution


O UR Y EAR IN NUMBERSM E M B E R S H I P

A U S F I L M G L O B A L P R E S E N C E

E C O N O M I C S & P R O D U C T I O N A C T I V I T Y

S A L E S & M A R K E T I N G L E A D S

I N T E R N AT I O N A L P R O J E C T S T R A C K I N GU S A

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F E D E R A L , S TAT E & L O C A L A G E N C I E S

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Ausfilm promotes Australia’s screen production incentive schemes, locations and capabilities worldwide to assist international screen producers to make their productions in Australia. Ausfilm also provides informed advice to the Australian Government and its agencies on issues concerning the industry sector that services offshore production in Australia.

H I S T O R YIn 1989 a small group of Australian companies responded to an increased level of enquiries received by Austrade’s Los Angeles office from Hollywood producers looking to shoot in Australia; they saw a need to create a bridge between the Australian and Hollywood film and television industries for the benefit of the whole industry. The companies decided to share the costs for inbound scouts to showcase Australia’s locations, infrastructure and capabilities. Subsequently in 1994, with the support of Austrade, the Export Film Services Association (EFSA) was established and then in 1998 the EFSA became Ausfilm Incorporated with an executive in LA working out of Austrade offices and an executive in Sydney.

Today Ausfilm is a unique private-public partnership of 35 members; a not-for-profit organisation funded by member subscription fees and a quadrennial Federal Government Funding Agreement. There are three full-time staff in LA and five staff in the Sydney office.

A U S F I L M H I G H L I G H T S 2 0 1 5 - 1 6- Ausfilm continued to advocate for an increase in the Location Offset to 30%.

- Ausfilm hosted two major missions in Los Angeles, and one in Beijing focussing on business matching; generating project leads and showcasing Australia’s talent, services and facilities.

- Ausfilm hosted three inbound familiarization location scouts during the reporting period to provide location surveys and to introduce the prospective client to the facilities, services and key crew that can assist in bringing productions to Australia.

- Hacksaw Ridge, previously hosted on an Ausfilm inbound scout, shot in Australia.

- Alien: Covenant, The Shallows and Kong: Skull Island shot in Australia.

- Australia/China treaty co-production Nest also shot during the year.

- Thor: Ragnarok was secured in the 15/16 period with assistance from the federal and state governments to commence principal photography in July 2016.

- US TV series The Leftovers was secured and is shooting in Australia.

- Ausfilm USA was established as wholly owned company to employ Ausfilm staff in Los Angeles.

1 . A U S F I L M O V E R V I E W

Ausfilm is an Australian industry-government partnership whose members comprise Australia’s federal and state governments, the major studios and the leading post and digital effects facilities and production service providers.

The Shallows© Columbia Pictures & Sony Pictures Releasing


While there is certainly recognition on both sides of politics that the current level of the Location Offset is no longer attractive at 16.5%, it has proved difficult to get a commitment to a permanent increase to 30%. Despite this, Ausfilm continues to advocate at the highest levels to achieve a positive result for the sector.

Tony Clark and Zareh Nalbandian were re-elected to the Board and Zareh Nalbandian was re-appointed Deputy Chair. The Board also elected me to a further two year term as Chair for which I thank them.

I would in particular like to warmly thank Caroline Pitcher for her service to Ausfilm over a long period. Caroline’s term as Board member finishes at the 2016 AGM and she will not be re-contesting. Caroline has spent six years on the Ausfilm Board (2010 – 2016) as a corporate member representative and four years (2002 – 2007) as a state agency representative, as well as two invaluable years as CEO.

During the year we welcomed FIN, DWA Entertainment Lawyers, The Post Lounge and Curious Film as members. TressCox Lawyers and Holding Redlich advised they would not continue their membership.

The major issue of governance was the decision made by the Board in September 2015 to establish a subsidiary entity in the USA known as Ausfilm USA. This company serves the main purpose of employing the Ausfilm staff in the USA and allowing Ausfilm to carry out its US operations.

The Board explored several options when it became clear that the long-time arrangement with Austrade, whereby it employed Ausfilm staff, could not continue. Establishing the new entity was the most efficient and effective option and has proved successful in the first nine months of operation.

On behalf of the Board I would like to acknowledge the hard work of Debra Richards and the Ausfilm team and thank them for their efforts during the year.

I also acknowledge the Minister for Communications and the Arts, Senator the Hon Mitch Fifield, and the departmental staff for their continued support of Ausfilm’s programs.

The Ausfilm Board continues to provide a dedicated investment of time and focus on the work of Ausfilm ensuring it is positioned as an internationally respected screen marketing agency and has also continued to greatly assist Ausfilm’s key advocacy work both at the federal and state level.

I thank them all for their ongoing efforts.

Bob McMullanChair

2 . C H A I R M A N ’ S R E P O R T

2015-16 has been both a year ofproductive activity for the industry, but also one of some disappointment. Ausfilm continued its advocacy work at the federal level to keep Australia internationally competitive as a production destination. This paid a dividend with the decision by the federal government to provide top up grants that enabled Alien: Covenant and Thor: Ragnarok to shoot in Australia for which Ausfilm is grateful.


While the strength of the USD has meant a fall in the Australian dollar, it has had the same impact on the currencies of our competitor jurisdictions. The main barrier to large budget productions shooting in Australia continues to be the lower level of our incentive. The support of the federal government in providing ‘uplift’ grants to secure the two major studio productions has been invaluable and confirms the high value of international production for Australia.

The PDV Offset at 30% has also provided a range of local and international work for members. Ausfilm continues its advocacy to ensure this incentive remains effective and has continued to promote the work of our post, sound and VFX members; particularly with the Post and Sound Campaign launched as a key focus for Ausfilm Week LA in October 2015.

Ausfilm continued its promotion of Australia as a destination for production and post-production, including major missions in LA and Beijing showcasing Australia’s talent, services and facilities; maintaining the information gateway for all that Australia has to offer; continuing to provide up to date advice and information to the Australian Government in relation to screen production, domestically and internationally; continuing its advocacy for internationally competitive Offsets; and establishing our new entity, Ausfilm USA.

There has been substantial marketing work around Ausfilm’s rebranding, annual publication and member directory, marketing collateral, a move to more effective digital communications and specific campaigns for post-production and sound. A federal parliamentary screening of The Divergent Series: Allegiant hosted by the Minister for Communications and the Arts,

also showcased members’ PDV work; and once again exceptional Australian talent behind and in camera were recognised during the past year with a number of awards including Oscars, BAFTA’s and AACTA’s enhancing Australia’s already recognised international reputation.

Ausfilm has again become a key sponsor for G’Day USA with key events throughout the year. Ausfilm’s Partner with Australia Mission in LA in June 2016 was very successful with strong projects and high level of participants on both the US and Australian side of the table.

Together with our state screen agency partners, Ausfilm delivered three Australian familiarization tours during the year, including the second major Chinese delegation also supported by the Australian Embassy in Beijing and Village Roadshow Pictures Asia. The tour by the creative team behind the HBO series, The Leftovers resulted in the series choosing Australia and the tour by Screen Gems was for potential future projects.

Ausfilm will continue to work for its members, advocating for your businesses and internationally competitive incentives and connecting filmmakers worldwide to Australia. We look forward to continue to work with you in 2016-2017.

Debra RichardsCEO

3 . C E O ’ S R E P O R T

The past year has been highlighted by productions secured for Australia including two major studio feature films with Sir Ridley Scott’s Alien:Covenant shooting in New South Wales and Marvel’s Thor:Ragnarok to shoot in Queensland; the third and final series of HBO and Warner Bros Television’s The Leftovers shooting in Victoria and New South Wales; and Mel Gibson’s Hacksaw Ridge, which shot in New South Wales. Other feature projects choosing to shoot in Australia included the Chinese/Australia co-production Nest, SONY’s The Shallows and Kong: Skull Island (part shoot).


N O R T H A M E R I C A- Ausfilm Week, Los Angeles;

- Toronto International Film Festival, Canada;

- Partner with Australia, Los Angeles;

- AFCI Locations Expo & Global Finance Show, Santa Monica;

- Sundance Film Festival, Utah.

A S I A PA C I F I C- Busan Film Festival, South Korea;

- Australia-China Film Industry Exchange, Beijing;

- International Chinese Film Festival – PDV Offset Panel, Sydney.

B R A N D AWA R E N E S S A N D C O N T E N T M A R K E T I N G- An expansion and deeper engagement with clients through a variety of touchpoints including a major print publication, the Ausfilm website, digital communications and social media;

- Liaison with potential clients for production and strategic public relations; and

- Sponsorship initiatives to support Ausfilm’s marketing and promotions throughout the year and to build the organisation’s profile in international and local markets.

4 . M A R K E T I N G & P R O M O T I O N

Marketing efforts during this reporting period have focused on:

4 . 1 M A R K E T I N G E V E N T S & M I S S I O N S

4 . 1 . 1 A U S F I L M W E E K , L O S A N G E L E S The seventh annual Ausfilm Week Los Angeles took place 18-26 October 2015. The purpose of Ausfilm Week is to create, build upon and develop international relationships between Ausfilm members and key clients in LA to encourage international production to Australia.

The objectives were:

- Build and sustain long term relationships between Australian and Los Angeles-based film executives and decision makers;

- Consistent promotion of Australia’s screen production incentives to the US market;

- Showcase work of Ausfilm post and VFX members to LA industry;

- Facilitate business leads for Ausfilm members; and

- Raise awareness of the PDV incentive in the LA post production community through introductions to post production executives.

Ausfilm’s new corporate identity was also launched at Ausfilm Week with new marketing collateral, including the new and expanded edition of the Ausfilm Production Directory, which included feature articles on both post, sound and music production and visual effects members. The release of this publication coincided with a Post & Sound Campaign to promote the PDV Offset and the post and sound production members of Ausfilm.

A record number of Ausfilm members attended with 26 companies and 34 representatives participating in the week’s events, including new members – Big Bang Sound, FIN and Soundfirm.

The Ausfilm Week schedule included the Australians in Film (AiF) Benefit Gala, where Producer Bill Mechanic (The King’s Daughter, Hacksaw Ridge) was honored with the Ausfilm International Award for his continuing support of the Australian Screen Industry.

A U S F I L M W E E K L O S A N G E L E S

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You and a guest are invi ted to jo in Ausf i lm for an evening of networking and cocktai ls .

Come and mix with members from the Austral ian screen industr y and enjoy the sunset from

the rooftop of EP & LP.

A U S F I L M M I X O L 0 G Y

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R S V P I S E S S E N T I A L B Y O C T O B E R 2 0 T O

E V E N T B R I T E ( L I N K T B A )

Ausfilm markets Australia’s Screen Production Incentive Scheme and is an Australian screen industry and government partnership. Ausfilm comprises members from Australia’s Federal and State Governments, the major studio

complexes, production service providers and leading post, VFX and sound studios.

CONNECTING F ILMMAKERS WORLDWIDE TO AUSTRALIA



4 . 1 . 2 A U S F I L M PA R T N E R W I T H A U S T R A L I A , L O S A N G E L E SAusfilm Partner With Australia was held in Los Angeles from 14-17 June 2016. Nine Ausfilm members and 14 Australian Producers attended the mission.

The key business to business events were the two-day Producer Collaboration Sessions between US executives and Australian producers. The program followed the same successful format as in previous years with two half-day sessions of 1-2-1 scheduled meetings followed by networking drinks.

The Australian Consul General, Los Angeles hosted a high level dinner for 50 guests at the residence as the first official event of the week.

Ausfilm Partner With Australia was an extremely successful event with strong projects being pitched from emerging and established Australian producers. High level US participants helped to elevate the event profile in both the US and Australia.

4 . 1 . 3 A U S T R A L I A - C H I N A F I L M I N D U S T R Y E X C H A N G EAusfilm and Screen Australia led a delegation of members to Beijing from 19-22 April, 2016.

Two days of roundtable business to business meetings were held on 20-21 April, featuring Chinese production companies and filmmakers with production slates of mid-range to big budget AUD10m – AUD50m. The meetings were held at the Grand Hyatt in Beijing with simultaneous translation in each meeting. Ausfilm and Screen Australia hosted the meetings and ensured Ausfilm members and the screen agencies had ample opportunity to

talk about their businesses and exchange business cards for future meeting opportunities.

The Australian Ambassador once again hosted a luncheon at the Embassy with Ausfilm, Screen Australia, Film Victoria, Screen Queensland and Screen NSW. Each Australian guest was matched with a high level VIP Chinese representative from leading production companies.

澳中电影行业交流 A U S T R A L I A C H I N A F I L M I N D U S T R Y E X C H A N G E 2016年4月20-22

澳方代表团 A U S T R A L I A N D E L E G AT I O N

个人简介及公司简介

B I O G R A P H I E S A N D C O M PA N Y P R O F I L E S



4 . 1 . 4 T O R O N T O I N T E R N AT I O N A L F I L M F E S T I VA LAusfilm’s Executive Vice President (EVP), International Production attended 2015’s fortieth edition of the Toronto International Film Festival (TIFF). It is Ausfilm’s fourth year at TIFF, providing the opportunity to connect with global filmmakers travelling to Canada for one of the biggest public film festivals in the world.

For the first time, Ausfilm partnered with Screen Australia and hosted an official stand offering a central meeting point at the Festival Industry Centre to do business. Kate Marks, Ausfilm’s EVP said

“TIFF is a major hub for international filmmakers. It’s a must-do festival where Ausfilm can promote Australia as one of the world’s leading production destinations with globally competitive screen incentives and outstanding talent.”

The Festival featured the biggest screening of Australian films since 2009 with 13 Australian features and shorts screened. A large contingent of Australian talent also attended.

4 . 1 . 5 B U S A N I N T E R N AT I O N A L F I L M F E S T I VA LAt the invitation of Austrade, the CEO presented a masterclass as part of the Busan International Film Market with Matthew Hancock from Screen Producers Australia (SPA) from 3-5 October. A series of meetings was organised by Austrade for both Ausfilm and SPA during the market with production companies and equivalent government and industry organisations.

4 . 1 . 6 S U N D A N C E F I L M F E S T I VA LThe Sundance Film Festival is considered the most important US independent film festival on the calendar. The annual program of dramatic and documentary films, shorts, New Frontier Films, installations, performances, panel discussions, and music events attracted a large contingent of industry executives including studios, independent production companies, agencies and producers. Ausfilm’s Client Liaison Executive attended the festival 22-26 January, 2016 to continue to build upon US and Australian relationships.

4 . 1 . 7 A S S O C I AT I O N O F F I L M C O M M I S S I O N S I N T E R N AT I O N A L - L O C AT I O N S E X P O & G L O B A L F I N A N C E S H O WThis year the event provided increased opportunities for industry leaders to meet with media, producers, and with financiers interested in investing in foreign markets with the introduction of the Global Finance Show. The newly added conference complemented the traditional Locations Show. Ausfilm had a single booth staffed by the Los Angeles team. The number of exhibitors was similar

to last year with a range of visitors and enquiries at the Ausfilm booth. The majority of enquiries were in regard to the incentives. The LA team used the event to reconnect with existing clients and extend Ausfilm’s reach in the US market.

4 . 1 . 8 I N T E R N AT I O N A L C H I N E S E F I L M F E S T I VA L ( I C F F )Ausfilm curated the key PDV panel for the ICFF’s Australia-China Co-Production Forum, held as part of the festival. The forum was organised by the Motion Picture Association, the Australian Screen Association and ICFF.

The PDV panel included Ausfilm members Animal Logic, Deluxe and Plastic Wax, and was held at Fox Studios Australia on 23 November 2015.

The forum aims to develop creative and business connections between the Australian and Chinese film industries.

Extraordinary talent, world class studios, amazing locations

Australia

40 % PRODUCEROFFSET

30 % POST, DIGITAL & VFX OFFSET

16.5 % LOCATIONOFFSET


4 . 2 S P O N S O R S H I P4 . 2 . 1 G ’ D AY U S A – L O S A N G E L E S A N D N E W Y O R KIn January 2016 Ausfilm once again became a sponsor of the G’day USA program - the Australian Government’s most important public diplomacy program in the United States. The events sponsored are:

- The G’day USA LA Gala

- Palm Springs International Shortfest

- Australia Rocks the Pier

The Los Angeles G‘Day Gala was held on Thursday, 28 January. The event, hosted by Toni Collette and Rachel Griffiths, honoured Academy Awards nominee and Mad Max director, George Miller with the Lifetime Achievement Award and Australian actor, writer and director Joel Edgerton with the Excellence in Film award. The show included a special appearance by Hugh Jackman with Richard Wilkins as Master of Ceremonies.

The CEO and EVP also travelled to New York for the NY leg of G’day USA and attended the Foreign Minister’s Luncheon as well the American Australian Association Gala Dinner.

Australia Rocks the Pier is an annual Australian concert held on the pier in Santa Monica as part of the Twilight Dance Series. 2015 marked the 31st year of the concert series and the sixth Australia Rocks the Pier held on 7 August. Ausfilm partnered with G’Day USA to sponsor a VIP backstage reception followed by performances. Ausfilm invited clients to this event.

The Palm Springs International ShortFest took place from 21-27 June and the Australian showcase was held on 25 June. The showcase was consistently strong this year with eight short films screening as part of the curated package. The Consulate in conjunction with Ausfilm hosted an invitation only reception following the screening for the filmmakers and industry guests.

4 . 2 . 2 A U S T R A L I A N S I N F I L M ( A I F )Ausfilm continued to partner and sponsor AiF in 2016.AiF held a series of screenings showcasing Australian talent and conducted a series of educational labs. As a sponsor of AiF, Ausfilm invited key clients to the screenings. This allowed Ausfilm to further its relationship with industry executives and build awareness of Australian talent, facilities and locations. The AiF Benefit Gala continues to be a platform event during Ausfilm Week in October and Ausfilm again supported the Heath Ledger Scholarship dinner held annually in June.

The EVP International Production became President of AiF in May 2016.

4 . 2 . 3 S C R E E N P R O D U C E R S A U S T R A L I A C O N F E R E N C E ( S C R E E N F O R E V E R )In addition to executing the Working with Australia session as part of Screen Forever, Ausfilm also facilitated the International Partnership Market (IPM) which took place as part of Screen Forever.

The purpose of the Working with Australia session was to provide an overview of Australia’s screen industry, the role our federal, state and territory agencies provide to filmmakers, our screen incentives, locations, facilities and our industry’s capabilities to the attending international delegation, before they take part in the Screen Forever conference and the IPM. Attending were representatives of all the Australian screen agencies and the Ausfilm USA office.

The third IPM is a selective market that provides the opportunity for Australian feature film and television producers (drama, comedy, documentary, kids, animation) to create, build upon and develop relationships with international film and television producers who are looking for co-venture or co-production opportunities.

Ausfilm were the major sponsors of this initiative, working with Screen Producers Australia to develop the event concept, call out for applications, and undertake scheduling and execution.

4 . 2 . 4 A U S T R A L I A N D I R E C T O R S G U I L D ( A D G )Ausfilm sponsored the Australian Directors Guild Awards held in March 2016 as an awards supporter.

Deadpool© Twentith Century Fox Film Corporation & Luma


4 . 3 M A R K E T I N G M I X

4 . 3 . 1 A U S F I L M C O R P O R AT E I D E N T I T Y R E B R A N D The Ausfilm logo remains the same, however Ausfilm required a solution across its brand visual language on digital and print elements that was flexible enough to adapt to different applications, dialling up and down content and imagery as and when needed.

The changes included:

- new fonts and colours

- a more creative use of location and production imagery

- creative typography and design that continues to promote the tax incentives and our world-class capabilities in a clear and elegant style

- a revitalised and contemporary look and feel to represent the innovative, creative industries that we promote.

These changes were featured in:

- the new Ausfilm Publication for 2015 including the Member directory

- Factsheets

- Ausfilm Week Los Angeles event collateral

- monthly client e-news

- member e-news

- electronic invitations and media alerts

- print and digital corporate stationery

- signage

- social media pages

The changes will be reflected across a new website in 2016 to make way for Ausfilm’s digital strategy for increased video and content marketing online.

Ausfilm launched a new corporate identity to coincide with Ausfilm Week in October. All Ausfilm Week marketing and event materials featured the new identity styling.

4 . 3 . 2 C A M PA I G N S P O S T A N D S O U N D C A M PA I G N – M O R E B A N G F O R Y O U R B U C KAusfilm launched a campaign to promote picture post and sound and music post production as part of an overall campaign to drive awareness of the additional benefits of the Australian Government’s PDV Offset. The campaign was launched during Ausfilm Week Los Angeles in October and comprised of two networking lunches for Ausfilm members to connect with post, sound and music clients from studios and networks and a VFX networking event.

Ausfilm’s post, sound and music members supplied data on service costs for eight companies to assess average post-production spend across feature film and TV series within Australia. Using this data, the campaign highlighted three case studies to demonstrate the savings international productions can make using the 30% PDV Offset with a lower Australian dollar. The marketing mix for this campaign included print and digital collateral.

P R I N TA booklet was produced and distributed to clients at the LA Post & Sound lunches and can be downloaded from the Ausfilm website.

In addition a digital campaign with a microsite highlighting three case studies, was distributed to Ausfilm’s database of post, sound, music and VFX clients and stakeholders (including those that attended the lunch and VFX event in LA).

C A M PA I G N O B J E C T I V EThe events in LA and the print and digital campaign will motivate clients to consider topping up VFX with Australian post, sound and music services when using the PDV Offset and drive enquiries to your businesses.

S N A P S H O T O F D I G I TA L C A M PA I G N- 1017 clients were on the database

- 33% of all recipients opened the campaign/email

- 5.18% clicked a link

Industry benchmarks for opens/click-through rates for newsletters for the Entertainment/Events industry is 21.5% opens and 2.5% click-throughs.



4 . 3 . 3 P R I N T M A R K E T I N G A U S F I L M A N N U A L P U B L I C AT I O N & M E M B E R D I R E C T O R YAusfilm’s new corporate brand identity used for the new Ausfilm Annual Publication cover featured a teaser image from Mad Max: Fury Road (with full imagery inside) and article teasers on the cover.

The Ausfilm Membership Directory and Incentives brochures were combined this year to create a publication that not only continues to promote Australia’s incentives scheme, Ausfilm member businesses and screen credits but also showcases in depth the talent and expertise within Australia’s screen industry and Ausfilm membership. This was achieved through two feature stories interviewing US and UK clients. This publication aims to engage with Ausfilm’s international client base through marketing content. Feedback from clients and members has been very positive.



4 . 3 . 3 P R I N T M A R K E T I N G FA C T S H E E T SAusfilm updated and refreshed its suite of Factsheets for Incentives (English & Mandarin), Talent and Visas.

S I G N A G ENew signage was produced to coincide with Ausfilm’s rebrand and this included signage for the AFCI Locations Expo and a media wall used as a backdrop at Ausfilm seminars and events.

P R O M O T I O N A L I T E M SAusfilm did not produce any branded promotional items in this period and was able to utilise merchandise created in 2014.

4 . 3 . 4 D I G I TA L C O M M U N I C AT I O N S C L I E N T M O N T H LY N E W S L E T T E R SAusfilm implemented a new e-marketing software, Campaign Monitor, providing the organisation with more detailed metrics and post campaign analysis. Monthly digital newsletters were distributed to Ausfilm’s global database plus single member announcements and invitations to Ausfilm events over the reporting period. The database is continuously updated with new and revised client contact information. Ausfilm increased its content marketing across its digital communications. There has been an excellent increase in click throughs and page views on the Ausfilm website as a result of this change.

S O C I A L M E D I AAusfilm continues to regularly monitor and update its social media outlets. At the end of the reporting period Ausfilm’s Twitter ‘followers’ were at 7,130 and our Facebook ‘likes’ were at 1,584.

The growth in our digital presence can be attributed to the implementation of Ausfilm’s digital strategy which aims to increase brand awareness, raise awareness of Australia’s screen production incentives and information about Australia’s screen businesses and industry by disseminating content across Ausfilm’s suite of digital platforms.

A U S F I L M S H O W R E E LAusfilm produced two new showreels for launch at Ausfilm Week in Los Angeles. These included a 1.5 minute sizzle reel featuring some new footage and showcasing the message Make it in Australia with key messaging of the three federal government offsets. The second showreel is 2.5 mins showcase of Ausfilm’s PDV Members latest work again with messaging around Post it in Australia, VFX it in Australia, Animate in Australia, Compose it in Australia.

W E B S I T EAusfilm commenced a major overhaul of its website and will launch in September 2016.

Through Ausfilm’s digital engagement strategy there have been positive results across visitor duration and page views per month as is demonstrated by the three year comparison below.

The rise can be attributed to an increase in content on the existing Ausfilm website via Ausfilm’s monthly Client newsletters.

2012-13 2013-14 2014-15 2015 - 2016

Average Visitor Duration (seconds) 112 129 154 119

Bounce Rate % 60.3 57 55.9 59.51

Pages per Visit 2.41 2.64 2.87 2.51

Page Views – Av per month 4612 5401 6749 6818

Sessions – Av per month 1901.33 2039.58 2417 2715

A U S F I L M W E B S I T E M E T R I C S : F O U R Y E A R C O M PA R I S O N


4 . 4 M E D I A & P U B L I C I T Y

4 . 4 . 1 A D V E R T I S I N G There were two advertisements produced in the reporting period as part of Ausfilm’s sponsorship of G’Day USA. Ausfilm’s marketing strategy continues to be focussed on increasing direct digital campaigns via Ausfilm’s e-marketing system and engaging with clients through content marketing and storytelling rather than expending money into print advertising in trade publications.

4 . 4 . 2 P U B L I C R E L AT I O N S The Ausfilm public relations initiatives were increased within the reporting period and included media releases around the attraction of major international productions Hacksaw Ridge; Thor: Ragnarok and Alien: Covenant secured by Australia. Ausfilm also distributed releases on its Ausfilm Week in LA in October 2015; Partner With Australia producer collaboration sessions in June 2016; the Ausfilm, Village Roadshow Pictures Asia and Australian Embassy in Beijing’s joint China delegation to Australia in June.

Ausfilm was also recognised in press release announcements for its sponsorship of Australians in Film in October 2015; the Screen Forever conference in November 2015; and the International Chinese Film Festival’s Co-production Forum in November 2015.

A U S F I L M & O U R M E M B E R S H I P T H A N K B I L L M E C H A N I C F O R H I S C O N T I N U I N G S U P P O R T

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T (+61) 2 9383 [email protected]

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AUSFILM MARKETS AUSTRALIA’S SCREEN PRODUCTION INCENTIVES, LOCATIONS, TALENT AND CAPABILITIES TO THE FILM AND TELEVISION INDUSTRY WORLDWIDE. AUSFILM’S MEMBERSHIP COMPRISES AUSTRALIA’S FEDERAL AND STATE GOVERNMENTS, THE MAJOR STUDIO COMPLEXES, PRODUCTION SERVICE PROVIDERS AND LEADING POST, SOUND,

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With offices in Los Angeles and Sydney, Ausfilm provides advice, recommendations and guidance to international producers seeking to film in Australia or work with Australian screen

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AUSFILM IS A PROUD SUPPORTER OF G ’DAY USA AND THE PALM SPRINGS

INTERNATIONAL SHORTFEST

Village Roadshow Pictures Asia and the Australian Embassy in Beijing’s joint China delegation to Australia in June 2016


5 . P R O D U C T I O N A C T I V I T Y & AT T R A C T I O N5 . 1 P R O D U C T I O N S AT T R A C T E D L O C AT I O N / P H Y S I C A L P R O D U C T I O NThe following location/physical production projects were attracted, commenced or completed shootingduring the reporting period:

Hacksaw Ridge - Shot in New South Wales.

Thor: Ragnarok – The third film in the Marvel Comics franchise to shoot in Queensland.

Alien: Covenant – Sir Ridley Scott directed this prequel to the Alien films in NSW.

The Shallows - Part shoot in Queensland and New South Wales

Kong: Skull Island - Part Shoot in Queensland

The Leftovers – Series three shooting in Victoria and NSW

Nest – Shot in Queensland

P D VThe following PDV projects were worked on during the reporting period:

Ghostbusters (US film)

Game of Thrones (US TV)

Deepwater Horizon (US film)

The Boy (US film)

Childhood’s End (US TV)

Saints and Strangers (US TV)

Our Brand Is Crisis (US film)

Underground (US TV)

Powers Season 2 (US TV)

Open Season 4: Scared Silly (US film)

A Bite of China - Celebrating The Chinese New Year (Chinese documentary)

Shannara Chronicles (US TV)

The Disappointments Room (US film)

The Night Before (US TV)

Manhattan (US TV)

Truth (US film)

Last Witch Hunter (US film)

Deadpool (US film)

Captain America: Civil War (US film)

Dr Strange (US film)

The Darkness (US film)

Fallen (US Film)

Underworld: Blood Wars (US film)

Alien: Covenant (US film)

The Divergent Series: Allegiant (US Film)

Guardians of the Galaxy: Vol 2 (US Film)

LEGO®: Batman (US Film)

LEGO®: Ninjago (US Film)

5 . 2 N E W C O N TA C T S & L E A D S The Ausfilm USA office tracked a total of 381 projects through the financial year, including 50 new projects.

Of the new projects, 12 were potential Producer Offset projects and six were PDV Offset projects; another 10 projects would not qualify for any of the Australian Screen Production Offsets and would rely on state support only, leaving 22 projects, which were considering Australia for the Location Offset.

Due to the reputation of Australia’s VFX businesses many PDV projects are secured both directly by the Australian company and via Ausfilm.

Ausfilm continues to work with Australian producers throughout the year and through Partner with Australia in LA that supports Australian producers pitching their projects to US executives.

5 . 3 A U S T R A L I A N FA M I L I A R I Z AT I O N T O U R S There were three familiarization tours during the reporting period.

S C R E E N G E M S 6 - 7 A U G U S T 2 0 1 5Glenn Gainor, President of Physical Production at Screen Gems, a Sony company, came to scout Australia for potential future projects.

In addition to member meetings, Ausfilm organised an “In Conversation” session with Glenn prior to the drinks to provide Ausfilm members with detailed information about Glenn’s project scouting Australia and his slate of potential projects at Screen Gems.

T H E L E F T O V E R S – 2 6 F E B R U A R Y - 9 M A R C H 2 0 1 6The creative team behind the HBO series The Leftovers – Mimi Leder, Eugene Kelly, Tom Spezialy and John Paino – scouted New South Wales, Victoria and South Australia for season 3 of the series. A member event and dinner for Platinum members was held in Sydney.

V I L L A G E R O A D S H O W P I C T U R E S A S I A & C H I N E S E F I L M M A K E R S – 2 0 J U N E - 3 J U LY 2 0 1 6For the second consecutive year Ausfilm in association with the Australian Embassy in Beijing and Village Roadshow Pictures Asia hosted a delegation to Australia. The delegation included four Chinese filmmakers with a suite of projects suitable for location and/or PDV work.

5 . 4 L A M E E T I N G S The LA team is actively involved in tracking potential projects that could come to Australia and building new relationships for the benefit of the Ausfilm members. During the reporting period the Ausfilm USA staff undertook a total of 389 meetings, covering all aspects of film and television production. Meetings were with independent producers and production companies, US studio contacts, financiers and project packaging agents, government representatives and Ausfilm members.

The monthly production update, facilitated by the LA Office, keeps Ausfilm members up to date with potential leads. The LA office also facilitates location package requests from clients.


6 . I N D U S T R Y C O L L A B O R AT I O N & A D V O C A C Y6 . 1 I N D U S T R Y C O L L A B O R AT I O N Ausfilm works collaboratively across the screen production industry to ensure there is a whole of industry, coordinated, marketing and promotion of Australia as a destination for international production. This is achieved through regular industry wide meetings and an exchange of expertise and intelligence with other organisations.

Ausfilm maintains formal and informal contact with Screen Australia to work collaboratively and cooperatively at all levels of the organisation.

All state government screen production agencies are actively engaged during the planning process of major Ausfilm international events. The Ausfilm Board meetings provide a key platform for input by all screen agencies. The state screen production agencies work closely with Ausfilm to provide an itinerary and events for the inbound familiarization location scouts.

Ausfilm has maintained ongoing relationships with Austrade and the Department of Foreign Affairs and Trade (DFAT) with collaboration on events such as G’Day USA. The Australian Consulate and Embassy in Los Angeles and Beijing, respectively, have been highly involved in the events Ausfilm has held or attended in those cities.

6 . 2 A D V I C E A N D I N F O R M AT I O NAusfilm maintained relationships with the Department for Communications and the Arts throughout the reporting period including meetings with Lyn Allan, Assistant Secretary, Creative Industries and Sector Development, and Caroline Fulton, Director, Film Policy and Incentives. Officers also attend as observers at each Ausfilm Board meeting.

Ausfilm and departmental staff communicate on a regular basis for an exchange of industry related information and to keep the department abreast of production flows and issues concerning Australia’s place in the offshore production sector.

Ausfilm also invited key staff to attend missions and to undertake set visits.

6 . 3 A D V O C A C YAusfilm maintains and develops effective communications with both the government and with the non-government parties, meeting through-out the year with Parliamentarians and government representatives across a range of portfolios that have an impact on the film sector. Aside from the Department for Communications and the Arts these include Treasury, Finance, Foreign Affairs and Trade, Industry, Education and Defence. These meetings focus on explaining the need for effective offsets in order for Australia to remain competitive in attracting big budget, international screen production to Australia for the benefit of the industry and the economy.

Ausfilm USA also facilitated meetings with studio executives for the Minister for Foreign Affairs and the Australian Ambassador to the USA.

Australia-China Film Industry Exchange Roundtable meeting with Wanda Dalian Group and Ausfilm members , DFAT and Austrade in Beijing, China

Diana Giorgutti, Luma and Steve Papazian, Warner Bros. – G’Day USA Gala Dinner January 2016

Richard Harris, Screen Australia; Brendan Seals, Luma; Rachelle Gibson, Ausfilm; Tony Clark, RSP; Diana Giorgutti, Luma and Jason Bath, Animal Logic – Parliament House screening of The Divergent Series: Allegiant, Canberra

Wayne Borg, Fox Studios Australia; The Hon. Troy Grant, NSW Minister for the Arts; Zareh Nalbandian, Animal Logic – Sydney

Debra Richards, Ausfilm; Zareh Nalbandian, Animal Logic; The Hon. Julie Bishop, Minister for Foreign Affairs; Tony Clark, RSP and John Olsen (G’Day) – Ausfilm Christmas Drinks, Parliament House Canberra


7 . M E M B E R S H I P

7 . 1 M E M B E R S H I P G A I N S A N D L O S S E S FIN, The Post Lounge, Curious Film and DWA Entertainment Lawyers joined the membership.TressCox Lawyers did not renew during the reporting period. Holding Redlich ceased membership from 1st July 2016.

7 . 2 C L I E N T I N T R O D U C T I O N S A N D M E E T I N G SAusfilm facilitated 185 introductions for our members, Australian producers and industry professionals with LA based clients over the past 12 months. The meetings were with studios and major and independent production companies and are similar to those undertaken throughout the year by Ausfilm USA staff; they are utilised for business development, lead generation and to exchange information about members’ and clients’ slates of projects.

There continues to be interest in emerging Australian talent in the LA market and Ausfilm helps to fulfil that interest through continued outreach with Australian writing, producing and directing talent.

7 . 3 M E M B E R C O M M U N I C AT I O N SMember e-newsletters continued to be distributed at regular intervals. Ausfilm increased its service to members across solo digital alerts or press announcements. Each member company or agency receives one solo e-alert per annum. The marketing team have provided each agency or member company with post-campaign metrics and analysis to follow up sales leads and to learn what content works in order to improve on future digital campaigns.

7 . 4 O U T L O O KWhile the Australian dollar fell against the USD, so did the currencies of competitor jurisdictions. The main barrier to location shooting in Australia by large budget productions continues to be the level of the Australian incentive, which is lower than that of Australia’s main competitors Canada, the UK and the US state of Georgia. Alien: Covenant and Thor: Ragnarok decided to shoot in Australia because the productions received grants from the federal government that took the incentive to the equivalent of 30%. The federal government has indicated it understands the value of this type of production and Ausfilm continues to be in discussion with the government on increasing the Location Offset.

Feedback from meetings in Los Angeles indicates the US industry is increasingly interested in projects that can qualify as Australian for access to the Producer Offset at higher budget levels and where marquee Australian talent is attached. Ausfilm will continue to market the opportunities to work in Australia and with Australians to the world.

Richard Harris, Screen Australia; Australian Consul General – Los Angeles, Chelsey Martin; Courtney Gibson, Screen NSW; Lynda Carruthers, Fox Production Services.

Debra Richards, Ausfilm; Mark Pedante, Lionsgate; Elle Croxford, Cutting Edge; Tom Cavanaugh, Twentieth Century Fox at the Ausfilm Week Post & Sound in Focus lunch.

Catherine Armstrong, Soundfirm; Alastair Stephen, FIN; Simon Rosenthal, Iloura – Ausfilm Week, Los Angeles October 2015.

Wayne Borg, Fox Studios Australia; Rod Allan, Melbourne Docklands Studios; Elle Croxford, Cutting Edge; Lisa Crampton, Sunset Marquis Hotel; Vivien Flitton, Ausfilm – Ausfilm Week, Los Angeles October 2015.

Elaine Beckett, Trackdown; Todd London, Walt Disney Studios; Adam Scott, Spectrum; Jesse Torres, Director, Marvel Studios; Linda Borgeson, Walt Disney Studios.

Debra Richards, Ausfilm moderating AiF Screening of Truth, October 2015 with Director James Vanderbilt; Mandy Walker, DOP and Brad Fischer, Producer.


9 . A P P E N D I C E S8 . G O V E R N A N C E

8 . 1 A U S F I L M U S A Ausfilm USA Inc. was established in September 2015 by resolution of the Ausfilm Board and set up as a C Corp under California state law. The business became operational on 1 November 2015.

Ausfilm USA is a subsidiary of Ausfilm International and Ausfilm is the sole shareholder. Ausfilm USA reports to a one person Board (Ausfilm CEO), Kate Marks is the President, Vivien Flitton is Vice President.

8 . 2 F U N D I N G A G R E E M E N TAusfilm entered into a quadrennial Funding Agreement with the federal government in 2013 through the relevant department administering the arts industry programs, now the Department for Communications and the Arts.

The Funding Agreement contains a budget and key performance indicators (KPIs) and Ausfilm is required to report to the federal government twice a year in relation to the KPIs and Ausfilm’s income and expenditure. Upon acceptance of these reports the federal government advances the allocated funding tranche; these are received by Ausfilm early in each financial year and each calendar year.

8 . 3 A C C O U N T I N GAusfilm employs a freelance bookeeper, Jenny Brooks, to perform the accounting processes. The cost report is reviewed by the CEO on a monthly basis and the most recent report is provided to the Board for review at each Board meeting.

8 . 4 F I N A N C E A U D I T A N D R I S K C O M M I T T E EThe Finance, Audit and Risk Committee (FARC) met three times in August 2015 and February and May 2016. FARC considered a range of matters including regular financial reports, the audited financial statements and budget for 2016/17, for both Ausfilm and Ausfilm USA, and reported to the Board on these activities.

8 . 5 B O A R D M E E T I N G SSix Ausfilm Board meetings were held in 2015-2016; September and November 2015; and February, March, April and June 2015; one in Sydney, two in Canberra, one in Adelaide, one in Brisbane and one in Melbourne.

A Special Board Meeting was held on 11 September 2015 to approve the establishment of Ausfilm USA.

The make-up of the Ausfilm Board did not change during the reporting period. Tony Clark (Rising Sun Pictures) and Zareh Nalbandian (Animal Logic) were re-elected to the Board at the AGM held on 11 September 2014. At the meeting after the AGM the Board appointed Zareh Nalbandian as Deputy Chair.

At the April Board Meeting the Board re-elected Bob McMullan for a further two year term.

O R G A N I S AT I O N C H A R TS TA F F AT 3 0 J U N E 2 0 1 6Chief Executive Officer Debra Richards Sydney

Head of Marketing and Business Development Rachelle Gibson Sydney

Head of Policy and Research Nick Herd Sydney

Senior Marketing Executive Caroline Raffan Sydney

Executive Assistant and Operations Manager Annie Lucas Sydney

Bookkeeper (P/T) Jenny Brooks Sydney

Executive Vice President, International Production Kate Marks Los Angeles

Client Liaison Executive Michelle Sandoval Los Angeles

Director of Operations Vivien Flitton Los Angeles

A U S F I L M B O A R DB O A R D M E M B E R S AT 3 0 J U N E 2 0 1 6Chair Bob McMullan

Deputy Chair Zareh Nalbandian Animal Logic

Elected Corporate Member Tony Clark Rising Sun Pictures

Elected Corporate Member Lynne Benzie Village Roadshow Studios

Elected Corporate Member Wayne Borg Fox Studios Australia

Elected Corporate Member Caroline Pitcher Iloura / DDP Studios

Screen Agency Board position Ian Booth Screen West

Screen Agency Board position Annabelle Sheehan South Australian Film Corporation

Screen Agency Board position Courtney Gibson (from Nov 2015) Screen NSW

Screen Agency Board position Tracey Vieira Screen Queensland

Screen Agency Board position *Richard Harris (from Feb 2016) Screen Australia* Fiona Cameron, Screen Australia

B O A R D O B S E R V E R SFederal Government Board Observer Caroline Fulton Ministry for the Arts

Screen Agency Board Observer Jenni Tosi (from Nov 2015) Film Victoria

F I N A N C E A N D A U D I T C O M M I T T E E*Chair Jenni Tosi Film Victoria

Member Ian Booth Screen West

Member Wayne Borg Fox Studios Australia

Secretary Debra Richards Ausfilm

* Maureen Baron, Screen NSW (July - September 2015)


1 0 . F I N A N C E , A U D I T & R I S K C O M M I T T E E R E P O R T

REPORT OF THE ACTIVITIES OF THE AUSFILM FINANCE, AUDIT AND RISK COMMITTEE

ANNUAL GENERAL MEETING TO BE HELD ON 2 SEPTEMBER 2016

The Committee is comprised of Jenni Tosi, Chair Wayne Borg Ian Booth Debra Richards, Secretary The Committee’s Charter requires a report of the activities of the Committee to be provided to the annual general meeting of Ausfilm. This report is for the period from 1 July 2015 – 30 June 2016 During that period the Committee met at the following times: 10 August 2015; 9 February 2016; 25 May 2016. The Committee considered the following matters during that period and reported to the Board on its activities:

• draft audited statements for the prior year;

• budget for the current year for both Ausfilm International and Ausfilm USA;

• financial reports for the current year for both Ausfilm International and Ausfilm USA;

• financial and bookkeeping systems;

• EMDG;

• MFTA reports;

• budget for the coming year for both Ausfilm International and Ausfilm USA. Dated 10 August 2016

X-Men Apocalypse© Twentith Century Fox & Rising Sun Pictures

36 AUSFILM | Annual Report 2015/16 AUSFILM | Annual Report 2015/16 37The LEGO® Batman Movie© Warner Bros., Village Roadshow Pictures & Animal Logic

Ausfilm is supported by financial assistance from the Australian Government

A U S F I L M U S A

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A U S F I L M

Sydney, Australia+ 61 2 9383 4192

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