
--
CPA survey results deconstructed --
Tue, 14 Nov 2017 12:13
--
Written byy Bobby Amm, executive officer, the Commercial Producers Association
With South Africa s unstable commercial production industry, and our currently strained economy, the topic of sustainability has been receiving a lot more attention. This has come sharply into focus via the CPA s annual survey, which has revealed some noteworthy results this year.
The annual CPA survey
The CPA runs a survey every year to better understand the magnitude of the industry and to detect prospects, challenges and local trends. The findings are assembled into two groups of results:
1. The whole group: 40 50 contributors per year
2. The control group: 30 South African production companies that participate in the survey every year
Even though the number of participants isn t high relative to the greater industry, most of the heavyweight companies are included, so the results are an adequate reflection of the general industry, we believe. For instance, the control group on its own, turned over R1,25 billion this last year.
The results from 2017
Commercials produced: In total, 703 commercials were produced by the survey participants for a little more than R1.6 billion.
Number of filming days: These ads were shot over 1 680 days, with an average daily budget of over R900 000.
Variety of commercials: More local ads were produced (368) than service ads (305), and South African directors made 30 ads for overseas clients.
Filming landscape: In total, 58 per cent of the ads were shot in the Western Cape, 39 per cent were shot in Gauteng, and only 3 per cent were shot in other regions.
Biggest customers: After South Africa, Germany was our biggest client, with 74 ads made. Next was the United Kingdom with 72, the United States with 51, France with 40, and Scandinavia with 26.
Expense analysis: Almost 50 per cent of production costs go to remunerating the crew and hiring equipment. The other big costs take up: 13 per cent for art and set construction, 5 per cent for location fees, 9 per cent for talent, and 6 per cent for post-production.
Rising location costs: Production is still relatively affordable in Johannesburg, but the increasing costs in Cape Town are making it hard to shoot commercials there. With accessibility to the area limited to those with deep pockets, the city and its surrounds are quickly becoming service-only regions.
How this affects you
From these results, it looks like the industry is dipping, mainly thanks to rising production costs and an insignificant change to turnover. This trend is more gradual in the control group, but it persists suggesting that production budgets aren t growing in line with expenses.
As this gap gets wider, so does the danger to the production industry. It s one we should take note of too, as other countries have taken years to recover after experiencing similar trends.
Impact on global projects
Something else we ve seen is that many CPA members are getting less work from overseas. We think this could be because of variables like:
Universal unease: Trump, Brexit, human trafficking, terrorism the world is a scary and uncertain place these days, so clients are less likely to travel.
Rate of exchange: The UK is no longer our biggest client, mainly because of Brexit and the weakening Pound. The Rand is also getting stronger against the US Dollar and the Euro, which has the potential to make South African production less affordable this season.
Location fatigue: Clients are on the lookout for novel, exciting locations. South Africa appears to have priced itself out of the market, to a point, so other players like Portugal, Thailand, and a few South American regions are preferred.
Politics & economy: SA isn t currently stable, both politically and economically, so clients (particularly newer ones) are choosing safer countries to film in. Plus, with our local recession, prices are up too.
Greedy South African: Some overseas clients believe that SA s succumbed to the greed factor. Production departments are growing and our talent want to earn more for working in remote areas. With less inflation in their home countries than we re familiar here, these clients may struggle to understand our increasing costs.
Bureaucracy: While it may be a lot easier to get a visa and process other admin needed for overseas clients to come to SA, it still isn t ideal; this deters clients from coming to SA. In fact, many jobs are lost annually because an overseas director can t apply for a visa in person.
The future of our industry
The views on the upcoming season are varied, with notable concern coming from experts who market to overseas clients. But it isn t all bad. For instance, South Africa has strengths that many other countries don t, such as:
1. A solid reputation in the production world
2. Hard working crews and quick-thinking solutions
3. Great South African hospitality
Some of the issues affecting our industry are beyond our control. Of the ones we can affect, however, many can be undertaken with some imaginative flexibility and a specific focus on keeping costs down. By working together, we may be able to secure these jobs and turn this downward trend around - for everyone s sake.
Related Articles
-- --
-- --
-- Please enable JavaScript to view the comments powered by Disqus. comments powered by Disqus
Most recent headlines
05/01/2027
Worlds first 802.15.4ab-UWB chip verified by Calterah and Rohde & Schwarz to be ...
01/06/2026
January 6 2026, 05:30 (PST) Dolby Sets the New Standard for Premium Entertainment at CES 2026
Throughout the week, Dolby brings to life the latest innovatio...
02/05/2026
Dalet, a leading technology and service provider for media-rich organizations, t...
01/05/2026
January 5 2026, 18:30 (PST) NBCUniversal's Peacock to Be First Streamer to ...
01/04/2026
January 4 2026, 18:00 (PST) DOLBY AND DOUYIN EMPOWER THE NEXT GENERATON OF CREATORS WITH DOLBY VISION
Douyin Users Can Now Create And Share Videos With Stun...
26/02/2026
Multi-angle coverage, on-demand access to ultra-high-resolution video are provided for replays and clips across multiple distribution channels
The NHL and Cosm...
26/02/2026
Advanced Systems Group, LLC (ASG), a technology and services provider for media creatives and content owners, has appointed Jody Boatwright as Chief Strategy Of...
26/02/2026
As players report to Spring Training, TikTok and MLB announce an expanded content partnership bringing baseball fans around the world closer to the game through...
26/02/2026
Chyron announces its 2026 Designer of the Year Competition to be awarded during a live stream from the 2026 NAB Show in Las Vegas. This year's competition i...
26/02/2026
Appear, which specializes in live production technology, announces that its X Platform has been officially verified by YouTube for Secure Reliable Transport (SR...
26/02/2026
Adder Technology, a specialist in connectivity solutions and high performance IP...
26/02/2026
Harmonic announces that Alcom, a leading telco operator in Finland, is powering its next-generation white-label headend video service with Harmonic's XOS Ad...
26/02/2026
ESPN, Disney , and the Savannah Bananas announce a 25-game exclusive package in ...
26/02/2026
Brazilian broadcaster Globo has returned as the official broadcast partner of th...
26/02/2026
NDI, which concentrates in plug-and-play IP video connectivity, announces a strategic partnership with Jiaruisen (JRS), a Shenzhen-based technology distributor,...
26/02/2026
The Charleston, SC, native has excelled as a live-camera operator on Tigers broadcasts
In the live-sports-video industry, the future is bright. Our series SVG ...
26/02/2026
Behind The Mic provides a roundup of recent news regarding on-air talent, including new deals, departures, and assignments compiled from press releases and repo...
26/02/2026
Supported by partners, the in-venue production team keeps videoboard-show qualit...
26/02/2026
CAMB.AI provides AI speech synthesis and translation with a focus on localizatio...
26/02/2026
AWS Elemental Inference could help sports broadcasters learn to love AI
This we...
26/02/2026
Rohde & Schwarz awarded contract by Israel Airports Authority for QPS201 securit...
26/02/2026
Rohde & Schwarz highlights its unique CMX500 one-box tester tailored for NTN tes...
26/02/2026
Rohde & Schwarz high-efficiency transmitter powers next-gen broadcast services i...
26/02/2026
Rohde & Schwarz highlights its comprehensive embedded systems test solutions at ...
26/02/2026
Rohde & Schwarz to showcase spectrum security and network efficiency solutions a...
26/02/2026
Rohde & Schwarz and Broadcom showcase first Wi-Fi 8 RF signaling tests, paving w...
26/02/2026
Rohde & Schwarz advances AI-RAN testing using digital twins with NVIDIA Rohde & Schwarz, in collaboration with NVIDIA, continues to drive AI-RAN innovation fo...
26/02/2026
Rohde & Schwarz and LITEON demonstrate high throughput 5G femtocell testing with...
26/02/2026
Industry's only IPMX-compliant audio monitor takes centerstage along with IPMX multiviewers, gateways, converters and routers
Champaign, IL - January 26, 2...
26/02/2026
Cobalt among first manufacturers to achieve verified compliance status with IPMX...
26/02/2026
Barcelona - 20 February 2026 Cobalt Digital, the leading designer and manufacturer of award-winning ST 2110 and SDI signal processing products, and a founding...
26/02/2026
The agreement ensures Europe's satellite-based augmentation continues enhanc...
26/02/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
26/02/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
26/02/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
26/02/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
26/02/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
26/02/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
26/02/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
26/02/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
26/02/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
26/02/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
26/02/2026
With more than four decades of experience in radio broadcasting and live sports production, Daryl Doss, owner of Doss Technical Services and a contract engineer...
26/02/2026
BCNEXXT has deployed live HLG-based HDR playout capabilities within its Vipe platform, enabling broadcasters to integrate High Dynamic Range into live productio...
26/02/2026
TAG Video Systems (Booth W2323) will unveil new capabilities across its IP-native Realtime Media Platform at NAB 2026. New releases include visual service healt...
26/02/2026
IBC today announced a new strategic partnership with EIT Culture & Creativity the institutional partnership for culture and creativity, supported by the Europ...
26/02/2026
Clear-Com kept the action on track at Red Bull Shay'iMoto, an adrenaline-fueled motorsport spinning event that transformed the streets of Durban, South Afr...
26/02/2026
Harmonic (NASDAQ: HLIT) today announced that Alcom, a leading telco operator in Finland, is powering its next-generation white-label headend video service with ...
26/02/2026
Big Blue Marble, a provider of broadcast-grade, cloud-native video solutions for broadcasters, service providers, and content owners, today announced that it ha...
26/02/2026
New approach enables video service providers to deliver multiple live feeds on the same screen with lower costs and improved device compatibility
Broadpeak, a ...