--
OBG economic update SA s film industry --
Tue, 08 Sep 2015 14:16
--
An increasing appetite for domestic content and a rising appreciation by foreign filmmakers of South Africa as a filming location should sustain growth in the country s entertainment industry, with the sector s expansion set to outpace that of the broader economy in the years ahead.
South Africa s film entertainment market is projected to grow by 6.4% this year, generating earnings of R2.76 billion ($221.1 million), according to a PwC study. Revenues are expected to reach R3.42 billion ($273.7 million) within three years, with the industry expanding by a compound average growth rate of 7.1% in the five years to 2018.
Broadening the market
A system of incentives put in place by the Department of Trade and Industry (DTI) is helping to support the South African film industry, providing assistance to both domestic and foreign productions. The incentives not only encourage filming on location in the country but also offer additional rebates for post-production work conducted therein. This is helping to create employment in the sector, which currently numbers around 25 000 according to DTI figures, and further develop the skills base of the local industry.
The financial incentives currently include a 20% tax deduction for foreign movies filmed in South Africa with budgets of R12 million ($950 000) or higher, with a cap of R50 million ($4 million). There is also an additional 2.5-5% deduction offered to those conducting post-production work on the ground, depending on the level of expenditure. Another promotion scheme includes a 35% rebate on the first R6 million ($475 000) of qualified spending, with a 25% rebate applied thereafter, according to the DTI.
Box office figures
In addition to fostering South African content and expertise, these incentives are creating an important multiplier effect on the broader economy. The DTI estimates that for every R1 ($0.08) spent on film production, another R3 ($0.24) is spent in the wider economy, effectively tripling the department s more than R60 million ($4.7 million) worth of investments to date.
Lower production costs are another draw for overseas filmmakers. According to a recent study by the GFC, it is 40% cheaper to shoot a movie in South Africa s Gauteng province than in Europe or the US, and up to 20% less expensive than filming in Australia.
The weaker rand, down 7% against the US dollar year to date, will make local film shoots even more cost effective for foreign productions budgeted in their own currencies. While the cost of travel remains a factor in budget considerations, especially for crews coming from the US or Europe, added positives such as the country s broad skills base, established infrastructure and widespread use of English, weigh heavily in South Africa s favour.
The support of the DTI, combined with South Africa s other competitive advantages, is likely to drive an increase in foreign productions filmed in the country, according to Charl van der Merwe, CEO of film and broadcast service provider Silverline360.
It s an exciting time to be in the film and television industry, especially if you re catering to the international production companies, he told OBG. Going forward, we re going to need to grow our production capacity to keep pace with increasing demand, while also focusing on strengthening our offering across the entire value chain.
Several high-profile movies have already taken advantage of the country s offer. The much-anticipated Mad Max: Fury Road sequel was partly filmed in South Africa, with some R326 million ($25.8 million) spent locally, according to PwC, while Marvel s high-grossing Avengers: Age of Ultron included scenes filmed in Johannesburg and other areas of Gauteng.
Growth in the local industry is also expected to boost domestic content generation. However, to fully develop the South African creative industry, original content needs to be produced that can appeal to a larger market, according to Christine Service, country manager for the Walt Disney Company Africa. The industry is recognising that to really be successful and to fund the development of content with high production values, the creative community needs to make content that has the potential to reach beyond one single country or market, she told OBG.
Full stream ahead
South Africa could also benefit from changing viewing habits locally. Growth in domestic consumption is being driven by the continued popularity of conventional cinema, as well as the rise of online streaming, which is expected to play a greater role as a platform of choice for consumers in the years ahead.
Andile Mbeki, CEO of the Gauteng Film Commission (GFC), identifies technological advances and changing viewing preferences, such as the greater take-up of smartphones and digital migration, as key drivers that will govern the shape of future production and distribution channels. The shift from analogue to digital TV will create a lot of platforms for content distribution in the form of additional channels, he told OBG.
With around 850 cinemas serving a population of 53 million, access to local productions can be limited, though the move to formal digital and online platforms is the best way to both expand reach and combat piracy, with bootleg DVDs remaining a common vehicle for viewing local movies.
Moreover, as the industry sees greater investment in new media platforms, increased availability of content will help drive sales of new technology to consumers.
*This piece is published as part of Oxford Business Group economic updates
Related Articles
TBWA\Digital Arts Network appoints Hilton Veldsman as client service directorDigital Arts Network (DAN), TBWA s unique and comprehensive digital offering, with a network of 900 people operating in 23 offices across the
Most recent headlines
05/01/2027
Worlds first 802.15.4ab-UWB chip verified by Calterah and Rohde & Schwarz to be ...
04/08/2026
Dalet, a leading technology and service provider for media-rich organizations, t...
04/07/2026
April 7 2026, 19:00 (PDT) Detective Conan: Fallen Angel of the Highway Opens in...
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...
06/05/2026
Polands Miecznik-class frigates are part of the largest contract in Polish shipbuilding history. (Image Credit: PGZ Stocznia Wojenna)...
06/05/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
06/05/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
06/05/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
06/05/2026
Riedel Communications today announced the expansion of its leadership structure as part of a strategic initiative to strengthen both its operational management ...
06/05/2026
For nearly three decades, Veteran Production Sound Mixer and Five-time Emmy Award Winner Dirk Sciarrotta has helped define the sonic identity of the long-runnin...
06/05/2026
ZEISS CinCraft LensCore: Cinema Lens Looks for Compositing
Brie Clayton May 6, 2026
0 Comments
ZEISS announces the launch of CinCraft LensCore, a nove...
06/05/2026
Wisycom Solves Extreme RF Challenges Across Miles of Live Action for Gravity Med...
06/05/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
06/05/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
06/05/2026
Narrative Entertainment has partnered with Encompass to deliver high-quality subtitling of its Great! network content using the Altitude Intelligence AI assiste...
06/05/2026
SipRadius, widely recognized for making content processing and connectivity secure and seamless, is proud to launch a dramatic new approach to AI content creati...
06/05/2026
When the broadband and media industry gathers at ANGA COM in Cologne from May 19 to 21, Big Blue Marble will be at the forefront. The international broadcast an...
06/05/2026
Cinegy GmbH, a leading developer of software-defined television technology, is proud to exhibit at MPTS for the first time. Visitors to the stand will discover ...
06/05/2026
Val Jeanty Receives 2026 Doris Duke Artist Award Jeanty, a composer, percussionist, and turntablist, is the fourth Berklee recipient of the prestigious award ...
06/05/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
06/05/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
06/05/2026
When live cycling races and international marathons stretch for miles across cities and countryside, there is no margin for RF failure in live broadcast. As Chi...
06/05/2026
Oberkochen/Germany, May 5, 2026
ZEISS announces the launch of CinCraft LensCore, a novel solution for creating physically based cinematic lens looks for visual...
06/05/2026
SAN JOSE, Calif. - May 6, 2026 - Harmonic (NASDAQ: HLIT) today announced its latest broadband innovations for ANGA COM 2026, highlighting its vision for a new e...
06/05/2026
Statement from Rupert Murdoch, Chairman Emeritus, Fox Corporation on Ted Turner&...
06/05/2026
Friday 8 May on RT One and RT Player
Meet the NSPCA team caring for and protecting animals in need in this six-part series
Fly on the wall, six-part series...
06/05/2026
The race to build the world's most powerful AI factories demands networking ...
06/05/2026
How changes to proteins can alter drug interactions for new precision therapies Scripps Research team maps how chemical modifications to proteins affect drug bi...
05/05/2026
Experts from the world of academia, tech, business, politics and media convened for a Thomson Talks at the Cambridge Disinformation Summit in April. It's th...
05/05/2026
Three phones were hardwired for power and transmission to the truck; camera feat...
05/05/2026
The creative studio behind campaigns for the NBA, Fanatics Sportsbook & Casino, ...
05/05/2026
Nielsen has announced results from a co-viewing pilot program covering February&...
05/05/2026
viztrick AiDi, an on-device AI solution developed by Nippon TV, delivered global...
05/05/2026
ARRI has announced Omnibar, a battery-powered, IP65-rated multi-color LED linear...
05/05/2026
Imagine Communications has announced that France T l visions is the first broadc...
05/05/2026
The Women's National Basketball Association (WNBA) and Bell Media today announced a multiyear agreement to broadcast and stream WNBA games in Canada beginni...
05/05/2026
SVG is proud to announce Warner Bros. Discovery's Techwood Studios in Atlant...
05/05/2026
With no operator required, AutoMic workflow automates talent identification on U...
05/05/2026
A crash in 2015 set the industry back, but this winter proved that drones are he...
05/05/2026
Another year, and more proof that Asia continues to shape some of the world's most exciting new sounds. This year's RADAR artists draw from deep local r...
05/05/2026
The Austin City Limits Music Fest 2026 lineup just dropped, and this year, Spoti...
05/05/2026
New drum machine book campaign incoming
Bjooks have announced that during Superbooth 2026, they will be launching a Kickstarter campaign to fund the product...
05/05/2026
Flagship all-in-one production bundle updated
The latest version of Native Instruments' flagship virtual instrument and plug-in bundle has just been ann...
05/05/2026
Rohde & Schwarz to host RF Testing Innovations Forum 2026, helping design engine...
05/05/2026
L3Harris provides communications, electronic warfare, sensors and mission systems that enable Virginia-class submarine crews to operate with confidence in conte...
05/05/2026
The company grew by 7.6% in net revenue and 16.3% in EBITDA, achieving a 33% inc...
05/05/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
05/05/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
05/05/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
-- 
