Australia’s screen industry hit a rough patch this year, with Screen Australia’s 2023/24 Drama Report revealing a 29% drop in investment for scripted content, marking a sharp decline in both international and domestic productions. Spending fell to $1.7 billion, with $929 million dedicated to Australian stories—a notable 18% dip compared to last year.

While high-budget projects once buoyed the industry—think Furiosa, Elvis, and Mortal Kombat—the past year saw fewer big-ticket features and a downturn in free-to-air drama and children’s content. Much of the struggle is attributed to global economic conditions, shifting audience behaviors, and the Hollywood strikes, compounded by uncertainty surrounding Australia’s Location Offset incentives and delayed streaming quotas.

Subscription platforms like Stan, Netflix, and Binge provided a small bright spot, contributing to an uptick in commissioned titles for streaming platforms. However, children’s TV remains under immense pressure, with production spending plummeting by 29% and hours produced dropping 42%.

What’s Driving the Decline?

• Global Competition: Other markets with attractive incentives are drawing international productions away from Australia.

• Hollywood Strikes: The prolonged WGA and SAG-AFTRA strikes slowed production across the board.

• Incentive Uncertainty: Delayed government action on tax incentives and local content quotas has left industry players in limbo.

Screen Australia CEO Deirdre Brennan struck a cautiously optimistic tone, highlighting ongoing collaborations to boost Australian stories:

“Despite these challenges, we’re optimistic about the future and confident that there will be an uplift in production in the year ahead.”

Meanwhile, Screen Producers Australia (SPA) is calling the situation a “collapse,” urging immediate government intervention to stabilize the industry. SPA CEO Matthew Deaner stressed that children’s programming is on life support, with the ABC carrying much of the burden.

Key Takeaways from the Report:

• Total spending on Australian titles fell from $1.13 billion to $929 million, with the number of titles dropping from 120 to 99.

• Spending on children’s content dropped 29%, with production hours cut almost in half.

• Subscription platforms contributed the largest share to TV/VOD drama, led by Stan, Netflix, and Binge.

• States like Western Australia and territories like Northern Territory saw record spending surges, providing glimmers of hope for regional production activity.

As Australia battles to remain competitive, industry leaders agree: clearer policies, increased local investment, and long-term incentives will be critical for ensuring the survival—and growth—of its screen industry.