The Film, Gaming and Animation Industry in South Africa 2023

Introduction

South Africa’s film industry has been an important generator of foreign investment and has earned the country a global reputation as a preferred destination for filming. Some animation studios have also attracted global interest. The film industry was severely affected during the pandemic and is slowly recovering. Ster-Kinekor has emerged from business rescue, and box office revenue is expected to grow significantly in 2023. Pay-TV and streaming services are becoming mainstream and preferred broadcast options. Gauteng and Western Cape account for the most film, animation and gaming activity. Domestic films continue to account for a small percentage of releases and revenue. Challenges include loadshedding that has reduced viewing time and access to target markets for advertisers. High inflation and unemployment have put pressure on the affordability of pay-TV and streaming services.

Opportunities

Exploit the global demand for greater diversity in film to expand the local industry. Leverage weakness of local currency to expand international work particularly in animation and gaming. Using untold stories of the country and continent as material for new film content.

Outlook

The film industry is recovering from the setbacks caused by the pandemic, but it is yet to reach pre-pandemic levels. There has been increase in film permits and location bookings, and international studios have returned to filming in South Africa. South Africa continues to have some competitive advantages in terms of its varied locations, film industry incentives, and cost advantages for international production companies. Continued growth is expected in the volume of local content being produced, especially series, but there is concern about the small number of films produced locally. The economic environment and continued loadshedding do not provide an environment for a growing local film industry. It is expected that international film releases will continue to dominate the local market.

Report coverage

This report on the film, gaming and animation industry and rental of film equipment provides an overview of the state and size of the industry, including box office, pay-TV subscription, development funding, film and other local production, distribution, trends, notable players, regulation and new technology. There are profiles of 59 companies including producers such as Quizzical Pictures, Known Associates Entertainment and Homebrew Films, distributors such as Filmfinity and United International Pictures, animation companies including Triggerfish Animation, Luma Animation and Mind’s Eye Creative and film studios and rental companies such as Cape Town Film Studios and Gearhouse.

Strengths

Internationally recognised and awarded South African productions. Largest screen capacity on the continent. Local crews have demonstrated capacity to service international productions. Several quality training institutions building new industry capacity. Strong hospitality sector to accommodate crews. Supporting policies, institutions and incentives. Value for money location due to local currency depreciation Wide variety of locations and all year-round availability in some parts of the country.

Threats

Distribution challenges to reach international markets. Dominance of international streaming services is weakening efforts to build a local film industry as they are not obliged to comply with local content quotas Increasing costs to secure popular overseas content due to a weakening rand. Loss of highly specialised animation expertise to international markets. Poor international profile of country due to crime and increasingly problematic municipal infrastructure.

Weaknesses

Energy shortages. Lack of commissioning of local animation products by SABC and MultiChoice. Lack of security amid high crime rates. Lack of transformation may weaken long term sustainability of the industry. Low economic growth and high unemployment that constrains affordability of pay-TV and streaming platform services. Low economic growth and high unemployment. Slow and bureaucratic public funding administration, incentives and permit application processing.