This study examines the contribution of the wider film and television industry to the New Zealand economy and provides estimates measuring the magnitude of that contribution for 2008. It estimates that the industry’s value added is over 1 percent of New Zealand’s gross domestic product.
The analysis takes account of the direct, indirect and induced economic impacts created by the industry to determine the industry’s total economic contribution. In other words, it measures not just the spending that occurs by the industry itself, but the subsequent effects of that spending as money, labour and materials impact other industries.
To quantify the economic contribution of the film and television industry, four measures are estimated:
- gross output – combined revenues of all industry participants attributable to film and television activity;
- value added – the returns to labour and capital attributable to the industry (which amounts to the industry’s contribution to gross domestic product (GDP);
- labour income – the contribution made by the industry in wage and salary payments; and
- employment– the number of jobs created as a result of film and television industry activity.
Additionally, other contributions made by these industries to the New Zealand economy are identified and described.
The film and television industry is a changing and evolving industry with new services, products and distribution channels. The system of national accounts that seeks to measure this industry is structured based on industry classifications that are revised infrequently. As is the case with other industries that change with the pace of the technology driving their production, the system cannot separately identify all of the activity of the film and television industry in a manner that reflects current industry structure.
NZFA©T has an interest in knowing with greater accuracy the impact of film and television on the economy, as its role is to protect the creators of content. Better information about the significance of the industry informs the dialogue between copyright owners and the New Zealand government about protecting the rights upon which the industry relies in order to remain commercial.
Here’s a link to the full report.