Rings keeps industry bubbling at $923m

By LOUISA CLEAVE

The Lord of the Rings' budget effect on local screen production is starting to wear off but still makes an impact on the overall picture painted in an annual industry survey.

Production of films, television and commercials turned over $923 million in the year to March, compared with $1.1 billion the previous year.

However, industry leaders are emphasising that the figure has risen from $805 million in 1999 - the year before the Rings project was included in results.

The Screen Production and Development Association survey shows investment in productions is also up since 1999, from $307 million to $444 million, but down on the $572 million investment recorded last year.

Spada chief executive Jane Wrightson said overall patterns in the industry were still not entirely clear because of the Rings cash residue.

Ms Wrightson said there had been fewer foreign and domestic movies made during the survey period but the industry was relatively healthy.

"There have been fewer films than usual funded [by the Film Commission] in the last 12 months or so.

"When you don't fund domestic [movies] it tends to bring everything down a bit."

The Auckland economy received the greatest portion of production spending with $205 million spent in the region, compared with $122 million around Wellington and $28 million in Queenstown.

Foreign exchange earnings fell from $486 million last year to $361 million this year, although forex was up from $155 million in 1999.

Ms Wrightson said last year's figures were marked by the $88 million film Vertical Limit, while the big-budget Tom Cruise film The Last Samurai and a couple of other significant productions would impact on next year's result.

Herald feature: Lord of the Rings