THE CHINA OPPORTUNITY:
Why Australian Producers Must Think Beyond Our Borders
A new strategy for sustainable Australian screen production
Australia’s film and television sector faces a structural problem: too many capable projects, too little capital. Government support through Screen Australia, state agencies, and tax offsets remains vital—but it’s finite.
The result is a bottleneck that limits output, concentrates risk, and leaves viable projects unfunded.
At Legend Media Group, we believe the solution is not to rely on ever-greater public subsidies, but to look outward—to build international partnerships that expand access to commercial capital, expertise, and markets.
Among these, China offers one of the most compelling opportunities—if Australian producers are willing to think strategically and internationally.
Understanding why a strategic rethink is essential requires closer examination.
1.
The Great Contraction of Traditional Markets
For decades, Australian producers have relied on the United States and the United Kingdom for co-production opportunities and market access. It made sense: Hollywood offered scale, infrastructure, and global distribution networks.
The United States remains the world’s largest and most influential screen market. But scale no longer guarantees opportunity. Rising costs, consolidation, and shifting studio priorities have narrowed the pathways available to international partners—especially independent producers.
Hollywood is now entering what many analysts describe as a great contraction.
TV output has fallen 31%, from around 16,000 episodes in 2022 to just over 11,000 in 2024.
Los Angeles shoot days are down 36%, with tens of thousands of industry jobs lost.
The United Kingdom tells a similar story. Film production spending dropped around 45% year-on-year in early 2024, and a parliamentary report described the British Film Institute as “underfunded and overstretched.”
Adding to the uncertainty, proposals for a 100% US tariff on foreign-made films—even if never enacted—have already disrupted planning for international co-productions.
These are not temporary setbacks but a structural reset in global production economics—one that demands a new strategic footing for Australian producers.
2.
The Domestic Constraint
Australia’s own production ecosystem is under growing pressure. Screen Australia’s 2023–24 Drama Report revealed that:
Average production budgets fell 50 percent below the five-year mean.
International investment dropped to 27 percent, the lowest in a decade.
Nearly half of all new features were produced on budgets of just A$1–5 million.
These figures point to a structural limitation: the domestic market alone cannot sustain globally competitive production.
Our creative talent and technical capability are world-class, but scale and capital are not.
To build sustainable businesses and internationally resonant content, Australian producers must now combine local creativity with international finance, distribution, and audience access. Without that integration, even our best projects will remain under-capitalised and under-exposed.
3.
Looking to Where Growth Is Actually Happening
If Western markets are contracting, Australian producers must look to regions where growth persists—and that increasingly means Asia.
Australia has expanded its co-production framework, signing a new treaty with India in 2023 and building links across Southeast Asia. Yet in terms of scale, China remains unmatched.
Despite recent fluctuations, China is still the world’s second-largest film market.
2024 box office revenue: US$5.8 billion.
By October 2025: already surpassing that figure.
Chinese New Year 2025 alone: US$1.3 billion, a record high.
For comparison, India's 2024 box office reached US$1.37 billion. Southeast Asia's combined box office across all countries totalled approximately US$760 million. Australia's own domestic market generated around US$640 million. Chinese film market is more than four times larger than India's, seven times larger than Southeast Asia combined, and nine times larger than Australia's entire domestic market.
The Australia–China Co-Production Treaty (2007) offers a formal framework that treats certified productions as domestic in both markets—bypassing China’s foreign film quota and accessing incentives on both sides. On paper, it’s a ready-made opportunity.
4.
The Insularity Trap
Too often, Australian producers develop projects for a domestic audience, then try to “export” them later. This model no longer works.
The domestic market alone cannot sustain commercial-scale production.
To compete globally, projects must be conceived from the outset for multi-market relevance—creatively and financially. That requires partners, not just investors.
Asia’s markets—China, India, Indonesia, South Korea—are open to collaboration. But success demands:
Deep relationships with local producers and distributors
Cultural intelligence about audience expectations and regulatory frameworks
Cross-market development skills, ensuring stories travel authentically
Regulatory navigation, especially on censorship and certification
Distribution access, ensuring content actually reaches viewers
No single company can master all of this alone. It requires an ecosystem.
5.
The Collective Imperative
This is where industry collaboration becomes essential. Screen Australia, state agencies, Ausfilm, and guilds can provide market intelligence, facilitate co-production missions, and help de-risk early partnerships. But producers themselves must lead the shift.
That means:
Designing internationally viable projects from inception
Building enduring relationships with overseas partners
Investing in market literacy and regulatory understanding
Collaborating across the Australian industry to share knowledge and access
Embracing genuine co-production—creative as well as financial
The global content economy rewards scale, agility, and partnership. Australia must participate on those terms.
“International co-production isn’t about finding foreign money for Australian stories. It’s about creating stories that belong to more than one market.”
6.
Legend’s Commitment
At Legend Media Group, we’re acting on this imperative.
We’re developing projects and partnerships that leverage Australia’s creative talent with Asia’s market potential. We know it’s complex—cross-cultural production always is—but the fundamentals are strong.
China’s scale is undeniable. The treaty framework exists. Australian creativity remains world-class. What’s required now is collective intent—to look outward, build partnerships, and pursue opportunities beyond our shores.
This is not about abandoning Australian stories or government support. It’s about expanding the ecosystem—accessing more capital, spreading risk across a larger slate, and building sustainable production businesses that can compete globally.
At Legend, we believe the opportunity is real—and the time is now.
Legend Media Group is a Perth-based film and television production company specialising in international co-productions.
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