Victoria Risks Losing the Global Film Economy as States Race to Build Studio Infrastructure

Australia is in the middle of a screen infrastructure arms race and Victoria risks being left behind.

Around the world, governments and developers are increasingly investing in film precincts as economic infrastructure designed to attract talent, create jobs and stimulate urban renewal.

Now Australian states are following suit.

Queensland is expanding its dominance with a new 51.6-hectare screen precinct. New South Wales has launched a $100 million studio infrastructure push after acknowledging it is turning away international productions and Western Australia is investing $233.5 million into Perth Film Studios.

The warning comes from Harper B, a strategist working with cities, places and industry leaders to attract investment and drive economic growth, including advising a confidential film industry client on future screen infrastructure opportunities.

Harper B Founder Belinda Coates said the conversation around film infrastructure had shifted from culture to economic competitiveness.

“This is no longer simply about supporting the arts. Film infrastructure has become economic infrastructure,” Ms Coates said.

“The cities moving fastest are using screen production to attract talent, diversify economies and create long-term skilled jobs and build international reputations.”

The global film and television market is projected to reach almost $489 billion by 2030, driven by growing demand from streaming giants including Netflix, Amazon and Disney.

Australia’s screen industry already generates more than $5.3 billion annually and supports over 30,000 jobs, while screen tourism contributes an estimated $725 million each year.

Ms Coates said one of the industry’s greatest strengths was its resilience during periods of economic disruption.

“During the global financial crisis and throughout COVID-19, screen production proved remarkably resilient internationally, continuing to support employment and local economies while many industries slowed or shut down,” she said.

“In an increasingly uncertain economy, governments are recognising the value of industries that continue creating jobs through downturns.”

Victoria has long been regarded as Australia’s innovation leader in screen production. Docklands Studios Melbourne remains one of the country’s most significant production facilities and recently received a $48 million investment in advanced virtual production and LED volume technology. The Victorian Government also recently committed a further $21 million to VicScreen to support the growth of the state’s screen sector.

Ms Coates said those investments demonstrated Victoria’s commitment to the industry.

“Victoria deserves enormous credit for backing innovation and supporting the screen sector,” she said.

“The challenge isn’t capability. Victoria has world-class talent, technology and creative expertise. The challenge is ensuring there is enough infrastructure to meet growing global demand.”

Despite recent investment, Victoria currently holds just 16.6 per cent of Australia’s soundstage capacity, while Queensland controls more than 42 per cent and New South Wales continues to aggressively expand.

The consequences of constrained studio capacity have already been felt.

Universal Television’s La Brea relocated from Victoria to Queensland after struggling to secure studio space in Melbourne, taking with it $118 million in economic activity, hundreds of jobs and more than 800 supplier relationships.

“We are watching a global competition play out in real time,” Ms Coates said.

International case studies are reinforcing the economic argument for film infrastructure.

In Vienna, Austria’s screen incentive scheme generated an estimated four-fold economic return while helping retain local creative talent. In Camden, North London, a £1 billion mixed-use film precinct is being positioned as a major urban renewal and education hub incorporating soundstages, education facilities, housing, tourism and public spaces.

“The smartest cities are not treating film as a standalone industry,” Ms Coates said.

“They are integrating it into economic development, education, tourism, innovation and place-making strategies because they understand the long-term value of creative ecosystems.”

Ms Coates said Victoria risked losing long-term investment if it failed to act quickly.

“Every production turned away is not simply a missed opportunity. It is investment, jobs and talent relocating elsewhere,” she said.