Analysis of Motion Picture, Video and Television Programmes Production and Distribution [2011-2016]

Evolution of Total Number of Companies [2011-2016]

The number of companies in this sector has had a positive trend. Thus, while in 2011 the total number of companies engaged in production and distribution of motion picture, video and television programmes was 1,227, in June 2016 this number exceeded 2,000 companies.

The biggest growth occurred in 2015 (14.8%). It should be noted also that in the early half of 2016 the trend is ascending, reaching 8.5% in June 2016. This percentage is merely indicative, as it covers the first semester only and, if the upwards trend of the first half of the year continues, the growth rate in 2016 might be higher than in 2015 by year-end.

Number of Companies by NACE codes

Most of the companies under consideration are engaged in the production and post-production of motion pictures, video and television programs (NACE codes 5911 and 5912). Distribution companies are much fewer in number, but they see a constant positive evolution within the time period analyzed (NACE codes 5913 and 5914).

Size of the Companies [2015]

The vast majority of the companies are microenterprises(97%). In fact, there is only one large enterprise with 278 employees, located in Ilfov county, active in the field of Motion picture, video and television programme production activities. All the other eight medium and large companies are also based in the Bucharest-Ilfov region, indicating a concentration of these activities in this area. Of these, five companies are active in the field of Motion picture, video and television programmes production and three are engaged in Motion picture projection activities.

Distribution of the Companies by the Biggest Cities in Romania [2015]

Turnover Evolution (thousand Lei) [2011-2015]

This subsection covers a turnover analysis. Overall, the whole period analysed is characterized by a sharp upward trend (+28.4% in 2015 compared with 2011) in terms of turnover.

The biggest turnover share is contributed by Motion picture, video and television programmes production activities (55.6% out of the total four activities).

Current Dynamics of the Turnover [2011-2016]

Unlike the number of companies indicator, turnover has not experienced an upward trend over the whole period of analysis. Thus, after a positive trend year by year, between 2011 and 2014, the turnover sees a slight decline in 2015 (-7.9%), due to two of the four areas under consideration, namely: Motion pictures, video and television programmes production activities – NACE 5911 (-13.3%) and Motion pictures, video and television programmes distribution activities – NACE 5913 (- 15.9). The figures show clearly that distribution is directly influenced by production.

The drop in production in the case of the activities under NACE 5911 is also correlated with the statistical data provided by the National Centre of Cinematography. Thus, there is a decrease in the production of Romanian movies with 100% Romanian funding in 2015 compared to 2014, and in particular of the production of feature films. In 2014, the total number of Romanian feature films was 38, while in 2015 this number decreased to 26. The biggest drop was recorded by fiction movies (-10 films in 2015 compared to 2014). Obviously, this trend has influenced the turnover of the companies active in production and distribution field.

Annual turnover evolution shows positive trends in all the four activities, with excellent results in the case of two of them (both showing a positive annual growth in each year of analysis).

Top Ten Cities by Turnover [2011-2015]

Net Profit Evolution (lei) [2011-2015]

Net Profit Evolution by Year [2011-2015]

Evolution of the Number of Employees [2011-2015]

The analysis of the number of employees reflects the overall positive trend, with an increase of 389 in the number of employees in 2015 compared to 2011 (11.6%). We are dealing with a moderate annual growth, generated largely by the increases recorded in the field Motion picture, video and television programs production (NACE 5911). As a matter of fact, the activities under this NACE code account for 76.6% of the total employment in the sectors analyzed.

Labour Productivity (EUR / EMPLOYEE) [2011-2015]

Labour productivity is treated in this study as the ratio between turnover and the average number of employees. Although there are other possible approaches, like, for example, the ratio between the gross value added (GAV) or the net profit and the number of employees, in this study the purpose is to show how many Lei of turnover are gained by one employee. Turnover is virtually the value of the production sold in the market (in our case, the value of services sold, given the specific of the activities under consideration).

Compared with 2011, labour productivity has known a positive evolution, both across all the NACE codes analyzed, and by each code. Overall, labour productivity increased from €62.357/employee in 2011 to €68.496/employee in 2015. The highest value was achieved in 2014 (€ 75.767/employee). In 2015, this indicator declined, due to the decrease in the values of production and distribution of motion pictures, video and television programs. For example, while the number of employees increased in the case of the activities under NACE 5911, the turnover experienced a drop of -13.3%, with an influencing factor in this regard being the decrease in the production of Romanian feature films.

Labour productivity shows an increase of nearly 10% in 2015 compared to 2011. Yet, the largest increase is recorded in 2014, i.e. 21.5%, influenced by the very good performance of the production and distribution of motion picture, video and television programs activities (5911 and 5913). Thus, in 2014 the activities under NACE code see an increase of 23.9% compared to 2011, and the activities under NACE code an increase of 32.7% compared to 2011. The decline in next year of the two activities has an adverse impact across the whole sector examined.

We may note the positive trend of the activity Motion pictures projection (5914), this being, in fact, the only NACE code that records positive annual growth over the entire period analysed. Compared to 2011, productivity growth stands at 38.3%, which is indeed a remarkable performance.

Also remarkable is the evolution of labour productivity in the case of Motion pictures, video and television programmes post-production activities (5912), which recorded an increase of 62.9% compared with 2011. The high value of the indicator for these activities is explained by the very small number of the employees of the companies in this sector.