Visual Effects and Animation Industry Survey Results
The New Zealand VFX and Animation Sector Holds Steady Amid Global Uncertainty, but Faces Competitive Pressure from Australian Incentives
The first-ever VFX Guild survey, completed by 66% of New Zealand's VFX and animation businesses, revealed that a segment of the country's content production generated NZD $460 million in the last financial year—nearly matching the prior year's $462 million. Although this represents a smaller margin of growth than in previous years, the industry's overall stability amid Hollywood disruptions underscores the robust foundations and creative talent within Aotearoa’s screen industry. We aim to boost participation in next year's survey to achieve an even more comprehensive picture of the sector.
Despite the dual impacts of a major US entertainment industry strike and increasingly competitive incentives abroad—most notably in Australia—New Zealand’s VFX and Animation sector maintained near-stable revenues in the 2023/2024 financial year, reflecting the industry’s resilience and capacity to deliver high-quality digital content to international markets.
Nevertheless, concerns are mounting over the comparatively modest 20% international production incentive in New Zealand, contrasted with more generous rebates of 30–40% offered across the Tasman. “Australia’s higher rebates are making it harder for Kiwi businesses to secure top-tier projects and retain local talent,” says Bree Loverich, the Executive Director of the VFX Guild. “If we want to maintain our momentum and safeguard future growth, our incentive structures must keep pace with global benchmarks.”
A Call for Competitive Incentives
With Hollywood strikes providing a stark reminder of the volatility of global entertainment markets, local leaders emphasize that strengthening New Zealand’s competitiveness is critical to the sector’s future growth. “Our talent and track record speak for themselves,” Bree Loverich adds, “but we risk losing major opportunities if our incentive levels remain uncompetitive.”
Local IP Creation- Content and Screen Tech
63% of these businesses develop their own intellectual property (IP), positioning the local industry not merely as a service provider but as a generator of high-value creative exports and jobs—a truly “weightless” contribution to New Zealand’s economy. This strong focus on in-house IP development and screen technology is pivotal for creating a sustainable industry, driving innovation, and fuelling business growth.
By expanding access to international markets and attracting global investment into New Zealand IP, the sector can better establish robust content creation pipelines. A more coordinated approach involving key agencies such as the Ministry of Business, Innovation and Employment (MBIE), Ministry of Culture Heritage (MCH), NZ on Air and NZ Trade and Enterprise (NZTE)—bolstered by the new New Zealand Film Commission animation initiatives to support content creation in this significant sub sector—is essential for New Zealand to fully capitalise on this export growth opportunity, nurturing studio business development and fostering a sustainable pipeline of content as well the high value jobs and the technology required to deliver it.
Workforce and Skills
Despite the dip in growth, studios remain cautiously optimistic about hiring, with half expecting to increase headcount in the year ahead. The specialized nature of VFX and animation roles, however, continues to pose recruitment challenges, as businesses compete internationally for compositors, animators, technicians, and senior production managers—all pivotal roles in the delivery of world-class screen content.
Although last year’s subdued growth illustrates the sector’s vulnerability to global headwinds, leaders within the VFX and animation community believe that targeted government support, improved training pathways, and an enhanced incentive framework would help Aotearoa’s creatives weather industry disruptions and remain internationally competitive over the longer term.
Survey Partnerships
The VFX Guild extends its sincere thanks to Screen Auckland, Screen Wellington, and the many national VFX and animation businesses who generously funded this inaugural study. Their support has made it possible to provide an evidence base that reflects the strength, needs, and future potential of our industry.
Survey Report & Key Insights
Visual Effects and Animation Industry Survey Summary - 2024
The inaugural Visual Effects and Animation Industry Survey was undertaken in 2024. 30 Visual Effects/Animation Industry businesses completed the survey out of the approximately 45 businesses within New Zealand. Revenue from New Zealand business activity conducted offshore was not included.
Business Profile
Most of the businesses are based in either Wellington (53%) or Auckland (40%)
Most of the businesses are completely New Zealand owned and operated (93%)
Business Focus
Reflecting the complexity of the industry, the businesses have a wide range of primary purposes. The most common primary purposes are:
Full service visual effects and animation business (27%)
Full service animation business (20%)
Full service visual effects business (17%)
Sixty-three percent of VFX and Animation companies develop their own IP in-house, underscoring that the sector is not merely a service industry but also a source of original content.
Income
The Visual Effects and Animation Industry generated a total pre-tax income of NZD $460 million for the 2023/2024 financial year. This is very similar to the 2023/2022 financial year ($462 million) and a significant increase on the 2021/2022 financial year ($408 million).
The Hollywood strikes, which began in May 2023 with the Writers Guild of America action and expanded with the SAG-AFTRA strike in July 2023, significantly disrupted production schedules across the global industry. Consequently, these labor disputes halted new projects and contributed to the stagnant growth experienced in the global VFX and Animation sector over the past year.
Projected Growth
The majority of businesses (64%) expect to increase their income in the 2024/2025 year. 27% of businesses anticipate a significant decline in their income in the 2024/2025 year.
Export Earner
Over the three-year period, the average revenue split reveals that approximately 97.2% comes from export markets, with domestic sources accounting for just 2.8%.
More than half of the businesses generate income from New Zealand and/or the United States. Around a quarter source income from Australia and/or Europe. Other significant sources of income are from mainland China, the rest of Asia and across the rest of the world.
Of the 175 Visual Effects Projects undertaken by the businesses in 2023/2024:
55% had a budget of less than $250,000
15% had a budget of $250,000- to less than 1 million
11% had a budget of 1 million to less than 5 million
18% had a budget of 5 million or more
Employment
There were 1,753 full time equivalents working in Visual Effects in New Zealand as at 30 June 2024 and a further 126 working in Animation in New Zealand. A further 153 FTEs were based in Australia and a further 296 were based further abroad (outside of NZ/Australia).
Approximately 96% of VFX and Animation workers were born offshore, underscoring the sector’s role as a major magnet for international talent—whether through global education or skilled migration.
Half of the businesses (53%) intend to employ/contract additional staff in 2024/2025. The businesses intend to hire/contract 353 full time equivalents in the 2024/2025 year.
The most common sources of new hires for the Industry are:
Tertiary education (47% of Companies sourced hires from Tertiary Education)
Another VFX/animation company in NZ (37%)
Another VFX/animation company offshore (23%)
Elsewhere in the creative sector (23%)
There are a wide range of roles the businesses find difficult to fill, including: compositors, animators, artists, technicians, production managers, senior leaders and riggers.
The specific skills graduates joining the industry tend to lack, including:
Workplace skills (meeting deadlines, working under pressure, following instructions, social skills, adaptability, communication, basic business/pipeline awareness)
Technical skills (digital image processing, compositing, standard VFX software, practical production experience)
Artistic skills (core art fundamentals in color and photography, stop motion experience, storyboarding, and animatic production.
PDV International Incentive
40% of businesses think they missed out on work in 2023/2004 because of the level of incentive offered by the New Zealand PDV International Incentive (20%) and estimate that they missed out on $138 million in revenue.
“The PDV Incentive needs to be more competitive to win international work in NZ.”
Relocation to Australia
With 43% of businesses considering relocating at least part of their business to Australia to benefit from the PDV incentives there.
International Screen Production Rebate
50% of businesses think they would be hired to undertake more work if the International Screen Production Rebate was lowered from $15 million to $9 million.
Industry Perception
40% of businesses perceive the current state of the VFX and/or animation industry in New Zealand positively, 43% neutral and 17% negative.
Ways to help grow the Industry include:
Increasing the incentives
Government support /reducing barriers
Talent development/education
Working together to promote the NZ Industry offshore/attracting more work to New Zealand
Industry co-operation (networking, events, communication)
IP development
The 2024 VFX Guild Survey is an independent survey conducted by Premium Research covering 66% of the VFX and animation businesses in New Zealand. Revenue from New Zealand business activity conducted offshore was not included. These figures are current as of June 30, 2024.