Tenant movie studios in Australia are struggling with a massive supply glut, and if they don’t address it soon, they could face a massive loss of revenue.
Actors and producers are increasingly renting out their sets and film studios are struggling to find enough money to make the necessary repairs to the vast number of sets that are in use.
There are now nearly 200 studios across Australia, with many of them operating at near-capacity and operating with a shortfall of funding.
It’s a situation that has the studios facing a massive budget shortfall and could see many studios liquidate, according to industry insiders.
It could lead to some studios shutting down and others going into receivership.
A large number of studios are located in regional and remote areas, making them much more difficult to access than studios in major metropolitan centres like Melbourne and Sydney.
The cost of a rental property in Australia can be as high as $10,000 per week, according the ABC.
The average rent for a one-bedroom apartment in the capital is $1,700 per week.
In an attempt to boost the local economy, the government is considering a number of measures to help small and medium sized studios.
However, there are concerns that these measures could also lead to the closure of studios and many smaller producers, including independents and independent film festivals.
Some studios are also struggling to access capital and have started to use more cash to stay afloat.
A number of smaller studios, which have been operating for years, are also at risk of being liquidated.
The ABC understands that some studios are using cash from their debt to fund their operations, meaning that the amount they are able to borrow will also be constrained.AFL chief executive Gillon McLachlan has been meeting with local businesses and stakeholders in the region, and said the industry needed to work with the government to get back on track.
“It’s clear that the Government needs to step up and address the shortage of rental stock, and I am pleased to be meeting with the heads of many of the local business owners who are currently facing a shortage of supply and the significant impact it has had on their business,” he said.
“We need to ensure we have the capital we need to continue to operate at our current rate of growth and support our local communities.”
The ABC has contacted the Department of Industry and Innovation for comment.