Talent10 and IDC bet R1.9bn on new film and gaming franchise

Local investment group Talent10 Holdings has committed almost R1.9bn to developing a new entertainment and gaming franchise in collaboration with the Industrial Development Corporation (IDC). 

The venture has backing of more than $100m (about R1.86bn). 

As part of the project, Talent10 secured the rights to release a action-thriller movie, Boy Kills World, alongside the development of a mobile and PC fighting game, Super Dragon Punch Force 3. In addition, an eight-part animated series has been given the go-ahead, expanding on some of the characters introduced in the game, further adding to the franchise’s offerings.

“We identified an opportunity to provide longevity to our collective investment by creating an expanded universe of Boy Kills World that paves the way for future projects to be funded and produced in SA,” said Talent10 Holdings CEO, film writer and producer Wayne Fitzjohn.

Fitzjohn and his team are working to leverage local talent and locations to compete internationally. 

According to Fitzjohn, SA offers “exceptional value for money” in terms of dollar-based production costs, while maintaining high-quality entertainment for customers.

“SA is definitely open to the international film industry,” he said. “Boy Kills World is anticipated to perform extremely well at the box office, which could signify a significant boost for SA’s entertainment industry.

“A successful film release would attract further investment and attention to the country’s film production capabilities,” Fitzjohn said.

The film, which was entirely funded, produced and filmed in SA under Nthibah Pictures — a subsidiary of Talent10 Holdings — made its debut at the Toronto Film Festival. This effort has been led by Hollywood giant Lionsgate Films and Roadside Attractions signing on to distribute the film in the US.

Nthibah Pictures acquired the rights to the movie in 2021.

Talent10 said the investment had already played a role in local job creation and economic development, “solidifying SA’s position as a prominent, serious player in global film production”.

According to the SA Cultural Observatory, a national statistical and socioeconomic research project, creative industries contributed R63bn to SA’s economy in 2020. These industries now contribute an estimated R90bn, with most coming from audiovisual products. 

By some estimates creative industries contribute as much as 5% of GDP in SA. 

Even so, SA’s film industry has raised concerns over government reforms that have shrunk tax breaks for foreign-funded projects. It is feared the contentious policy changes will stifle growth in the sector and lead to losses of billions of rand in potential investment.

The industry, which once thrived on international collaborations, faces a downturn as professionals seek greener pastures. The revised foreign film tax rebate offers 20% on qualifying expenditure, with an additional 5% for post-production services provided by black-owned companies, capped at R25m, down from R50m.

Talent10 is hoping to capitalise on the trend of games that do well on the back of a successful film franchise.

Video games are a growing sector in SA, with the local gaming and entertainment industry valued at $266m, backed by 26-million active gamers across various platforms — most commonly cellphones.

According to the investment firm the convergence of gaming and film underscores SA’s appeal as a destination for international filmmakers.

“Its diverse landscapes, natural beauty and the wealth of local talent in editing, production and artistic fields have long attracted filmmakers, improving the country’s reputation as a premier hub for film-making,” it added.

gavazam@businesslive.co.za