The State of the Australasian Post Production Industry in 2025: a period of disruption, reinvention, and cautious optimism

The past 12 months have been a period of disruption, reinvention, and cautious optimism for the Australian post production industry. Market pressures have collided with unprecedented technological change, reshaping how work is scoped, budgeted, and delivered. Facility closures across Australia and New Zealand have underscored the volatility of the sector, yet demand for bold creative campaigns remains strong…

 

Studios across the region are contending with seismic shifts – from the rise of AI and shrinking budgets to evolving client demands and increasingly global workflows. These pressures have tested the industry, yet they’ve also driven fresh efficiencies, sparked innovation, and reshaped how post houses define their value. From established players to new entrants, many are rethinking their approach to talent, collaboration, and craft.

At the centre of this shift is AI, dominating discussion around speed, creativity, control, and value. Hybrid and remote workflows are now entrenched, enabling borderless collaboration, while talent retention and upskilling have emerged as urgent challenges in the face of global competition and the displacement of senior artists from shuttered facilities.

Balancing commercial pressures with creative ambition, tight budgets remain a defining feature, but rather than stifling work, they are driving sharper thinking and more inventive approaches.

Caleb De Leon, Creative Director & Partner at 3P Studio, explained that while timelines are unchanged and ambition is higher than ever, the scale hasn’t increased proportionately, and his team has felt relatively unaffected thanks to a long-standing culture of imagination and determination. De Leon said: “It’s been a big shift this year in the tectonic plates our industry sits on. Obviously multiple post houses closing offices and doors has sent ripples through the industry. We’re seeing a big rise in motion and visual effects work, especially as the boundaries blur between traditional post and digital out-of-home, anamorphic and scalable billboards are more prominent than ever before.”

Damon Duncan, Managing Partner & VFX Supervisor at Fathom, highlighted the growing disconnect between ideas and budgets, observing that the ambition is often still there but the budgets are not always matching the scale of the idea, particularly when early imagery sets unrealistic expectations. He says there has been a notable shift towards smaller amounts of VFX in jobs and briefs that lean towards simpler executions: “I would suggest that the budgets that do come through requiring VFX are on average about half of what they would have been pre-Covid times. We have seen facility closures in the New Zealand market this year, which points to a changing local market. In saying that, we still have an overachieving creative landscape in New Zealand and the work that does get created here is still world class.”

For Heckler Executive Producer Amy Jarman, compressed schedules are both a challenge and catalyst: “Tighter budgets and compressed timelines are definitely our biggest hurdles right now. We are the last in the food chain, so we often don’t get as much time as we would like. But, it pushes us to be more creative in our approach.”

Patrick Salter, Managing Director of Studio Pancho, emphasised sharper thinking, noting that “every dollar must work harder, which isn’t about doing less, it’s about getting sharper with how we are doing it.”

He admits competition is tougher than ever and fewer projects are on the table: “There’s more pressure on post houses to prove our value under tighter constraints, and we’ve seen the fallout first-hand, with a few really good shops closing this past year or so.”

At xoPost, Co-founders Trelise Blade and Mike Lange suggested that reduced budgets are encouraging greater intentionality: “Budgets are tighter – there’s a lot less ‘we’ll fix it in post’ being said. It’s not the old smorgasbord approach where projects dip in and out of every post department over and over, piling the plate with fish, trifle and lasagna. It’s more à la carte – crafted, streamlined, intentional, and quite often more satisfying.”

In contrast, Alt.vfx founder Colin Renshaw has seen a welcome return of strong brand campaigns this year, with bold creative and moderately healthier budgets compared to recent years. He said: “It’s been refreshing to work on projects where craft and storytelling are being valued again.”

 

Technology + Innovation

Technology is reshaping post-production, acting as both disruptor and enabler. AI and real-time platforms are redefining workflows, but the studios that will thrive are those that treat innovation as fuel for creativity rather than a threat to it.

Jarman of Heckler highlighted how AI has emerged as a key focus this year – not only in conversation across the industry, but in the practical and meaningful ways it’s being integrated into production workflows. She says: “We recently worked on the latest Menulog campaign with Thinkerbell using a mix of AI platforms alongside traditional pipeline tools. It’s been a great opportunity to learn how to balance speed and control.”

For Heckler, AI is just another piece of software; it can accelerate certain parts of the process, but the final craft still comes down to human creativity. “It’s great to get you to a point or for reference, however the ability to make tweaks and rounds of feedback isn’t as smooth as a traditional pipeline where we have full control.”

Integrating machine learning into its workflow and pipeline for several years now, the tools Alt.vfx uses daily continue to introduce more AI-driven solutions that make iteration faster.

Renshaw believes generative video technology has enormous potential to change the landscape of high-volume content creation but only in the right hands, guided by experienced artists. He said: “Combined with our robust real-time pipeline, developed through virtual production work, we now operate three unique pipeline streams that complement each other based on specific briefs. This flexibility allows us to adapt to both high-end craft-driven campaigns and fast-turn digital content.”

At 3P Studio, CEO & Founder Haley McDonald pointed out that 12 months ago, ChatGPT was just entering people’s vocabulary. Now, she says the vernacular has expanded so that phrases like, ‘Google Veo 3’, ‘Runway Aleph’, and ‘Higgsfield’ having entered treatments and agency briefings. McDonald says: “We had a director very eloquently describe the AI arms race to date has been a competition for ‘cheaper and faster’, and that thankfully, we are now asking more nuanced questions in the pursuit of ‘better’ and ‘unrestricted creative’.”

Duncan of Fathom underscored the need to embrace new technologies or be left behind. He said: “We are constantly reinvesting in and developing our pipeline and delivery tools and ensuring we are giving our artists the ability to focus on creative results rather than engaging in mundane tasks. AI or Machine Learning has had a big impact on the industry and has also generated a lot of fear, which is understandable. Most of these tools and approaches are still in their infancy so it will be interesting to see where they end up.”

Commenting on the rise of AI, BUCK Executive Creative Director Gareth O’Brien said: “We treat AI as a collaborator: not where you start, not where you finish, but a companion along the way. AI is used selectively, and its use is evolving as the tech does.”

At xoPost, Lange stressed that innovation is as much about restraint as technology: “We love AI, but it’s not about replacing creativity – it’s about automating or speeding up the tedious stuff so we can do more fun stuff. Tools that clean up dialogue and visuals in minutes rather than hours are game-changers and generative engines that speed up ideation are awesome, but the real innovation is how we rewire workflows to use them efficiently. AI can shuffle pixels and waveforms, but the heartbeat of the story is still human.”

Salter of Studio Pancho agreed the obvious game-changer is AI: “Like most, we’ve wired it into our pipeline at many stages. Mainly we utilise it by throwing additional ideas around, set extensions and tweaking shots on the fly. From early ideation through to comp, it’s been a useful tool for the studio. The real sweet spot in all of this for us is the hybrid approach: the speed and flexibility of AI paired with the resolution and control of real-time engines. Systems like Unreal’s PDG framework give us instant iteration without sacrificing any quality.”

 

Creative Trends

Despite financial pressures, creativity is thriving as studios explore new ways to connect audiences with brands. From traditional TVCs to immersive experiences, those that combine innovation with craft are best placed to deliver work that resonates across platforms.

De Leon at 3P Studio noted a slow and steady growth towards bolder, more ambitious and experimental projects. He added: “On that front though, there is less room for error than ever before on the simpler stuff. The baseline level of understanding in the industry across all fronts feels like it is higher than ever before. Producers, directors and creatives all know more about edit, motion graphics and visual effects, which personally, we think is exciting as it means more nuanced discussions and creative synergy.”

For Heckler, Jarman described growing demand for “experiential and social-first content,” while also pointing to long-form projects. She said the studio is seeing ambitious creative ideas coming through, but they’re often paired with leaner timelines and more modest budgets, so the challenge is delivering something impactful without overcomplicating or diluting the original concept.

“A recent standout project we worked on with Heckler Sound and our sister company Super Giant was the Vivid Customs House projections in June. We collaborated with Romance Was Born and brought their iconic designs to life in a large scale animated and projection mapped film with a seven track 80’s inspired medley.”

Salter of Studio Pancho argued that the “good enough” mindset powered by AI has taken hold in some formats – social, retail and performance – while broadcast and cinema still demand the highest production values.

He added: “As tools mature, the line between ‘premium’ and ‘good enough’ will blur and the real differentiator won’t be access to tech; it will be who wields it with originality, taste, and craft.”

Blade of xoPost emphasised a more pared-back but equally valuable approach, explaining that their focus is on “helping clients look and feel premium without a cinematic budget. It’s about being clever and making resourcefulness look intentional, not cheap”.

Over at Alt.vfx, Renshaw said most initial conversations have started with the need for faster turnaround work, but interestingly, the scripts and campaigns the post house delivered leant toward higher-end, more ambitious creative. He said: “Often, it’s a pyramid approach: a hero brand film crafted to the highest standard, supported by a suite of quick-turn content assets that extend the campaign across multiple channels.”

International Workflows

Globalisation is reshaping the industry, with established studios expanding into international markets while newer entrants strengthen their local roots. The current landscape is defined by a balance between Australian craft and global collaboration.
At Unlisted, Founder & Managing Director Katie Mackin welcomed briefs from more than ten cities, including every

Australian city except Adelaide and Hobart. Mackin noted that over the past year, the studio saw a noticeable rise in US briefs. Mackin said: “With the weaker Australian dollar and a slowdown in the US economy, agencies are increasingly looking offshore for cost-effective partners. Friends in production (in the US) say boardflow has slowed considerably in the past six to 12 months, while advertising spend and production budgets continue to contract – a story we’re hearing in almost every market.”

The shift, she added, has worked in Unlisted’s favour with US-based clients tapping into the same calibre of international talent they’d find at home, but with more flexible budgets: “Producers across APAC have also become adept at working within tighter parameters, finding ways to deliver ambitious work more efficiently. My sense is that this has led to a more geographically diverse client base for many Australian post and production companies.”

For Heckler, internationalisation has been particularly dynamic. Jarman explained: “It’s been an exciting year for Heckler – we’ve expanded globally with new offices in Shanghai and Amsterdam, which means we can now support clients around the clock and across markets. Our global offering has opened the door to more international campaigns, while still keeping us grounded in the Australian market.”

Heckler’s Singapore studio recently partnered with Studio Birthplace, working with Greenpeace on a powerful music video ‘Money Trees’ to end the corporate destruction of nature, and ‘Earth Def-ender’ which brings awareness to the plight of Indigenous People’s struggle to protect the planet. Working with clients in the Middle East, Heckler also delivered an epic campaign for Visit Abu Dhabi as well as an immersive film for the World Expo 2030 ‘Light of Riyadh’. In the past three months since opening its Shanghai studio, Heckler has already worked on campaigns for Budweiser, La Mer, and Apple.

Salter of Studio Pancho was clear about where his energy lies: “For us, international campaigns are where the most exciting work is happening. In Europe, whether you shoot it or run it in AI isn’t even a talking point now – it’s simply how teams work and spend their budgets.” He admits it means tighter turnarounds synced to global time zones: “The benefit is we get to bring distinctly Australian craft to campaigns that reach audiences everywhere. It’s the best of both worlds even if the calendar looks like a timezone jigsaw.”

By contrast, Blade and Lange of xoPost emphasised building strong local foundations: “We’re only a few months in, but xoPost is built on the shoulders of a veteran team. From day one, we’ve been grateful for the local and national clients who’ve backed us on this new chapter – their support has been the backbone for our new venture. Right now, our energy is firmly on home soil: building strong, trusted relationships here in Brisbane and across Australia.”

McDonald of 3P Studio shared that her team has seen a mix of both local and international work: “One of our largest projects out of the past 12 months was a global launch campaign for the Isuzu D-Max BEV. Additionally, we opened our new Sydney office in Surry Hills to better service our client’s needs down south.”

For BUCK, the year has seen an even split of global and local work. O’Brien said: “We’re deeply invested in Australian clients and culture, working with partners like Canva and Tennis Australia, but also love tapping into global projects when the fit is right with the likes of Samsung, Airbnb, and Amazon. BUCK’s network of offices is our superpower allowing us to scale up and down for the task. The creative idea always leads, and because we share talent across time-zones locations we can build the right team for each brief, matching artists to work so the creative always stays in front.”

Alt.vfx has also maintained a strong mix of both domestic and international work. Renshaw noted: “While we’re proudly Australian-owned, our offices abroad mean we attract significant global work particularly from APAC and the US. This includes emerging technology projects, high-end commercials, and long-form work for feature films and streaming series.”

At Fathom, Duncan reflected on a similarly mixed picture from the studio’s headquarters in New Zealand, summing it up simply: “Both.”

Remote+Hybrid Production

Hybrid workflows, born from the pandemic, are now embedded in the industry’s day-to-day operations. Yet studios continue to value in-person collaboration as essential for creativity and trust…..

 

Read the full Post Production Report + The Work 2015 Winners + annual Sound+Music Report and more in the latest print edition of Campaign Brief.