I cover top dealmakers for paid subscribers. I reported on the final bidders for Casey Wasserman’s The Team, analyzed the Cannes market and covered the festival alongside Manori Ravindran, and I wrote about the U.S. tax incentive showdown as more states compete for production.
Every once in a while, my 4-year-old son will ask me where a superhero lives. Iron Man? New York. Spider-Man? Also, New York. The Hulk? I have no idea, but these days I’d probably be safe answering England for all of them.
Marvel’s move from Atlanta to Pinewood Studios just outside London is emblematic of the new, global era of runaway production. I recently wrote about the state-by-state tax incentive showdown underway, but even then, dealmakers tell me the majority of projects that cross their desks are leaving the country.
“We have to think outside of the box and, sadly, right now outside of the box is taking your movie to Europe or Australia,” says a top agent.
There’s also potential to save in multiple territories via international co-production pacts — one major advantage that other jurisdictions have over the United States — which allow projects to essentially mix and match two or more locations and cash in on their incentive programs. (All of the countries I’m highlighting this week, except one, have such agreements in place.)
While flying overseas can be harder on cast and crew, personally and professionally, this isn’t about shaving a little bit off the budget. The savings can make or break a project.
“If you have a big tentpole, and you’re in a production location where the above-the-line is applicable towards the rebate, you can get easily upwards of $40 million in rebates up to sometimes $60 million or more,” a studio exec tells me. “It definitely can be the difference maker in hitting your greenlight number.”
There’s a consensus that the only way for the U.S. to compete would be to establish some sort of federal tax incentive program. Some dealmakers note positive bipartisan momentum, while others feel more like the film exec who tells me, “There’s been a lot of half-assery at the federal level.”
Until a national incentive takes place, the good news — at least for producers — is whether you need an “anywhere North America” look (Canada, Ireland) or Dune’s Arrakis castles (Hungary), the list of budget-friendly shooting sites seems to be growing by the day.
I talked with lawyers, agents, execs and tax incentive experts about which places look best on paper financially and how top global destinations stack up factoring in infrastructure, local crew and what it’s actually like to work there for months on end.
Today, I take you around the world to break down:
- Why Canada keeps winning U.S. production — and how projects can cash in even when they don’t film there
- How post-production incentives have become a stealth weapon in the global rebate chase
- What to know about cultural and local-hiring requirements — and how they can backfire creatively
- Where co-production deals are strongest, and how producers can stack savings across borders
- The European hotspots gaining steam, including the country that overhauled its rebates — and the one dealmakers warn against
- Why Australia and New Zealand remain worth the looong flight — and Australia’s new deal sweetener
- 3 online tools to help you know your options and navigate the system — plus a new resource from Parrot Analytics
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