“Incentives are a way to reduce the cost of production but they are not the only factor,” he said. “Quality of content, local talent, and the overall production ecosystem all play a role in attracting international productions.”
With the global entertainment industry continuing to grow, the battle for international productions is expected to intensify. Countries and regions will need to continue offering competitive financial incentives and ensuring they have the infrastructure and talent to support the influx of productions.
For audiences, the end result is more diverse and exciting content, as filmmakers and studios are able to explore new locations and stories with the help of these incentives. And for countries, the economic benefits of hosting film and TV productions can be significant, driving growth and creating opportunities for local talent.
As the competition for international productions heats up, it will be interesting to see which countries emerge as the top destinations for filmmakers and studios in the coming years.
As an international production company, we have noticed significant differences in the packages offered in various countries. Some scenes of Amazon’s ‘The Rings Of Power’ were filmed in the Canary Islands, which provide a generous 50% tax rebate on eligible costs. However, producers mention that certain countries have inherent advantages that compensate for the incentives offered elsewhere. Media analyst Claire Enders emphasized the importance of tax credits in attracting productions, but also noted that major studios seek access to talented actors, technicians, a common language, and world-class facilities found primarily in developed countries like the UK.
Following strikes in Hollywood, the industry recognized the need for alternative locations, with the UK becoming a second home for many productions. Bazalgette credited former UK Prime Minister Gordon Brown for introducing tax credits, which he believes played a crucial role in the significant growth of the industry in the UK over the past 15 years.
Movie producers mention the strategy of “stacking” tax credits by filming in multiple countries, such as through co-productions involving France, Germany, and Italy. On the other hand, high production costs in the US, particularly in California, have put the country at a competitive disadvantage. Many in the industry have expressed concerns about California’s $330 million film and television tax incentive program falling short compared to offerings in other regions.
Despite a 5% decrease in entertainment production in the Greater Los Angeles area, FilmLA noted that nearly a quarter of shooting days for TV dramas were from incentive-linked projects, underscoring their significance. FilmLA President Paul Audley highlighted the need for California to innovate and adapt its film incentive program to reflect the current outputs of the industry in 2024.