As California Governor Gavin Newsom attempts to curb a significant production exodus from Los Angeles, he has announced a plan to double the film and TV tax incentive from $330 million to $750 million annually. Despite this, many producers are discovering new and affordable soundstage options in various locations across North America and Europe. The trend indicates a growing number of film studios, lots, and facilities under construction, all aiming to attract Hollywood projects that are increasingly relocating.
It's not just established rivals like Georgia, New Jersey, and New York—which have recently been highlighted by studio executives as preferred filming locations—that California needs to be concerned about. Louisville, Kentucky, for example, is not typically recognized as a production hub, yet it has recently gained traction. Upcoming projects such as Gus Van Sant’s crime feature Dead Man’s Wire and Dustin Hoffman’s The Revisionist have secured incentives to film in the area.
Soozie Eastman, the Louisville film commissioner, has revealed plans for a $75 million redevelopment of the historic Louisville Gardens arena into a film studio complex. This redevelopment is supported by a refundable Kentucky film tax credit ranging from 30 to 35 percent, with a per-project cap of $10 million. Eastman notes a continuous uptick in production interest within the region, attributing much of that to the generous incentives in place.
North Carolina is also making strides in the film industry. Veteran director and producer Robert Rippberger has rebranded his Ascent Studios in Spring Hope to White Lightning Studios, collaborating with new investment partners. By leveraging the state's 25 percent tax rebate, Rippberger aims to attract significant streaming projects to his complex once the stages are completed. “We’re ready for the big streamers to come and shoot at the studio when our stages are finished,” he affirms, also highlighting the versatility of the space for various events such as concerts and weddings.
Despite the challenges posed by the 2023 Hollywood strikes, which led to reduced content expenditure by major studios, production continues to shift offshore. Kirk Englebright, president and CEO of Dark Horse Stages, recently opened two new soundstages in Wilmington, North Carolina. Englebright notes that YouTube star Jimmy Donaldson, also known as MrBeast, filmed a video on their lots, symbolizing a new model for future production. “They shoot globally... They’re always pivoting and moving to the next project,” he explains, recognizing Donaldson's influence on industry trends.
In Texas, production facilities are also evolving. South Side Studios in Dallas reopened in January, featuring three new soundstages between 10,000 to 20,000 square feet. Tony Armer, head of physical production at Talon Entertainment, reports upcoming bookings for two films set to shoot this summer and fall. Armer expresses optimism about Texas's film industry, especially if the proposed increases in the state’s incentive program are approved, which could lead to a surge in demand for filming in the state.
Internationally, the U.K. remains a strong contender for Hollywood productions. Recently, Eastbrook Studios—London’s largest film and TV studio campus—opened its doors for Hollywood productions. This launch coincided with the U.K. government introducing a 40 percent corporate tax relief for film and TV studio facilities until 2034, alongside a new indie film incentive. Culture Secretary Lisa Nandy emphasized the sector's potential for economic growth.
In Toronto, Hackman Capital and the MBS Group are progressing with the development of the Basin Media Hub, a $250 million film studio on a waterfront site. Federal MP Julie Dabrusin expressed excitement about the project, despite delays caused by recent industry strikes. Additionally, Oakville, Ontario, has transformed a decommissioned pool into a dedicated water tank for filming aquatic scenes, further positioning itself as a viable alternative for productions.
As Hollywood navigates these changes, there is a shared sentiment that the industry is at a critical juncture. Victor Coleman, CEO of Hudson Pacific, described the current year as “pivotal” for California's production landscape. He anticipates that a pullback in streaming spending may be easing, indicating potential for recovery. Coleman also highlighted discussions with influential Hollywood figures advocating for enhanced state and local production incentives.
In this evolving landscape, studios are increasingly searching for tax incentives and lower labor costs to balance fragile production economics. Tobias Queisser, CEO of Cinelytic, notes that while demand for production facilities remains robust, studios are now approaching budget decisions with greater discipline, as profitability becomes the primary driver for both studios and investors.
