What would you make with an extra $2.2 billion? That's a question Disney gets to answer after it just received subsidies from the UK government over the last 15 years. They got the money as part of a kickback in production incentives for companies making stuff in the United Kingdom. This makes the House of Mouse the single largest beneficiary of the UK's film and TV tax relief program. And many other companies are following its lead and heading to the UK to shoot. A new report from the Financial Times talks about how Netflix, Amazon, and other major Hollywood players are also flocking to the UK and turning it into a production powerhouse. But is this a good thing for everyone? Let's dive in.U.S. Studios Rule the U.K. According to the British Film Institute (BFI), foreign studios like Disney, Netflix, and Amazon accounted for a whopping 87% of the £1.6 billion ($2.2 billion) spent on UK productions last year.And it's clear this trend isn't slowing down. Disney has pledged to invest another $5 billion in UK and European content over the next five years. That’s on top of the $4.8 billion it has already spent since 2019.Why the UK? It's All About the MoneyThe UK's secret weapon is its Audio-Visual Expenditure Credit (AVEC). This program offers a hefty tax reimbursement to productions that shoot in the country: a 25.5% reimbursement on qualifying production expenses. For a blockbuster with a nine-figure budget, that’s a massive saving.The Disney+ series Andor alone...
Published By: NoFilmSchool - 3 days ago