London is the new Hollywood. The glory days of the Los Angeles film scene may be coming to an end. Now Britain is the place to be if you are a filmmaker.
But why the UK? The answer is money.
With production costs on the rise in Los Angels, filmmakers are now seeking more cost effective production locations. And London provides an attractive alternative to the tax weary California.
The British HM Revenue and Customs offers a 20 to 25 percent refund on films that spend at least a quarter of their budget in the UK.
Nick Abdo, a film producer based in LA said:
“Most producers would like to shoot in Los Angeles, but right now the tax incentive programme is not competitive enough.”
Currently only £61 million ($100 million) is available to filmmakers in California.
Within the last five years alone more than 1,000 films have taken advantage of UK’s tax credits. This has amounted to about £800,000 back in the filmmakers’ pockets.
However, Abdo disagrees that Hollywood has seen its final days. He says:
“LA is still the film capital of the world."
Abdo also said that California's new governor has an incentive plan in mind that should appeal to filmmakers and keep them in Los Angeles. But he concedes that lately London has been an enticing attraction to for those who finance big films.
What makes producing in London different from Canada or states like New Mexico is the unique reimbursement program for big name stars.
When an actor like Robert Downey Jr gets a percentage of what the studio makes at the box office, the UK will reimburse part of that money back to the studio.
This certainly is an attractive offer. Especially when talent like Downey is estimated to have earned a whopping £46 million ($75million) last year.
Already some of the biggest franchises have packed their bags and made the trip across the Atlantic. Universal and Warner Brothers have now set up camp in the city. And Disney has kick started its production of Star Wars with open auditions across Britain and Ireland.
All this spending by studios has also benefitted the city.
London has been enjoying an influx of revenue big Hollywood productions bring. The British Film Institute says “despite the on-going recession the UK film industry is thriving”. Just this year moviegoers saw Thor tear up the Old Royal Naval College in Greenwich. Then there were car chases through the streets of London in Fast and Furious 6.
And according to a study conducted by Oxford Economics last year, the film industry contributed over £4.3 billion to the GDP. Add to that the generation of 117,000 jobs.
Now it is not only producers and film crews spending money. There is a clear jump in tourism related to UK films as well. People come from all over to visit the Harry Potter Experience at Warner Brother’s Studios. The same Oxford report shows that approximately £1.9 million generated by visitors can be attributed to British films.
London might lack the old time glamour of classic Hollywood, but it is certainly holding its own against southern California. After all, nothing can compete with Old World charm at an affordable price.
But why the UK? The answer is money.
With production costs on the rise in Los Angels, filmmakers are now seeking more cost effective production locations. And London provides an attractive alternative to the tax weary California.
The British HM Revenue and Customs offers a 20 to 25 percent refund on films that spend at least a quarter of their budget in the UK.
Nick Abdo, a film producer based in LA said:
“Most producers would like to shoot in Los Angeles, but right now the tax incentive programme is not competitive enough.”
Currently only £61 million ($100 million) is available to filmmakers in California.
Within the last five years alone more than 1,000 films have taken advantage of UK’s tax credits. This has amounted to about £800,000 back in the filmmakers’ pockets.
However, Abdo disagrees that Hollywood has seen its final days. He says:
“LA is still the film capital of the world."
Abdo also said that California's new governor has an incentive plan in mind that should appeal to filmmakers and keep them in Los Angeles. But he concedes that lately London has been an enticing attraction to for those who finance big films.
What makes producing in London different from Canada or states like New Mexico is the unique reimbursement program for big name stars.
When an actor like Robert Downey Jr gets a percentage of what the studio makes at the box office, the UK will reimburse part of that money back to the studio.
This certainly is an attractive offer. Especially when talent like Downey is estimated to have earned a whopping £46 million ($75million) last year.
Already some of the biggest franchises have packed their bags and made the trip across the Atlantic. Universal and Warner Brothers have now set up camp in the city. And Disney has kick started its production of Star Wars with open auditions across Britain and Ireland.
All this spending by studios has also benefitted the city.
London has been enjoying an influx of revenue big Hollywood productions bring. The British Film Institute says “despite the on-going recession the UK film industry is thriving”. Just this year moviegoers saw Thor tear up the Old Royal Naval College in Greenwich. Then there were car chases through the streets of London in Fast and Furious 6.
And according to a study conducted by Oxford Economics last year, the film industry contributed over £4.3 billion to the GDP. Add to that the generation of 117,000 jobs.
Now it is not only producers and film crews spending money. There is a clear jump in tourism related to UK films as well. People come from all over to visit the Harry Potter Experience at Warner Brother’s Studios. The same Oxford report shows that approximately £1.9 million generated by visitors can be attributed to British films.
London might lack the old time glamour of classic Hollywood, but it is certainly holding its own against southern California. After all, nothing can compete with Old World charm at an affordable price.
Originally published 16 October 2013
All photos by Kaely Monahan
All photos by Kaely Monahan