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Thinking Beyond Tax Credits in the Location Battle

A lot has changed in the industry post-COVID and with the dawn of the streaming era. One of the most unpredicted, however, has been the shift away from classic on-location areas to explore the boom in tax credits and other incentives across a wealth of compelling destinations, both global and domestic. With such fierce competition, it takes thinking beyond just tax credits to lure producers. Our industry expert, Blake & Wang P.A. entertainment lawyer Brandon Blake, offers his thoughts.

Brandon Blake

The Crew and Infrastructure Conundrum

In a world where there are juicy tax credits to leverage on offer in a variety of locations, those tax credits are a great start but may not be all that’s needed to position a destination at the top of the list. Especially as international destinations, which may also have weaker currencies that make dollar spending go further, enter the playing field. In fact, US production over all states is down about 26% on 2021 stats. While some of that is due to the overall market downturn, the rest is not.

For indie producers, especially, they need a low cost of doing business and available crews to pair with that rebate. Locations are now competing on a global scale. And crews and soundstage infrastructure, like productions, move where the work is. Nevada is currently contemplating offering a tax incentive for developing film infrastructure in the area, and it will be interesting to see if that comes to fruition and how well it plays out. Sony and Warner Bros. Discovery are reportedly interested in this dangling carrot already.

Axing the Red Tape

For smaller productions, which may be, well, small within themselves but make up the bulk of on-location shooting work, timelines, budgets, and schedules are tight. They can’t always wait to hear if they’ve been approved over months, which is a key flaw with California’s current tax credit system. They also don’t always have the scope and support to navigate the murky waters of red tape, trying to determine if funding is available and the exact intricate process needed to bring it to fruition.

Uniform, simple, and predictable administrative processes are of the essence. So is treating all productions, regardless of size and “clout”, the same. Take, for example, states like Kentucky and Oklahoma, where the rebate system removes the need to sell credits back via a broker. In fact, simply streamlining permitting and centralizing the process can be enough to make a destination appealing for an indie shoot.

Some argue that a federal-level office to control and streamline this could be the way forward. After all, in many international destinations, the ability to access a “one-stop shop” for all their needs is a major drawcard, as we see in Bulgaria. Focusing on a similar central source domestically could be a valuable tool in the US location shoot toolbox, but it will be a tough sell, given how much local governance works.

In short, it takes more than a great tax credit to make a great destination. If US states want to stem the tide of international locations luring away dollars, it is essential to think beyond the rebate, ensure the infrastructure and workers needed have reason to call the state home, and reduce the significant red tape involved in accessing these locations. Only then will local destinations truly be on a level playing field with their international counterparts.

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Veteran’s Day Goes to Niche Titles: Here’s Why

With Veteran’s Day now receding behind us, the box office has another lesson to deliver about why indie movies matter to its bottom line. While Venom: The Last Dance unsurprisingly took the top spot, a considerable portion of the top 20 represented indie and niche movies, often with performances better than expected for their category. Our industry insider, review entertainment attorney Brandon Blake from Blake & Wang P.A., shares the good news.

Brandon Blake

Modest Budgets Win

Venom: The Last Dance may have taken the weekend’s No. 1 spot, but with the slates over Veteran’s Day weekend, that’s unsurprising. Nor was it a particularly compelling gross, at $16.2M. However, the movie has taken almost $400m globally and has the potential to match the $507M of its precursor, so it is still on a strong trajectory.

A24’s Heretic and Lionsgate’s The Best Christmas Pageant Ever fought it out for the No 2. spot, both pulling in around $11M, better than projected and outpacing their modest budgets. Nor were they alone in these performances. This was a remarkably eclectic Top 20.

Typically, studios push blockbuster fare for Veteran’s Day weekend due to the four-day holiday. This year, however, the elections being so soon before Veteran’s Day, coupled with a general reduction in film output still from last year’s strikes, meant that many larger releases were intentionally delayed. The moderate and lower budget film tiers benefited greatly. The Best Christmas Pageant Ever has some potential to become a sleeper hit, especially with some holiday theming and strong word of mouth to play with.

The Role of Inexpensive Originals

While many are pinning their hopes on the upcoming releases of Moana 2, Gladiator 2, Red One, and Wicked to keep the box office pumping strongly into the new year, this weekend’s slate showcases the critical role of inexpensive original films in keeping both box office attendance and theatergoer interest high.

Only five films in the Top 20 grossing films this weekend could be classified as medium to high budget. Meanwhile, specialty films like Conclave, Anora, and We Live in Time have thrived, with impressive runs for their class. Terrifier 3 continues to perform amazingly, while Elevation and Overlord: The Lost Kingdom turned in respectable performances.

The weekend even saw strong performances from three Indian releases, a Taiwanese production, and the British animation Hitpig. In short, there was something for any taste to enjoy. And therein lies the real magic.

This weekend proves what industry analysts have long argued — a healthy box office needs diversity. While tentpole releases remain crucial revenue drivers, mid-budget and indie films maintain steady attendance between blockbusters and capture audiences seeking more varied content. They also serve as testing grounds for emerging talent and fresh storytelling approaches.

As the industry continues to recover from recent disruptions, this weekend's success of smaller productions demonstrates that theatrical releases remain viable across all budget levels. It suggests a sustainable future where big-budget spectacles and modest productions can coexist profitably, ultimately creating a more resilient and dynamic film industry.

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Ronnie Coleman

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