Disney shifts Marvel productions to UK for cost savings
- Marvel Studios has moved its film production from Georgia to the United Kingdom due to cost benefits.
- The decision has diminished Georgia's entertainment economy, leading to a significant decline in production spending.
- Disney's shift indicates broader trends in Hollywood, as studios seek more affordable international filming locations.
In a significant move for the entertainment industry, Walt Disney Co. has transitioned its Marvel Studios film productions from Georgia to the United Kingdom. This shift comes in response to changing economic circumstances, primarily focusing on cost-effectiveness as lower labor costs and fewer obligations in the U.K. outweigh the benefits of generous tax credits offered by Georgia. Marvel Studios had previously filmed nearly two dozen movies and TV shows in the Atlanta area, contributing greatly to the local economy. However, as of summer 2024, the company's strategy began to adjust with the decision to begin filming key projects like 'Fantastic Four: First Steps' and upcoming installments of the Avengers and Spider-Man franchises in London, where Disney has a long-term lease. The decision carries significant consequences for Georgia's entertainment landscape, which has seen a nearly 50% decline in production spending over the last three years, as studios opt for more cost-effective international locations. This trend corresponds with a broader industry move toward cutting production costs, especially following a decrease in streaming investments by Hollywood studios since 2023, compelling them to reduce the number of shows produced. While some U.S. states have expanded tax credits to attract productions back, Disney's financial calculations have favored the U.K. Amid this backdrop, Disney continues to push its Marvel film slate for 2025, anticipating three major releases. However, projections indicate a scaling back of production in the coming years, with only two Marvel films scheduled for 2026 and one for 2027. The changing dynamics of film production highlight the ongoing challenges faced by states vying for Hollywood's business and the shifting priorities of major studios like Disney in a competitive global market. As Disney navigates these challenges, the company remains optimistic about opportunities within streaming and amusement parks, aiming to create long-term value despite immediate production challenges.