Seven Netflix projects that were planned to be filmed in the UK have been moved back to the US for production, as the streamer looks to bulk up its US operations.
Netflix has been talking up its contribution to the US economy over recent weeks as it attempts to navigate its planned takeover of Warner Bros Discovery’s studio and streaming assets.
That proposed deal has caused US politicians and regulators to question the dominance of a combined Netflix and WBD operation, including its potential impact on production.
But co-chief executive Ted Sarandos quietly revealed during his US Senate antitrust subcommittee appearance earlier this month the streamer had already begun moving shows back from overseas.
Sarandos did not name the productions that would move to the US, but pointed to the $1bn (£750m) investment in Netflix Studios Fort Monmouth in New Jersey, a former army base that will become a state-of-the-art production facility.
The East Coast production hub is also being supported by New Jersey’s tax incentive scheme, which offers companies a 35% to 40% credit on productions that spend at least 60% of their budget in the US state.
Facing questions from Democrat and Republican lawmakers earlier this month, Sarandos said Netflix had some “local for local production” and pointed to its operations in countries such as South Korea, where “we produce some Korean content for the South Korean market in local language, local cast, local producers, that kind of producing”.
Bringing production home
Sarandos added “the vast majority” of Netflix’s content spend is produced in the US but pointed to tax credit schemes in the UK, highlighting Disney’s decision to base Avengers: Doomsday in London.
“By way of example, there are production incentives that draw production away. What I’ve been doing for the last several years is working with the state of New Jersey to create an incentive that competes with that UK incentive and brings production home.
“We’re building that big studio in New Jersey for that. Since that incentive passed, we had 11 projects, seven of which were slated to go to the UK [but have been] pulled back into New Jersey.
“We are leading production in the United States and intend to keep growing it.”
Sarandos said the move, coupled with his plans to operate Warner Bros. Studio and retain its 45-day theatrical window if the takeover progressed, would “definitely keep production in the US growing”.
He added: “I think what we’ve done in New Jersey is going to change the course of production in the US completely, and I think other states will see the value of that as well.”
Netflix has become a key driver of the UK TV and film production sector over the past decade, spending more than £1bn annually on UK shows since 2020 and in excess of 100 local titles, making considerable use of the UK’s incentive.
“Our commitment to the UK is as strong as it’s ever been,” Netflix told Screen’s sister title Broadcast. ” Over the last four years, we’ve spent $1.5bn annually and that continues to be the case.”
This story first appeared on Screen’s sister site Broadcast.
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