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Producer/director Peter Jackson is celebrating. Warner Bros executives were locked in negotiations all day with New Zealand government leaders. Then Prime Minister John Key announced at a press conference tonight that The Hobbit back-to-back movies will be made in New Zealand. That’s a $500+ million project, and the Hollywood studio bargained considerable perks for itself. Tax rebates of up to an extra $7.5 million per movie are arranged, subject to the success of the pics. The NZ government will offset $10 million of Warner Bros’ marketing costs as part of the strategic partnership. And New Zealand will also host one of the world premieres of the Hobbit movies. The NZ Government and Warner Bros also agreed to work together in a “long-term strategic partnership” to promote New Zealand as both a film production and tourism destination. Said Key: “My Government is determined to use the opportunity that the Hobbit movies present to highlight New Zealand as a great place to visit, as well as a great place to do business.”
The NZ government will introduce legislation tomorrow to clarify the distinction between independent contractors and employees as it relates to the film industry only, according to news reports. “The industrial issues that have arisen in the past several weeks have highlighted a significant set of concerns for the way in which the international film industry operates,” Key said. “We will be moving to ensure that New Zealand law in this area is settled to give film producers like Warner Bros the confidence they need to produce their movies in this country. This will guarantee the movies are made in New Zealand.”
Besides Key, ministers bargaining included Economic Development Minister Gerry Brownlee, and Arts Culture and Heritage Minister Chris Finlayson. “I am delighted we have achieved this result,” Key said, according to news reports. “Making the two Hobbit movies here will not only safeguard work for thousands of New Zealanders, but it will also follow the success of the Lord Of The Rings trilogy in once again promoting New Zealand on the world stage. It’s good to have the uncertainty over, and to have everyone now full steam ahead on this project.”
Editor-in-Chief Nikki Finke - tip her here.
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Everybody wins. The films, the fans, NZ, and the studio. I don’t think anyone interested in these films is not smiling today.
Agreed. I was more concerned with the fact that if they moved the production, Peter Jackson would NOT be happy, and therefore may affect his ability to deliver a great couple films, and therefore the people wouldn’t be happy. But with this news, its cigars all around.
Everybody wins but the United States and its film industry. Roughly half the dollars spent on a film production go to taxes and this drain on the U. S. economy is tragic, especially since this industry is superior here to anywhere.
“especially since this industry is superior here to anywhere”
A number of Academy Awards would beg to disagree…
I believe the Bollywood industry in India is by far the stronest film industry on the planet.
The films were never set to be made in the US to begin with; you can’t lose a race you haven’t entered. The high-priced star names who would’ve been included in the movies were they being made here (in the USA) would’ve been devastating in terms of budget and, quite possibly, quality.
I’m so happy that they’ve finally came to an agreement that benefits everyone involved. I’m really looking forward to
seeing both movies. I know the special effects will be awesome!
Kudos to Peter Jackson for fighting for his causes the last few
years, and not giving up. The production wouldn’t be the same without him, period!
Hobbits Go Hawaiian wasn’t on the table then?
Well Played Warner Bros….
Turned a minor labor dispute into a Bonanza. Got MILLION$ more tax breaks/incentives (in addition to the generous incentives already in place), had a national government cowering and cowtowing to you and you basically gave up NOTHING to the would be union hardliners….
I expect you’ve set the template for ALL future runaway production negotiations. Studios will now hold a big budget movie (or “package” of movies, whether sequels or just movies under the same studio banner) “hostage” until a country’s/state’s/province’s government gives them MILLION$ more beyond any already on the books financial incentives. The Race to the Bottom starts NOW for all film commissions trying to promote their area as a “desirable filming location”.
Well played. EVERY studio will benefit from today’s decision. The only real loser in this is LOS ANGELES as a shooting location and any below the line crew all over the world.
New Zealand, Australia, England, Eastern Europe, Canada….step right up and send your political leaders to “pitch” the studio bigwigs…you’ll soon find out what it’s like to be a desperate screenwriter. Suggest you get a high powered agency to rep you or the studios will take you for EVERYTHING. And I’m sure Peter Jackson (a VERY smart businessman, much more so than an “artist”) is laughing all the way to the bank. Didn’t anyone tell you and the studios that Prequels are ALWAYS inferior products that exist only for financial reasons (aka “greed ISN’T good”).
Wow, talk about bitterness!
When will people get that bitterness and bitchiness will never get them the success they want? Now why don’t you, anonymoose, channel all that energy into something more productive?
The “Race to the Bottom” started long ago with the first “tax incentives” in the U.S. from states other than California. And it has snowballed to what we see here. This is merely legal kickbacks writ large.
It is well played. And Los Angeles and any other city in the US who competes for film productions wins. It is a race, and this will signal another round of increasing incentive/credits around the world as well. Competition is good in any business. It’s good for the consumer in the end. To him who makes the best deal wins and even screenwriters can win too.
So WB found a group of useful union idiots in NZ to get this whole thing started?
Cuz it seems to me like this was a massive lose for them, and rightfully so.
Oh, boo hoo, and cry me a river while you’re at it, poopsies. You think if the shoe was on the other foot, the studios wouldn’t have tried to do the same here as New Zealand? The problem is not in the Studios and in so-called ‘cow-towing’ states, it’s in the State legislature and a stubborn, arrogant refusal to offer decent incentives here at home. It’s our outdated and – sadly deluded arrogance that has LA moving in the direction it’s headed [read: obsolete] and nowhere in this post is this pathetic attitude better represented here than by Anonymoose. well done. By the way, since when in our great nation did the spirit of ‘enterprise’ and ‘creating opportunity’ become ‘cowtowing’? Shame on you.
The NZ National is very anti worker and very anti united workers (Unions).
They grabbed this situation to reward the big corporations and squash the NZ workers rights, what else is new,
In the 1990′s they introduced the ‘contracts act’ which divided unions, supported sacking the professional firefighters and having inexperienced workers do the same job under another name. (They lost that battle in court). They have recently introduced sacking workers within 90 days without giving a reason.
They cry that Australian workers are so much better paid because of their countrys’ mineral wealth, the main reason Australian workers get better wages is because they fought this New Right garbage when NZ’ers didn’t.
It is great to have “The Hobbit” in NZ but the cost will come on the average NZ family in the end.
You’re kidding, right? Peter Jackson has sank $millions into NZ economy and with Sam Raimi has made NZ a film making destination so some loyalty from NZ film industry should have already been earned. What percent is half a billion dollars to NZ’s GDP?
And as for US losing business… half a billion dollar NZ production would be $1.5/2 billion US minimum. If US film industry wants a movie like this it shouldn’t price itself out of the market.
Booyah!
Now, with The Hobbit finally ready to go, one question remains. When will James Bond make his return to the big screen?
Hey, anonymoose, “The Hobbit” isn’t a prequel, you clueless cretin. It was published in 1937 while The Lord of the Rings was published in the 1950s. It was previously made for US television in 1977. Using your haywire logic, that makes Lord of the Rings a prequel to The Hobbit.
To the person who called Lord of the Rings a prequel: Really? You must serious read the books. The Hobbit isn’t really a prequil either, but it sets up the events in LOTR for Frodo to recieve the One Ring. This is Bilbo’s Tale, Frodo’s uncle, you know, the cynical old man who gave Frodo the ring. Lord of the Rings is not a prequil it is an end to an age of magic.
>>>>>The only real loser in this is LOS ANGELES as a shooting location>>>>
Yeap, they totally lost out on that movie that was never ever gonna be shot there anyway…
And with that the country’s entire population decides not to commit mass suicide.
Sucks for those of us looking for work in the UK. Ahh well.
Alright! The taxpayers of New Zealand get to pay part of the tab for a movie I’ll steal off the internet! Win Win for me!
Anonymoose,
You act as if the studio is obligated to shoot in NZ at the behest of Labor and the Gov’t. Here’s a big whack upside the head with the cluebat: it’s not. Here’s another one: business enterprises aren’t obligated to citizens; governments are.
Looks like the government wised up and finally did the best things for its citizens overall instead of the best thing for a tiny union.
But hey, at least Marx would be proud of your whining. Oh yeah, and the caps interspersed in your little rant. He’d like that too.
Why the hell would they shoot The Hobbit movies in Los Angeles?! New Zealand makes a lot more sense from about twenty different angles, including most obviously that that is where they LotR movies were shot, and you want them to match. Duh.
Calling The Hobbit a mere “prequel” is moronic and smacks of blindly flailing around for something to complain about. Kudos to Warners, Jackson, et al, for seeing that more of the half a billion dollars they will spend in NZ will end on the screen.
It doesn’t matter where you shoot a CGI movie. The benefits to the American film industry and the American economy would be profound.
What the hell are you talking about Ari? This isn’t the “Star Wars” prequels where the whole movie is shot on a soundstage with blue screen. Yes, “The Hobbit” will have some CGI, but like the “Lord of the Rings” trilogy, it will be shot on location. New Zealand is ideal for this story.
The Hobbit, like LOTR, will undoubtedly be full of practical locations that may exist in the States, but they’re scattered across an entire continent. New Zealand is small, concentrated and much more manageable to achieve the same effect.
I’m a Cinematographer living in LA. I want films to be made here. But not this one. THIS story is better told in New Zealand.
Can’t wait for these films.
You’re an idiot. The landscapes aren’t CGI. And considering how in Tolkien’s world, the landcape is as much a character as any person (anyone who’s read the books ought to know this), that would be like getting Bob Saget to play Gandalf this time around because he’s cheaper.
Hollywood individuals make $50M+ on movies, each. Half a billion? Please. That’s 10 people. “Profound effect on the economy” my butt.
Hey Anonymoose!:
Stop sniveling about New Zealand!! Here’s a lesson for all you Hollywood types – take a bit of time and look at the history of the union movement in New Zealand! Want to know why they’re rabidly anti – union? Look at what the unions were doing to the country before the country as a whole stepped up and shut them down?
Think the above is some sort of red neck rant against unions, just shoot from the hip crap? Go see Waiting For Superman !!
yes this just proves the hobbit since its closer to the big screen is not going to let any thing stop it. plus think Peter really did not want to be hauling boxes and stuff and have to relocate Weta. not to mention Warners’ gets some more tax breaks keeping it in new zealand where it belongs .
Yep ari, they would be, but most people interested in the Hobbit are thinking beyond the poor old USA and its economic woes.
This particular stimulus package will sure go far in helping us with the recession you guys spawned on the world, so thanks for that and hopefully the Hobbit will be every bit as good as the LOTR films. Wonder what it is about them that makes them so iconic?
As for the unions, I could give a shit. Useful idiots indeed.
Hunter Tremayne you clueless fanboy idiot!
OF COURSE it’s a prequel dipsh*t! Supporting characters from Rings, years earlier, same universe…it’s story PRECEEDS Lord of the Rings…hence in the the whole scheme of the ‘middle earth saga”, it IS a prequel…
Star Wars eps 1-3 were made AFTER 4 – 6….does that make them Sequels not prequels???? Of course not. Chronologically in the Star Wars saga, Eps 1 -3 are prequels…. Yes Hobbit was published before Rings, but in the movie saga, the live action Hobbit (the animated piece of crap is pretty much disowned by fans and Tolkiens estate as a huge mistake ) is a PREQUEL to the already established live action Lord of the Ringss.
A prequel is something that was written *later* but set *before*. Thus, The Hobbit, having been written before The Lord of the Wrings, is not a “prequel.” It is a “prelude.” This isn’t simply semantics; the words have two very specific, very different meanings; they reference the time of publication, as well as the relation of two works in the same continuity. Pick up a dictionary before you want to start screaming insults at someone, next time, as I’m sure you’ll be doing it again.
Hey Ari,
Your industry being superior (in the USA) to any other. Get over yourself man, film production is a worldwide industry these days if your have not noticed.
Dean.
Unions are sucking creativity and fiscal responsibility out of this business. How many rank and file WORKERS were hurt during the writer’s strike? or the last actor’s strike?? And what did those actors and writers win by their work stoppage? NOTHING.
Warners did play it smart by using the union whining to get million$ more out the NZ government…frankly they should have just said FU NZ and gone to Eastern Europe (lots of pretty mountain ranges there too) But since Jackson’s home base is in NZ as is Weta (where 80 percent of the movie will be created in a computer anyway), they just leveraged themselves a better deal by holding the movie hostage. This IS the new moviemaking world order. No Hobbit would never have shot in LA, but this deal puts the writing on the wall for every other big budget film to leave LA in the future. If studios can bully governments(be it other states or other countries) to give them further “off the books” deals, LA will soon be a ghost town for shooting anything except gang bangers, Valley porm and game shows. Not that I’m complaining as LA crew are full of arrogant “we’re the best” attitudes (you’re NOT…English, Canadian, Aussie and yes, NZ crews are at least your equal technically and artistically AND they cost less) and a sense of entitlement (film biz has been LA based for 100 years so it should ALWAYS be…). No the real losers here IS LA. You’ll see.
Peter Jackson is a hog. He was never going to let these movies be filmed out of New Zealand. he made the mess so he could clean it up and get more money for his movies and for himself. Totally took advantage of the situation which is typical for him but what baffles me is how the NZ government did not see right through his plans and tell him to stuff it.
Possibly because that’s a load of BS, since the movies *were* to be shot in NZ *before* “his” mess started (research much?). The mess was the result of a small group of people in NZ pulling an illegal blacklist of the project; look at their history. They do this. They’re a destructive force that gets handed their cake and wants to eat it too. The Hobbit movies were on the verge of being shot in eastern Europe; they were a hair’s breadth away, and Warner Brothers was calling that shot, not Jackson.
Good news. Coz a back lot in Burbank would not cut it.
Longbottom leaf all around -hands out pipes- This is splendid news, not only are we finally moving forward, and with a stellar cast, and in NZ is quite the victory
I really hope they stay as true as plausible to the books.
I just like the Movie the Hobbit. Thats all made in the Satates or NZ – Just film it I will wait till its old then see it for a dollar on Red Box. Screw the Manufacturers and studios big cost – For a dollar – I will see it and be happy I can.
That is entertainment – fantasy yes but it will be fun.
Go Bilbo!!
Baggins Shire Arrrrrrrrhhhh.
Dragon, Eagles, Trolls, King undet he Mountain. – this will be fun.
GO NZ