The UK is already busting at the seams trying to accommodate all of the TV and film productions flocking there. With adjustments to film tax incentives that were announced today, it’s just upped the ante as a desirable place to work. British Chancellor of the Exchequer George Osborne delivered the Autumn Statement to Parliament this afternoon, outlining new economic policies that will go into effect from April 1, 2014. In an incentive that lowers the barrier to entry, the government plans to reduce from 25% to 10% the minimum UK expenditure required in order to access the coveted film tax relief. From April, the relief will be worth 25% on the first £20M of qualifying production spend, and 20% thereafter. (The rebates are available on the lower of either 80% of total core expenditure or the actual UK core expenditure and there is no cap on the amount that can be claimed.) That last measure will benefit producers of bigger budget films who’ll get an extra £1M on the first £20M. The government said it will seek to clear an increase to 25% for all qualifying expenditure on larger budget films in 2015. That should keep Hollywood tentpoles keen on Britain, especially given the concern over California’s Film/TV Tax Credit program which currently excludes features with budgets over $75M.
Related: Pinewood Earnings Grow Amid UK Studio Capacity Crunch; Whither Expansion?
Dropping the spend requirement to 10% is going to help the independent sector, too. John Graydon, partner at accounting firm Saffery Champness which specializes in film and TV tax incentives, tells me, “If a producer just wants to do post in the UK, trying to get to that 25% spend was incredibly difficult. So in some cases, they went elsewhere.” Now, those seeking to do just post or VFX in Britain will have a better shot at making the numbers work. There are also changes to come to the cultural test which determines eligibility for tax relief. The test will be modernized to allow for European as well as British elements. It will become a 35 point barometer with a pass mark of 18 and will include an increase in the points available for principal photography/special effects/VFX and projects in the English language.
Related: Hollywood Pics Pack UK Soundstages As Space Crunch Starts To Squeeze
Overall, the moves are positioned to drive inward investment. In the first three quarters of 2013, it’s already up 28%. That’s partly due to a lucrative TV tax credit that offers a rebate on high-end dramas costing £1M or more to produce per hour. But with soundstages filled to the rafters, many TV productions are already being relegated to converted warehouse space. It’s also because several big budget Hollywood films are camped out at Pinewood and Warner Bros’ Leavesden Studios. But if Pinewood doesn’t get approval for its expansion plans next year, more big ticket pics could be turned away. As I recently reported, Marvel’s Ant Man was forced out of the UK due to space constraints. Graydon doesn’t see the new incentives as necessarily exacerbating the capacity issue since those enticed by the changes won’t always be the kinds of productions that would require soundstages. He does allow, however, “Stage space is an issue. We absolutely want to see that resolved as quickly as possible.” Read More »
Even Darth Vader is now snapping selfies. The official Star Wars site tweeted last night that it has joined the Instagram bandwagon. Saying “It is useless to resist,” the tweet urged fans to follow the account (72,000+ already are). Lucasfilm has set up its production offices … Read More »
UDPATE, 2 AM WRITETHRU: With the British film and TV industry in the throes of a capacity crisis, it’s a good — if frustrating — time to be in the studio facilities business. The Pinewood Shepperton group today announced consolidated results for the six months ended September 30th with £36.6M ($59.1M) in revenues compared to £27.1M ($43.8M) in the same period last year. After-tax profit was $5.5M, up from $3.2M in 2012. The Pinewood studio is currently host to Kenneth Branagh’s lavish Cinderella, Hammer sequel The Woman In Black: Angel Of Death, and just had Ridley Scott’s Exodus on the lot which has now gone on location. Lucasfilm has also hung its shingle with the new Star Wars installment gearing up to shoot in 2014. Johnny Depp-starrer Alice In Wonderland 2 is expected to turn up, and Bond will be back with No. 24 next year. Over at nearby Shepperton, Marvel has wrapped Into The Woods and has The Avengers 2 on deck. But I hear its Ant Man had to forgo shooting in the UK due to the lack of space.
Related: Hollywood Pics Pack UK Soundstages Creating Space Crunch Read More »
Cineworld Founder and CEO Steve Wiener To Retire In March
More than 18 years after founding the UK’s leading cinema chain, Cineworld CEO Steve Wiener is retiring. The company said today that the 44-year industry veteran will step away on March 31. “In 1995 my wife Jenny and I wrote a business plan to start a cinema company,” Wiener said in a statement. ”We expected over a five year period to open five-seven multiplex cinemas and sell it on to one of the big operators. Today, Cineworld is the No. 1 cinema chain in the UK and has been for more than three years.” Said Cineworld Chairman Anthony Bloom: “Steve has led the company with great distinction from the first day of its founding and has mentored and developed an outstanding management team. He will leave the business in fine shape.”
‘Gravity’ Blasts Off In China With $9M For First Two Days
Gravity has landed in China, and it’s pulling in plenty of moviegoers. Warner Bros said today that the Alfonso Cuarón space drama starring Sandra Bullock and George Clooney took in nearly $9 million in its first two days in China. The film generated $4.7 million from 5,854 theaters on its opening day Tuesday and an additional $4.2 million on Wednesday. It’s the studio’s biggest non-holiday opening in China. The biggest opening ever for any U.S. film in China was this year’s Iron Man 3, which debuted to $21 million in its first day, which was China’s Labor Day holiday on May 1 and made $64.5 million in its opening weekend. Read More »
Next year, Bond 24 and Star Wars: Episode VII will be shooting Walther PPKs and brandishing light sabers at Pinewood Studios outside London. That’s a lovely image for fans, and Pinewood bean-counters. But with Hollywood increasingly queueing up to shoot in Britain, and Pinewood’s application for expansion having been thwarted twice in the past year, a capacity crunch is coming to the UK at light speed — and some potential big-ticket tenants already have been turned away.
Among the films currently shooting at Pinewood are frequent client Disney’s Cinderella, QED and Sony’s Fury, and Fox’s Exodus. The new Star Wars installment is settling into its offices on the lot ahead of shooting in early 2014. Over at nearby Shepperton, Marvel currently has Guardians Of The Galaxy, with The Avengers 2 gearing up. Also there is Disney’s Into The Woods. Leavesden, the Warner Bros facility the studio acquired in 2010 and in which it invested £100M after shooting all eight Harry Potter movies there, is hosting Ron Howard’s Heart Of The Sea and Guy Ritchie’s The Man From U.N.C.L.E. The J.K. Rowling-penned Potter spinoff Fantastic Beasts And Where To Find Them is expected to shoot there when it goes. Read More »
The joint-venture set up in April between Bruno Wu‘s Seven Stars Media and the UK’s Pinewood Studios is known as Song Lin, Chinese for Pinewood. Malcolm Wall has just been appointed to lead … Read More »
We already knew that, like its six predecessors, Star Wars: Episode VII was going to shoot in the UK where expectations were that it would end up at Pinewood Studios. Now we know for sure. Pinewood … Read More »
This is a surprising result given it’s the second time the UK’s venerable Pinewood has had an expansion project thwarted – and despite the increased interest of major U.S. studios to shoot there. The studio, which is home to the 007 set built in honor of the James Bond films that have been filmed there and which houses many major Hollywood pictures, first applied for permission to expand back in 2009 and was refused in early 2012 because it was eyeing protected land. The studio owns the land, but failed to satisfy the Buckinghamshire Council’s requirement of “special circumstances” to proceed. Today, the council refused a more recent modified application for an increase in capacity. Earlier this week it was reported that Hollywood studios, including Disney, Marvel, 20th Century Fox and Universal, had written to the decision makers urging approval. Read More »
Sam Mendes’ psychosexual horror series for Showtime, Penny Dreadful, will be among the first U.S. TV dramas to benefit from the UK’s newly-approved TV tax relief for high-end productions. Legislation for a 25% tax credit for TV series costing at least £1M per hour to produce — plus animated programs and video games — has been given the state-aid greenlight by Brussels, clearing the last major hurdle before coming into effect April 1. Largely based on Britain’s Film Tax Relief scheme, which has provided about £800M in rebates to more than 800 movies since 2007, the new law requires productions meet a British cultural test. Co-productions made under an internationally recognized treaty may also be eligible, and it’s believed the new regs could inject about $570M into the local industry. But there are concerns that the potential £200M in relief available by 2018 could be gobbled up by U.S. productions that employ British talent on UK shores.
When first announced in March last year, the relief was considered an effort to stem runaway production. Shows like BBC Two drama Parade’s End and the Julian Fellowes miniseries Titanic, were made abroad. Downton Abbey is among the rare exceptions of big-ticket UK shows that have been produced at home, and I’m told it will now look to benefit from the break. But the scheme is also a means to encourage foreign shows to come to the UK. Chancellor of the Exchequer George Osborne consulted both Disney and HBO to lay out the strategy. Read More »
A year after its Project Pinewood development was rejected by the Secretary of State for Communities and Local Government, Pinewood Studios has submitted a new planning application for an expansion project valued at £200M ($317M). The Pinewood Studios Development Framework proposal is expected to be spread over 15 years and would essentially double the studio in size with 100,000 square meters of new studios, stages, workshops and production offices along with new streetscapes for external filming and other improvements. Pinewood’s Mark Hamilton tells me, “The UK has capacity issues and everyone is having difficulty fitting in everything that wants to come here… We don’t want to be in a position where we’re turning business away.” Hamilton says a team from Pinewood met and with physical production folk at the U.S. majors to discuss their needs which helped to inform the new proposal. In the past year, Pinewood has played host to such films as Les Misérables, Skyfall, Disney’s Maleficent and Paramount’s Jack Ryan, which just wrapped. Read More »
Joe Utichi contributes to Deadline’s UK coverage:
Pinewood unveiled cutting-edge upgrades to its TV One and Two stages today as it reiterated a commitment to investing in and expanding its facilities. The studio, recently home to features Skyfall, Les Miserables and Maleficent, is keen on TV as a proposed 25% tax break on high-end television production is expected to go into effect in April. The incentive could inject about $570M into the industry. Pinewood corporate affairs director Andrew Smith tells Deadline, “The demand for content is clearly growing globally, and we’re investing in both infrastructure and facilities to respond.” Part of the response is to submit a new application to double the size of the studio. Read More »
EXCLUSIVE: The Pinewood Studios Group is bulking up its Los Angeles office with the hire of Andy Weltman, who has been named EVP of Pinewood USA. Weltman was EVP of U.S. Production for the British Film … Read More »
British Prime Minister David Cameron will visit Pinewood studios today where he is expected to urge filmmakers to ramp up efforts to rival Hollywood by making more “commercially successful pictures.” Cameron’s visit comes just ahead of next week’s release of the findings of a government film policy review overseen by former culture secretary Chris Smith with input from such folk as Downton Abbey creator Julian Fellowes. According to Cameron’s official website, the review is expected to suggest the UK’s Lottery funding scheme be rebalanced to support more mainstream films with commercial potential as well as culturally rewarding films. The news is likely to upset the independent film community, with director Ken Loach already appearing on the BBC today to say: “If you knew what was going to be successful before you made it then we’d all be millionaires. It doesn’t work like that. Public money should go to fund a wide variety of projects and people.” The review is further expected to propose that the British Film Institute reinvest returns into film companies with the most box office success. Read More »
Solid First Half For UK’s Pinewood Shepperton Studios
Revenues are up 68% over the first half of the 2011 according to interim results released today, from $27M to $42M over the same period a year ago. The largest film production based at Pinewood Studios during the period was Dark Shadows (Warner Bros), and the largest production based at Shepperton Studios was Wrath of the Titans (WB). Other films that used Pinewood Shepperton facilities included The Iron Lady (DJ Films/Pathé), Gravity (WB), Woman in Black (Hammer Films), 47 Ronin (Universal) and Ridley Scott’s Prometheus (Fox). Universal’s Snow White And The Huntsman has just begun shooting at Pinewood. The surge in film business offset a drop in TV revenues from $8.3M last year to $7.6M, which the studio attributed to using more space on movie productions.
Off-Track Bond 23 May Exit India For South Africa
Unhappy that permission to shut down portions of two railways outside Mumbai still has not been granted, Take One Productions is threatening to move production of Bond 23 from India to South Africa. Originally scheduled to shoot in the fall, the Sam Mendes-directed project starring Daniel Craig is now pointing for a January start. “South African authorities are waiting to provide everything that is required to support this movie,” said Take One’s Pravesh Sahni. “If we can’t get this cooperation from India, the film will no longer be shot here.” The railroad scenes will be a major part of the film, Sahni told The Times of India. Read More »
First half operating profits after exceptional items have also fallen 3% to £3.2 million. Total revenue fell 6.4% in the first 6 months to £19 million. Film production revenue fell by 8.5% to £10.8 million, while TV shooting income fell … Read More »
The publicly-quoted studio facility faces a renewed attack by shareholder Crystal Amber on Wednesday, when it announces its half-year results. Pinewood is expected to announce operating profits have fallen from last year’s £3.3 million ($5 million). Crystal Amber thinks that … Read More »