Last week I posted about the huge news that Digital Domain was partnering with Reliance Mediaworks to manage a facility in India and a small team in Reliance’s office in London.
Now this week there is a report that Digital Domain will be opening a facility in Sydney and it should be no surprise that the reason for this opening is for film subsidies! :
Stoner said Paradise Lost will bring an estimated AUS$88 million ($93 million) in production expenditure and an 1,300 jobs to NSW, including over $21.2 million expenditure and 200 jobs in the visual effects area.
While details of the incentives offered to Paradise Lost weren’t revealed, part of the deal includes for California-based digital effects house Digital Domain to establish a base in Sydney that will continue beyond the production of Paradise Lost.
At this rate the only place a VFX facility hasn’t been opened is in the Middle East! Oh wait I spoke too soon:
Plans also are afoot to possibly build a sister facililty in Abu Dhabi, Textor said.
As you know, I posted about problems in New Zealand and Austrailia:
It’s not rocket science to realise our incentives of 15 per cent are behind everyone else’s…
The rising dollar has hurt the industry…
Their currency was quickly rising against a falling US dollar making it more expensive to film there. Secondly, their film subsidies of 15% was dwarfed by other countries like Canada which provided 35%.
Recently NZ was leveraged by WB to offer more subsidy money and now Australia has increased it’s subsidy to almost 40%! The news comes as no surprise given Fox Studios owner Rupert Murdoch’s currently tenuous relationship with the UK government.
We are truly witnessing a race to the bottom. Not only are vfx facilities underbidding each other to win US studio work, but now international regions are outbidding each other to lure work over.