Italian
New York’s film industry shows resilience amidst production challenges
Statewide production levels remain strong
In a year marked by budget cuts, strike threats, and stalled projects, New York’s film and TV production industry has proven to be more resilient than most. Despite these hurdles, the Empire State’s production levels have reached approximately 75% of their 2022 measure, significantly outperforming the national average of 60%.
Enhanced incentive programs fuel growth
One of the main drivers behind New York’s relative success is its revamped incentive program. The state recently increased tax credits for qualified production expenses from 25% to 30%, with an additional 10% available in many upstate counties. The funding pool was also expanded from $420 million annually to $700 million, and the program has been extended through 2034. These measures have made New York a more attractive location for high-budget productions.
The rollercoaster of production permits
A mixed bag for city permits
While the NYC Mayor’s Office of Media & Entertainment reported that city permits for public property shoots in April 2024 nearly matched pre-pandemic levels, recent permit figures for August indicate a 41% drop compared to five years ago. This fluctuation reflects the ongoing uncertainty within the industry, partially due to labor disputes and other external factors.
Going global: The overseas shift
One notable trend is the movement of projects overseas, driven largely by labor uncertainties in the United States. For some filmmakers, international locations like Germany, Japan, and the UK are becoming preferred destinations for securing financing and avoiding domestic uncertainties.
The evolving landscape of new series orders
Fluctuating demand for original content
The number of new series orders has experienced a significant decline from the peak years of 2021-2022. This shift is primarily due to major streaming platforms and networks focusing more on profitability rather than subscriber growth. After the 2020 COVID shutdown, there was a surge in demand for original content, but this trend has been in decline since 2022, influenced heavily by strategic financial decisions from market leaders.
Impact of strikes on production volumes
By early 2023, production volumes were already down by double digits, further exacerbated by industry strikes. A wave of cancellations and more stringent greenlighting processes have become the new norm, shaping a much more selective and cautious production environment for 2024.
New soundstage projects on the horizon
Brooklyn gets a boost
Despite these challenges, there are positive developments on the horizon for New York’s production infrastructure. New soundstages are set to sprout in Brooklyn, with construction projects in East Williamsburg and Red Hook slated to begin in the first half of 2025. These facilities are expected to open by the second quarter of 2027.
Recent openings and future plans
Noteworthy among the recent openings is Robert De Niro’s Wildflower Studios, which saw its first series episode filmed in September. Additionally, Borden Studios, located on the Queens waterfront, is targeting a year-end opening.
Industry insights: From optimism to caution
A buyer’s market emerges
Talking with local filmmakers and industry insiders paints a varied picture. While New York’s production capabilities remain robust, the market has turned from a seller’s to a buyer’s market. Competition is fierce, with fewer projects vying for available spaces.
An influx of limited series
Doug Steiner, owner of Steiner Studios, notes that the industry witnessed a rapid booking spree post-writers’ strike, though the momentum is showing signs of slowing. More limited series and fewer episodic commitments mark a notable shift in production trends.
Adapting to new realities
Flexible use of space
Studios like Steiner’s are adapting by diversifying the types of productions they host, from commercials to concert rehearsals. Meanwhile, competition between New York and neighboring states like New Jersey is intensifying as producers seek the best deals and locations.
Increasing confidence
Despite the challenges, the continued investment in soundstage development and expanded tax credits reflects optimism for the future. The new facilities being built testify to a robust belief in New York’s long-term viability as a prime location for film and TV production.
Post-production and VFX struggles
A need for more incentives
New York’s post-production and VFX sectors saw a significant downturn at the start of the year, largely due to labor strike threats. However, efforts are underway to lobby for enhanced tax incentives, which are expected to boost these critical facets of the industry.
Artificial intelligence: A game-changer
Technological advancements, particularly in artificial intelligence (AI), are also playing a role in reshaping the industry. AI is speeding up processes and lowering costs, making it easier for independent filmmakers to bring their visions to life in New York.
Looking forward
The City of New York is keen on maintaining its appeal to filmmakers. From concierge services for logistical support to new tax credits, the city is pulling out all the stops to ensure a smooth production experience. Recent productions have highlighted how these efforts are paying off, making New York a more accommodating and attractive location for filmmakers.
Did you enjoy this article? Share it on your social channels and let us know your thoughts!
Don’t miss out on the latest updates! Follow us on social media to stay informed about the newest releases.
