The title really isn’t as dirty as it sounds. Recently, Warner Bros Pictures announced they were pulling production of DC Comic’s Green Lantern starring Ryan “Deadpool” Reynolds from Australia because of the faltering U.S. dollar. With the way the Australian dollar is performing compared to the US dollar and the financial gurus predicting it to climb to even or higher in the coming months, Warner Bros will be reconsidering all of its shoots there.
In a press statement released through Screen NSW, Warner Bros Studios had this to say about the situation:
“The current global economic situation, including fluctuations in currency valuation and overall costs. We have also had to reassess film projects in other countries as well. After working closely with our partners at the NSW Film and Television Office (Screen NSW) and examining every scenario, we have decided to move the production of ‘Green Lantern.’ We are extremely grateful for the assistance we have received from the NSW Government, Fox Studios and the NSW filmmaking community,”
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As it stands now, Green Lantern was already in trouble once over its super-sized budget and the economic condition abroad could add a purported $20 million to that number. That’s bad news for Australia, though, because there already a number of films shooting there including the third installment of The Chronicles of Narnia: Voyage of the Dawn Treader and two animated full-length features are being produced there including Happy Feet 2.
It’s not a total loss for the Australian movie industry though, as Spike Jonze filmed Where the Wild Things Are there this past year in Victoria and I’m sure that brought in a hefty sum to their local economy. Rumors floating around say that Green Lantern, which was to start production in November, could move to either Mexico or Canada. I’m sure Reynolds wouldn’t mind visiting his home country of Canada to shoot the movie.
I’ve got to ask, though: what is with all the studios filming overseas when their own local economies are suffering? California is supposedly the home to Hollywood movies, and the state is in such a financial mess right now that I’m sure a few studios pumping hundreds of millions of dollars into the local economy there would surely help.
I realize there are all sorts of incentives and tax breaks to film abroad but really, is it that much cheaper to fly a cast and crew of over one hundred people halfway across the world to work in a soundstage they have in their own backyard? At least Red Dawn producers are filming in Detroit, Michigan and bringing in some cash flow to a very struggling local economy.
Do we have some Australian readers that would like to chime in on this situation and possibly wave their Foster-size dollar in our faces? Where do you think Green Lantern will film and does it really matter? So far this hasn’t had a negative impact on the released date but time will tell.
Green Lantern is supposed to release summer 2011.
Source: Hollywood Reporter
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14 Comments
Thank all of the taxes the government likes to push on everyone, especially California. They say it’s “good for the economy” (on paper maybe) but in real life it just promotes doing business overseas. Sure it’ll help the local economy, but if that has a negative affect on a movie’s budget, they’re not going to sacrifice the movie to help the city, they are a business, not a charity. So these politicians need to get their heads out of their asses and make some changes, but from the looks of it, any “change” that comes out of the state and federal governments will be in the wrong direction anyhow…
This film will not be made.
they will go to canada, and yes i agree its so stupid that they film overseas and not here.
@Kantstandya …
Been reading various reports in the financial press that the Canadian dollar is about to reach parity with the U.S. dollar in the coming weeks. So, if Green Lantern does film in Canada, it’s hard to say just how economical a Canadian shoot will be, unless Warner Bros. gets some sweet tax breaks from provincial governments.
A Mexican shoot for Green Lantern may be possible, but even that’s not guaranteed, because of the wildly fluctuating exchange rate between the peso and the U.S. dollar.
We’ll see what happens in the weeks ahead, though. Should be interesting where Green Lantern will be filmed, and if this movie will even see the light of the multiplex.
Given that Hollywood was a pretty rinky dink town ninety years ago and only became the epicentre of the American film industry because it was cheap to make films there, it’s only to be expected that production will move elsewhere if it makes economic sense.
How much are they expecting to ’save’ by filming elsewhere?
Apparently Warner bros were offered extensive support by the Australian Government, including financial support (tax concessions).
I know from personal experience, that funding for projects in Australia is incredibly hard, because the already small amount of money for film funding cant be stretched very far. I mean, the amount of financially backed feature films made annually in Australia are few, and most importantly, roughly 80% in the last two decades have been made on less than 10 million (50% being made on less than 1 million).
I’d rather the Australian Government be as equally supportive and over enthusiastic about financing local Australian films. Isn’t this real economic stimulus?
*hard to obtain
Never liked Ryan Reynolds EVER. In anything. So needless to say I could care less if this movie dies. I hope eventually if it does die that it will be revived with a better choice than Van Wilder.
Tax breaks for films are a tricky thing: not only do they take production out of California and into other countries, but also other states. Boston and Michigan have biggies, but so does South Carolina and especially New Mexico, where a lot of production has gone.
But when the US dollar weakens, it suddenly becomes more expensive to shoot outside of the USA. And when the tax incentives in US states becomes a burden, they’re taken away and the film industry fails. Take a look at North Carolina and even Florida (where I live), with Louisiana feeling a bit of a pinch, too.
Heath
Ken your right on the edge of figuring it out.
How can the fed be so inept? (There not) They don’t have they’re heads up their ars, they are all selling US out… Its right there in front of you. You’ve almost made the connection.
The wrong direction is the right direction to their endgame… Its a slow process but as we can see its working.
Canadian dollar is almost on par with the U.S. so not sure they would film in Canada either, though would be cool
@Heath…
I live in Illinois, and it’s been tough for the Illinois Film Office to keep extending tax breaks to film productions because overall state tax revenues has been weak, and film production tax breaks are the first to get hit.
Hard to say whether film production in Illinois will continue due to the lack of tax breaks for production companies and studios to film outside of California.
Anyway … stay tuned — this should get interesting.
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