Rising film costs challenge NZ’s post Middle-earth movie industry - The Front Page

A 'Minecraft Movie'. Photo / Warner Bros

The Lord of the Rings was a crowning achievement for film production in New Zealand and opened the door for more movies to be filmed here.

A Minecraft Movie is just the latest overseas blockbuster to be produced on our shores, hitting cinemas around the world this weekend.

But as the cost of film production soars worldwide, what does the future hold for New Zealand? And can we break out of the shadow of Middle-earth?

There have been global concerns about the rising cost of film production. It’s been a topic of conversation at CinemaCon in Las Vegas this week, with Warner Bros president of global distribution Jeff Goldstein raising concerns around production, marketing and turning a profit.

The New Zealand Film Commission promotes the economic benefits of film and television production, both locally and internationally. Last year alone, this contributed $1.3 billion to our economy.

Chief executive Annie Murray told The Front Page rising costs are a concern across the board, not just for the film industry.

“Inflation has affected every facet of our economy. Film is no exception to that. What we are doing here at the Film Commission about that is we are taking a ‘fewer and bigger’ mantra to the way we fund films.

“We’re seeing a similar mindset out of Hollywood, too. So, there has been a global reduction in the number of new titles being commissioned, so a bit more money being spent on fewer titles. What that means is that we are able to focus on fewer things, doing them really, really well.

“What I see there is a real uplift in quality. So, rather than sprinkling money a little bit across a lot of things, consolidating into spending more money on fewer things,” she said.

The New Zealand Screen Production Rebate (NZSPR) is a government-backed incentive scheme where eligible productions can access a 40% cash rebate. It was introduced in April 2014.

With an annual rebate of approximately $374 million, the NZSPR drives over $1.5 billion in New Zealand qualifying production expenditure.

“We are world-renowned for having an accurate, fast and efficient rebate system and one that has integrity. So that is a real selling point for New Zealand and I’m very proud of my team that administers the rebate,” she said.

The rebate is all about creating Kiwi jobs, Murray said.

“For every $100 that Disney or Universal spend in New Zealand, they get $20 back. We get $80 spent in our economy that we would not get otherwise. It’s a really simple equation. If that company doesn’t get that rebate, they go elsewhere. They go to Australia, Canada, the UK and Europe,” she said.

Listen to the full episode to hear more about how the NZ film industry is faring.

The Front Page is a daily news podcast from the New Zealand Herald, available to listen to every weekday from 5am. The podcast is presented by Chelsea Daniels, an Auckland-based journalist with a background in world news and crime/justice reporting who joined NZME in 2016.

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