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We’re not in Kansas anymore, Toto.
Well, not just Kansas, anyway. Nor Hollywood. Nor any of the typical filming locations that many industry productions have reliably called “home base” since the industry’s inception. The world market is expanding as new international communities burst onto the scene, igniting a dynamic transformation in the economy of film production.
Each of the following film markets is fueled by its astonishing ability to weave enchanting narratives deeply rooted in a vibrant and authentic cultural tapestry. These upcoming international hubs—locations like Latin America, Asia, Africa, Europe, and the Middle East—showcase incredible growth, making them essential players in the film industry's global ecosystem, thanks to new incentives and growing opportunities. And in the age of streaming services and global distribution, projects that grow out of locations such as these are engaging eager audiences at home and abroad.
- Africa
This emerging market presents the industry with a number of diverse opportunities for filmmakers. Morocco is offering producers a 30% rebate on eligible expenses if their productions have a budget of at least 10 million dirhams and a shooting duration of at least 18 days. This is contingent on providing proof of qualified expenses like local talent, crew, and various production costs. In fact, the Moroccan film industry is anticipated to achieve unprecedented profits in 2023, thanks in part to the substantial investments made by foreign film productions. With an already well-established film industry, South Africa provides unique locations and skilled crews for international productions, and incentives of up to 25% of local spend. A bigger boom is likely, with the industry's revenue expected to grow to 1.46 billion South African rand by 2023.
- Asia
With countries such as South Korea, Indonesia, and Thailand making significant strides in the industry, Asia is rapidly becoming a dynamic film production hub. South Korea's internationally acclaimed films span various genres, backed by incentives like a 20-25% location rebate. 2022 saw the country release 817 films, leading to sales revenue that reached 1.7 trillion South Korean won. Indonesia is experiencing a similar boom, thanks in part to their 13 million annual film grant. The island broke records with over 53 million domestic admissions in 2022. Thailand, known for its horror, action, and drama films, provides a substantial rebate of up to 75 million baht ($2.25 million) per film, achieving a remarkable 6.4 billion baht in revenue in 2022 from 348 different movie productions.
- Europe
European countries such as the U.K., Ireland, France, Germany, Spain, and Italy, have long been major players in the international production industry, with the U.K. leading the way in attracting foreign investment, recording a historic high in combined spending by film and high-end television production at £6.27 billion in 2022. Now, more of Europe is emerging on the global scale. Hungary and Ukraine stand out as exciting destinations for filmmakers, with the former’s film industry hitting a record high in 2022, thanks to a tax rebate of 30% of eligible Hungarian spend (up to 25% of which can be non-Hungarian spend). Hungary’s total registered spending last year exceeded 250 billion forints, a 20% increase from 2021. Meanwhile, Ukraine's filmmakers have been celebrated for their unique storytelling within the country's rich cultural and historical context. Since 2020, foreign film productions in Ukraine have been able to benefit from a 25% to 30% cash rebate, leading to a local cinema that has thrived, capturing an impressive 27% share of the national box office in 2023.
- Latin America
With notable contributions from countries like Brazil and Argentina, Latin America is making a sizeable impact in the industry. From July 2022 to June 2023, five of Amazon Prime Video's Top 10 most-viewed non-English language films or series hailed from Spain or Latin America, signifying the region's growing industry prominence. Brazil has been making waves and earning international acclaim with its diverse range of films. New incentives, such as RioFilme's 30% investment in Rio de Janeiro-based international productions, and substantial cash rebates for projects set in the city have led to growth, seeing Brazil release 173 domestic movies in 2022 and demonstrating an astounding 335% surge in domestic box office. Argentina's film industry has also captured international attention with its unique storytelling style and distinctive perspectives. Buenos Aires, the Argentine capital, has introduced a 20% cash rebate for qualified expenses related to feature film and fiction series production. Of the 433 movies released in Argentine theaters in 2022, an impressive 51% were domestic productions.
- The Middle East
Following the lifting of its cinema ban in 2017, Saudi Arabia’s committed push for cultural reforms has led to the country nurturing its burgeoning film industry with a generous incentive program, which offers a substantial 40% rebate for both domestic and international production companies. This incentive has helped propel Saudi Arabia into the top 15 global markets by box office revenues, with an impressive $250 million in 2022, surpassing the United Arab Emirates' $160 million (according to data from Gower Street Analytics). Turkey's film industry is gaining recognition for its diverse collection of dramas, comedies, and historical films, which blend traditional storytelling with modern production techniques. The country offers substantial incentives, such as cash rebates of up to 30% for feature films, documentaries, and TV series, as well as VAT refunds of up to 18% for expenses related to goods and services during filming. In 2020, the Turkish entertainment market earned $52 million in revenue. Additionally, Jordan just opened its first studio complex, and the country is offering an incentive of up to 25% to filmmakers. With its growing infrastructure and financial incentives, the Middle East is already one of the fastest growing markets in the global film industry, poised to further solidify its position as a significant player.
Perhaps the biggest takeaway from this global growth is that the future of filmmaking is not limited to one place or people. It’s a new cinematic landscape—in many ways, one that could not have been envisioned fifteen years ago—and these international markets are not just destinations for filmmakers but also important contributors to the global film industry's growth. Of course, Hollywood remains an invaluable and significant player, but as international co-productions become more common, these international film markets will play a pivotal role in shaping the future of cinema.
For more on these burgeoning film hubs and the potential for co-production, check out this insightful blog from Media Services.
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For updates on production incentives and industry news, be sure to check out Cast & Crew’s Incentives Map and Production Incentives Newsletter.