London is becoming the new Hollywood

Move over Tinseltown—Londontown is stepping into the limelight, as UK film and television productions boom.

A tale of two countries: US film and TV production rates last year were down ~40% from 2022’s pre-strike levels, while the UK saw production revenue surpass $7.4 billion, a 31% increase from the previous year.

Behind the flip: High costs/tax rates, budget cuts, and wildfire damages have all contributed to Hollywood’s fall-off. Overall US film budgets last year fell to their lowest level since FilmLA started tracking the data in 2017 (excluding 2020).

Meanwhile, the industry is thriving across the pond due in large part to:

• Increased funding: In 2024, media agency Film London estimated that about $12.7 billion is set to be invested in the city for production over the next five years. Amazon Prime Video, Netflix, and Disney are all expanding their UK offices; local studios like Pinewood (home to 12 MCU blockbusters) are booked out for years.
• Tax breaks: As of this year, film and TV producers seeking to shoot in the UK can receive a 40% reduction on their final bill.

Looking ahead…While President Trump’s recently announced foreign film tariffs could further disrupt the industry, their scope and execution is still unclear. A UK-US trade deal was struck last week, but it made no mention of the film industry.