It is no lie that many states outside of California benefit from Netflix’s $6 billion TV and film production budget. In fact, Netflix’s hit TV series Stranger Things is currently filming their second season in Atlanta, Georgia. Not to mention, Netflix’s The Get Down just finished their second season in New York City a few weeks ago.
However, all of that may be coming to an end as The Wrap reports the company is planning on moving all of their productions to California.
The Wrap‘s Matt Donnelly and Sharon Waxman reported Netflix is planning to movie their productions to California in order to “invest in infrastructure”, according to the company’s CEO Ted Sarandos.
Donnelly and Waxman report Netflix’s “Chief content officer intends to bring business home to Hollywood and stop chasing tax incentives in other states”
“I personally believe instead of investing in tax incentives that we should invest in infrastructure,” Sarandos said in an interview at Netflix’s sleek new Hollywood offices, home to roughly a thousand employees, as the company continues its explosive growth. Moving productions to benefit from tax incentives, common practice in the industry, “is very tough on families and eventually it grinds on the talent,” Sarandos said.
Sarandos added, “When you think about productions chasing tax credits all over the world, it puts the onus on the cast and crew who have to travel. You move to Los Angeles, or you grew up in L.A., because you wanted to be in show business — and then you have to move to New Orleans six or eight months a year.”
That means more TV shows, movies and productions will be leaving popular cities such as Atlanta, which currently provides tax incentives, to Los Angeles, California. How this will impact states that benefit from their tax incentives program remains to be seen. However, this major move may put more jobs back in Hollywood and shut the doors on other cities.