Core Insights - The UK government has provided Disney with $2.2 billion over the past 15 years through the Audio-Visual Expenditure Credit (AVEC), making Disney the largest beneficiary of this incentive [1][12][17] - Foreign studios accounted for approximately 87% of the $2.2 billion spent on film production in the UK last year, reflecting a 7.6% increase from 2019 [2] - The number of on-location shooting days in Los Angeles has significantly decreased, with a 35.7% drop from 2019 to 2024, indicating a decline in Hollywood's production capacity [3][4] UK Film Incentives - The UK has increased its reimbursement rate for film production to 25.5%, attracting major Hollywood studios [4][5] - Disney has committed to investing $5 billion in UK and European productions over the next five years, having already spent $4.8 billion on 41 shows and 29 films since 2019 [11] - The UK film industry generated $10.5 billion in Gross Value Added (GVA) in 2019 due to fiscal incentives, demonstrating the economic impact of these policies [18][20] Competition and Market Dynamics - The UK has emerged as a key competitor to Hollywood, with major studios like Amazon and Netflix establishing long-term operations in the region [9][10] - Disney's long-term commitment to the UK includes securing nearly all of Pinewood Studios for a decade, ensuring a stable production environment [8][10] - The competition for studio space has led to new facilities being developed in the UK due to high demand [9] Economic Impact - The film industry in the UK created nearly 50,000 jobs in 2019, highlighting its significance to the local economy [20] - Critics argue that Hollywood studios should not require subsidies, as they are highly profitable, raising questions about the fairness of the current incentive system [17][18] - The UK government's fiscal incentives have been shown to generate substantial returns on investment for the economy, with a reported $18.4 billion return between 2017 and 2019 [19]