Disney has pocketed $2.2 billion in subsidies from the United Kingdom over the past 15 years, thanks to incentives designed to attract big-budget productions, reported Forbes. The entertainment giant is now considered the biggest single beneficiary of the country’s Audio-Visual Expenditure Credit (AVEC), which reimburses studios up to 25.5% of production costs incurred in Britain.
The figures, drawn from analysis of more than 400 company filings, highlight how London has become a magnet for Hollywood blockbusters, even as filming in Los Angeles continues to slump.
UK outpaces US in film production
Data from the British Film Institute (BFI) shows that foreign studios, led by Disney, Netflix, and Amazon, accounted for 87% of the £1.6 billion ($2.2 billion) spent on UK productions last year. That marks a 7.6% jump since 2019. The UK government sweetened the deal this year by raising its reimbursement rate to 25.5%, sparking renewed competition among US states. New York and California have since expanded their own film tax credits, but industry watchers argue the measures may be “too little, too late.” Nearly a third of Marvel’s 54 films and series have been shot in Britain, with Disney locking down near-exclusive access to Pinewood Studios in 2019. Arch-rivals Amazon and Netflix have also secured long-term deals at nearby Shepperton Studios.
The scale of subsidies is striking. Disney’s Andor alone received $138.1 million (£101.2 million) in UK credits, followed by Star Wars: The Rise of Skywalker at $105.1 million (£77 million). Sixteen Marvel productions together claimed nearly $700 million (£511.4 million).
Last year, Disney pledged to invest $5 billion in UK and European content over five years, on top of the $4.8 billion it has already spent since 2019 across 41 shows and 29 films. The growing reliance on taxpayer support has drawn criticism.
However, the government argues that the incentives deliver value. A BFI study found that in 2019, every £1 reimbursed generated £8.30 in Gross Value Added (GVA) for the economy, supporting nearly 50,000 jobs nationwide.
Pressure on Hollywood
The Biden and Trump administrations have both floated ideas to lure productions back home, including tariffs on films shot abroad. Yet many analysts doubt the effectiveness of such measures, pointing to the intangibility of digital productions and entrenched studio ties with British banks and crews.
Ironically, the influx of US productions has squeezed out some homegrown talent. Director Edgar Wright has long warned that British filmmakers struggle to find crew and studio space amid the Hollywood boom. Recently, even Netflix had to shift production of Wednesday Season 2 to Ireland due to space shortages in London.