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Netflix Plans New Mexico Production Hub


With the new venture, the streaming giant will invest $1 billion to boost the state's economy.
Netflix is headed to New Mexico. The streaming giant has landed on Albuquerque as the location for its new U.S. production hub for its growing roster of television shows and films.

As part of the plans, the streaming giant is in final negotiations to purchase ABQ Studios, located in Albuquerque’s Mesa Del Sol. The deal marks the Netflix’s first purchase of a production studio complex. The company aims to bring $1 billion in production to New Mexico over the next 10 years and create up to 1,000 production jobs a year.


Netflix will produce movies and series in the new facility and at other locations around the state. Among those in the works are the irreverent apocalypse dramedy Daybreak, the supernatural drama Chambers and the epic drama Messiah. Chambers and Messiah are currently being produced in the Albuquerque area, and both productions have already provided jobs for over 700 New Mexican crewmembers. Previous Netflix productions in New Mexico include the limited series Godless, Adam Sandler’s The Ridiculous Six and the former A&E series Longmire.


Helping make it possible for Netflix to come to Albuquerque is the state’s Local Economic Development Act (LEDA) funding. New Mexico will provide up to $10 million in LEDA funding, while the City of Albuquerque will commit up to $4.5 million in local LEDA funding to the project. The City of Albuquerque will be responsible for dispersing the LEDA funds as appropriate.

“Netflix is at the cutting edge of the film and television industry and it’s an honor to welcome them to New Mexico,” said New Mexico Gov. Susana Martinez. “After years of hard work to cut taxes and make New Mexico business-friendly, we’re seeing incredible results. Now, New Mexico is leading the nation in economic growth and lowering unemployment and we’ve brought the world’s leading internet entertainment service, Netflix, to our state.”


“Landing Netflix is a transformative victory that will change the business landscape in the Duke City,” said Albuquerque Mayor Tim Keller. “The city has leveraged the groundwork laid over the years by our partners in the film and TV industry and we’ve made sure that film and the creative economy remained a tenet of our economic development plan so we can create accessible, high-paying jobs in this industry. Now viewers all over the world will be able to experience the most beautiful and livable city in the Southwest while watching their favorite Netflix content.”


The move doesn't mean that Netflix is abandoning Los Angeles, however. In fact, just days earlier, the streamer signed a lease to take over an entire 13-story building in Hollywood starting in 2020. The development — owned by Hudson Pacific Properties — will serve as the new office space for the rapidly growing company. And production for Netflix's shows and films will continue to take place in various locations, depending on specific project needs.

“Our experience producing shows and films in New Mexico inspired us to jump at the chance to establish a new production hub here,” said Netflix vp physical production Ty Warren. “The people, the landscape and the facilities are all stellar and we can’t wait to get to work — and employ lots of New Mexicans — creating entertainment for the world to enjoy. We are grateful to Governor Martinez, Mayor Keller and the people of New Mexico for the opportunity to create a new ‘home away from home’ here in Albuquerque.”

“Netflix is one of the world’s most exciting brands, changing the way people think about and consume media, and challenging companies in every industry to innovate. We are thrilled to welcome this world-class company to Albuquerque,” added Roberta Cooper Ramo, chair of Albuquerque Economic Development. “In addition to the economic impact this project will create for local businesses and New Mexico residents, Netflix’s decision further communicates that Albuquerque has assets that set it apart from every other city.”

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deadline.com/2018/10/netflix-opens-production-hub-albuquerque-new-mexico-snubs-la-1202478466/

Netflix To Open Albuquerque Production Hub In Snub To L.A.

Netflix is opening a production hub in Albuquerque, where it plans to produce some of its films and TV shows, in an announcement that represents a snub of Los Angeles.

The streaming giant said it’s in final talks to purchase ABQ Studios, a facility with eight sound stages, production offices and a back lot in Albuquerque’s Mesa Del Sol. Netflix says it will use the new studio for production of its irreverent apocalypse dramedy Daybreak, supernatural drama Chambers, and epic, suspenseful drama Messiah.

Chambers and Messiah are currently being produced in the Albuquerque area.

The state of New Mexico offered Netflix incentives to locate in the self-proclaimed “land of enchantment,” extending $10 million in funding through the Local Economic Development Act. The City of Albuquerque ponied up another $4.5 million.

“After years of hard work to cut taxes and make New Mexico business-friendly we’re seeing incredible results,” New Mexico Gov. Susana Martinez said in a statement, saying Netflix would bring $1 billion in production to new Mexico over the next 10 years and create as many as 1,000 jobs.

Production space has grown increasingly scarce in Los Angeles, as tech newcomers vie with traditional media companies for sound stages. FilmLA found the occupancy rate for sound stages in the city hovering around 96% in 2016, the last year for which data is available.

Some of Netflix’s digital rivals have taken steps to lock up production facilities. Apple said it would lease a building in Culver City, and Amazon Studios moved into the historic Culver Studios where Hollywood such classics as Gone With the Wind and Citizen Kane were filmed.

Netflix isn’t exactly abandoning LA. Just last week, it signed a lease to occupy an entire 13-story office building in Hollywood. Still, the streaming giant said it has found New Mexico to be well-suited for production, with its hospitable climate, great exteriors and interiors and an experienced crew who’ve built infrastructure in the years since the city provided the backdrop for Breaking Bad.

It previously produced the Emmy-winning limited series Godless, The Ridiculous Six and Longmire in the state.

“Our experience producing shows and films in New Mexico inspired us to jump at the chance to
establish a new production hub here,” said Ty Warren, Netflix’s VP Physical Production. “The people, the landscape and the facilities are all stellar and we can’t wait to get to work — and employ lots of New Mexicans — creating entertainment for the world to enjoy.”

This marks the company’s first purchase of a production studio complex.

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variety.com/2018/digital/news/netflix-albuquerque-new-mexico-production-hub-1-billion-1202972660/

Netflix to Open U.S. Production Hub in Albuquerque, Touting $1 Billion in Business Over Next 10 Years

Netflix announced Albuquerque, N.M., as the site of a new U.S. production hub — which the company said will bring upwards of $1 billion in production money to New Mexico over the next decade and up to 1,000 production jobs per year.

Netflix said it is in final negotiations to buy ABQ Studios, located in Albuquerque’s Mesa del Sol planned community, as the base for its operations in the state. The deal is the company’s first purchase of a production studio complex; terms of the deal aren’t being disclosed. ABQ Studios, which opened in 2007, is currently owned by Pacifica Ventures.

The move comes after Netflix set plans for a significant expansion of its presence in Los Angeles last week, signing a lease through 2031 on a 13-story tower in Hollywood set to be completed in 2020 that is adjacent to its existing L.A. offices and production facilities at the Sunset Bronson Studios lot.

In the Albuquerque area, Netflix’s current productions include supernatural drama “Chambers” and epic drama “Messiah,” with the two TV shows having provided jobs for over 700 local crew members, according to the company. With the acquisition of the new facility, it expects to produce additional film and TV series at the hub and at locations around the state, including apocalypse dramedy “Daybreak.”

The state of New Mexico will provide up to $10 million in Local Economic Development Act (LEDA) funding for Netflix’s purchase of the facility and move to Albuquerque, and the city of Albuquerque will commit up to $4.5 million in local LEDA funding to the project.

“Netflix is at the cutting edge of the film and television industry and it’s an honor to welcome them to New Mexico,” New Mexico Gov. Susana Martinez said in a statement. “After years of hard work to cut taxes and make New Mexico business-friendly, we’re seeing incredible results.”

Previous Netflix productions in New Mexico include limited series “Godless,” Adam Sandler’s “The Ridiculous Six” and “Longmire.”

ABQ Studios, Netflix’s future home in Albuquerque, comprises eight sound stages — including four 24,000-square-foot stages that can open up to a 48,000-square-foot shooting space — as well as production offices, mill space and a back lot. Major productions filmed in part at ABQ Studios include four seasons of “Breaking Bad,” Marvel’s “The Avengers,” Disney’s “The Lone Ranger” and “Sicario.”

This summer, Netflix announced its first European production hub, in Madrid, Spain, targeting Spanish-language productions.

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www.indiewire.com/2018/10/netflix-buys-new-mexico-studio-abq-tax-incentive-hollywood-production-hub-1202010820/

Netflix Buys New Mexico Production Hub: Why Hollywood Is Sinking Billions Into Albuquerque
Did Netflix just disrupt every other studio from shooting in Albuquerque? Four big takeaways from yesterday's deal.

Netflix announced yesterday that it was buying ABQ Studios, located in Albuquerque, New Mexico, where it plans to spend over $1 billion on production over the next 10 years. The studio facility, which opened in 2007, houses eight soundstages, production offices, and a backlot, making it the state’s premium production. The purchase means Netflix has secured the ability to simultaneously shoot multiple projects (including large-scale films) and with an element of cost certainty, both of which have become increasing important to the streaming giant that churns out original content at an astounding rate.

New Mexico has became major production hub, with Hollywood taking advantage of the western landscape and generous tax incentive to make everything from “Breaking Bad” to “The Avengers.” Here are four takeaways from yesterday’s deal and why Albuquerque has become so important to moviemaking.

Netflix Does Care About Tax Incentives
A year-and-a-half ago, Netflix chief content officer Ted Sarandos announced the company was building production infrastructure in Los Angeles — a city with a capped, lottery-based incentive program. At the time, he stated Netflix would not be like other studios and chase tax incentives in New York, Atlanta, and other cities across the globe. Whereas math in the rest of Hollywood revolves around getting 25-35 percent back on below-the-line production costs (and above-the-line costs, in Georgia), Sarandos indicated that keeping talent and filmmakers close to their families and home was a Netflix core value.



For three years, Netflix spent top dollar to attract top talent and IP, building a deep slate of original content that made it a must-own subscription service that didn’t depend on SVOD rights from other studios’ big movies and shows. Having grown to produce $8 billion a year in Netflix Originals, the next step is building infrastructure that’s easier and more cost efficient.

Securing the top production facility in a state with a 25-30 percent tax incentive that extends to above-the-line talent (at $5 million cap) is an enormous step toward that goal. To help Netflix purchase the facility, New Mexico ($10 million) and the city of Albuquerque ($4.5 million) will kick in monies in the form of Local Economic Development Act funding.

Hollywood Has Grown Comfortable in New Mexico
Albuquerque is convenient. The airport is right outside a city that has remarkably little traffic, it’s a two hour flight to LAX, and there are lobbying efforts for a Burbank-to-ABQ direct flight in the works. The convenience of getting back-and-forth to Los Angeles can’t be underestimated, especially compared to its East Coast competition with its comparatively long flights and nightmare airports that are hard to reach.

While the tax incentive applies to local hires, the extremely film-friendly local and state offices are accommodating; they make exceptions and concessions for out-of-state hires, on top of allowing 10 “distant hires.” Meanwhile, there are a lot of what producers calls “local, but” hires — i.e., crew from other production cities who have grown to like the change of pace of New Mexico living and have bought second homes around Albuquerque. Those crew members’ salaries qualify for the rebate, in addition to saving money on housing and per diem allowances.

IndieWire spoke with multiple production managers and producers for this article, all of whom said that quality and depth of crew in New Mexico is strong, only leaving a production short on options when Albuquerque is especially busy. Meanwhile, the Albuqueque film office is working with Netflix to start a crew training program that will help locals partake in the upwards of 1,000 jobs Netflix plans to bring to the state every year. Already, the government allows exceptions on “distant hires” if they employ paid interns as additional production assistants.

The growth of New Mexico production has also given Hollywood a new, obtainable, and affordable landscape in its filmmaking palette. When “Breaking Bad” premiered in 2008, there was nothing that on television that looked like it. Today, desert warfare, arid foreign lands, genre period, military stories, and modern American stories are now set in the Southwest, where it’s easier and cheaper to make them.

Did Netflix Just Disrupt New Mexico for Everyone Else?
The Netflix Albuquerque announcement begs a larger question: Has it cornered the production space, disrupting other studios and independents? The answer is sort of, but possibly only temporarily.

ABQ was the biggest production facility in the state, which requires stages be used to take advantage of the full tax incentive. I-25 studios, which currently house the Uma Thurman-led series “Chambers” are equipped to handle good-sized productions; Santa Fe Studios located between Santa Fe and Albuquerque was home to the new Coen Brothers Netflix movie “The Ballad of Buster Scruggs.” So while there are alternatives, sources tell IndieWire that Netflix took the premium studio best equipped to handle big productions.

Netflix has agreed to allow all current TV series shooting at ABQ to continue shooting until each ends its run. Meanwhile, the Albuquerque Film Office told IndieWire it was already in the process of coming up with quick and creative solutions for new productions that want to shoot in the state. The city does have large, empty warehouses that are obvious candidates for conversion. In the long run, if demand continues the city has the space and structures to build new production facilities fairly quickly — including ABQ, which is surrounded by vacant land Netflix now owns. In the long run, production will likely expand in New Mexico; in the short term, Albuquerque is going to be a little squeezed.

State Politics and Tax Incentive Stability
The announcement came less than a month before New Mexico will elect a new governor, which indicates Netflix feels confident the politics surrounding the state’s tax incentive is stable. Democrat candidate Michelle Lujan Grisham is favored in the polls to replace outgoing Republican Governor Susana Martinez, but both Grisham and her opponent Steve Pearce have run pro-film campaigns; the state’s $50 million annual incentive is no longer the political hot button it once was.

The question now: If movie and TV productions have become so popular in New Mexico, with Netflix leading Hollywood’s charge to expand, would the state be open to increasing the incentive?

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variety.com/2018/digital/news/netflix-albuquerque-studios-deal-terms-30-million-1202981274/#utm_medium=social&utm_source=email&utm_campaign=social_bar&utm_content=bottom&utm_id=1202981274



Netflix Is Paying Less Than $30 Million for Albuquerque Studios, Which Cost $91 Million to Build

Netflix is getting a steal on a huge TV and film production facility in Albuquerque, N.M.

Netflix estimates it will make a total capital investment of about $30 million to acquire and improve ABQ Studios, located south of the city’s center, under a deal the streamer announced last week, according to documents filed with the City of Albuquerque. The site’s present assessed value is $22.7 million, according to the Bernalillo County Assessor’s office — less than one-third the original $91 million cost of the facility, which opened in 2007.

“Netflix occupancy, maintenance, and rehabilitation will return the studio to at least the $91M value it cost to build the facility,” according to Netflix’s application for Local Economic Development Act (LEDA) project approval.

In addition, as if the deal needed a sweetener, Netflix is set to receive $14.5 million in government funds for the ABQ Studios purchase ($10 million from the state of New Mexico and $4.5 million from the city of Albuquerque). Furthermore, Netflix’s productions in the state are eligible for a tax credit of up to 30%, under the New Mexico Film Tax Credit Program.

ABQ Studios is part of the larger Mesa del Sol master-planned community — which didn’t take off as hoped when the U.S. housing market collapsed in the late 2000s. The studio facility entered Chapter 11 bankruptcy reorganization in 2010, and was acquired the following year by New York-based Amalgamated Bank.

Tim Keller, mayor of Albuquerque, told Variety that Netflix’s commitment to spend at least $1 billion on productions over a 10-year span is a much more important element of the deal for the local economy.

“It’s going to resuscitate this quarter of the city that’s been stagnant,” Keller said. “The sustained commitment [from Netflix] makes this much different from someone just renting the space.”

The Albuquerque City Council is scheduled to vote on the Netflix proposal at a special meeting Thursday, Oct. 18. Last week, the Albuquerque Development Commission voted unanimously to recommend the council’s approval of the deal.

The ABQ Studios site includes eight sound stages totaling 132,000 square feet of space, plus 100,000 square feet of production offices and support space and a large backlot.

Over the years, ABQ Studios has been home to productions including four seasons of “Breaking Bad,” Marvel’s “The Avengers,” Disney’s “The Lone Ranger,” and “Sicario.”

Netflix currently has two ongoing productions in the Albuquerque area: supernatural drama “Chambers,” starring Uma Thurman, and religious drama “Messiah,” from Mark Burnett and Roma Downey. Together, the two series have provided jobs for over 700 New Mexican crew members. Previous Netflix productions in New Mexico have included limited series “Godless,” Adam Sandler’s “The Ridiculous Six” and “Longmire.”

Netflix’s bid for the Albuquerque facility — which was code-named “Project Zia” — is expected to create 500-1,000 local crew jobs per year throughout the state of New Mexico.

Per Netflix’s proposal, the company expects to occupy and operate the facility starting in October. The company has committed to $600 million in direct spending related to New Mexico on or before Dec. 31, 2023, and an additional $400 million in direct and/or indirect spend related to the facility between Dec. 31, 2023, and the end of 2028. Netflix will incur financial penalties, payable to the city and state, if it falls short of those spending targets (based on the percentage shortfall).

On the Netflix side, negotiations for Project Zia were led by Ty Warren, VP of physical production, along with Jason Hariton, head of worldwide studio operations and real estate, and Rajiv Dalal, head of global production and investment policy (former president of the Association of Film Commissioners International).

For the city, the talks were coordinated by Albuquerque film liaison Alicia J. Keyes, a former Disney international acquisitions exec and independent producer-writer, whom Keller hired earlier in 2018.

ABQ Studios sits on a 28-acre site at 5650 University Blvd. SE, Albuquerque, N.M., less than 15 minutes from the city’s airport (which is a two-hour flight from L.A.).

Keller, Albuquerque’s mayor, said the Netflix deal builds on the state’s efforts to become a world-class entertainment production destination, rivaling Georgia, New Orleans and Michigan after New York and L.A. “We’re sending the signal that Albuquerque is on the rise,” he said, adding that Facebook, Intel and Fidelity Investments also have major operations in the city.

The economic value of the Netflix deal will extend beyond its direct spending on productions, Keller noted. The company’s move into Albuquerque will generate $24 million to $50 million in annual spending on goods and services in the area, according to an economic analysis commissioned from the U. of New Mexico’s Bureau of Business and Economic Research.

The people Netflix employs for its productions will “be buying houses, going to restaurants, and spending at retail” in the city of Albuquerque, Keller said.