Sarandos explained to The Wrap that the company determined that going after the incentives leads to diminishing returns when it comes to their final products. Filming out of state is hard on the actors and crew of a project, and the move will help bring projects back home to California. That could prove to be costly for the company, even as California has increased its own tax incentive program in recent years. While remaining in the state will likely cost Netflix more, Sarandos seems to think that the extra cost will be worth spending.
The problem there is the doubling of projects in the coming years, which The Wrap reports is “maxing out” sound stages on which to work. Netflix will invest the money locally, and Sarandos noted that the company will help improve and upgrade existing studios and sound stages. While they are hoping to lure productions back to California, he says that they will continue to look out of state, “when the location is the character,” as is the case with shows such as House of Cards or Bloodline.
A number of states across the country offer tax breaks as a way to incentivize studios to film their projects locally, which is seen as a way to boost local economies, either through creating jobs, providing business for hotels, or from the sales of raw materials for sets. Studios might save money by going to Georgia or New Orleans, Sarandos explained, but at the cost of making their actors and crew miserable by being away from home for months out of the year.
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