Netflix is bringing its $6 billion dollar production budget back to Hollywood.
In an exclusive interview with TheWrap, Netflix Chief Content Officer Ted Sarandos said that he intends to bring as much production as possible to California, having concluded that chasing tax incentives in other states produces diminishing returns on screen.
“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.
The streaming giant will invest in California as the company ramps up original production — luring projects back from states that offer significant tax rebates.
“If people were enjoying their work, they would do better work. That’s been our own corporate philosophy too,” he said.
The company is already “maxing out” soundstages around Los Angeles for its shows, Sarandos said. “Grace and Frankie” shoots on the Paramount lot, Kathy Bates’ upcoming “Disjointed” and Ashton Kutcher’s “The Ranch” shoot at Warner Bros., and Justina Machado’s “One Day at a Time” tapes at Sony. Santa Clarita, 90 minutes away, is home to Drew Barrymore’s “Santa Clarita Diet” and the obstacle competition series “Ultimate Beastmaster.”
“Bright,” a $90 million action film starring Will Smith and directed by David Ayer which hits the service this Christmas Day, was shot entirely on location in downtown Los Angeles.
These are just a few of the projects paid for with the company’s reported $6 billion purse, which accounted for what Sarandos estimated to be 1,000 hours of original content (as opposed to acquisitions and licensing deals on features and TV series).
States like Georgia and Louisiana have lured film and TV production out of Hollywood for years. Disney’s Marvel is now a mainstay in Atlanta, where statewide impact from the film industry soared to $7 billion in 2016. In Louisiana, Ryan Murphy’s popular limited anthologies “American Horror Story” and “Scream Queens” initially set up shop in and around New Orleans before relocating to L.A. last year with more favorable California tax credits.
“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,” Sarandos continued.
“I hope you save enough money to put a $100 million production at risk by having a lot of miserable people around.”
As recently as last month, at CinemaCon, Mila Kunis bemoaned the Atlanta heat she’ll face for her upcoming sequel to “Bad Moms” — set at Christmastime. On her podcast, actress Anna Faris often discusses the challenges of living apart from her movie-star husband, Chris Pratt.
The executive said the company will always travel “when the location is the character,” citing the underbelly of the Florida Keys for “Bloodline” and the mirrored architecture of Washington, D.C., that “House of Cards” finds in Baltimore.
“I’m happy to participate in the incentives if they work, but there is a cost on the creative of the show. ‘Veep’ is a great example, when they moved form Baltimore to L.A., it got way better,” Sarandos said of the HBO Emmy magnet.
“They have the best writers on television now. The show is funnier, everyone’s happier. I think it shows up on screen. Shooting in L.A. is an investment in the quality of the show,” he said.
California does offer a tax incentive program, a grueling and competitive “jobs score ratio” system accounts for $330 million in funding.
In 2017 alone, four TV series returned to L.A.: FX’s “Legion” and Fox’s “Lucifer,” Showtime’s “The Affair” and Netflix’s own Brit Marling drama “The OA.” Last year’s lottery allocated resources for 28 feature films and 15 TV productions.
Sarandos’ comments are likely to provoke reactions in other states, where billions of dollars of production is at stake.
The exec also hopes to improve the quality of the historic soundstages that define Hollywood’s studio era, which he said need “better stage facilities” and “more current technology — some of these stages you shoot on in L.A. haven’t been touched since the 1930s.”
Sarandos’ office is modest quarters by mogul standards, but it does boast a 360-degree balcony with a view that includes the Sunset Gower Studios Lot. It was erected in 1912, and today hosts Chelsea Handler’s eponymous Netflix talk show.
Sarandos does not take the unique position Netflix is in for granted. He said if he were an independent producer, he’d probably chase the tax incentives as well. But Netflix is following its own model.
“The money that we’re saving actually shows up on the screen,” he concluded.
For the record: A previous version of this story incorrectly stated that FX’s “American Horror Story” and “Scream Queens” were still shooting in Louisiana.
Top 25 Best Netflix Original Series, Ranked From Great to Phenomenal (Photos)
There is a ridiculous number of original series available on Netflix right now — so many it's almost impossible to keep up with them. Even Netflix seems to have a tough time making sure its viewers know about its shows. We dug into the annals of Netflix series and plucked out the very best ones for your enjoyment. Here they are in order of great to phenomenal.
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25. "Lost in Space"
Netflix's take on the 1960s TV show about a family marooned on a weird alien planet, with only each other, their pilot, a robot, and a self-serving doctor for company is a lot of fun. A (mostly) more realistic take than the original, the show manages to capture an interesting family dynamic while still tapping into over-the-top sci-fi ideas.
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24. "Dark"
"Dark" concerns a small German town where children have disappeared -- just like 30 years ago. The story starts out as a fascinating, character-driven drama, but quickly starts to pick up speed with some paranormal, science fiction-y elements. There's a lot more to the mystery than first meets the eye in "Dark," and the show does a great job of weaving it over the course of its first season.
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23. "Peaky Blinders"
Cillian Murphy and Sam Neill facing off from opposite sides of the law in post-World War I Britain is enough to make “Peaky Blinders” worth a watch. But its great casting and rock music-amplified tone make it a period crime drama that’s unpredictable in a completely violent way.
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22. “The Crown”
It’s not easy being queen. “The Crown” digs into the personal stories of the British royal family as Queen Elizabeth II is crowned. Elizabeth is constantly pulled between family squabbles, politics, personal responsibility and her duties, and there’s plenty of drama to go around.
Netflix
21. “BoJack Horseman”
It takes a bit to hit its stride, but once it does, “BoJack Horseman” joins the top tier of animation geared at adults. The goofy comedy combines solid writing and a cynical look at Hollywood with a darker look at issues like depression.
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20. “The Fall”
The gritty British thriller starring Gillian Anderson of “The X-Files” fame is split between two perspectives: Anderson’s Detective Gibson and the serial killer she’s hunting. Anderson is consistently great as the no-nonsense Gibson, who hunts the killer while fighting off controversy among the police and the press.
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19. “Lemony Snicket’s A Series of Unfortunate Events”
This adaptation of the children’s book series of the same name manages a hilariously melancholy tone. Neil Patrick Harris slays the role of the ridiculously evil Count Olaf, and the rest of the show is full of great performances from a series of stars.
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18. "Santa Clarita Diet"
There's a lot to love about "Santa Clarita Diet" and it's fun take on the undead. Drew Barrymore and Timothy Olyphant in particular are hilariously square suburbanites. The way they take to murdering people for the newly zombified Barrymore to eat, in order to preserve their family, is weirdly heartwarming and constantly funny.
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17. “Travelers”
“Travelers” goes gritty with its time travel, imagining agents from the future who have to take over the bodies of people in the past in order to stop the end of the world. The best stuff here is the personal drama as the characters battle their own guilt at the harm they sometimes have to do for the greater good.
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16. "Dear White People"
Adapting the movie of the same name into a series, "Dear White People" digs into race and racism in an Ivy League school. The series is poignant and smart, as well as hilarious all the way through as it finds smart, funny ways to tackle tough topics.
Netflix
15. “Marvel’s Daredevil”
The first of Netflix’s original shows featuring Marvel superheroes was a surprisingly dark and intense take. With awesome action and strong stories, “Daredevil” gave Marvel fans a more subdued, believable kind of superhero story in its two seasons.
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14. "American Vandal"
"American Vandal" turns true crime documentary into a comedy, digging into the mystery of who was responsible for spray painting faculty cars at a high school. The show is simultaneously a send-up of super-serious crime docs, and an enthralling and effective mystery all on its own.
Netflix
13. “Making a Murderer”
The deep-dive documentary into the investigation of the murder of Teresa Halbach stretches on for 10 episodes, but it’s never boring. Instead, it presents a look into the investigation and conviction of Steven Avery that has sent many viewers digging into the case looking for the truth themselves.
Netflix
12. “Marvel’s Luke Cage”
Netflix’s superhero offerings do a stellar job of expanding Marvel stories into perspectives fans might not be used to seeing. “Luke Cage” takes viewers to Harlem, and it’s just as conscious of the implications of following a black man who’s immune to being shot as it is of how cool it would be to have bullet-proof skin.
Netflix
11. “Marvel’s Jessica Jones”
The second partnership of Netflix and Marvel pits the super-strong but flawed Jessica Jones against a mind-controlling man she can’t convince anyone exists. “Jessica Jones” is more drama than action, and watching her try to out-maneuver the manipulative Purple Man is often more exciting than flying superhero fists.
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10. “Narcos”
The saga of Pablo Escobar's rise to power and the DEA agents tasked with stopping him is a powerhouse of strong acting. There's no shortage of crime story violence and mystery in the lengthy drug war Escobar wages, which now covers two seasons.
Netflix
9. "Mindhunter"
Director David Fincher hits two competing feelings all the way through "Mindhunter." As FBI agents Ford and Tench create a new kind of profiling in the 1970s by interviewing serial killers, the show oscillates between being morbidly fascinating and increasingly dread-inducing. Either way, it's hard to turn away from this crime story.
Netflix
8. “Stranger Things”
Netflix’s “Stranger Things” perfectly channels a 1980s movie aesthetic and tells a compelling monster-slash-government conspiracy story. It’s also that certain sort of kid-driven Steven Spielberg or Stephen King kind of story that there just aren’t enough of in the 21st Century. Season 2 is coming this Halloween.
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7. "The Punisher"
Netflix's Marvel shows have been hit and miss, but the violent, brooding, semi-noir mystery it spins in "The Punisher" is the best of the bunch so far. A lack of superpowers makes protagonist Frank Castle (Jon Bernthal) easy to relate to, but it's the rest of the extremely strong cast that makes the show so engrossing.
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6. “Unbreakable Kimmy Schmidt”
This Tina Fey-co-created comedy starts with a strange premise — Kimmy (Ellie Kemper) has escaped a bunker after being kidnapped by a doomsday evangelist for years. But Kemper’s relentlessly upbeat attitude and the supporting zany cast make “Unbreakable” something of a weirdo answer to “30 Rock.” You’ll need to rewatch it to catch all of the hidden jokes.
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5. "The Keepers"
A true crime documentary series that looks to explore the decades-old murder of Sister Cathy Cesnik in Baltimore. Netflix's excellent doc spirals into a much deeper and more chilling story that delves into sexual abuse in a Catholic high school, and the murder that might have happened to cover it up.
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4. "Ozark"
When a money launderer has to convince the drug cartel he works for not to kill him, he has to cart his whole family from Chicago to Missouri in Netflix's crime drama. Imagine "Breaking Bad," but with less chemistry and the entire family involved in trying desperately to keep from getting caught, satisfy the bad guys and stay together.
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3. “House of Cards”
Frank Underwood (Kevin Spacey) is backstabbing his way to greater power in the halls of Washington D.C. It's occasionally ridiculous, but great performances by Spacey, Robin Wright, and many more make Underwood's machinations hard to guess and harder to stop watching.
Netflix
2. “Orange is the New Black”
The longer “OITNB” goes on, the better it gets, as it delves into the diverse perspectives of its women’s prison population. It’s an examination of the justice system, of people trying to make the best of a bad situation, and of friendship and survival. It’s also consistently hilarious and sports a phenomenal cast.
Netflix
1. “Master of None”
Aziz Ansari brings a rare brand of comedy that's instantly relatable. Whether it's about navigating life at 30 or the experience of growing up in America as the child of immigrants, "Master of None" has a unique, extremely funny perspective. The second season is even better with the first, mixing hilarious and very real moments.
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These are the Netflix Original Series you should prioritize binge-watching immediately
There is a ridiculous number of original series available on Netflix right now — so many it's almost impossible to keep up with them. Even Netflix seems to have a tough time making sure its viewers know about its shows. We dug into the annals of Netflix series and plucked out the very best ones for your enjoyment. Here they are in order of great to phenomenal.