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Netflix is getting a sweet deal from the government on its big studio complex

Oct 16, 2018, 21:37 IST

AP

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  • Netflix will be getting a steal on the Albuquerque, New Mexico production hub it's in the final stages of acquiring.
  • According to Variety, the streaming giant is looking to pay just $30 million to get ABQ Studios, which would be its first ever studio complex.
  • The present assessed value for the site is $22.7 million, less than one third of the original $91million cost of the facility that opened in 2007.
  • Netflix will also receive $14.5 million in government funds.

It's now becoming more clear why Netflix chose a production studio located in Albuquerque, New Mexico to be the home for its first studio complex: it is getting a sweet deal.

The streaming giant is estimated to make a capital investment of around $30 million to acquire and improve ABQ Studios, according to Variety. The present assessed value is $22.7 million, less than one- third of the original $91 million cost of the facility that opened in 2007, the trade is reporting from information obtained by the Bernalillo County Assessor's office.

And if that wasn't already appealing enough for Netflix, the company will receive $14.5 million in government funds for the purchase of the studio ($10 million from New Mexico and $4.5 million from Albuquerque). And then having productions done in the state, Netflix titles are eligible for a tax credit of up to 30%.

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But New Mexico is expecting big things in return from Netflix.

When the deal was announced earlier this month, Netflix stated in the press release that the company planned to bring $1 billion in production to New Mexico over the next 10 years and create up to 1,000 production jobs a year.

In the past, ABQ Studios has housed such movies as "The Avengers," "Logan," and "Sicario," as well as AMC's hit TV show "Breaking Bad." It will be used right away for Netflix shows like the dramedy "Daybreak," supernatural drama "Chambers," and the suspense drama "Messiah."

The 28-acre site includes eight sound stages totaling 132,000 square feet of space, plus 100,000 square feet of production offices.

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