For more than a decade, Georgia proudly wore the crown of “Hollywood of the South.” Thanks to generous tax credits and a sprawling infrastructure of soundstages, the state became a magnet for blockbuster filmmaking. None shined brighter than Marvel Studios, which helped turn Atlanta into the backdrop for superheroes.
But that era is ending. Disney is pulling Marvel production out of Georgia and moving it to the United Kingdom, mainly London and Pinewood Studios. It started with Fantastic Four: First Steps and continues with upcoming Avengers and Spider-Man projects. The move isn’t just a logistical shift. It’s a shockwave that threatens the foundation of Georgia’s film industry.
Why Leave Georgia?
Georgia still looks attractive, on paper. Its base 20% transferable tax credit for productions over $500,000 has been one of the most generous in the U.S. That incentive. Combine it with big studio investments, and soon Georgia was known as “the Hollywood of the South.“
Incentives alone don’t guarantee the cheap production. Labor costs in Georgia have climbed steadily, and for studios like Disney, those numbers add up quickly. Employers also shoulder obligations like health insurance for workers in the U.S., which is a major expense.
Across the Atlantic, the UK offers a different experience. Its tax incentives rival Georgia’s, but labor costs are lower, and studios aren’t on the hook for the same insurance burden. For Disney, moving Marvel productions to the UK means shaving millions off budgets without sacrificing quality.
Fallout in Georgia
The impact has been brutal. In 2022, Georgia hosted 412 productions. By 2025, that number had fallen to 245, a nearly 50% drop in three years. The state’s soundstages, once buzzing with activity, are now underused. Crew members who built careers on Marvel’s endless stream of films and series have been left scrambling for work.
For many, Marvel projects weren’t just jobs, they were stability. Losing them isn’t just a temporary dry spell. It’s breaking apart a backbone that Georgia built around production.
One industry insider described the state’s current state as a “drought,” with too much infrastructure chasing too little work. Without blockbuster-scale projects, that drought looks like it’s here to stay.
A Bigger Shift in Hollywood
Disney isn’t the only studio pulling out of Georgia. Hollywood studios have moved productions to international hubs like Canada, Australia, and now the UK. These regions combine tax incentives with cheaper labor markets, creating an irresistible financial package.
Georgia is just the latest casualty of a larger trend as film production goes global. As costs rise in the U.S., overseas locations become more appealing. It’s not that Georgia lost its competitive edge.
Other cities like Chicago and New York face similar challenges. While New York remains a heavyweight, its rising costs keep it under pressure. Chicago never hit Georgia’s peak, but its ups and downs show how fragile local film economies can be.
The lesson is clear: no U.S. city is immune.
What’s Next for Disney and Georgia?
For Disney, the move reflects a broader cost-cutting strategy. After years of heavy spending, the company is tightening its belt. Relocating Marvel productions to the UK is a way to protect profitability while still delivering tentpole films.
For Georgia, the outlook is tougher. The state invested heavily in infrastructure, building an identity around being a production hub. With Marvel gone, that identity is unraveling. Political debates have even surfaced around ideas like tariffs on films made overseas, but such measures remain talk, not policy.
Disney’s relocation of Marvel productions isn’t just a story about where superheroes get filmed. It’s about economics shaping Hollywood’s future. The UK beat Georgia with bigger tax breaks and a better cost structure that studios can’t ignore.
Georgia may have built the “Hollywood of the South,” but for Hollywood, every dollar matters. Unless states find a way to compete with global labor markets, (not just with tax credits), Georgia could soon be a look into the future of America’s film industry.
