production company

State legislators warn of threat to film and TV tax credit program

More than three dozen California legislators are calling for Gov. Gavin Newsom to exempt the state’s film and TV production incentive program from a recently approved cap on corporate tax credits, warning that without action it will be “significantly kneecapped.”

Though the state’s budget has already been approved, the legislators say a solution must be devised before the end of the year so that production companies do not lose the “full value of tax credits they earned in exchange for creating middle-class entertainment industry jobs,” according to a letter dated Friday and addressed to Newsom, State Senate President Pro Tempore Monique Limón and Assembly Speaker Robert Rivas.

“Tax credits earned for creating jobs in motion picture and television production are not the same as tax credits provided for research and development,” the letter states. The legislation “creates short-term budget savings by reneging on commitments made to the entertainment industry and the working families who depend upon it for their livelihoods.”

The letter comes shortly after Newsom signed his final state budget as California’s governor, a $351.7-billion spending plan that includes new limitations on corporate tax credits.

The budget includes a provision that restricts the maximum tax credit companies can claim in a given year to $5 million or 50% of a company’s tax state tax liability, whichever is greater.

Hollywood industry representatives had warned the governor’s office that the new restrictions could affect the state’s production incentive program, which was just bolstered last year to an annual cap of $750 million.

The film and TV industry in Southern California has struggled to rebound from the effects of the pandemic, the dual writers’ and actors’ strikes in 2023 and the exodus of production to other states and countries.

Members who voted for the budget bill had believed there was a carve-out for the film and TV tax credit program, said Assemblyman Rick Chavez Zbur (D-Los Angeles), chair of the Assembly Democratic Caucus.

“I don’t think that anyone understood what this cap was, what it did and that it effectively kneecapped and reverses the progress that we made last year,” Zbur, who co-authored last year’s bill, said in an interview. “We need to have people understand that these changes, which I think people believed were minor, are really significant and will result in significant job loss if we don’t fix them.”

The new changes to the state’s film and TV tax credit program, which included expanded eligibility for additional shows and films, came after intense lobbying from studios and industry workers, who argued that more funding was necessary to lure production back from other states and countries.

Last week, the California Film Commission said the expanded tax credit program was set to deliver $6.6 billion in direct production spending in-state and more than 34,000 cast and crew jobs across the 170 total film and TV shows that received production incentives this year.

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‘Doctor Who’ Christmas special axed, Russell T Davies exits

“Doctor Who” is going through another major regeneration.

The BBC announced Wednesday that it is not moving forward with a previously announced “Doctor Who” Christmas special. Last year, the broadcaster teased a “spectacular” special episode written by showrunner Russell T Davies for the 2026 holiday.

“After careful consideration, the BBC, Russell T Davies and Bad Wolf have collectively decided not to go ahead with the previously announced Doctor Who Christmas episode,” the BBC wrote in its latest update. “This decision was not taken lightly, and we know it will be disappointing for fans, but in order to set the show up for future series, it was decided that rather than bridge the gap with a one off special, we are choosing to push forward to invest in the long-term future of the show which ensures that when the TARDIS lands once more, it does so in all its glory.”

Whovians know that the Christmas Day specials are a longstanding tradition for the sci-fi series. Previous holiday episodes have marked the first full appearance of David Tennant’s Tenth Doctor in 2005 as well as Ncuti Gatwa’s Fifteenth Doctor in 2023.

BBC’s plan now is to “put Doctor Who out to competitive tender” in order to “[secure] the next phase of the show for future generations” — meaning they are inviting potential producers to pitch their ideas for the next era of the long-running series. This also means Davies and producer Bad Wolf are parting ways with the franchise.

“And so GOODBYE from me to Doctor Who but HELLO to a big new future for the show,” Davies wrote in a Wednesday Instagram post, confirming his exit. “You’ll have to wait a bit longer for new Doctor Who… but you’ll be waiting for MORE Doctor Who than a one-off. So it’s worth it!”

Davies, who led the “Doctor Who” revival from its 2005 launch to 2010 before returning for his second stint in 2023, also said that he had not written a script for the previously planned Christmas special and “no actor was ever approached to play the next Doctor.”

“I’m as excited as anyone to see what comes next!” Davies added. “Will they keep the theme tune? Will they lose the blue box? Will they bring back the Drahvin?! It’s all up for grabs, which is so Doctor Who, exciting and unpredictable and new!”

Bad Wolf, which worked on the two seasons starring Gatwa as the Time Lord, also on Wednesday confirmed its exit on Instagram in a post thanking fans and those that joined them on this “incredible journey through Space and Time.”

“It has been a joy and a privilege to have been at the helm of the TARDIS alongside the brilliant Russell T Davies,” read the production company’s statement. “Doctor Who is – and always will be – a show that shines light into the darkness and it has been an absolute honour to have been its torch bearer for 26 episodes with the BBC and Disney+.”

The BBC in its announcement reiterated its commitment to “Doctor Who” and its future. It also shared that a previously announced animated “Doctor Who” series for CBeebies is currently in production.

This latest “Doctor Who” update comes during a tenuous time for the franchise. The series has faced low viewership, Disney+ exiting as the show’s co-producers and Gatwa ending his run as the Doctor. The most recent season concluded with a cliffhanger, with the Fifteenth Doctor regenerating into a form resembling Rose Tyler, the companion portrayed by Billie Piper.



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Sony buys “Real Housewives,” “The Valley,” production company

Sony Pictures Television has acquired controlling interest in the reality TV production company behind “Real Housewives of Beverly Hills” and “Vanderpump Rules.”

The Culver City studio, which produces “Jeopardy!” and “Wheel of Fortune,” announced Monday that it has closed its purchase of a majority stake of Alex Baskin’s three-year-old production firm, 32 Flavors. Baskin’s company has been expanding beyond its audience-addicting programs on Bravo to develop podcasts and documentaries.

NBCUniversal will continue to own “Real Housewives” and the other programs it televises, including “The Valley,” and spinoff show, “The Valley: Persian Style. Baskin will continue as executive producer on his Bravo shows and stay on as chief executive of his production company.

Sony declined to disclose deal terms.

“Real Housewives of Beverly Hills” and “Real Housewives of Orange County,” are produced through Baskin’s company.

“32 Flavors has been on a remarkable trajectory, and with Sony’s support, we expect that momentum to accelerate meaningfully,” Baskin said in a statement.

Sony Pictures Entertainment studios in Culver City.

Sony Pictures Entertainment studios in Culver City.

(Luis Sinco / Los Angeles Times)

Sony already owns nonfiction production companies, including Sharp Entertainment, Embassy Row, Brass Monkeys Media and 19 Entertainment, the powerhouse behind “American Idol.” It also owns formats for “Shark Tank,” and “90 Day Fiancé,” and an upcoming adaption of the board game, Clue.

“As the market evolves, we see real opportunity in premium nonfiction, and 32 Flavors strengthens our ability to deliver high-impact, returnable formats that connect with audiences and buyers around the world,” Katherine Pope, president of Sony Pictures Television Studios, said in a statement.

Pope gained responsibility for the unscripted TV business earlier the spring as part of a restructuring and dramatic downsizing, which resulted in hundreds of layoffs in the Japanese company’s entertainment business. At the time, Sony said the cuts reflected a business shift under Sony Pictures Chief Executive Ravi Ahuja.

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