Film Industry Forecast: Atlanta, Marvel & the Changing Economics of Production in 2026
- Sahndra Fon Dufe
- Dec 23, 2025
- 5 min read
As Hollywood reckons with shifting economics and incentives, major production hubs (especially Atlanta) face uncertainty - but also opportunity.
Marvel's Departure: The End of an Era
For much of the 2010s and early 2020s, Georgia, particularly the greater Atlanta region, stood as one of the most consequential production hubs in the United States. Marvel Studios' association with the state began with Ant-Man in 2015, shot at what was then Pinewood Atlanta Studios, now Trilith Studios. Over nearly a decade, the company filmed major blockbusters there, including Captain America: Civil War and Black Panther.
That era has shifted dramatically. In 2025, Marvel began relocating its major superhero productions including future Avengers and Spider-Man films, to the United Kingdom, citing lower labor costs and production economics that make overseas shoots more cost-effective, even when compared with generous U.S. incentives.
The impact on Georgia's film ecosystem has been stark. Productions shot in the state have declined significantly since 2022, mirroring broader national trends of studios tightening budgets and pursuing cost efficiencies wherever they can find them.
Recent Legislative Changes
House Bill 475, signed into law by Governor Brian Kemp in May 2025, represents a modernization rather than an expansion of the program. The bill updates the production tax credit system to explicitly recognize streaming platforms and FAST (Free Ad-Supported TV) channels, provisions that didn't exist in the original framework but doesn't fundamentally change the base economics that continue to favor large-budget productions.
Meanwhile, fan-favorite series like Stranger Things, (created by twin brothers Matt and Ross Duffer), wrapped its final season after filming in Georgia since 2016. The Netflix juggernaut generated an estimated USD $800 million in economic impact over the course of its run in the state
However, recent legislative updates are shifting the calculus:
Post-Production Incentives Return
Modernization, not expansion: Georgia reinstated a standalone post-production tax credit starting in 2026, offering a 20% credit on at least $500,000 in post-production expenditures. The credit includes bonuses for content also shot in Georgia or completed in rural counties, but the minimum spending thresholds remain significant barriers for many creators.
House Bill 475, passed on May 12, 2025 and effective January 1, 2026, updated Georgia’s production tax credit system to recognize streaming platforms and clarify administrative rules, but it didn’t fundamentally change the base economics that favor large productions.
Credit Caps: Some bills extend sunset dates and cap annual post-production credits (at $10 million total), meaning established players can still benefit substantially. However, smaller independent films frequently fall below threshold levels unless they combine qualified spend across multiple projects.
The Reality on the Ground
According to conversations with Georgia legislators, some studios are being repurposed, converted from production facilities into data centers, reflecting broader shifts in how the state's infrastructure is being utilized in a changing entertainment landscape.
Athena Studios in Athens, Georgia, operational since 2021, reflects the volatility of Georgia’s once-booming production economy. The facility hosted The Woman in the Yard (2024), starring Danielle Deadwyler and Russell Hornsby, and later the independent feature American Deadbolt (2025), demonstrating its capacity to support both studio and indie productions. But as major players like Marvel Studios began shifting high-budget productions out of Georgia in favor of cheaper overseas markets, including the U.K., underutilized soundstages became increasingly common. By late 2025, Athena’s owners proposed repurposing much of the studio into a data center, underscoring how rapidly Georgia’s film infrastructure is being reimagined amid shrinking production slates and rising competition from global incentives.
Who Benefits? And Who Gets Left Behind?
The modernized tax credit structure rewards budget-heavy films and series, but minimum spend requirements and competitive landscapes mean independent productions without deep pockets may struggle to qualify for meaningful credits.
A critical question emerges: What percentage of major productions filming in Georgia actually employed local actors? While Georgia has built robust infrastructure and crew bases, most principal cast members still come from Los Angeles and New York; a reality that reflects the industry's entrenched power centers.
For younger Georgian filmmakers, particularly those under 40 who are increasingly working in digital content creation rather than traditional film: the current incentive structure presents challenges. The majority of content creators nationwide fall between ages 24 and 35, representing up to 40% of the total creator population, yet few have access to the $500,000 minimum budgets required to qualify for Georgia's tax credits.
The result? Producers of budget-heavy films and series are still rewarded, but the minimum spend requirements and competitive landscape mean independent productions without deep pockets may struggle to qualify for meaningful credit unless they package multiple eligible projects or seek private equity and co-production deals.
Industry leaders are recognizing this shift, with some noting that "the next wave of tax incentives and tax laws will have to be geared towards creators and towards YouTube" to capture where younger filmmakers are actually spending their time and building audiences.
How Indie and Mid-Size Producers Can Navigate 2026
Despite the challenges, strategic approaches exist for filmmakers working at different budget levels:
Aggregate projects for credits: Smaller films by the same production entity can pool their spend to reach Georgia's minimum thresholds, unlocking the base 20% tax credit.
Leverage post-production incentives: With the reactivated post-production credit effective in 2026, films finished in Georgia, even if shot elsewhere can capture a portion of available incentives.
Play the bonuses: Shooting part of principal photography in Georgia or completing post-production in rural counties provides additional uplift that can make the difference for indie projects.
Explore co-productions and partnerships: Aligning with certified Georgia companies or partnering with in-state studios can make financing more accessible and streamline the credit application process.
What to Watch in 2026
Several trends will shape the landscape:
Global production migration: Marvel's move to the U.K. could accelerate cost-sensitive shoots relocating to Canada, Europe, or Eastern Europe, pressuring U.S. hubs to remain competitive.
Incentive evolution: More states are likely to reassess tax credit caps and eligibility requirements to protect revenue while still attracting jobs and investment.
Talent and crew mobility: The industry continues balancing deep local expertise in established hubs like Atlanta against the appeal of lower overseas labor costs.
The creator economy: Georgia is seeing "a bit of an indie renaissance" with independent filmmakers and online content creators finding new ways to leverage the state's infrastructure, even as major studio productions decline.
The Path Forward
Atlanta remains a major component of the U.S. production landscape, but the playing field is undeniably shifting. Filmmakers must think creatively about structuring spend, leveraging incentives, and diversifying where work gets done in 2026.
For legislators, the challenge is clear: Find new ways to engage the younger population of creators who are building careers in digital content, YouTube, TikTok, and emerging platforms. The state that can bridge traditional film incentives with support for next-generation storytellers will be best positioned for long-term success.
The question isn't whether Georgia can maintain its position—it's whether the state can evolve its support systems to serve both the blockbusters and the bootstrapped creators shaping the future of entertainment.