Walt Disney Co.’s (NYSE:DIS) Marvel Studios shifted its production strategy by moving big-budget films from Georgia to the United Kingdom, cutting into the state’s once-thriving entertainment economy.
The studio, which made nearly two dozen movies and TV shows in Atlanta to benefit from Georgia’s generous tax credits, now finds it cheaper to film overseas.
Marvel began the transition with this summer’s Fantastic Four: First Steps and will film the next Avengers installments and Spider-Man in London, where parent company Disney holds a long-term lease, the Wall Street Journal reported on Monday.
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Disney acquired Marvel in 2009 for $4 billion. The four Avengers films ranked among the 15 highest-grossing movies of all time. By August 2024, The Hollywood Reporter estimated that Marvel had generated roughly $13.2 billion in added value for Disney.
Meanwhile, lower labor costs and fewer obligations, such as health insurance, make the U.K. more cost-effective than Georgia, despite offering similar tax incentives.
The decision contributed to a nearly 50% decline in production spending in Georgia over the past three years.
In fact, Hollywood studios have been producing fewer shows since 2023 to cut streaming losses, and those projects are often shot in cheaper international markets like the U.K., Canada, and Australia. Other states, including California, New York, New Jersey, and Texas, have expanded credits to lure productions back.
Disney pushed its Marvel pipeline in 2025 with three releases, Captain America: Brave New World, Thunderbolts, and Fantastic Four: First Steps. However, box office numbers fell short of billion-dollar expectations.
Together, the three Marvel films have earned $589.2 million domestically and $1.16 billion worldwide, a performance close to Disney’s three Marvel films in 2023, which collected $658 million domestically and $1.53 billion globally.
By contrast, Deadpool & Wolverine (2024) grossed $636.7 million domestically and $1.34 billion worldwide, nearly matching all three 2023 Marvel films alone.
Meanwhile, Warner Bros. Discovery (NASDAQ:WBD) Superman opened at $125 million domestic, earned $316.2 million domestic and $551.2 million worldwide in four weeks, and outpaced Disney’s 2025 Marvel slate.
Disney’s Marvel films currently rank 7th, 8th, and 10th at the box office for the year, while Disney’s non-Marvel hit Lilo & Stitch has pulled in $421.2 million domestic and $1.02 billion worldwide.
Looking ahead, Disney will scale back, with two Marvel films slated for 2026 and one for 2027, including new Avengers movies expected to drive more substantial returns.
Disney stock gained 4% year-to-date. Needham’s Laura Martin had flagged risks from higher capex, linear TV declines, and succession uncertainty but viewed Disney’s AVOD strategy, streaming profitability, and parks growth as drivers of long-term value.
Price Action: DIS stock is trading higher by 0.17% to $115.59 premarket at last check Monday.
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