DHX Media Moves For-Hire Operation to Canada
Canadian indie animation studio DHX Media is in the process of moving its La-based work for hire production operations to Canada in order to take advantage of the country’s tax credits. According to The Hollywood Reporter, the Halifax-based company is trying to look for more cost saving measures after its $112 million purchase of Cookie Jar Entertainment, with the closing of its low-margin LA service studio work being the first in a series of planned cost saving (note the difference between cost-saving and cost-cutting) measures.
The move involves shifting service work operations to high margin animation studios in Canada over the course of the next few years in order to take advantage of said country’s more generous film and digital production tax credits. The Hollywood Reporter further noted that DHX managed an estimated $20 million in for-hire production work on four shows, including DreamWorks/Nickelodeon’s Dragons: Riders of Berk and HBO’s The Ricky Gervais Show.