uStudio Pictures Commits to $50 Million Annual New Mexico Spend

uStudio Pictures will commit an average of $50 million in annual production spend to New Mexico over the next ten years. This new agreement was finalized two months ago after discussions began last year. In return for the commitment, the state offers the company additional tax incentives, including the ability to rebate directors and producers. The deal aims to stabilize the local film industry after a sharp decline in activity over the past few years.

The company is constructing a new $13 million production campus called The Lot on a 19-acre site in the South Valley. The property sits at 336 Woodward SE, where General Electric operated until 2010. Rick Metz, the film producer and owner of uStudio Pictures, stated that the site has a long history of employment in the neighborhood. He noted that his grandfathers worked at General Electric before the company shuttered the location. The company acquired the site in 2022.

The Lot includes a completed 50,000-square-foot prop house. Construction on a 47,000-square-foot studio complex is scheduled to finish by the end of the year. The studio complex will feature offices, post-production space, and two sound stages. Each sound stage spans 12,000 square feet and will include virtual production capabilities. This technology uses large wraparound LED panels to display three-dimensional environments in real time. The company partnered with Sony to implement this system.

New Mexico film activity has dropped significantly since fiscal year 2022. In that year, the state welcomed 112 film projects with a production spend of $855 million. By fiscal year 2026, the number of projects fell to 80, and production spend dropped 62 percent to $327 million. Metz described the period as difficult, noting that the industry suffered after the 2023 Writers Guild of America strike. He said the company held its breath during this downturn but continued construction.

The partnership includes a $35 million infrastructure investment and support for local workforce development. Rob Black, the state’s economic development Cabinet secretary, said the partnership helps create opportunities for New Mexicans to find good jobs at home. Steve Graham, director of the New Mexico Film Office, called it a long-term investment in what New Mexico can offer the industry. The virtual production technology allows crews to shoot environments like Italy without traveling, potentially cutting costs and saving time in post-production.

Metz said the company has inquiries for four different projects in December, even though construction is not yet complete. He believes the partnership will bring in $100 million in production spend that might not have come otherwise. The campus is designed to serve as a one-stop hub for film projects, including services for accounting, catering, and manufacturing. Metz said the technology offers a competitive edge by allowing productions to shoot sunset scenes without time constraints.