Dublin-based post-production house Windmill Lane Pictures is to close with immediate effect, citing the impact of the 2023 writers’ and actors’ strike in the US and the “erosion of competitiveness” of Ireland’s VFX tax credit.
Windmill Lane was founded as a recording studio and TV commercial post-production facility in 1978, with James Morris, who later set up Irish TV channel TV3, among its founders. In 1990, the recording studio and post-production house was divided and the recording studios, used by artists including U2, remains in operation.
Windmill Lane Pictures worked on post on film, TV and commercials, with credits including features Brooklyn, Black ’47 and Lakelands, and TV shows such as Vikings, A Discovery Of Witches and Penny Dreadful. Its latest headcount was 31 staff, led by interim CEO Catherine Synnott.
“The global film and post-production industry has faced significant headwinds in recent years, including increasing cost pressures, rapid technological changes, and the ongoing challenges of operating in a competitive international market,” the board of directors of the company said in a statement.
“More recently, the extended writers’ and actors’ strike in the United States has caused a severe disruption to production pipelines worldwide, creating a knock-on effect that has impacted businesses across the film ecosystem, including ours.”
A key issue has been increased international competition regarding VFX tax incentives. Ireland’s Section 481 credit is worth up to 32% of eligible Irish expenditure, including post-production and/or VFX.
In the UK, from April 1, 2025, companies will be able to claim a 5% uplift in enhanced headline credit rate of 39% (29.25% after tax), of the Audio-Visual Expenditure Credit on their UK VFX costs (an increase of 5%). The AVEC’s 80% cap on qualifying costs will be removed for UK VFX costs.
“The erosion of international competitiveness of the Section 481 VFX [visual effects] film tax credit has made Ireland a less attractive location for this type of work,” said the statement. “Although we explored every available avenue, including attempts to secure additional capital and restructure the business, these efforts were ultimately unsuccessful in stabilising the company.
“We are deeply grateful to our talented team, whose creativity and dedication have been the cornerstone of our achievements in the industry, as well as to our valued clients and partners for their trust and collaboration over the years. We are now committed to managing this transition responsibly and supporting all affected stakeholders.”
No comments yet