uStudio Pictures commits to $50M annual spend in New Mexico

uStudio Pictures secured a formal partnership with the New Mexico Film Office two months ago, locking in a decade-long production commitment. The agreement requires the Albuquerque-based company to maintain an average annual production spend of $50 million in the state. In exchange, uStudio Pictures gains access to additional tax incentives, including rebates for directors and producers.

The company is currently finishing construction on a $13 million facility called The Lot. Located on a former General Electric site in the South Valley, the campus includes a 50,000-square-foot prop house and a 47,000-square-foot studio complex. Construction on the studio complex is scheduled to be completed by the end of the year. The site features two 12,000-square-foot sound stages equipped with large, wraparound LED panels. This virtual production technology allows crews to film three-dimensional environments that update in real time with camera movement, a capability Metz said is unique in New Mexico at this scale.

The new partnership comes as the state's film industry faces a sharp decline in activity. According to the New Mexico Film Office, production spend fell 62% in fiscal year 2026, dropping to $327 million. The number of film projects also decreased by 28%, falling to 80. These figures mark a significant retreat from fiscal year 2022, when the state hosted 112 projects and saw $855 million in production spending. Rick Metz, founder of uStudio Pictures, attributed the downturn to the 2023 Writers Guild of America strike and rising international competition.

uStudio Pictures acquired the South Valley property in 2022. The location offers federal Opportunity Zone status and city Metropolitan Redevelopment Area designations, both of which provide development incentives such as tax abatements. The company spent two years evaluating other properties before selecting this site. Metz noted that the city had previously identified the land for revitalization, a goal the company intends to meet through its workforce development support and infrastructure investment.

Metz stated that the partnership is designed to attract productions that might otherwise film elsewhere. He estimated that the new incentives will bring in approximately $100 million in production spend that would not have occurred otherwise. The company has already received inquiries for four projects planned for December, even though construction is not yet fully finished. The virtual production stages are intended to reduce costs by eliminating the need to travel to foreign locations for specific scenery. Metz said the technology allows crews to shoot scenes like sunsets without strict time limits and add visual effects during filming rather than in post-production.

Rob Black, the state's economic development cabinet secretary, said the partnership creates more opportunities for New Mexicans to build careers. Steve Graham, director of the New Mexico Film Office, described uStudio Pictures as a long-term investment in the state's media future. uStudio Pictures has committed to a $35 million infrastructure investment and support for local workforce programs. The company previously operated a production office in Downtown Albuquerque but relocated to start fresh during the pandemic-era downtime.