Warner Bros. Discovery to Enter a Long-Term Studio Lease in Las Vegas

Warner Bros. Discovery announced on Tuesday its commitment to spending at least $8.5 billion on a proposed long-term lease of Nevada Studios. On Thursday, a spokesperson for the media company said that it would invest $900 million to construct the studio and pledge $500 million in annual spending for the 17 years the lease will last. It is also expected to bring over 7,500 jobs annually through workforce development programs.

Warner Bros. plans to undertake the project in collaboration with the University of Nevada, Las Vegas (UNLV) and Birtcher Development. The studio, named Warner Bros. Studios Nevada, will sit on a 34-acre campus at Harry Reid Research & Technology Park.

Pending Tax Credit Approval

The plan for the new film and television production studio hinges on the state legislature approving the Nevada Film Studio Infrastructure Act. State Senator Roberta Lange authored and proposed the film tax credit bill in 2023. Unfortunately, it failed to pass then and is expected to be reintroduced and voted on in February 2025.

Lange emphasized the need to diversify Nevada’s economy and create more job opportunities, stating, “When talking with citizens we hear repeatedly that we need to further diversify our southern Nevada economy and at the same time commit the resources to develop our workforce.”

In the bill, Sen. Lange proposes $190 million in annual tax credits for film and TV production for two decades or more. The figure far surpasses Nevada’s past use of transferable tax credits. While the venture could cost the state $2 billion, it will likely make as much as $55B in revenue over its proposed tenure.

Other Players in the Market

Warner Bros. Discovery’s rival Sony Entertainment Pictures was also interested in partnering with UNLV and Birtcher Development. However, it opted to partner with the Howard Hughes Corporation for a competing motion picture studio in Summerlin, Las Vegas. The company plans to commit $1.8B to the project.

Specifics of the Lease

Warner Bros. plans to rename Nevada Studios to Warner Bros. Studios Nevada. The project will include full-service film and TV studios and facilities. The university’s film department would also benefit from the proposed Nevada Media and Technology Lab.

“We are fully committed and excited about the potential of a long-term partnership and presence in Nevada and are confident it will be a win/win for the State of Nevada, the Las Vegas Community, and Warner Bros. as we look forward to our next 100 years of exceptional storytelling,” Simon Robinson, Warner Bros. COO said in a statement.