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Next Netflix acquisition: a VFX studio in Vancouver

Financial terms of the deal were not disclosed. The transaction, which is expected to close in the first quarter, marks the streaming giant’s foray into the visual effects industry.

“Netflix will invest in Scanline’s pipeline, infrastructure and workforce and continue to support the pioneering work that Scanline’s Eyeline Studios is doing in virtual production to push the boundaries of what is visibly possible,” said writes Amy Reinhard, vice president of studio operations at Netflix, in a blog post.

Scanline has worked on Netflix shows including “Cowboy Bebop” a live-action version starring John Cho from the beloved Japanese animated series, the third and fourth seasons of the popular sci-fi series “Stranger Things “and the upcoming comedy film” Don’t Look Up. “

Scanline has over 1,000 employees and is based in Vancouver, Canada, which remains a major hub for film and television production, in part thanks to the generous film tax credits that have made it attractive to corporations. Hollywood.

In addition to Vancouver, Scanline has offices in Montreal, Los Angeles, London, Seoul, and the German cities of Munich and Stuttgart.

The company, founded in 1989, has also worked on non-Netflix projects, including the HBO fantasy series “Game of Thrones” and films such as the action film “Godzilla vs. King Kong” and the Marvel film “Shang. -Chi and the legend of the ten rings. “

Scanline on his website said he was “known for his creation of natural phenomena such as fire, smoke and water in epic disasters.” The company’s fluid effects software, Flowline, won a Scientific and Technical Academy Award in 2008.

After the acquisition, Scanline will continue to “operate as a stand-alone company and work with a variety of clients,” Reinhard wrote. Netflix “will continue to rely on many other studios around the world for our visual effects needs,” Reinhard added.

The Scanline deal is one of many recent acquisitions by Netflix aimed at expanding and diversifying its global business.

The Los Gatos, Calif., Streamer announced in September that he would buy the Roald Dahl Story Co. (which included its intellectual property portfolio for children’s stories like “The BFG”). That same month, Netflix also announced that it had acquired Glendale game developer Night School Studio.

In recent years, Netflix has increased its production presence outside the United States.

Since 2017, Netflix has spent more than $ 1.97 billion on productions in Canada, according to an article written by Netflix Content Director and Co-CEO Ted Sarandos on the Netflix website in February. Netflix also announced earlier this year plans to open an office in Toronto.

“Canada is an incredibly diverse country and increasing our presence locally will help us share more authentically Canadian stories with the world, whether through the development of original content or through co-production and licensing opportunities,” wrote Sarandos.

Faced with increased competition from competing services such as Disney + and HBO Max, Netflix invested in growing its library of non-English language programming, shows featuring talent from under-represented communities, and shows that would find an echo with audiences around the world.

For example, Netflix’s Korean-language show “Squid Game” is the most-watched television series on the streaming service, racking up 1.6 billion hours watched in its first 28 days.

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