This Explains Why Disney Made Moana 2 in Canada?


Why did Disney make Moana 2 in secret in CANADA? Well, it might just have to do with the country’s tax incentives for animation. Could Disney move other productions to Canada as well? Time will tell…

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Additional Context:
Let’s dive into this cinematic voyage and explore how Canada’s policies could shape the future of Disney’s production landscape.

Canada offers a lucrative Canadian film or video production tax credit (CPTC), which provides a refundable tax credit of 25% of qualified labor expenditures, with no limit on the tax credit amount for a production. This incentive is designed to encourage production within Canada and support Canadian programming​​. Such financial incentives are crucial for large studios like Disney, seeking to maximize production efficiency and minimize costs without compromising quality.

Moreover, Disney’s strategic move to open a new production facility in Vancouver during the pandemic was highlighted as a savvy business decision, leveraging Canadian tax breaks and other incentives. This decision also taps into the country’s rich pool of animation talent, with institutions like Sheridan and Vancouver Film School providing a steady stream of skilled graduates. The pandemic added layers of complexity to international work arrangements, making local production and hiring more appealing due to the logistical challenges and restrictions on cross-border movement​​.

Disney’s announcement of “Moana 2” set to hit theaters in November 2024 further cements the company’s commitment to expanding this beloved franchise. Directed by Dave Derrick Jr. and featuring music from Grammy winners and nominees, the sequel promises an epic new adventure for Moana, Maui, and a brand-new crew, embarking on a journey into dangerous, long-lost waters​​.

This pivot to Canada for “Moana 2” could signal a broader strategy by Disney to leverage international production incentives more aggressively. As animation and film production costs continue to rise, countries offering substantial tax breaks and incentives become increasingly attractive for studios looking to optimize their budgets. Canada’s welcoming stance towards the film industry, coupled with its robust talent pool, makes it an ideal candidate for future Disney projects.

While Disney has yet to publicly attribute “Moana 2″‘s Canadian production directly to tax incentives, the financial and logistical advantages are clear. As we eagerly await the next chapter in Moana’s saga, it’s worth keeping an eye on Disney’s global production strategies and whether other productions will follow Moana’s lead to Canadian shores. Time will indeed tell if Canada becomes a new hub for Disney’s animated adventures, but for now, the magic of “Moana 2” is set to captivate audiences from its Canadian production base.

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