Digital Domain Closes Montreal Studio | Fallout from Tax Credit Cuts
Edited By
Chloe Zhao
Digital Domain announced the closure of its Montreal studio on Friday, effective June 2026. This decision follows the Quebec government’s reduction of competitive tax credits for the film industry, raising concerns about the state of the local visual effects market.
Bad News for Local VFX
The closure comes as a shock to many in the industry and reignites frustrations around government support for film production in Quebec. Companies like DNEG, Cinesite, and Framestore now dominate the landscape, raising questions on the future of visual effects work in Montreal.
Divisive Comments Spark Debate
As people react to this news, comments have highlighted multiple themes:
Deceptive Practices: One comment accused the studio's recruiter of "aggressively asking people to relocate" while omitting this impending closure. "Really disgusting behavior," they said, showcasing distrust towards company leadership.
Dwindling Options: Observers noted that with Digital Domain's exit, key players remaining in the city are limited. "Is it just Rodeo and Framestore left in Montreal for VFX now?" one questioned, pointing to an alarming decrease in job opportunities.
Industry Sentiment: A former employee described their experience in the Montreal industry as chaotic, adding, "It felt chaotic and suffocating…people were scrambling, stressed, just trying to stay afloat."
Impact on the Community
This decision raises concerns about job security and the ability of Montreal to attract new talent in the visual effects sector. Yet the sentiment is mixed, with some acknowledging that the reduction in tax credits may be a broader issue affecting the province's film industry.
"This means a 10% reduction for large shows," one comment pointed out.
Key Insights:
❌ Digital Domain to shut down Montreal studio by June 2026
⚠️ Reduced tax credits are stifling local VFX growth
📉 Concern grows over the limited number of VFX studios left in the area
As the story develops, the community watches closely for any future announcements regarding support for the film industry. The potential implications for local employment in the creative sector are significant.
What’s on the Horizon for Montreal’s VFX Scene
As Digital Domain's shutdown in Montreal sends ripples through the local visual effects scene, there’s a strong chance that other companies may follow suit if the Quebec government doesn’t reassess its tax credit strategy. Experts estimate that without more significant incentives, the remaining studios could face recruitment challenges, potentially leading to a further exodus of talent. The domino effect might see some of the local workforce shifting to cities with better support systems for the film industry, reducing Montreal’s reputation as a creative hub. If negotiations are not initiated promptly with the government, some analysts predict that job opportunities in the area could shrink by as much as 30% in the coming years.
A Historical Lens on Creative Exodus
Looking back, the situation mirrors the early 2000s in the U.S. automobile industry when manufacturers faced crippling costs amid rising competition. As tax structures shifted and production costs soared, many brands packed up and left for states with more favorable tax environments. Jobs evaporated, communities felt the strain, and it took years to rebuild. Similarly, if Montreal can't turn the tide, it risks resembling a ghost town of visual effects talent—once vibrant and bustling, now a shell of its former self. This cautionary tale reminds us of the delicate balance between government policy and industry health.