In recent years, Estonia is establishing itself as a leading destination for international productions in the Baltics. The country, along with neighbors Latvia and Lithuania, first introduced filming incentives about a decade ago, and sets itself apart from many competitors with a 30% cash rebate for post-production. Notable projects undergoing post-production in the country include Christopher Nolan’s blockbuster Tenet and HBO’s Penguin, for which Estonian giant FrostFX won an Emmy Award.
Frost FX founder Marko Post said in an interview with Variety that although trading volumes have decreased since COVID-19, the Estonian industry has “definitely changed” since then. “We’ve become more dynamic in the sense that our US clients are more open to outsourcing from Eastern Europe, and we feel that the international perception of our studio has become better,” he says. “In terms of demand, we are seeing a huge shift with the rise of social media and new formats.”
Uku Toomet owns Orbital Vox Studios, which specializes in audio, film, dubbing, VFX, and general post-production work. With a quarter-century of experience, Orbital is the most established studio in the country and opened another location earlier this year to meet growing demand. “The facility we just moved into can meet the expectations of any project from anywhere, both logistically and technically,” said Tumet, adding that he and his colleagues expect post-production in Estonia to continue to grow.
“The new studio has surprised foreign producers,” he added, saying there was growing interest from foreign players to visit the Estonian facility. Earlier this year, Variety reported on how Estonia is leading the way when it comes to regional studio facilities. The $25 million Tallinn Film, funded by the Estonian Cultural Fund, will become Tallinn’s first world-class studio. Featuring three 38,000 square foot studios, the space is targeted for completion in early 2027. In eastern Estonia, the $18.2 million Ida Hub studio complex is scheduled to open in early 2026 and will include a 21,000 square foot soundstage and a small multifunctional studio. A production training facility will also be included.
Sound designer Tanel Kadalip, who is also director of the audio engineering department at the Baltic School of Film and Media Arts, points out that Estonia has traditionally had “a large number of excellent internationally active sound editors, and connections with them have accelerated the industry.” Cadalip says the professionals working in direct contact with the new generation are “getting better every year.”
“Technology has advanced significantly and it has become much easier to access and learn,” he added. “Last week I did ADR with a team in the Netherlands, and the project was digitally synced. The team was sitting in a studio in the Netherlands, watching and overseeing everything, but we were working together here in Estonia. It’s very easy to work internationally today.”
Post echoed that sentiment, stressing that American clients often praise the “efficiency” of Estonian teams and the ease of access to team leaders. “Long communication chains are extremely cumbersome and commonplace in the United States, even though shorter lines are much more efficient,” he added. “Of course, there are challenges like time zones, currency differences, and companies not registered in the U.S., but we are working to make these things easier.”
This Emmy Award-winning expert on making things easier is at the forefront of AI technology. Not only is he a staunch advocate of this technology, he actively promotes it to potential customers. “If you look at today’s post-production timelines, there are a lot of things that AI can help with, but I also feel like there’s an old mindset of people not wanting AI to tell them what to do,” he points out. “I think of AI as a collection of our knowledge, and not something to fear. AI is a library, but it still requires domain and knowledge to use it effectively.”
“My goal was to package AI with visual effects services, because now I can go to different countries for VXF. When it comes to craftsmanship, many people are still far behind Estonia,” Post continued, welcoming the president of an international advertising agency who recently visited his facility. “I hope that Estonia will combine traditional crafts and subtle techniques to stay one step ahead of its fierce competitors.”
When it comes to competition, cash rebates and incentives are key factors. Estonia is trying to remain competitive as neighboring and distant countries raise their offers. “Rebates are very popular,” Twomet said, adding that the government is considering increasing rebates from 30% to 40% in the near future.
“I’ve personally been involved as a post-production producer and service provider on great projects like ‘Tenet,’ and we’re actually part of the kickbacks,” he added. “It’s great to have that level of support to offer our services, and it’s also helped my studio. There’s also a lot of competition from our neighbors, so I hope we can get better percentages soon.”
What attracts major productions to Estonia besides highly skilled professionals, a favorable currency and ever-increasing tax rebates? Sound designer Matthijs Ley, who has worked on major projects such as Todd Field’s ‘Tár’ and Rose Glass’ ‘Love Lies Bleeding’, says that Estonians are ‘very hard-working and reliable people’ who are ‘open to learning and adapt to new systems very easily’. Kadalip added that his countrymen are “very strict and work to exact deadlines.” “The work should be there no matter what.”
