MIRAMAR, New Zealand—The release of Peter Jackson’s “Lord of the Rings” film trilogy in the early 2000s spawned a multibillion-dollar moviemaking empire in this workaday neighborhood, with digital effects and prop shops galore.

Now, New Zealand’s bid to forge a global movie business—14 hours by plane from Hollywood—appears to have stalled. Nationwide film production revenue fell 41% to US$334 million in 2015, official figures published Wednesday showed.

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