WELLINGTON: Filming has started on director Peter Jackson's production of “The Hobbit” in New Zealand. The $50 million, two-movie production has suffered from a series of problems including studio funding problems, a threatened actors' boycott and ulcer surgery for Jackson. The director posted a studio press release on his website Monday announcing that production has commenced in New Zealand. Martin Freeman will star as hobbit Bilbo Baggins alongside Elijah Wood, Sir Ian McKellen, Cate Blanchett and Orlando Bloom in twin movies of J.R.R. Tolkien's fantasy novel.