The New Zealand comic and musician won the 'Best Original Song' Academy Award earlier this week for 'Man or Muppet' from The Muppets. He said that the country has produced lots of Oscar winners because it's a place where people can "dream".
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McKenzie told AAP: "It's a great place to grow up, you can do whatever you want there, whereas in America I think everyone's obsessed with their careers. [In] New Zealand, you get to just live your dreams."
He also described Muppets founder Jim Henson as a "huge inspiration" to him growing up, adding: "He made children's films that he found funny, didn't patronise the minds of children."
McKenzie recently joked that he will bring up the subject of being an Oscar winner when he works on new material with Flight of the Conchords co-star Jemaine Clement again.
He said: "I'm looking forward to writing with Jemaine in the future again. Because I'll be able to pull out the Oscar card and say 'Mmm, I think we should use this chord' and 'I won an Oscar!'"
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Watch Bret McKenzie and Jemaine Clement perform 'Hiphopopotamus vs. Rhymenoceros' live below (video contains strong language):