Another week, another price threat – this time, in the name of making Hollywood again.
In a social truth job On Sunday, President Trump called for a 100% Price on foreign manufacturing films, describing them as “national security threat” and warning that the American film industry is faced with a “very rapid death”.
Actions of Netflix And Disney I was plunged into the news, before recovering trade earlier this week.
Trump's announcement followed a meeting with actor Jon Voight, appointed “Special Ambassador to Hollywood” in January, who would have presented a plan for federal Tax incentives to reduce production work to the United States-which has more and more moved to countries like the United Kingdom, Canada and Australia for lower costs and tax advantages.
But how bad are they in Hollywood?
Sherwood News
In the first quarter of this year, the days of shooting were 22% lower than last year, and down Over 50% From their peak of 2021, by Movie.
While America is still leading to global film production, spending is down 28% in the United States, according to ProdPro Research Cabinetand jobs in the sector too stay below pre-pale levels, with the unemployment rate in the film and the sound recording struck 12.6% In April – the highest of any industry and more than triple the national average.
And the domination of California is slidingwith the state which now explains fair 30% The employment of industry, compared to 40% in the early 2010s, according to the Fed of Saint-Louis. The role of California narrowing, Governor Gavin Newsom responded to Trump's pricing threat yesterday by proposal a huge $ 7.5 billion Federal tax credit on the film – 10x the current state program.
So what stimulates the drop in the American cinema and television sector? The gold rush caused by the advent of the age of streaming is indeed completed, with costs of reducing studios and investments in reducing profitability reduction. At the same time, banners are focusing more and more on content abroad, where Netflix has flowed $ 7.1 billion Last year – seven times More than in 2017.
It is not clear if the prices can relaunch the industry in difficulty. The White House said On Monday, no final decision was made, while certain key questions – such as the way “made abroad” will be defined – remain unanswered. In addition, American studios earn most of their income from the box office abroad, Axios reports, increasing the threat of reprisals from abroad.
