This week, Trump's Hollywood rates were a problem with the entertainment button in the entertainment industry, because everyone debates, whether or not they can help us.
Well, the film studio heads are starting to weigh on the possibility of these future taxes and to offer solutions on what would really help industry.
Some of these studio magnates took place at the World Conference of the Milken Institute 2025 in Beverly Hills, where the prices were one of the first questions asked.
As covered in VarietyThey did not hold back.
“It's a big problem, of course,” said Ravi Ahuja, president and chief executive officer, Sony Pictures Entertainment. “I think in terms of production [the U.S.]It is almost more a Californian problem, honestly, than a American problem. So, although it is true, a lot of production has left the United States, it is even worse for California. »»
Ahuja has developed this idea: “I think what is often forgotten in our company is that the margins are quite modest” – about 10% for any studio. “It is therefore not a company that is based on a huge profit well,” said Ahuja. “And producers will tend to locate themselves in the effective place, so the more we can make the United States more effective, the better.”
It's an obstacle, I think all the leaders want the general public to understand. It is not as if they gave this money to celebrities or take it themselves, these budgets are massive and that companies choose places to shoot because they save them money, or because they are required by history.
It is not as if they were going to pull something based in Africa on the rear lot at Warner now. Some films dictate their locations, but still have an American distribution and crew.
While other films are shot in cheap places where qualified teams already exist.
Another wrinkle in all of this is the strength of the dollar. In a place like Canada, where the dollar goes far and they have qualified work, the studios get approximately $ 1.30 for each dollar they spend. This means that a million dollars are transformed into $ 1.3 million.
It's a big difference!
And many American incentives through states have ceilings or shades that make them difficult to access them.
The Chairman and CEO, HBO and Max Content, Casey Bloys said: “The problem becomes, when you try to plan, because [California incentives are] Cappé, you have to enter a lottery and you do not know if your program will get tax relief or not. “”
Bloys continued: “When you look at this against Atlanta against Canada, and the others guaranteed the incitement. If California could remedy it, it would make a big difference. The entertainment industry is based here. There is a lot of infrastructure here, but uncertainty around this incentive has been problematic to plan. ”
Pearlena Igbokwe, president of Universal Studio Group, has doubled not to want production leaving the, but who does not really have a choice. She said, “It's not like we wake up to say:” Oh, I would like to go to Budapest today. “”
Igbokwe continued: “Our goal is always, you want to give producers, writers, storytellers whatever the resources they have to do and tell the stories they want. And that includes the location, if history requires it, and it includes resources, because you want all the money to allow you. “
These problems must all be resolved at national and national levels. Even now, the new shooting standards in California are delivered with a ceiling at $ 750 million, and you need to enter a lottery to obtain them. In addition to that, there are other states that offer the same thing with a better chance of entering the lottery, then other countries without caps, where you can simply go and get much easier discounts.
It is a complicated situation. Everyone wants jobs to come home, but until the United States accepts a kind of grant, it is difficult to compete with other countries that can reduce us. And taxing people more to go there will not keep movies at home; It will simply eliminate films, which are such an important and American export. It would be devastating to see them almost disappear.
Let me know what you think in the comments.
