As a seasoned gamer hailing from the heart of Hollywood, I’ve seen my fair share of turbulence in the entertainment industry – from strikes to pandemics, and everything in between. The prospect of a second Trump presidency has me feeling a mix of apprehension and resilience.
The global movie business is contemplating the possible effects of another term for President Donald Trump, as worries stretch from trade negotiations with China to the destiny of federal production incentives when he is sworn in again next year.
Upon viewing the election outcomes with Trump as the winner, a long-time figure in independent industry expressed a desire to rest her head on her desk and cry, but acknowledged that for business purposes, it remains to be seen what significant alterations will occur.
Under a new presidency of Donald Trump, there may be a substantial influence on global affairs and trade agreements. Throughout his campaign, Trump emphasized his protectionist stance, causing concern among some that his leadership might erect new obstacles in the path of commercial interactions with international allies.
A major immediate issue revolves around U.S.-China relations, as there are concerns that Trump’s tough trade strategies could potentially limit Hollywood’s entry to China, the world’s second-biggest movie market. Despite a decline in interest for American content in China post-pandemic, U.S. movies still bring in substantial earnings, raking in $797.3 million in the first eleven months of 2024 alone. Sony’s film, Venom: The Last Dance , has shown that there is still a strong demand for American blockbusters, grossing $76 million at the Chinese box office.
During Trump’s second term, if he follows through on increasing tariffs to 60% on Chinese goods, it might prompt retaliation from Beijing. This situation could have a more direct impact on the film industry compared to his first term. Unlike before, experts believe that the entertainment sector may not remain unaffected in the event of a resumed trade war.
While some Chinese industrial figures express reservations, Simone Yang from Red Brief in Beijing points out that Donald Trump enjoys a unique popularity in China. She explains that while some of Trump’s policies during his first term had significant relevance to China, his unconventional behavior led netizens to nickname him the “Know-it-all King.” Elon Musk, a billionaire supporter of Trump, also garners attention in China due to admiration for his business and engineering accomplishments. Yang adds that while individual investors might be wary of Trump’s economic policies, they don’t anticipate much impact on the Chinese film industry.
Another point of interest is the possible influence on joint film projects between the U.S. and Latin America. Guillermo Blanco, the CEO of TheGseven, a company involved in production and distribution based in both Los Angeles and Bogotá, Colombia, expresses worry that stricter immigration policies under a new Trump administration could potentially hinder some collaborations. However, he also sees this change as a chance to fortify our productions and champion genuine narratives that showcase our unique identities and cultural richness.
One silver lining for the industry may be the continued support for state-level production incentives, particularly in Republican-controlled states. Some of the biggest production hubs for independent films are located in red states, including Kentucky, Oklahoma, Mississippi and Texas. This suggests that regardless of federal policy, state-level support for film production may remain robust.
Jim Robison from Lunar Pictures, based in Australia, underscores the intricate aspects of U.S. production incentives when viewed internationally. In his words, “When we arrive in America, it feels like being in Europe where we must tackle multiple states to claim rebates and assistance, and honestly, it’s a bewildering mess in the U.S.” However, he humorously adds, “I suppose the best we can reasonably expect is for them to stop meddling with the entertainment industry altogether.
The interaction between the movie industry and Washington D.C., might need adjustments. According to Jean Prewitt, CEO of IFTA (Independent Film & Television Alliance), during the Biden administration, most of the communication was handled by unions. However, it remains uncertain how interactions will be managed under a Trump-Vance administration.
Nevertheless, there have been instances where bipartisan collaboration on industrial matters has proven fruitful. Prewitt highlighted Senator Thom Tillis (R-NC) as a key figure who significantly advanced the passage of the Protecting Lawful Streaming Act in 2020. This legislation was instrumental in shutting down copyright loopholes that had been draining the industry of billions of dollars due to piracy violations, with Tillis being largely responsible for driving its progress.
The Motion Picture Association has expressed a friendly stance, issuing a statement praising the newly elected president while emphasizing the economic significance of the film, television, and streaming sector. Here’s what they said: “This industry sustains over 2.7 million jobs for Americans, stimulates more than 240,000 businesses in towns and cities nationwide, and annually distributes approximately $242 billion in wages to its workforce.
California Governor Gavin Newsom, following his support for expanding California’s annual film and television tax credit program to $750 million, has hinted at a more confrontational approach with the incoming administration. “California aims to collaborate with the new president,” he stated, “but it’s important to clarify that we will stand alongside other states in our nation to safeguard our Constitution and uphold legal norms.” Newsom has taken on the role of a champion for reproductive rights, immigrants, and LGBTQ+ rights.
Regardless of the uncertainties, seasoned professionals often highlight the industry’s proven resilience in overcoming numerous hardships. In the words of George Hamilton, Chief Creative Officer at U.K.-based Protagonist Pictures: “We’ve faced strikes, COVID, various presidencies, and yet we persist, we continue to thrive. And it seems that the world needs movies now more than ever.
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2024-11-07 02:55