As the Trump administration continues announcing (and delaying) tariffs, Hollywood is bracing for potential disruptions. With the stock market fluctuating and tensions rising, what’s on the horizon for the entertainment industry? Plus, Donald Trump and Paramount have found a mediator to handle the ongoing lawsuit concerning a 60 Minutes interview with Kamala Harris. Kim Masters and Matt Belloni buckle up for another rollercoaster week.
No big deal? As tensions rise over Trump’s escalating tariffs, the Chinese government is considering banning Hollywood movies. “That's one of the potential impacts here,” Belloni speculates. “I don't think that that would be as big of a deal today as it might have been, say, 10 years ago, where a major studio movie could expect to earn anywhere from 100 to 300 million dollars in China. Today, if you're lucky, if you get to $50 million”
Budget busting? Amid rising tariffs, studios are working to stave off a massive uptick in production costs all around. But can it be done? “The cost of producing film and TV could significantly jump at a time when the studios are already trying to squeeze costs on these things,” Belloni says. “They're shooting them wherever is the cheapest and if there is now going to be increased costs on this stuff, it's really only going to make the current production problems even worse.”
Tighten up? As the threat of increased prices hits consumers worldwide, studios that have interests in the theme park industry are strapping in for a wild ride. “If you look across some of these companies like Disney and NBC Universal, they have theme parks,” Masters explains. “Do people want to pay money? It's not cheap to take a family to, especially Disney. And the cost of travel now, I mean, there's a lot of pressure on consumers, who may just decide that they can't afford to go there.”
Risky business? Donald Trump and Paramount are headed into mediation over the president's lawsuit concerning a 60 Minutes interview with Kamala Harris. As legal tensions mount, what does Paramount’s uncertain future mean for the studio’s present-day operations? “It's not going to be so easy for them to attract the best projects when people do not know what is happening at that company,” says Masters. “[The lawsuit] is inflicting damage, and there's no guarantee. This is not a binding arbitration they're entering into. It's a mediation. So there's no guarantee that they get to an agreement… unless they can hit a number that makes the Trump people happy.”