The famous Hollywood panel is seen on September 25, 2023 in Los Angeles, California.
Mario Tama | Getty images
Investors in the best studios and Hollywood streaming services were trying to give meaning to Monday of the price 100% proposed by President Donald Trump on the films made abroad.
Actions of Netflix,, Disney,, Primordial And Discovery Warner Bros. briefly fell into trade early in the morning, with Comcast– Universal also dropped slightly. Here is how these stock movements were shaking before the actions bounce:
- Netflix down to 4%
- Disney down to 3%
- WBD down to 5%
- Paramount up to 2%
- Comcast Down up to 1%
Trump called on the tax incentives offered by foreign countries “a national security threat” in an article on Truth Social Sunday Night. He said he authorized the Ministry of Commerce to impose a direct debit on all films produced abroad sent to the United States.
It is not clear how Trump intends to implement these tasks, just as which is targeted and which would charge this potential price invoice.
Hollywood studios have long filmed films abroad, either for tax advantages, or to capture the natural framework of international locations. Some films are shot in several countries, with many studios with satellite production centers around the world.
“We believe that major studios and distributors … and various independent studios include a significant risk, because they will have to put pressure on the Trump administration to establish a reasonable standard for films that require live sets in foreign backgrounds while moving otherwise the productions for investors for studio scenes” of Wedbush, Alicia Reese, in a note to investors on Monday.
Reese estimates that 75% of the global content of Netflix is produced internationally, with foreign language content made internationally and a significant part of its national product filmed in Canada and the United Kingdom
“Recordedly, most of Netflix’s content is filmed by third -party studios, and the company has little control over the place where the vast majority of its content is produced,” said Reese.
When Trump first instituted a 25% rate on imports from Canada, a popular filming location for Hollywood movies and television programs, industry experts told CNBC that it would not have a major impact on production.
After all, the majority of projects are digitally turned and the transport of the final product can be carried out online or with a data storage device. There is no physical good that exchanges the hands in the same way as, say, toys or clothes made in another country.
“The prices generally apply to the import of” goods “, so a price on DVD imports is easy to apply and a rate on intellectual property is almost impossible to apply,” wrote Reese.
The questions are already swirling. What part of the production process would be struck by this obligation? Would this only apply to film projects or television programs to international will they also lead this tax? Are the completed projects already exempt?
In addition, as for the first series of pricing ads at the start of this year, industry experts care about the impact of these tasks on relations with other countries. Hollywood is based on international sales of the box office to recover high film budgets. China has already closed its doors to the Hollywood product. Other regions could retaliate and do the same.
Disclosure: Comcast is the parent company of Nbcuniversal and CNBC.