Cut, camera, industry collapse
Is Netflix about to stream its own funeral? US President Donald Trump’s latest announcement comes at a devastating cost for the streaming giant. Yesterday, Trump took to Truth Social — a Trump Media-owned “free speech” social media platform — to express his grievances with Hollywood’s current state. In his post, the president wrote “Hollywood, and many other areas within the [US], are being devastated,” claiming that death is imminent for the movie industry in the country, and that this “is a concerted effort by other Nations and, therefore, a National Security threat.” Trump’s claims were not backed by data.Make US movies “great again”? The icing on the digital cake was Trump’s shocking announcement to begin imposing a 100% tariff on “any and all” films going into the US that were filmed on foreign lands. The issue is, that’s almost all of them. This year’s top-grossing box office films — A Minecraft Movie, Captain America: A Brave New World, as well as several upcoming movies expected to top the charts like the upcoming Mission Impossible and John Wick spinoff —, all of which will find their way to streaming services, have all been shot abroad and across a slew of countries. Yet it remains unclear how these films are to be affected by the Tariffs, Forbes Middle East reports.Netflix isn’t having a good time, and misery loves company. The White House was quick to issue a statement walking back Trump’s announcement, confirming that no final decision has yet been made on the matter of film tariffs, with several options being explored, according to Reuters. By that point, however? The damage was already done. The streaming giant, with productions spanning the entire globe, took the brunt of it, suffering a loss of USD 20 bn as Netflix stocks dropped 6.2% yesterday, with other streaming services following suit. Paramount global dropped 3.1%, Walt Disney 3.6%, and Warner Bros. Discovery 3.3%. Did Trump just wake up one day and choose chaos? Given the givens, it’s fair to assume so, yet it seems Trump’s statement was months in the making. Shortly before taking to Truth Social, Trump had met with his “special ambassador” to Hollywood, actor Jon Voight, The Guardian reports. The actor had been formulating a plan in conjunction with studios, streamers, and unions to strengthen film production in the US, and had only suggested the use of tariffs under certain circumstances — a far cry from Trump’s 100% tariff announcement — according to the British newspaper.
Tuesday, 6 May 2025