Trump threatens the prices on films, but experts say that it may not be that simple – National
The film and streaming industry is the last area of interest for American President Donald Trump and his pricing strategy, but experts say that there are many challenges to prices on production companies.
What does Trump say about the film industry?
Before the elections, Trump campaigned on the revival of national manufacturing and production in the United States.
Trump went to social networks on Sunday evening by saying: “The film industry in America dies from a very fast death. Other countries offer all kinds of incentives to remove our filmmakers and studios from the United States. Hollywood, and many other areas in the United States, are devastated. It is a concerted effort by other countries and, therefore, a national security threat. ”
Trump spoke about the lawn of the White House on Monday saying to journalists: “Other nations have stolen the manufacturing capacities of the United States … and we are making very few films at the moment … Hollywood is destroyed.”
We still don’t know exactly what the prices of the film industry would look like or when they are implemented.
To what extent are Trump’s cinematographic ambitions realistic?
Until now, Trump’s pricing policy has presented specific rights added to products manufactured abroad and imported into the United States, with the largest rights, including 145% on imports from China.
But with regard to films and video content streaming, prices could be more complicated because there is less tangible product on which to concentrate and more a service with many layers to deconstruct.
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“He (the film industry) is not a unique sector, these are different aspects of a unique sector,” explains Charlie Keil, professor of film studies at the University of Toronto, adding, “and it is not clear either if it is logical to do so as a wide band or to differentiate the level of contribution which comes from a non -American source.”
In addition, the release of films in theaters in the middle of the pricing policy complicates questions for companies like Cineplex.
“If you buy a tangible product like, say a garment, if it is more expensive (to make), you expect to pay more for that,” explains Keil.
“With the films, we are not used to differential prices. Theaters do not charge you according to what the film costs. So, the question is, how will this price transmit to the consumer?”
A declaration from the White House Monday by spokesperson Kush Desai clarified the intentions of the administration by saying: “Although no final decision on the prices of foreign films have been made, the administration explores all the options to hand over President Trump’s directive to protect the national and economic security of our country while making Hollywood very well.”
Unlike the automotive sector, the production of a film can reach various parts of the world, but finally benefits in the United States.
“The real cinema business concerns property, intellectual property control and equity, and, essentially, return on investment. As long as the Americans control that they control what really matters. This is not where it is done. He controls all these other elements, ”explains the co-president of elevation Pictures, Noah Segal.
“The fear (of Trump) of Chinese electric cars is because China has these cars. Well, in this case, Disney has Mickey Mouse. They own it, no matter where they do.”
What could that mean for the Canada’s film industry?
If Trump succeeds in returning all the physical elements of film production to the United States, then the Canada industry could be assigned.
“It could be very bad news if it takes place this way. Everything is very temporary, but yes, it could be devastating, ”explains Keil. “When we call it the Canadian film industry, what we really mean is a service industry completing the American film industry.”
Ontario alone represents more than $ 3 billion in film production abroad per year with companies like Netflix, Amazon and Warner Bros. Pictures installed in the province.
According to Statistics Canada, national industry collected $ 2.8 billion in revenue in 2023, which was a third party than the previous report.
“We have already seen this type of behavior by the president,” said Stan Cho, Minister of Ontario of Tourism, Culture and Game, addressing journalists. “He will say one thing one day and the next day, he will change his mind, so we hope that he will realize how huge this industry is as an engine and job creator. We will have to wait and see if he follows.”
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