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You are at:Home » 10 Issues for the U.S. and International Film Industry in 2025 | Features
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10 Issues for the U.S. and International Film Industry in 2025 | Features

Adnan MaharBy Adnan MaharJanuary 17, 2025No Comments9 Mins Read0 Views
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Global TP

Screen International focuses on key issues for the international and U.S. film industry in 2025.

Read more about UK industry talking points here.

What does President Donald Trump’s second term mean for M&A?

The next few years could be a boom in mergers and acquisitions. The prevailing view is that the next Trump administration will be on the side of large corporations and support deregulation. The president-elect has appointed Republican Andrew Ferguson to head the Federal Trade Commission (FTC), which oversees antitrust law and consumer protection.

There could be a flurry of media deals that combine streaming platforms, devalued cable TV networks, exhibitor chains and other assets. Major deals like the merger of Skydance Media and Paramount Global are something Trump doesn’t hold a personal grudge against, as did CNN, which reported on his first campaign’s ties to Russia several years ago. It is likely that things will go relatively smoothly. Three consecutive rate cuts by the Federal Reserve have created favorable conditions for deep-pocketed private equity investors to fund deals.

Former NBCUniversal chief Jeff Shell will head up the combined Skydance-Paramount entity, and his job will include creating streaming bundles to compete for more subscribers. Comcast is spinning off its networks, Warner Bros. Discovery CEO David Zaslav has spoken publicly about his desire for less regulation and is restructuring the company. He may want to sell assets like CNN.

The antitrust lawsuit filed by outgoing FTC Chair Lina Khan against Facebook’s parent companies, Meta and Amazon, is particularly relevant to billionaire founders Jeff Bezos and Mark Zuckerberg, who are targeting Trump. His Mar-a-Lago mansion is currently in a precarious situation due to a penalty payment. As a footnote, President Trump is reportedly considering an executive order that would allow TikTok to continue operating despite a pending legal ban in the United States. The video-sharing platform has until Sunday (January 19) to find a replacement platform for its current owner, China’s ByteDance. ByteDance has raised national security concerns among U.S. lawmakers on both sides of the aisle.

Will US buyers take action?

With Sundance just days away, the activities of American buyers are attracting attention. Their suffering is well documented. If studios and streamers are also sniffing around, it’s next to impossible to compete for finished films unless that company has deep pockets, a track record of working on movies of a certain size, or deep connections with filmmakers. . Even if they win a coveted title, small theatrical distributors must contend with an unforgiving theatrical market. The quality of the movie, the release date of the back show, and the marketing campaign must be on point.

Turning to advance purchasing, small distributors face a dilemma. They can take on a project early on based on a script or early footage, or risk waiting until it’s finished, which could put them in competition with deep-pocketed studios and streamers. Sundance will provide some indication of appetite, but we won’t have a better idea until later this year.

It’s a big year for the US box office.

After the 2024 strike shrunk the pipeline, last year’s North American box office revenue started slowly but recovered, ending the year with $8.8 billion, a 3.3% difference from the previous year. To regain momentum post-COVID-19, 2025 will need to be significantly better than last year. While it’s unreasonable to expect box office revenue to approach its pre-pandemic high of $11 million, we’re hoping for numbers in excess of $9 billion.

This year’s roster of big-name actors kicks off February with Marvel Studios’ Captain America: Brave New World on February 13th. Highlights are expected to include new series sequels, prequels, reboots, and spin-offs for Jurassic World, Superman, Avatar, and Mission: The Impossible, Zootopia, Wicked, Fantastic Four, Ballerina, and anticipated releases such as Mickey Mouse. Title 17, Michael, Minecraft Movie, Big Bold, Beautiful Journey and Sinner. Not to mention the big hits that no one is talking about yet.

Which is Sundance or AFM?

This year, the industry will learn the fate of two major events on the U.S. calendar. Sundance Institute leaders are considering three bids to host the festival starting in 2027 and won’t reveal their decision until after this year’s event ends on February 2nd. Will it be Park City (which would play a secondary role in expanding Salt Lake City’s presence), or Cincinnati, Ohio, or Boulder, Colorado? The festival’s public relations team insisted last month that the decision was still up in the air.

Additionally, there is the issue of the American Film Market (AFM). American Film Market (AFM) moved to Las Vegas last November after numerous complaints about Santa Monica’s scattered locations and inadequate venues. The consensus is that the market will return to Los Angeles. The majority of participants seem to want this to happen. The board of AFM organizer IFTA (Independent Film and Television Alliance) has put talks on hold due to the Los Angeles wildfires, with talks expected to resume in the coming weeks.

Will California production recover?

Runaway productions are nothing new for Hollywood’s home turf, but there are growing concerns about the level of productions that choose to relocate. Frustrated by the high costs and demands of SAG-AFTRA bureaucracy, studios, streamers, and independent producers have been drawn to attractive incentives offered by other U.S. states and international jurisdictions. Most boast a rich and experienced staff base and more affordable economies.

FilmLA reported a 6.2% increase in film and TV shooting days in the Los Angeles metropolitan area in the fourth quarter of 2024, but last year as a whole was the second-most productive recent year, second only to the coronavirus-impacted 2020. It was announced that it was the lowest. With production levels down in the first quarter, all eyes are on whether the region can regain its position as a major shooting hub. California Governor Gavin Newsom has proposed doubling the film and television tax incentive from $330 million to $750 million. The bill, expected to be introduced in the state Legislature this year, is backed by the California Production Coalition, an advocacy group whose members include Raleigh Studios Hollywood & Saticoy Studios and the Hollywood Chamber of Commerce.

Or do international hubs have a permanent advantage?

The battle to attract U.S. inward investment production is likely to intensify further in 2025 as major economies act amid fears of being left behind as top investment destinations. The Czech government recently approved an increase in production incentives from 20% to 25% starting in 2025, and now offers a 35% VFX and animation incentive. From February 1, Germany will increase the rebate to 30%. In the UK, there will be a more generous rebate of 29.25% on VFX spend, up from 25% previously, from 1 January, and an exemption from the overall 80% cap on eligible spend. The increasing role of incentives in production has been highlighted in a recent study by the European Audiovisual Observatory, which shows that while public funding and investment in broadcasters has declined, incentives have become a smaller share of total film funding. It is concluded that the proportion is increasing.

Will AI be popular in Europe?

Concerns about the disruptive potential of AI reached a climax during and after the Hollywood strikes. As we head into 2025, and outside the US, it feels like there is less concern and more focus on how AI can be leveraged to the benefit of the industry.

Many in the international sector recognize that production costs have ballooned in recent years, hindering creativity and investment in film production. Some now see AI as a way to increase efficiency, enhance creative ambition, and enable filmmakers to do more with less. For them, this technology helps cut down on boring and repetitive tasks rather than replacing creativity.

Some believe that AI tools could help democratize and diversify the film and television industry by lowering the barrier to entry for diverse voices. The relationship between AI and creative industries is also set to improve during 2025, as European governments seek to bring legal certainty to how copyrighted material is used in model training. Possibly. For example, the UK government is running a consultation aimed at boosting economic growth by ensuring rights holders are protected and paid, and by supporting AI developers to innovate responsibly.

Public funding cuts will continue

Busan International Film Festival

The outlook for many European and international film festivals in 2025 is bleak due to inflationary pressures and government budget cuts. The cost of putting on a festival continues to rise as cash-strapped governments reassess their cultural spending. The Berlinale has lost €2 million in financial support for the upcoming 2025 edition as part of major spending cuts by the city government. The Dutch Film Festival (NFF) has lost its subsidy from the city of Utrecht. Meanwhile, the Busan Film Festival’s government subsidy from the Korean Film Council (Kofic) will be cut by 50% in 2024.

It is difficult for festivals to make up the shortfall from attendees and exhibitors, many of whom are trying to cut down on their own expenses, so many festivals are looking for further support from private sponsors and charities to make up the shortfall. This means that you are looking for .

Pressure to maintain production budgets

Movie budgets are likely to remain a flashpoint in 2025. Movies remain a difficult prospect for many investors due to the high price of talent and staff. “We have to get back to a point where they can come back,” says one producer. “The key is trying to get the right budget numbers.”

Frederic Fiore, president of film investment firm Logical Pictures, speaking at last year’s MIA Market, said his company analyzes 800 to 1,000 projects a year and selects about 20 for investment. . Investors. ” His company has a basic agreement with Pathe to co-finance and co-produce films. “One of the factors is that if the price is too high, we won’t accept it. Even if we are successful, the upside will be reduced.”

looking for the light

Buyers are generally looking for bright and upbeat content rather than very dark movies. Buyers often want a story where the main character overcomes hardships by the end of the movie. Known intellectual property, such as books, articles, and personal lives, will also continue to be supported. In television, commissioners favor safer renewals and long-running series over first-run commissions. The reason behind this is the acceptance of advertising by streamers. As a result, streamers have become more like broadcasters, prioritizing subscriber retention over customer acquisition.

There is also demand for low-cost movies and dramas, rather than big-budget productions right after the coronavirus outbreak. Licensing has also emerged as an important factor, as cost-conscious streamers prefer quality movies and TV series to funding expensive original productions.



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Adnan Mahar
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Adnan is a passionate doctor from Pakistan with a keen interest in exploring the world of politics, sports, and international affairs. As an avid reader and lifelong learner, he is deeply committed to sharing insights, perspectives, and thought-provoking ideas. His journey combines a love for knowledge with an analytical approach to current events, aiming to inspire meaningful conversations and broaden understanding across a wide range of topics.

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