No Superhero can save Hollywood. The virus doesn’t work on a schedule, you see!
Coronavirus is incurring Hollywood losses. How does the industry fare in this dark time?
Highlights! Hollywood faces its biggest loss in history all major releases to get affected.
- Incurring Losses and Stalled Productions
- Survival of the Fittest: Front Line workers take a hit
- Business Continuity Challenges
- Impact of COVID-19 on Hollywoods Financial Health
On Friday morning, 40 million people in LA woke up in a state of lockdown. Confused and scared and sheltered-in-place from an order issued by the California governor Gavin Newsom amid the coronavirus outbreak.
The lockdown implies shutting down of public places to break the chain of transmission of the novel COVID-19 coronavirus. Its friendly neighbourhood Hollywood that never stops has also come to a halt.
By Monday, the North American Box Office registered its lowest level to $55.3 million.
But Hollywood from the crew, cast to stakeholders is already feeling the trembles of rushing losses. By Monday, the North American Box Office registered its lowest level to $55.3 million. And this is just the start of coronavirus incurring Hollywood losses.
Find more statistics at Statista
Remember, 2013 American apocalyptic comedy, This Is the End. It doesn’t seem like fantasy anymore. The stranded Citi Field featured in Avenger: Endgame Super Bowl spot – it’s reality as of now.
Just to be clear, we’d see post-apocalyptic movies in a MUCH DIFFERENT LIGHT NOW.
All our favourite late-night hosts Jimmy Kimmel, Jimmy Fallon, Set Meyers Trevor Noah, John Oliver, Bill Maher, Samantha Bee, James Corden, and Stephen Colbert – have all stalled shoots till March 30.
Speaking of studios NBC Universal, Warner Media, Disney Television, VicomCBS, Warner Bros Television Group all have suspended broadcast productions. Streaming service providers like Disney+, Amazon and Netflix also pulled the plug on production during the weekend.
And talking about movies, Disney announces a halt on its all live-action movies, including all the Marvel Disney+ shows. Movies that faced a halt in pre-production are little Mermaid, Nightmare Alley, Home Alone, Shrunk, Marvel’s Shang-Chi, and Peter Pan & Wendy.
Additionally, the closure of the movie theatres around the world has worsened Hollywood’s Financial Health.
Survival of the Fittest: Front Line workers take a hit
Variety reports that the top bosses in Hollywood are already predicting a major upheaval in the industry post coronavirus. A veteran studio executive spoke about the effect of reining in a lot of things which have been ‘out of control’ for a long time. ‘It’s the survival of the fittest,’ he meant.
The first ones in Hollywood to get affected by the lockdown are the front line production crew and low rung staffers who were looking for that next paycheck and credit to land the next job.You will find more infographics at Statista
Many Film, TV and streaming productions have just gone on an indefinite halt. In these dark times, there is no clarity from studios that how crews will be compensated.
Business Continuity Challenges
The ripple effect of Covid-19 on the studios and business will reflect in the balance sheets. Maybe the only sigh of relief is the streaming platforms. In quarantine, people surf the internet and streaming platforms are surging their content online.
Find more statistics at Statista
Three biggest players in the sector Disney, Comcast and AT&T are already transitioning with massive mergers and acquisitions. The transition which was exemplified by a shift of consumers consumption trend from linear at streaming platforms.
Impact of Covid-19 on Hollywoods Financial Health
The 360-degree impact of coronavirus on Hollywood’s financial health can’t be predicted. In the big wigs, WarnerMedia parent AT&T is the most leveraged company with a media holding in the market much like Comcast. Whereas Disney’s balance sheet will take a hit with the closure of Disney Lands that made 45 per cent of its operating income last year. Marvel Studios intricate storytelling further impacts the launch of Disney+ shows and Marvel’s phase 4 and 5.
With all the movie theatres shut around the world and no sign of normalcy on the horizon, even the finished productions might not see the light of the day. Hollywood’s financial health might not be predictable right now but it’s certain Hollywood won’t be the same.