Is Hollywood Dead?

 It could be argued that Hollywood's current condition and dilemma is a metaphor for California. The film industry in LA is at an inflection point... either the industry will die or be resurrected by State tax credits and subsidies. 

"We've hit bottom", states FilmLA's CEO Paul Audley, "We'll see more shooting by the end of the year, but because of timelines, we must start seeing the ramp up in production by the 1st quarter of 2026."      According to FilmLA, the group that issues film permits for the city and county of Los Angeles, film production experienced a record low in the 3rd quarter.  

This prompted the State to pass a tax credit program totaling $1.6 billion for film and TV show production. Thus far, 10 films are signed up to take advantage of the program, totaling $36.9 million.

The tax credit program will bump up production, but high labor costs coupled with lucrative benefits offered by other U.S. States and foreign countries will, I believe, stymie its long-term prospects. Outmigration of production workers is another issue California has to grapple with.   

Hollywood's only bright spot and long-term revenue generator is TV show production and commercial ads. These are two areas where Hollywood does and will continue to excel - it is currently number two after England in TV show production. 

Like Hollywood, many of California's problems are self-induced. I fear film production may have already reached the point of no return. There will be plenty of films produced, but they won't be shot in LA.  

Gaming and The Movies

 Gaming and the movies are very closely related. Games made into movies - movies made into games. You can say it is a symbiotic relationship, so it's a good idea to take a peek into where gaming fits on the entertainment scale.  

52% of active gamers are women

The Entertainment Software Association (ESA) just issued an exhaustive study (over 25,000 people were surveyed) on just that ... and their findings will surprise you.

Women make up over half of all U.S. gamers (52%), and 22% are over the age of 65. The stereotype of gamers dominated by young men who sit for hours engrossed in mindless escapism is a complete fallacy.

ESA's 2025 Survey gathered data from over 25,000 gamers. Participants were aged 16-65+, and identified themselves as 'active' gamers. The average gamer is 41 years old. The age group with the greatest number of active gamers was the 65+ group. Additionally, the majority of U.S. gamers are women - 52%.

These statistics are due to the variety and innovation of the gaming industry. Video games include not only action first-person games, but include puzzle games, role-playing games, skill and chance games, and more. It's something for everyone. The most popular gaming device is the smartphone followed by tablets.

And, just like the movies or music, there is a game for everyone. 

 

Instagram Misuse of Movie Rating

 The Motion Picture Association (MPA), the major film makers' trade association, was not informed by Instagram (owned by Meta) that they were using the MPA's PG-13 rating symbol.

"The MPA was not contacted before the use of our rating symbol by Instagram as a tool for their Teen Accounts", stated Charles Rivkin, MPA's CEO.

The MPA introduced its film-rating system in November 1968. It utilizes a Rating Board that watches every movie in its entirety and assigns it a rating.

Over 90% of parents say the ratings help them make better viewing choices for their families - and that's why Instagram wanted to use it. A legal settlement will likely be worked out regarding the use of the movie rating.

MPA members are Netflix, Paramount Pictures, Prime Video, Amazon/MGM, Sony Pictures, Universal Studios, Walt Disney Studios, and Warner Bros. Discovery.

Too Loud to Endure...CA Finally Gets Something Right

 

Governor Gavin Newsom of California has made noise pollution a priority of his administration. New legislation mandates that the noise level of advertisements must be at the same level as the movie or TV show being streamed by the likes of Netflix, Disney+, Amazon, etc.

The bill, SB576, passed unanimously by both the CA Senate and Assembly, was signed into law by Newsom. Starting in July 2026, major streaming services won't be able to "transmit the audio of commercial advertisement louder than the video content the advertisements accompany."

Many streaming platforms use tiered pricing that requires consumers to pay a premium for "no ads" viewing, but most subscribers opt for the lower cost "ads included" tier; however, the loudness of these ads is pronounced and very irritating.

It should be noted that the Motion Picture Association, a lobby group for the major film studios, opposed the new law, noting "that many streaming services have undertaken reasonable efforts to adjust the loudness of advertisements."  Really! Consumers are very much in favor of this legislation, and I don't blame them, being a victim myself.

This is one law that other States should follow, and I don't say that often about many of CA's laws.

Hollywood, Big Tech, and AI

Generative AI is poised to have a profound impact on everyone and everything, including how Hollywood conducts its business. No one can stop technology from evolving, and the reshaping of media and entertainment is imminent - it's all connected.

The advancement of technology cannot be stopped.

AI companies have grown like mushrooms. OpenAI is worth $500 billion, Anthropic is worth $183 billion, and privately held Grok (owned by Elon Musk's X) is valued in the hundreds of billions. Generative AI is set to have a significant impact on everyone and everything, including the way Hollywood conducts its business. Technology is constantly evolving, and the transformation of the media and entertainment industries is inevitable.

Given this situation, Hollywood, being a major source of content for AI platforms requiring vast amounts of material, presents a compelling case for big tech companies - such as Apple, Microsoft, Amazon, and Netflix - to acquire Hollywood studios with their large libraries of movies and TV shows.  The reshaping of media and entertainment is imminent—everything is interconnected.

The race is on: big tech vs. AI w/ players like  Altman, Musk, Zucherburg

Needless to say, this whole scenario has spawned massive copyright litigation from authors and other content creators, and the Hollywood studios are throwing their legal firepower against AI firms for the use of their copyrighted text and imagery.

There is no doubt that AI will drive the next generation of productivity and innovation worldwide. It will fuel the next wave of global megacompanies. This, in turn, will turbocharge the U.S. economy.

Note: Key AI Terms:

Agent: An AI entity that uses software and apps to execute commands.

Chatbots: Communicative software that connects with users in conversation style.

Fair Use: The use of copyrighted material for educational or journalistic purposes.

Generative AI: Technology that allows users to create content, including text, images, and videos. It can autonomously construct material based on input to its system.

Large Language Model: AI databases that are capable of engaging in dialogue with users, writing prose, and analyzing enormous amounts of text information from the internet.

By: Jim Lavorato

Taylor Swift...You Can't Argue with Success

 Like her or not, you can't deny the success of Taylor Swift.

Her latest endeavor, a film, opened in cinemas for a three-day run this weekend. The film, "The Official Release Party of a Showgirl", is composed of behind-the-scenes footage of her tour, which includes personal commentary. The 90-minute film is wrapped around Swift's latest album (Life of a Showgirl) and is presented without trailers or promotions.

Can Swift go from teenyboppers to mainstream acceptance?

 

The film is a very professionally crafted music video and demonstrates that Swift is not only a great musical artist but a marketing and self-promoting genius. The film grossed over $46 million in its three-day release. And she again opted to bypass the Hollywood studios and partnered directly with AMC Theatres to distribute the movie. 

Swift, who was a Biden supporter, appears to have pivoted from her left-leaning ideology to a much more centrist view - voicing her support of heterosexual marriage, having children, and owning your own home. Swifties idolize her, and many will follow suit on how to live their lives.  

A-Listers Make Big Bank with Side Hustles

Hawking wine, watches, or woks, celebrities are cashing in on any number of side hustles.  Star-owned brands are the current trend in retail, selling through both online and brick-and-mortar outlets. 

Top celebrity entrepreneur standouts include

- Jennifer Aniston, who markets a very successful line of hair care products, called LolaVie.

At 56, Aniston is the best spokesperson for her brand.

- Drew Barrymore has an exclusive deal with Walmart to sell her signature kitchenware, pet collection, bedding, and home decor lines.

Rihanna's line of beauty products sold over $500 million in 2024

- Selena Gomez's Rare Beauty cosmetic line reached $400 million in 2024. For this year, sales for the first eight months were over $481 million. This represents the highest-ranking celebrity beauty brand, second only to Rihanna's Fenty Beauty line, which reached $515 million last year.  

                             

Johnson hawking his Teremana tequila

- Dwayne Johnson concentrates on three lines of products: Teremana tequila, Zoa energy drinks, and Papatui men's cosmetic products. Teremana sold 1 million cases in its first 12 months on the market, a record for a premium spirit.

Lady Gaga does a photo shoot touting the Haus Labs line

- Lady Gaga's Haus Labs beauty brand is sold exclusively at Sephora outlets worldwide.

- Brad Pitt's Miravel rose reached sales of $60 million in 2024. Pitt is also the co-founder of Beau Domaine skincare products and God's True Cashmere clothing line, among other ventures.

In actuality, big celebrities are making big bucks on branded products. In some cases, these side gigs generate more money than they make acting or performing. 

Tariffs on Foreign Films...A Real Bad Idea!

President Trump announced a 100% tariff on all foreign films in an effort to promote domestic film production, principally in Hollywood. 

This is the worst idea ever. Forget its legality, it's just plain dumb. Imposing tariffs on artistic endeavors would be a first. Films are not products, but collaborations presented in digital form.

Film production has indeed shifted outside the U.S., but this is due entirely to the high cost of domestic production, particularly in California.

Someone should ask Trump, "How do you enforce a movie tariff given that films use production, financing, post-production, and visual effects across multiple countries?"

California already has a slew of tax incentives for film production, as do other States, but it's still infinitely cheaper to produce overseas. Imposing tariffs on foreign films is not going to save 'dying Hollywood' - California's problems are much deeper and are impacting many industries negatively.  

And what about streamers? How would tariffs apply to streaming platforms?

In 2024, the international marketplace accounted for over 70% of total box office admissions. Therefore, reciprocal tariffs by other countries would result in the loss of billions of dollars and thousands of jobs within the U.S. 

Making a movie is a very complex endeavor. It's very common for films to include production in the U.S. and other countries. "When you make these sorts of blanket rules, in this case tariffs, you're missing some of the nuance of how films are made", says Steven Schiffran, Professor at Georgetown University, "sometimes a director needs to film in an overseas location(s) when producing a film. For example, the Harry Potter films were shot entirely in the U.K. To produce them in the U.S. would have doubled their cost." 

If a 100% tariff were imposed on foreign films, admission costs at U.S. cinemas would have to rise, placing further stress on struggling movie attendance. 

Tariffs on foreign films are a bad idea, and I predict it will never happen.

Jim Lavorato

 

Trump's 'No Tax on Tips' Impacts Entertainment Industry

The 'No Tax on Tips' program was further defined by the Treasury Department, which listed those occupations "that customarily and regularly receive tips" - which will be eligible for the tax break.

The eligibility list may surprise you. It includes the obvious (bartenders, food servers, housekeepers, but also comedians, singers, podcasters, influencers, and DJs).

So, you don't need to be a genius to figure out that subscription fees for influencers, podcasters, etc., will quickly become tips; however, recurring subscription fees do not qualify.

There are other limitations as well. The deduction is capped at $25,000/per year for individuals. And phase out at $150,000 for a single person and $300,000 for married tax filers. Tips do not qualify for deduction if they are received "in the course of certain specific trades - including the fields of health care, performing arts, and athletics." Going forward, streaming platforms will prominently feature tip income. 

The power dynamic has shifted in the media. Broadcast and cable media are now a distant second to online and streaming media. This trend will continue.

Google to Use AI for Filmmaking

Google's generative AI video tool, called FLOW, is expanding rapidly, so Google has decided to hire Hollywood filmmakers to assist content creators in developing new content using FLOW, which will be available free of charge to participants.

Generative AI tools are proliferating, with many AI-focused filmmakers utilizing AI video tools daily. Virtually all Hollywood studios have begun using AI, which reduces film production costs and enhances productivity. 

Google is onboarding filmmakers to assist creatives, allowing them to be at the forefront of this very competitive AI industry.

Amazon to Pay $2.5 billion to Consumers

 Amazon has paid $2.5 billion to settle claims it enrolled millions of consumers in Prime subscriptions without their consent, and made it very difficult to cancel enrollment.

Under the settlement, Amazon will pay the Federal Trade Commission (FTC) $1 billion in civil penalties and $1.5 billion in refunds to consumers "harmed by their deceptive Prime enrollment practices."

An estimated 35 million consumers have been impacted by Amazon's unsolicited Prime enrollment. According to the FTC, affected consumers will be receiving a check for $51.

Amazon is getting away cheaply. Many of the 35 million consumers will keep their accounts as they receive free shipping on all Amazon purchases and the Prime streaming platform, among other benefits. 

U.S. TikTok Users Cheer Trump

TikTok is now U.S.-owned, as President Trump signed an order requiring an 80% ownership by U.S. investors.

It wasn't reported who the investors were. What we do know is that  Larry Ellison, CEO of Oracle, Michael Dell, of Dell Computing, and Rupert Murdoch are on the list. The deal values TikTok at $14 billion. The deal was struck to allow TikTok to remain available to the millions of American users while protecting their personal data.  

ByteDance, the Chinese owner of  TikTok said in a statement, "We thank President Xi and President Trump for their efforts to preserve TikTok in the U.S. ByteDance will work in accordance with the applicable laws to ensure TikTok remains available to American users."

The Agreement reduces ByteDance's ownership to 19.9% and includes not only TikTok but also the ancillary Lemon8 and CapCut applications.

 Lemon8 is a TikTok lifestyle-focused app. A place to scroll through curated posts on fashion, beauty, food, travel, and wellness - while also sharing your own. Launched in Japan in 2020, the app has experienced huge growth worldwide.

CapCut is a free video editing app developed by ByteDance. It allows for quick editing of smartphone videos into professional-quality content by cutting, speed adjustments, music integration, etc. CapCut is a powerful video editing tool, and its popularity has grown exponentially.

This deal has been long-awaited by millions of U.S. TikTok users. It is not only a social platform but a robust online retail platform for millions of e-commerce entrepreneurs. 

Presidents Trump and Xi 

This is good news for all parties involved and a very satisfactory outcome.

So True!

 

A CMG Public Service

"TV is a Terrible Consumer Experience" says WB-Discovery CEO Zaslav

 David Zaslav, CEO of Warner Bros. Discovery, is not a fan of TV. According to him, "the marketplace is really challenged with too many players in the market. When people turn on the TV, it's a terrible experience. There are just too many choices, and many aren't outstanding entertainment."  I agree; quality content on both small and silver screens has become increasingly rare to find. 

Makeup of the Warner Bros. corporation    

Zaslav is in the process of splitting Warner Bros. Discovery into two separate companies, which should occur by April 2026. After the split, Zaslav will be in charge of Warner Bros. studio, DC studio, HBO, HBO Max, and the TCM channel. Gunner Wiedenfels, Warner's current CFO, will run the Discovery and Turner platforms, which include TNT, TBS, CNN, the Cartoon, and Food networks, and HGTV.

Skydance, the media and entertainment company (which just purchased Paramount Inc. for $8 billion) has put in a bid for Warner Bros. Discovery for $20 billion (its current market value is around $11 billion). 

Consolidation of the entertainment industry is needed, and it will happen. There are too many players chasing the same eyeballs, and creative, quality content is what is needed both on TV and in cinemas.

David Ellison, CEO Skydance - David Zaslav, CEO Warner Bros.

World's Best Film Fest

 As the Cannes, Venice, Toronto, Tribeca, and Sundance Film Festivals become more devoted to process vs. art.  Where political and social protests are the norm, and films are blackballed based upon their country of origin, enter the Deauville American Film Festival. Set in the Normandy region of France, the Deauville, now in its 51st year, is the best-kept secret in the cinema industry.

 

One of the Deauville Festival's venues

About a two-hour drive from Paris, the Festival is 10 days long and screens films 24 hours per day during that time. The Deauville highlights American films, but other countries are represented. It is by far the chicest and hippest film festival in the world.

And, surprise, the Deauville has hidden pleasures other fests don't come close to.

- Fans can dine with their biggest idols. Yes, there is a process whereby stars are given the ability to dine with pre-selected fans,

- Attendees enjoy, through movies, the special relationship America has with France culturally.

- The beaches at Deauville are among the best in Europe. And a stay at one of the ocean-side hotels is a special treat and well worth the price.

- Shop and eat among the stars as everyone at the Festival partakes in the local restaurants, from high-end eateries to inexpensive cafes.

One of the hotels at Deauville

The Deauville American Film Festival is currently the 'king of the hill' of film festivals. It continues to cement that position without publicising. It is not garish, not political, and is what a film festival should be - all about the films.

 Bar de la Mer, located on Deauville's shoreline 

If you are thinking of attending a film festival, make it the Deauville. Wrap it into a vacation and take in the historic WWII monuments, museums, and sacred grounds from the D-Day Normandy Allied invasion. 

Swift's Newest Venture

 Taylor Swift is in the news constantly. In addition to everything else, she will be returning to theaters with a 89-minute release of 'Taylor Swift: The Official Release Party of a Showgirl' on October 3rd, the same day she will be releasing a new album, 'The Life of a Showgirl.' 

Cinemas will include all of the AMC Theatres and thousands of other screens across the U.S. and internationally. All of the screening will be simulcast at 3 PM EST on October 3rd.

The film will be priced at $12. Swift is superstitious, and her favorite number is 12. As fate would have it, this will be her 12th album, which contains 12 songs.

Tickets are on sale now. All attendees are welcome to sing and dance during the presentation. There will be no trailers or ads during the presentation. 

Swift has stated the film will include "cut-by-cut explanations of what inspired the music. Dancing is optional but very much encouraged."

Cinema operators have much to like about Swift. Her previous film, 'Taylor Swift: The Eras Tour' grossed over $262 million worldwide.

Skydance Media to Purchase Warner Bros. - Maybe

 Having just swallowed Paramount Global for $8 billion, Skydance Media, led by David Ellison, is currently in the process of biting an even bigger piece of the entertainment industry - with a $70 billion bid for Warner Bros. Discovery.

According to Warner's management, the company is scheduled to be split by April 2026 into two distinct entities: Warner Bros. (the studio and HBO Max) and Discovery Global (the TV networks including CNN, TNT, TBS, and Discovery). 

Hmmm...for Skydance an HBO Max coupled with Paramount+ would be a streaming giant, supplemented by two major film studios - Paramount and Warner Bros.

But not so fast. Others may enter in a bidding war, including Netflix, Amazon, Apple, and Sony.

Skydance's $70 billion bid is on the mark. Warner's stock soared 29% on the potential Skydance offer. Its current market value is $40 billion. 

Paramount Says Boycott of Israeli Films Bad for Industry

Over 3,900 cinema industry notables signed a pledge not to work with Israeli film makers - to which Paramount Pictures released a statement condemning the boycott.

Boycott demonstrators

"At Paramount we believe in the power of storytelling to connect and inspire people, promote mutual understanding, and preserve the moments and ideas that shape the world we share. This is our creative mission.: Melissa Zukerman, Paramount's chief communication officer, further added: "We do not agree with recent efforts to boycott Israeli filmmakers. The global entertainment industry should be encouraging artists to tell their stories and share their ideas with audiences throughout the world. We need more engagement and communication - not less."

Paramount is the first major studio to speak out against the boycott. The 3,900+ boycott pledgers were listed by Film Workers for Palestine. The pledge signers declared that they would refuse to work with Israeli companies or associations implicated with "the genocide and apartheid against the Palestinian people." The signers included directors, actors, script writers, and producers. 

Boycotting the production of any art form is a door you may not want to open; boycotting Israeli filmmakers is a political stance not an artistic one. Blacklisting filmmakers during the 1950s based on political ideas and beliefs was wrong then and is wrong now.

Other companies being boycotted

I applaud Paramount for their stance against this artistic boycott and hope the other major studios follow suit.

Tom Hanks Gets Canceled

 West Point cancelled the Thayer Award ceremony which was intended to be awarded to Tom Hanks. The annual award is meant to celebrate an 'outstanding citizen', outside of West Point affiliation, that exemplifies, "Duty, Honor, Country" (West Points' motto).

Needless to say, Hanks represents the very liberal Hollywood elites, and it should come as no surprise that he was canceled.

Entrance to West Point

In their press release the West Point Association stated the "the decision to cancel bestowing the award to Hanks will allow West Point to focus on its core mission of preparing cadets to lead, fight, and win as officers in the world's most lethal force, the United States Army."

What they are saying is that Hanks' wokeness and liberal political views do not coincide with West Points' current views. 

Tom Hanks - too woke for West Point

 

In further West Point news, the portrait of Robert E. Lee (which was taken down during the Biden Administration) was re-hung in the West Point Library, where it originally hung. It should be noted that Lee as a West Point graduate and acted as its superintendent for 1852-1855.

Robert E. Lee's portrait 

In a statement regarding the Lee portrait, Rebecca Hodson, the Army's communications director stated, "under this Administration, we honor our history and learn from it - we don't erase it."

And so, it goes. 

By: Jim Lavorato

Is 3D Back?

 It looks as though there is a trend towards bring back 3D to cinemas; however, the problem is that it will be accomplished using AI.

The trend towards 3D reflects moviegoers' willingness to pay an average price of $18.50 for a 3D admission.

Also, the resurgence is based on the fact that AI technology can dramatically reduce 2D to 3D conversion costs. Estimates are that 2D-to-3D conversion for a tentpole movie would cost about $15 million, but AI usage would bring the cost down to less than $5 million. 

Who Was John Candy

 A documentary on the comedian John Candy, entitled "John Candy: I Like Me" will debut at the Toronto International Film Festival on September 4th.'

Directed by Colin Hanks and produced by Ryan Reynolds, the film follows the life of Candy, a Toronto-born comedian, who rose to fame on the show 'Second City TV'. He starred in a number of very successful films, including 'Spaceballs', 'Uncle Buck". 'Planes, Trains, and Automobiles', and 'Little Shop of Horrors'.  John Candy died of a heart-attack in 1994 at the age of 43.

The film presents a true depiction of Candy's life on and off the camera - featuring home videos and uncut interviews. According to Colin Hanks, this documentary is "the story of a son, husband, father, and friend, a professional driven to bring joy to audiences and loved ones which battling personal ghosts and Hollywood pressures."

Hollywood Celebs Invest Big in Major Sports

 Celebrities and other Hollywood moguls have long been associated with sports teams - but investment/ownership has now reached mega-levels.  

Jay-Z purchased a portion of the Brooklyn Nets over two decades ago but in recent times many new celeb investors have sprung up in soccer, pickleball, sailing, and the list goes on.

To put things in perspective, the average NBA team is worth $4.6 billion and $7.1 billion for an NFL team. And it's just not American teams but European teams and sports franchises are in the mix. 

Notable celeb investors include Will Ferrell, Vince Vaughn, Matthew McConaughey, Reese Witherspoon, Dwayne Johnson, Will Smith, Snoop Dog, Anne Hathaway, Russell Crowe, Hugh Jackman etc..... the list goes on. 

Although investment in U.S. teams is hot, European, Australian, and South American sports franchises also make for great investment.

Summer Camp for the Hollywood Elite's Kids

Shipping their children off for eight weeks of summer camp is the norm with Hollywood luminaries.

Sigourney Weaver and daughter Charlotte at Camp Vega

 

First, healthily food is a must and most of these camps offer all day-long salad and pasta bars, soup stations, and fresh fruit. Kids can take day-long courses in digital media, gourmet cooking, and culinary arts, and get coached in tennis, lacrosse, crew and polo from pro athletics.

According to Patti Roberts, who runs a summer camp advisory service which advises parents seeking the "right plan" for their offspring. Says Roberts, "the cabins are still basic at most camps, but what has changed are new activities. Pickleball, rock climbing, gardening, and wine and cooking classes are par for the course."

Camp Vega, located in Maine, grows their own organic for a kitchen that would put Spago's to shame. Trip Lake Camp, also located in Maine and Keewaydin Camp in Vermont are also known for instructing and producing gourmet meals which are taught by James Beard Award winning chefs. 

Aerial view of Camp Laurel

Camp Laurel, in Maine, stresses pro-level sports. The Camp boasts full-sized playing fields, 15 tennis courts, a gymnastics center, and full-sized hockey rink. However, the most protected amenity for any Camp is offering discretion and safety. For example, Camp Wisosuta, tucked away in the New Hampshire mountains allows invitation only access.

According to Patti Roberts, "what these camps also offer is snob appeal, an air of exclusivity and out of reach of most parents."

And exclusive they are - with most starting at $17,000 for the eight weeks stay.