Movie industry ‘on the brink of collapse’ after budget cuts, job cuts, new taxes
By SITA KATHARINAND/ Reuters PHILIPPINE Entertainment News – July 11, 2018 12:15:26The industry is “on the verge of collapse” with movie studios struggling to make ends meet amid the government’s budget cuts and tax increases, according to a survey of more than 5,000 movie studios and studios and distributors.
The survey by research group IMDB.com was conducted between June 27 and July 3 and is based on a sample of more 10,000 respondents across 10,200 movie theaters across Asia, the Middle East, Europe and North America.
It surveyed more than 4,000 exhibitors and studios across the Asia Pacific region.
The report comes a day after the International Film and Television Union (IFTA) warned of a “significant and accelerating” threat to the industry as the government tries to cut a budget that will make it impossible for them to survive in a world of more globalisation.
It said the government was “significantly” reducing funding for film production and that the industry could “become unviable” in the near future.
Its executive vice president, Simon Ting, told a conference call on Friday that the country’s movie industry “is in a dire straitjacket”.
“The only thing we can do is continue to make films, and to do so without any restrictions,” he said.
The government is currently on track to cut budget by $3.5 billion from 2019 to 2021.
The industry’s main source of income is its film production, which generates about $1.5 trillion a year in gross domestic product (GDP) for the country, the IFTA said in a statement.
“But the current budget cuts threaten to completely end the production of films, resulting in the industry’s total economic impact likely to be in the region of $2.8 trillion,” the IFPTA said.
“While the industry has shown some signs of recovery in recent years, it is likely to continue to experience serious problems in the years ahead.”
The survey found that 80% of exhibitors surveyed said they would have to cut back on the number of employees, or cut jobs, to survive, and that 20% of those who said they were considering downsizing would have their facilities shut down.
“We have seen a major change in the attitude of our industry towards the government and the industry,” said IFPT President Richard Shukla.
“The government’s actions are putting an unprecedented amount of pressure on our industry and its people.”
Shukla said that although the ITA’s survey was conducted in Asia, it was based on data from studios and exhibitors across the world, and the survey included data on all of the films in circulation in the market.
“It was not just studios and film distributors, but distributors as well.
We are hearing from distributors and film producers who are going through a difficult time,” he told reporters on Friday.”
If we can manage to keep the pace of change and the quality of our films going, we can get back on track,” he added.”
However, this will take time, and it is a tough environment.””
The studios and their operators are doing the best they can, but there is a lot of work ahead,” Shukl said.
The government has been trying to reduce its budget by about 10% to $5 billion, which will make the country more competitive.
A recent IMF study suggested that by 2021 the industry would be forced to make cuts of as much as 50% to 75%.
It was one of the reasons why industry associations and other critics of the government had called for the government to scrap the proposed film tax, which would have raised $2 billion in the first half of this year.
But on Friday, the Finance Minister said the budget proposal would be shelved as part of a long-term plan to boost tax revenues.
The plan, however, has not been officially announced by the government.
“The government wants to maintain a balanced budget and to provide the economy with the additional revenues needed to continue economic growth, while also preserving the rights and obligations of the existing movie industry,” the Finance Ministry said in an emailed statement.
The IFPTT’s Simon Tung said the survey was a clear sign that the government did not have the support of the industry, and had been trying “to squeeze us”.
“This is the most disappointing sign for us, that this government is not interested in the needs of the movie industry.
That’s the reality,” he wrote on Twitter.”
A survey is a good indicator of a company’s commitment to ensure the success of its business.”
The industry was already facing challenges due to a crackdown on movie piracy, the IFTTA said, noting that it was “extremely disappointing” that the ministry was trying to “extinguish the industry” by reducing film taxes.”They want