Hollywood’s Coronavirus Infection Cost $20 Billion
The incubation period is over for Hollywood
Previously, we wrote about how Coronavirus infected Hollywood and how unprepared they are to deal with it. It seems like that infection is getting worse. March is turning out to be a horrible month for the box office, and it doesn’t look like getting any better. This is because Hollywood is set to lose $20 Billion by the end of the year! So, let’s take a look at that figure closely.
$7 Billion loss right now – $20 Billion by the end of the year
The travel ban on Europe by Donald Trump changed everything for Hollywood. After that announcement, Disney immediately canceled the London Premier Mulan. That travel ban finished any chances of its release. After all, a $200 million budget film deserves a world-wide release. That’s the only way it can repay its investors. However, with all 70,000 theatres of China shut down, chances of release looked bleak. This was because Disney made Mulan, especially for the Chinese market. But the overall losses incurred by Hollywood paint a very grim picture.
According to Hollywood Reporter, Hollywood has taken a hit of $7 billion till now because of COVID-19. It can rise up to $10 billion if things stay like this till May. However, if the shutdown continues till the end of the year then a $20 billion is on the table.
The movies affected by COVID-19
So far, the global pandemic has affected the following films in Hollywood, apart from Mulan. And it’s an expensive list…
James Bond No Time to Die delayed till November:
MGM has pushed the film’s release date to November, and it’s going to set back the film somewhere around 30$ to $50 million. All the money paid for ads has gone down the drain because their payments are done in advance. Had the film been released, it would have taken out 30% of it’s expected international box office earnings. That’s close to $300 million!
A Quiet Place II’s Release Cancelled:
The latest Hollywood mystery thriller, starring John Krasinski and Emily Blunt, was canceled 8 days before release. This move will reportedly cost Paramount Pictures $30 million.
Fast and the Furious 9 Delayed:
The film has been pushed to 2021. However, the losses aren’t as high because there was a lot of time before the release of the film. But we must not forget the losses of the ads. All 3 of these films lost a total of $15 million from the canceled Super Bowl ads.
These were the big names that have had delayed releases. However, there are some equally big films that have had their production delayed too.
Disney has had a few major productions paused for the time being. These include Marvel Studios’ Shang-Chi and the Legend of the Ten Rings and the Little Mermaid. Disney is set to take a hit of $300,000 to $500,000 every day because of the delay.
Similarly, Warner Bro.s have also delayed their Elvis Presley biopic. Sadly enough, the film was starring Tom Hanks for the lead role. After Hank’s positive testing, chances of the film’s production resuming seem incredibly slim.
Television and Broadway
The Pandemic has affected more than just films in Hollywood. Television and Broadway both have taken severe hits too, however, its harder to calculate a figure. Similarly, Broadway has lost revenues of around $100 million during this debacle.
Broadcast television has also taken sizable financial losses. CBS and ABC will have to cover huge losses from the canceled March Madness and NBA Finals cancellation.
Is Insurance helping?
Previously, we also mentioned how insurance hasn’t helped production houses in covering the costs. It seems like that has taken a toll on Hollywood too. Attorney John Tomlinson, who specializes in insurance and risk management law said:
If we are talking in terms of protecting lost revenue due to enforced shutdown or scale-down of operations, some property policies may offer limited amounts of coverage, although many have specific communicable diseases exclusions.
These losses were inevitable, keeping Coronavirus in mind. Many of the larger production houses can easily absorb the damages. However, it’s the smaller investors and productions that suffer the most. Hollywood needs to have a comprehensible insurance policy, that can help them cover their losses. All the while, making sure that they do not run out of business. Small scale films are a lifeline for Hollywood, and their loss will have major consequences on Hollywood.