Tariffs in film history have a long history, smaller less popular filmmaking countries than the United States of America have implemented them to increase local production so there are less imported films abroad and it works seemingly about half the time if the citizens pay to see the new movies. In 1947, the United Kingdom imposed a 75% customs tax, primarily to keep films made in by the United States at bay to make sure their country was creating and making money off of their own culture and ideas. A more common practice was, instead of tariffs, to implement quotas that mandated screening films produced within the country. Almost all of these quota systems were to prevent Hollywood dominance in their entertainment industry. They were implemented in Amazing moviemaking countries like Brazil, France, Italy, Japan, South Korea, and many others. These quotas were very effective in getting people in their own country to see domestic films, despite American movies still being very popular abroad.
One of the most well known quotas is China’s current system under the Communist Regime. China only releases 34 foreign films per year which are only permitted to a 25 percent share of all ticket sales. Because China is such a huge market, 1.4 billion people who could feasibly go to the movies and buy a ticket, it’s a really big deal. Because the government is so controlling and basically autocratic, the movies they do release do not tend to criticize the government or officials in the least, saying their film market isn’t necessarily free artistic expression. It is similar to how the Soviet Union controlled movie content shown in theatres, although they didn’t stick to a particular quota.
However, American citizens today already pay to see the movies we make primarily here in the United States. We have a much stronger economic strength through our great motion pictures which are in high demand worldwide already. So much so that Hollywood and independent American companies often can work around quotas and tariffs by helping fund and make movies for international productions due to our technical expertise, strong economy that helps finance, or even American star power that gets foreigners demanding to see American-made movies.
Tariffs proposed by the United States recently have often been received by other countries retaliating. A lot of American movies are funded partially through international pre-sales and sales, so any kind of retaliation may decrease our overall output.
Now, the movie industry has been in a downturn due to the tech industry stopping competing in the streaming market, due to the recession and the extended Hollywood union strikes that cut off a lot of work over two years time. Two streamers seem confident in their place in the industry at the moment: Netflix and Amazon Prime. The others don't know where they fit yet and have eased on spending to get a top spot. There's more room for streamers, but too many players. Likely consolidation will help the other big players. On the other hand, niche players seem to be holding on stronger and still creating a slower business and finding spots for independent streaming.
We talk a bit about protectionism on our podcast, Feature & a short, in the 1930's Fresh Air Award episode. Take a listen and inform yourself a bit about cinema history.
Writer’s biography
Justin Joseph Hall, from Brooklyn, Fourwind Films continues to explore statistically underrepresented points of view with emotional depth.