Commentary

Movie Tariffs Pose Threat To Studios As They Mull AI-Generated Performers

If the Trump Administration imposes tariffs on films made outside the U.S., veteran movie studios -- perhaps under ever more financial pressure -- need to have a new financial framework with some stickiness.

And no, I'm not thinking about more “Spider-Man” movie versions.

Movie studios are still heavily in a mode of rising costs -- especially for major brands' action/fantasy movies, with a focus on plenty of descriptive “computer-generated” scene action.

We are now exposed to a potential new term -- "AI-generated" films.

Heavy-hitting franchise movies can cost $200 million to $250 million. This can come from costs around the location, but also performers: High-profile actors with big name associations that will pull in consumers.

But now we have the likes of Tilly Norwood -- an AI-generated performer that its creators say is not a threat to real human actors.

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The Trump Administration's intent on tariffs -- or what many say is more commonly known as a tax -- will make studios' jobs a lot harder. This comes with a transitioning theatrical movie marketplace, one that is trying to find its footing in a rising streaming world.

Perhaps AI-generated performers in movies will start with experimental low-budget efforts that will find their way onto streamers -- one where platforms are in their own bit of transition, looking to find cheaper ways of producing content.

Trump wants to impose mind-bending 100% tariffs for U.S. made movies filmed in part outside the U.S. It’s crazy because it would hurt the U.S.-based companies -- unlike other tariffs aimed at foreign entities.

With regard to tariffs, Trump initially was mum on specifics. “When Trump sent out a tweet a couple of months ago, details were never provided. How do you rate something like a movie? Who ultimately gets charged for the tariff?" says entertainment lawyer Stephen Weizenecker of Barnes & Thornburg, speaking with Variety.

The movie business is complex-- with different scenes shot in many different locations, including effects and editing done in the U.S. and elsewhere.

And unlike other products made and produced in foreign countries and sold in the U.S. -- now subjected to tariffs -- the U.S. production movie business runs at significant trade surplus, with exports exceeding imports, of around $16 billion.

So shouldn’t that be a good business to help -- not hurt?

The bottom line for tariffs, according to analysts, is that the cost would probably pass on to consumers.

So if your sometime $16 to $20 movie ticket would in theory leap to $40, what would this do to business? What could remedy this?

Well, Tilly Norwood, for one, is waiting for her close up.

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