Why Hollywood Shouldn't Count on Much Relief From $2 Trillion Federal Bailout

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Why Hollywood Shouldn’t Count on Much Relief From $2 Trillion Federal Bailout

by J. Clara Chan | March 25, 2020 @ 7:53 AM

”The entertainment industry obviously has been hard hit by the current environment. But so too have a number of other industries,“ a bankruptcy lawyer tells TheWrap

The Trump White House and Congress struck a deal early Wednesday for an unprecedented $2 trillion economic rescue package in response to the ongoing coronavirus pandemic — but Hollywood shouldn’t expect to be high up on the list to receive an industry-wide bailout, public policy experts told TheWrap.

“The entertainment industry obviously has been hard hit by the current environment. But so too have a number of other industries,” said Brian L. Davidoff, a lead bankruptcy, reorganization and capital recovery lawyer at Greenberg Glusker. “If Congress is going to parcel out money to particular industries, I think, under those circumstances, it’s possible, but it just doesn’t seem to me that Hollywood has a special place over and above other industries like the leisure industry, like the restaurant industry.”

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According to the U.S. Bureau of Economic Analysis, arts, entertainment and recreation accounted for just 1.1% of the nation’s gross domestic product in 2018 — just over one third what the accommodation and food service sector contributed.

The stimulus package, which is expected to go to the Senate for a vote on Wednesday, includes a $367 billion loan program for small businesses impacted by the pandemic as well as $500 billion in loans for industries, states and cities. Individual American adults would also be eligible to receive a direct payment of $1,200.

Also Read: How Hollywood Lobbies Congress for Its Slice of the Coronavirus Bailout

Much of the debate between Democrat and Republican lawmakers has been over whether it’s best to support workers directly or through the businesses that employ them, Davidoff said. But Hollywood and its workers aren’t likely to have a leg up over comparable “leisure” industries when it comes to earmarked aid, Davidoff said, despite lobbying efforts from various guilds and Hollywood lobbying groups like the National Association of Theatre Owners, SAG-AFTRA, AFL-CIO, IATSE, Writers Guild of America, Directors Guild of America and the American Federation of Musicians.

But that doesn’t mean that entertainment industry businesses or workers would be left completely high and dry in Congress’ economic stabilization package.

Bob Hockett, a lawyer who regularly consults for the Federal Reserve Bank of New York and the International Monetary Fund, said workers in Hollywood’s gig economy who have been furloughed by the shutdown of film and TV productions, as well as the cancellations of concerts and theater performances, would most likely be supported through the universal basic income-style checks that lawmakers on both sides have been advocating for. Drafts of the Senate bill also include expanded federal unemployment insurance that would give the unemployed — including freelancers, gig workers and furloughed employees — $600 a week for four months. And on the state-level, employees in California whose jobs have been affected by the pandemic — regardless of industry — can also apply for unemployment through the state’s Employment Development Department.

Businesses that demonstrate need will also likely receive federal aid through industry-agnostic payroll or wage support, Hockett said. Hollywood’s small businesses like catering companies, postproduction facilities and independent cinemas — what Hockett called “smaller-fry entities” — could be eligible for government assistance to help cover the costs of their employees’ salaries or wages until they are able to reopen. But a mega cinema chain, however, might not be as likely to receive this kind of aid, Hockett said.

“Some of the movie house or cinema companies like AMC, or what have you, these are huge firms too,” Hockett said. “And it’s true that their business model is being especially hard hit right now because people are loath to go and sit in theaters and, in some cases, aren’t even permitted to do that. But it has to be remembered that those are not poor, hurting corporations. They’re huge.”

Still, as the economic rescue package is being finalized, there always remains the possibility that Hollywood’s bigger businesses could receive aid. But Hockett said he’d be “pretty skeptical” of anything being approved for the likes of a Disney-size business.

Also Read: Can Hollywood Freelancers Survive the Coronavirus Shutdowns?

Since no one knows when the virus might be contained or how long it will take for the economy to get back on its feet, unemployment in Hollywood could continue to grow for the next few months. And because of that, public policy experts said that industry change is inevitable, even if the end of the pandemic — and the scope of the damage it will cause — seems unpredictable.

“The fallout is going to be very, very significant. And I don’t think that anybody has a sense yet of how far that’s going to be. In talking to my clients and other professionals who work in this industry, it still appears like most people are like deer in headlights,” Davidoff said. “Ultimately, the industry will survive and it will adapt. But it’s going to take some time to get back on its feet.”

Eric Schiffer, the CEO of the private equity firm The Patriarch Organization, said this means that Hollywood needs to be “creative right now” and its affected workers must look to “opportunities outside of the industry.”

For some, that has meant bringing together colleagues in the industry to do creative work outside of an official production or show. Caleb Martin, a TV producer and music composer, said that he and some other furloughed musicians — including members of the Jonas Brothers’ horn section and the composer of the “PAW Patrol” theme song — have been seeking sponsors to support a series of music videos that they’re creating as a replacement to the gigs they would normally rely upon, as well as to provide some levity for homebound viewers during the pandemic.

Others, like casting director and intimacy coordinator Marci Liroff, are contemplating how they can market their skill set given the current environment and are hesitantly considering online teaching. “It feels weird to me to be asking actors to pay for things when they’re all out of work,” Liroff told TheWrap last week. “I don’t have a weekly paycheck. I’m totally gigging in the gig economy, scratching a living as an independent contractor going job to job.”

Also Read: UTA Cuts Salaries Across Company Amid Coronavirus Pandemic

If the economic downturn drags on, Hockett said the government could potentially look to the past for solutions. During the Great Depression, the government launched the Works Progress Administration to employ displaced workers across various industries, including the arts. The WPA employed actors, musicians, writers, artists and other entertainment-related workers to create public works of art, such as murals, sculptures and performances. (The WPA arts program also led to the creation of the National Foundation for the Arts and the National Endowment for the Humanities.)

“If you were able to do that in ways that were consistent with social distancing, so you don’t have a lot of people packed closely together, that would be a way of, in a sense, publicly aiding smaller-fry artists who aren’t already billionaire celebrities in a manner that basically enables them to kind of give back to the community,” Hockett said.

But even that may not be enough to support the thousands of furloughed or laid-off workers in the entertainment industry. And some have questioned why more of Hollywood’s giant corporations — beyond a select few — have not been willing to support their full- and part-time workers as the pandemic drags on.

“Most of the people that I know are definitely affected by it, but they come into the situation feeling very jaded about the studio even seeing it to be within their interest to care about the people that they contract,” Martin said. “I mean, you’re interviewing me and it’s occurred to me, ‘Huh, maybe these corporations can look at something other than the bottom line for once.’ That thought literally hadn’t occurred to me. That’s kind of how f—ed the mindset is.”

All the Movies Suspended or Delayed Due to Coronavirus Pandemic (Updating)

As the coronavirus continues to spread, an increasing number of movies are delaying or suspending production. As the number of impacted movies grows, TheWrap felt it would be most informative to keep a running list.
Disney/MGM/Warner Bros.
"No Time to Die"

MGM, Universal and Bond producers Michael G Wilson and Barbara Broccoli announced that after careful consideration and thorough evaluation of the global theatrical marketplace, the release of "No Time to Die" will be postponed until November 2020.
Photo credit: Universal
"A Quiet Place Part II"

Director John Krasinski announced on Instagram that the horror sequel's March theatrical release would be delayed amid the growing spread of the coronavirus around the globe. Paramount has now dated the film for release on Sept. 4.
Photo credit: Paramount
“Peter Rabbit 2: The Runaway”

"Peter Rabbit 2: The Runaway" was one of the first films delayed as part of the coronavirus, with Sony pushing its late March release to Aug. 7. But as the shutdowns continued, Sony juggled its release slate so that the family film will now open Jan. 15, 2021.
Photo credit: Sony
"Fast and Furious 9"

The release of the next “Fast & Furious” installment, “F9,” has been delayed from May 22 to now opening on April 2, 2021.
Photo credit: Universal
"The Lovebirds"

Paramount postponed the April 3 theatrical release of the romantic comedy “The Lovebirds" starring Issa Rae and Kumail Nanjiani after its SXSW premiere was also canceled. Netflix then acquired the film from Paramount and debuted it on May 22.
Paramount/Netflix
"Blue Story"

Paramount postponed the theatrical release UK gang film "Blue Story," which was set to open on March 20. The film then premiered on digital on May 5.
Photo credit: Paramount
"The Artist's Wife"

Strand Releasing and Water's End Productions delayed the limited release of the Bruce Dern and Lena Olin film "The Artist's Wife." The film was meant to open in New York on April 3 in Los Angeles on April 10 and in San Francisco on April 17. No new release date has been set.
Strand Releasing
"The Truth"

Hirokazu Kore-eda's film "The Truth" from IFC Films will postpone its March 20 domestic release to now open at an unspecified date in summer 2020. The film is in both French and English starring Catherine Deneuve, Juliette Binoche and Ethan Hawke and has already opened in some overseas markets. IFC Films has set a new release date for July 3.
IFC Films
"Mulan"

Disney postponed the release of its blockbuster, live-action remake of the animated film "Mulan" from March 27 to now open on July 24. The shift was part of a big shuffle of films Disney made to its release calendar on April 3.
Disney
"The New Mutants"

After numerous delays, 20th Century's X-Men spinoff "The New Mutants" was also pushed back by Disney "out of an abundance of caution." The film from director Josh Boone was meant to open April 3. The film will now open Aug. 28, 2020.
20th Century Studios
"Antlers"

"Antlers," an indie horror film from director Scott Cooper starring Keri Russell, was also pushed back by Disney and Searchlight Pictures from its April 17 release. No new release date has been set.
Searchlight Pictures
"Black Widow" and the MCU

In a restructuring of its entire release calendar, Disney pushed back every Marvel movie in the cinematic universe. "Black Widow" was meant to open on May 1, but will now shift back to the slot previously occupied by "The Eternals" on Nov. 6.“Eternals” is moving to February 12, 2021, “Shang-Chi and The Legend of the Ten Rings” will open May 7, 2021, and “Doctor Strange in the Multiverse of Madness” is shifting to Nov. 5, 2021. The changes also affected Marvel's slate for 2022 with “Thor: Love and Thunder” opening Feb. 18, 2022, “Black Panther 2” shifting to May 8, 2022, and “Captain Marvel 2,” which was not previously dated, is now set for a July 8, 2022 release.
Marvel
Untitled Elvis Movie

Baz Luhrmann's Elvis Presley biopic starring Austin Butler ceased production in Australia after co-star Tom Hanks (playing Presley manager Col. Parker) and his wife, Rita Wilson, tested positive for COVID-19. The planned release date was also bumped back one month to now open Nov. 5, 2021.
Getty Images
"Mission: Impossible 7 and 8"

In late February, Paramount's action sequel halted production in Italy on the Tom Cruise action sequel. Paramount on April 24 also bumped the release dates of both films, with "M:I 7" moving to November 19, 2021 from its July 2021 release date, and the eighth film also moving back to Nov. 4, 2022 from its summer release.
Paramount Pictures
"The Nightingale"

Sony postponed the Budapest shoot of the drama starring real-life sisters Dakota and Elle Fanning.
Getty Images
"Birds of Paradise"

Amazon Studios halted production in Budapest on director Sarah Adina Smith's ballet drama.
Getty Images
"Jurassic World: Dominion"

Universal put a pause on production on the third "Jurassic World" in March after four weeks of shooting had been completed in the UK for a 20-week shoot. Production will resume on July 6, and the film is expected to be released on June 11, 2021.
Universal Pictures
"Flint Strong"

Universal also halted production on this boxing biopic starring Ice Cube and Ryan Destiny.
Getty Images
"Man From Toronto"

Sony delayed the start of production on the action comedy starring Kevin Hart and Woody Harrelson (who stepped in to replace Jason Statham).
"Official Competition"

Spanish studio Mediapro suspended production on the new comedy starring Penélope Cruz and Antonio Banderas.
Getty Images
"The Batman"

On March 14, Warner Bros. halted the U.K. production on Matt Reeve's DC Films reboot for at least two weeks. The film stars Robert Pattinson as the Caped Crusader. On April 20, Warner Bros. officially shifted the release date back four months to Oct. 1 from its originally planned June 2021 release date. The shift also pushed back some other DC titles, including "The Flash" to June 3, 2022 and "Shazam 2!" to Nov. 4, 2022.
Warner Bros.
"Samaritan"

On March 14, MGM paused production on the Sylvester Stallone thriller. The film had been shooting in Atlanta.
Getty Images
"Cinderella"

Sony's modernized take on "Cinderella" from director Kay Cannon and starring Camila Cabello will put its production on hiatus due to the travel ban extension to the UK. The film was shooting at Pinewood Studios.
Getty Images
"Fantastic Beasts 3"

The third installment of J.K. Rowling's "Fantastic Beasts" series that's spun off from the Harry Potter universe will postpone its production that was scheduled to begin in March in the U.K. The film stars Eddie Redmayne, Johnny Depp, Jude Law and Katherine Waterston.
Warner Bros.
"The Matrix 4"

Production on "The Matrix 4" was temporarily put on hold in March, an individual with knowledge told TheWrap. The sequel starring Keanu Reeves was in production in Berlin, Germany.
Warner Bros.
"First Cow"

After releasing Kelly Reichardt's "First Cow" in limited release on March 6, the distributor announced Monday it will re-release the film in theaters later this year.
A24
"Deerskin"

The theatrical release of the indie film "Deerskin" from director Quentin Dupieux starring Jean Dujardin has been postponed until further notice. Greenwich Entertainment meant to release the film on March 20 after it played at Cannes, TIFF and Fantastic Fest. The movie will now open via a virtual cinema offering on May 1.
Greenwich Entertainment
"Uncharted"

“Uncharted,” the film adaptation of the popular PlayStation video game franchise starring Tom Holland, Mark Wahlberg, and Antonio Banderas, was unable to begin production in March amid coronavirus concerns. As part of a larger shuffle of Sony's release slate, the most recent release date for the film was also shifted back from March 2021 to Oct. 8, 2021.
Getty Images/Naughty Dog
"The Climb"

Sony Pictures Classics' indie comedy "The Climb," which played at Sundance this year, was meant to hit theaters March 20 and will now be released on Oct. 9.
Sony Pictures Classics
"Avatar"

The sequels to James Cameron's four "Avatar" sequels delayed shooting in New Zealand indefinitely, according to the film's producer Jon Landau speaking to the New Zealand Herald. The executive team was to fly to Wellington, NZ on Friday but will remain in Los Angeles due to the coronavirus. Landau said he couldn't give an answer as to when production would resume and when the local Kiwi crew could get back to work. "If I told you we are going to know something in two weeks I'd be lying. I might not be wrong - even a broken clock is right twice a day. But I would be lying because I don't know," Landau said. "We're in the midst of a global crisis and this is not about the film industry. I think everybody needs to do now whatever we can do, as we say here, to flatten the curve."
20th Century Studios
"The Personal History of David Copperfield"

Searchlight Studios was meant to release "Veep" creator Armando Iannucci's comedic take on the Charles Dickens novel on May 8. It will now open in limited release on August 14.
Searchlight Pictures
"The Woman in the Window"

The Amy Adams mystery thriller from director Joe Wright, "The Woman in the Window" was meant to open in theaters on May 15 from 20th Century Studios. No new release date has been set.
20th Century Studios
"Bull"

The theatrical release of the Annie Silverstein indie drama "Bull" was postponed from its March 20 release and will now open on VOD and digital on May 1. The film has toured the festival circuit since making its debut at Cannes in 2019.
Samuel Goldwyn Films
"Minions: The Rise of Gru"

The latest "Minions" movie "The Rise of Gru" was postponed from its release date on July 3. Illumination Entertainment's Paris office was forced to shut down due to the coronavirus, so the film was not able to be finished in time. Universal will release the film on July 2, 2021, a full year after its initial date.
Universal
"Wonder Woman 1984"

The sequel to "Wonder Woman" starring Gal Gadot will now hit theaters on Oct. 2 after first being pushed back from its June 5 release date and again from Aug. 12.
Warner Bros.
"In the Heights"

The movie musical based on Lin-Manuel Miranda's stage production "In the Heights" was postponed by Warner Bros. from its June 26 release date and bumped to June 18, 2021.
Warner Bros.
"Malignant"

"Malignant," a horror film from director James Wan, was pushed indefinitely from its release date on Aug. 14 to clear the way for "Wonder Woman 1984" to open at the tail end of the summer.
Getty Images
"Peter Rabbit 2," "Morbius" and "Ghostbusters: Afterlife"

In a sweeping overhaul of its release slate, Sony moved three films it had scheduled for release this summer to the first quarter of 2021. The "Peter Rabbit" sequel will now be released in January 2021 while both "Morbius" and "Ghostbusters: Afterlife" have been moved to next March.
Sony
"Greyhound"

Sony has moved a WWII drama written by and starring Tom Hanks off of its mid-June release date and partnered with Apple to release the film on Apple TV+ in early July.
Sony
"Wicked"

Universal has removed the movie musical adaptation of “Wicked” from its release slate from its original date on Dec. 22, 2021, and will be redated at a later time.
Getty Images
"Sing 2"

Illumination’s “Sing 2” will now open in the place vacated by “Wicked” on Universal's release slate on Dec. 22, 2021.
Illumination
"Top Gun: Maverick"

The sequel to the 1985 hit starring Tom Cruise has been pushed back from June 24 to December 23, 2020.
Paramount
"Candyman"

Universal's horror film "Candyman" from director Nia DaCosta and produced by Jordan Peele will move from its June 12 release date to Sept. 25, 2020.
Universal
"Praise This"

The Will Packer-produced musical comedy "Praise This" about a church choir was delayed from its Sept. 25 release date and will be re-added to the slate by Universal at a later date.
Photographed by Ian Spanier for TheWrap
"The Spongebob Movie: Sponge On The Run"

Paramount originally shifted the animated "Spongebob" movie from its release date on May 22 to open on August 7, but it will now debut in early 2021 on premium VOD followed by the rebranded CBS All Access.
Paramount Animation
"Jungle Cruise"

With the shift of "Mulan," Disney moved the release of the Dwayne Johnson adventure comedy "Jungle Cruise" back a full year to July 30, 2021.
Disney
"Free Guy"

The Ryan Reynolds video game comedy was meant to open July 3 but will now open Dec. 11.
20th Century Fox/Disney
"The French Dispatch"

Director Wes Anderson’s “The French Dispatch” moved from July 24, 2020 to Oct. 16, 2020 as part of Disney's shift of its entire release calendar.
Searchlight Pictures
Untitled Indiana Jones

The fifth Indiana Jones movie starring Harrison Ford has already shifted its release date in response to Disney's wave of other release changes. It will now open July 29, 2022.
Paramount
"Nobody"

Universal's "Nobody," a revenge thriller and action movie starring Bob Odenkirk from the writer of "John Wick" and the producers of "Atomic Blonde," was delayed from its Aug. 14, 2020 release date to now open on Feb. 26, 2021. As a result, an untitled M. Night Shyamalan thriller that was slated for that day is now undated and will be re-added to the calendar later.
Photograph by Steven Gerlich for TheWrap
"Soul" and "Raya and the Last Dragon"

Disney and Pixar's "Soul" was moved from its June release date to open on Nov. 20. It's now opening near where the Disney Animation Studios film "Raya and the Last Dragon" was meant to open. That movie will now debut March 12, 2021. It filled the slot of an unnamed Disney live-action film that has now been removed from the slate.
Walt Disney Studios/Pixar
"Infinite"

The latest film from director Antoine Fuqua starring Mark Wahlberg, "Infinite," was pushed back by Paramount from its Aug. 7 release date to now open on Memorial Day weekend, May 28, 2021. The film is currently in post-production, and while "Infinite" wasn't explicitly pushed back due to the coronavirus, the new date allows the studio more time to ramp up the film's original intellectual property.
Getty Images
"The Many Saints of Newark"

The prequel to "The Sopranos" that follows a young Tony Soprano, played by James Gandolfini's son Michael Gandolfini, during the 1960s Newark riots was pushed to 2021, now opening on March 12, 2021 after originally being slated for a September 2020 release.
Getty Images
"King Richard"

The biopic about the life of tennis great Richard Williams starring Will Smith was pushed from its November 2020 release date to now opening almost a full year later on Nov. 19, 2021.
Getty Images
"Venom: Let There Be Carnage"

While the "Venom" sequel did get a new title from Sony in its latest update, "Let There Be Carnage," it also found itself pushed back from an October release to now open on June 25, 2021.
Sony
"Dungeons & Dragons"

Paramount's movie based on the "Dungeons & Dragons" game from the directors of "Game Night," John Francis Daley and Jonathan Goldstein, has been delayed from a November 2021 release date to May 27, 2022.
Getty Images
"Spell"

Paramount's horror film starring Omari Hardwick that was set for release in August of this year was pulled from the release calendar, with no new date set as of yet.
Starz
"John Wick: Chapter 4"

The fourth movie in the Keanu Reeves action franchise "John Wick" was moved back a full year to now open May 27, 2022. Lionsgate also juggled several of its other big releases to 2021 and 2022, including "Fatale" (10/30/20), "Voyagers" (11/25/20), "The Asset" (4/23/21), "Barb and Star Go to Vista Del Mar" (7/16/21), "The Hitman's Wife's Bodyguard" (8/20/21) and "American Underdog: The Kurt Warner Story" (12/10/21). Further, the films "Run" and "Jesus Revolution" are both without release dates.
Lionsgate
"Antebellum"

Lionsgate's horror movie "Antebellum" starring Janelle Monáe was moved from its April release date to now being the studio's next most earliest release in 2020 on Aug. 21.
Lionsgate
"The Forever Purge"

The fifth film in "The Purge" horror franchise was meant to open in theaters on July 10 of this year but was pulled from the release calendar. No new date has been set as of yet.
Universal
"Kajillionaire"

"Kajillionaire," the latest film from director Miranda July that made its debut at Sundance and stars Debra Winger, Richard Jenkins and Evan Rachel Wood, has been pushed from its planned June release date to now open Sept. 18, 2020. However, the film will still open theatrically in a limited release.
Courtesy of Sundance Institute/Focus Features
"Everybody's Talking About Jamie"

20th Century Studios' adaptation of the stage musical about a teenage drag queen stars Max Harwood and Richard E. Grant. It was meant to open Oct. 23, 2020 but will now open Jan. 22, 2021.
Getty Images
"The Beatles: Get Back"

"The Beatles: Get Back," a documentary from Peter Jackson about the Fab Four's time recording the "Let It Be" album and culminating in their historic rooftop concert, was pushed back from a fall release on Sept. 4, 2020 to now open Aug. 27, 2021.
Photo Courtesy of Apple Corps Ltd.
"The Broken Hearts Gallery"

Selena Gomez-produced rom-com “The Broken Hearts Gallery” is the story of Lucy, a 20-something art gallery assistant living in New York who, after her latest breakup, decides to create a pop-up art space of artifacts from past relationships. The film which was scheduled to be released on Aug. 7, has been pulled from the release schedule with its release date to be determined.
"Greenland"

“Greenland,” a disaster thriller which stars Gerard Butler, along with the rest of humanity, tries to escape a massive comet that threatens to make all life on Earth extinct. Originally scheduled to be released on August 14, the film has been pushed a month to September 25.

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Release slates for 2021 and beyond are taking shape as studios look to write off summer 2020

As the coronavirus continues to spread, an increasing number of movies are delaying or suspending production. As the number of impacted movies grows, TheWrap felt it would be most informative to keep a running list.

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