On January 16, before taking office, U.S. President Donald Trump announced that famous actors Jon Voight, Mel Gibson, and Sylvester Stallone would be appointed as Hollywood “envoys,” with the goal of “bringing back the overseas business Hollywood has lost over the past four years, bigger, better, and stronger than ever before.” Hollywood, having suffered from a series of strikes, budget cuts, poor box office sales, business losses, and wildfires, is in a downturn. Reactions to Trump’s symbolic appointments have been mixed: some have mocked the move, while others have found the president’s attention to the U.S. film industry “refreshing.” Some argue that American cinema, which once dominated the world, was a successful blend of creativity and American values, but its global cultural influence is now rapidly waning. Voices from various sectors in the U.S. are offering complex opinions on how the “American story” should be written in the future.
Leading Hollywood Back to Its Golden Age?
After announcing the “appointments” of Voight, Gibson, and Stallone on the “Truth Social” platform, Trump wrote: “These three talented individuals will be my eyes and ears, and I will follow their advice. Like the United States itself, this will lead Hollywood back to its golden age!”
The latest report from the BBC stated that all three stars are linked to Trump and his campaign. 69-year-old Gibson expressed surprise upon hearing the “appointment” news but stated his willingness to “fulfill his civic duty” and “contribute to the country.” Gibson, known for his roles in Braveheart and Mad Max, released a video supporting Trump just before last year’s election. 78-year-old Stallone, famous for playing the titular character in the Rocky series, attended a post-election celebration at Trump’s Mar-a-Lago resort in Florida and compared Trump to “a second George Washington.” The now 86-year-old Voight, who starred in Midnight Cowboy and Mission: Impossible, has long been a supporter of Trump, calling him “the greatest president since Abraham Lincoln.”
“Trump’s relationship with Hollywood has always been tense,” the BBC reported. Hollywood analyst Lucas Shaw revealed that since 2004, Hollywood had helped Trump shape his “sharp businessman” image through the reality show The Apprentice, but after he was elected president, his political views clashed with most of the industry. Hollywood tends to support the Democratic Party rather than the Republican Party, which made it a frequent target of Trump’s criticism. He depicted industry professionals as “rich people who don’t care about the public’s interests.” During his first term, Trump criticized the film industry for being “racist” and accused Hollywood of producing “content that incites violence and division,” which “greatly harmed the country.” Moreover, his policies on immigration, climate change, and other issues faced sharp criticism from well-known Hollywood stars like Meryl Streep and Robert De Niro.
Several U.S. media outlets reported that in recent years, due to the impacts of the COVID-19 pandemic, major strikes, and competition from streaming services, Hollywood has been in a prolonged slump, and these three “ambassadors” are unlikely to help the industry recover. Shaw believes that “Trump views these three superstars as allies, who he can use to talk about Hollywood’s transformation,” but they are unlikely to address specific issues, such as improving streaming profitability or increasing Chinese imports of Hollywood films. Rolling Stone magazine reported that while any talented individual might lead Hollywood back to its golden age, it’s certainly not Voight, Gibson, Stallone, or Trump.
The Growing Worry Over “Runaway Productions”
According to Variety magazine, Trump’s announcement of these “appointments” was made just four days before his official inauguration, during the height of devastating wildfires in Southern California, which destroyed thousands of homes and businesses, with recovery expected to take up to $250 billion in damages. Gibson himself lost his home in the fires, and in response to Trump’s “appointment,” he jokingly asked, “Could this position come with an ambassador’s residence?”
The Financial Times noted that the wildfires had thrown Hollywood’s film and television industry into an unprecedented crisis. Although the fires didn’t directly destroy major Hollywood studios like Sony Pictures, Disney, and Warner Bros., shooting schedules had to be paused. Additionally, the fires delayed preparations for the Academy Awards.
Industry insiders believe that while the business interruption caused by the fires is temporary, the more serious, long-term issue is the diminishing appeal of Hollywood as a filmmaking center. Philip Sokoloski, a spokesperson for FilmLA, the organization responsible for issuing film production permits in Los Angeles, said that over the past five years, the number of productions in every category tracked by the organization had decreased by double digits, “in some cases, by as much as 50%.”
In July 2023, after failing to reach a new contract with the American Film and Television Producers Alliance, the American Federation of Musicians and the Screen Actors Guild announced a strike, marking the first full-scale industry-wide strike in Hollywood in 63 years. Even though many hoped the industry would recover after the strike ended, the reality is that film production and box office performance in 2024 are even worse than during the strike period. Data shows that in 2024, domestic box office revenue in the U.S. was $8.7 billion, a 3.3% decrease from 2023 and a 23.5% drop from 2019 (the last full year before the pandemic, when box office revenue was $11.3 billion).
In an article published in The New York Times in February last year, it was stated that the number of television series being produced in Hollywood was also declining, signaling the “end of the TV peak.” By mid-2022, Wall Street had lost interest in the strategy of entertainment companies producing new series at any cost, leading major studios to sharply reduce their orders. Google and Facebook (now Meta) had been actively investing in television production five years ago but have now mostly stopped. The 2023 strike further led to a months-long halt in the production of scripted series, dramatically slowing the release of new shows. TV networks, such as USA Network, Comedy Central, and MTV, which once launched many original shows, saw their viewership drop significantly.
“People are worried that the century-old ecosystem of screenwriters, actors, producers, and agents in Los Angeles may begin to collapse,” the Financial Times reported. Many Hollywood professionals have been forced to switch careers or leave Los Angeles due to a lack of job opportunities. Some have even had to sell their homes, while others have become Uber drivers to make ends meet. “Surviving until 2025” has become their new mantra. An independent film producer told Variety that while he doesn’t care about Trump’s political views, he admits that “hearing the president’s focus on getting the movie industry back on track and returning to Los Angeles is refreshing.” This producer, who shot a film about the history of Los Angeles last year, explained: “We had to shoot the entire movie in Bulgaria because the costs were half.”
What this producer describes is a common phenomenon in Hollywood. For many years, Hollywood studios have outsourced part or all of their production processes to other states in the U.S. or overseas. Forbes magazine’s website stated, “Hollywood has not always been the center of American cinema.” Movie production used to concentrate in California because of its geographical diversity—oceans, deserts, mountains, and forests, as well as year-round favorable outdoor filming conditions. However, with globalization, the location choices for film production have become more diversified.
The film industry calls this outsourcing “runaway production,” which comes in two types: one is “creative runaway,” where films are conceived in the U.S. but made elsewhere; the other is “economic runaway,” where filming takes place in other U.S. states or abroad due to labor cost advantages and government subsidies.
The Hollywood Reporter magazine noted that, “Although California is still recognized as the world’s most important film production center, its appeal as the top destination is gradually diminishing.” Within the U.S., states like New York and Georgia have introduced tax incentives to attract Hollywood investment. In contrast, California is the only state that prohibits any tax incentives above the standard cost. In recent years, approximately 71% of projects have moved out of state because they couldn’t obtain California’s tax incentives.
Among overseas filming locations, Canada is a prime example. Its 20% tax rebate policy, distinct four-season climate, and excellent infrastructure have earned it the nickname “Northern Hollywood,” making it a popular filming location for American films such as The Shape of Water. Australia, known for its low costs, became the filming location for Warner Bros.’ The Matrix. The UK also implements a 20% film tax rebate system, and Adrian Wootton, Chairman of the British Film Commission, stated, “In 2022, we received nearly £6 billion in foreign investment, most of which came from the U.S., marking the largest investment ever.” The Times reported that Disney also received £356 million in tax relief for filming Star Wars in the UK.
However, this “runaway production” is becoming an increasing concern for the U.S. film industry and the California government. Variety reported in October last year that U.S. Senator Adam Schiff, before taking office, sent a letter to the U.S. Bureau of Economic Analysis and the Bureau of Labor Statistics seeking data on how overseas incentives affect domestic industries. In his letter, Schiff said, “To maintain the U.S.’s leading position in the film production industry and stimulate American jobs, we must introduce competitive incentives.” California Governor Gavin Newsom’s website also published a statement noting, “From 2020 to 2024, limited tax relief funding and increased competition from other states and countries directly impacted California’s employment and local economy.” In October last year, Newsom announced a proposal to expand California’s film tax credit program to $750 million per year, a significant increase from the current $330 million, aiming to “keep film production jobs in California.”
Has Silicon Valley Taken Over Entertainment?
“Hollywood stars don’t talk politics at the Golden Globe Awards,” The New York Times reported. The Golden Globe Awards earlier this month were supposed to be a place for stars to speak out on progressive causes, but this time, almost no one made comments, and “Hollywood raised the white flag in the cultural wars.” What’s more, Hollywood has started to show slight right-leaning tendencies, erasing some of the more radical elements from certain programs and making more films that could appeal to Trump supporters.
Israeli journalist Daniel Greenfield wrote, “American films once conquered the world; they were a successful fusion of creative talent and American values… But today, their cultural influence is rapidly becoming insignificant.” He believes Silicon Valley is replacing Hollywood, turning movies into “woke propaganda machines.” U.S. billionaire and former Paramount Pictures President Barry Diller also believes that Silicon Valley has surpassed Hollywood in its control over the entertainment industry.
Some argue that while Hollywood has long been known for its liberalism, many studio heads and producers are relatively conservative. They make films that appeal to a national audience, avoiding open offense or escalation of conflict. However, with the rise of streaming and “woke culture,” the film industry has become more radical. Hollywood has tried to use identity politics to reboot classic IPs, giving old works a facelift, but this only exposes the industry’s lack of inspiration.
There’s also debate over whether Hollywood can still represent American culture and the American people. For example, in the days leading up to the election last year, a film about Trump’s early life, The Rise to Power, was released. Trump’s team believes the movie is filled with stories fabricated by Hollywood elites, reflecting Hollywood’s long-standing liberal bias against him. The Wall Street Journal reported that due to the controversial subject matter, the film faced numerous difficulties in production
. With a lack of adequate studio investment and problems with distribution, the movie, despite its political edge, is unlikely to be a hit. Nonetheless, Trump’s team insists that the project was an important move in countering Hollywood’s anti-Trump stance.
Despite these difficulties, it is undeniable that Hollywood’s cultural influence continues to be a global force, but it faces growing competition. And, as Shaw points out, Trump’s attempt to inject new life into the industry may end up being no more than a PR move. The film industry needs to confront the more pressing challenges of adapting to new technology, the shift to streaming, and the rise of foreign film markets if it is to remain a leading force in global entertainment.
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