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-- stage human woman finance arm meanwhile Scalia missiles and that's about bin Laden knowing that this know about -- Opening this weekend Cadillac records from Columbia Pictures Hollywood -- hoping that beyoncé and Adrien Brody star power gonna pay off -- the box office.
Because quite frankly the studios really need the cash like housing and banking the business of making movies is also -- -- credit crunch.
Paramount Viacom NBC universal all announcing cuts but will the cuts be enough.
Does Hollywood need a major restructuring.
And what about a bailout from DC all questions fit for just one -- scoreboards favorite Hollywood money man.
Producer Peter -- good to see -- Peter thanks for governor.
My pleasure so you say that as far as Hollywood is concerned.
Maybe like financials the worst is yet the -- why do you say that.
Well this you know asset class all of the movies television.
All of these asset classes were thought to be immune from recession and now they were thought to be recession resistant.
And now -- may be just a cold but it looks like it's -- full blown -- And most these places haven't taken shots yet for -- and the Nigeria is nothing is immune to it and I think what you're gonna -- is not just the cutting of the administration.
And the number of pictures and the costs of the pictures but all across the board.
Some of the money elbow flying the -- and what's gonna happen when Tom -- wants the blind and and -- -- -- wants the plane everywhere under every rock these folks are turning to try to say capital.
All right -- we're gonna talk about specifics the -- I've met that have tried it straight out Hollywood but.
-- there's some studios that they're better off than others right now.
Yes there they are some of them like Warners and Disney.
Took some action.
Over a year ago I acts and the whole number of jobs and categories.
But they didn't realize how bad it was going to be so they're gonna have to take.
Another look at not taking another look is seeing these emails going out today.
Cutting everything the party is subscriptions.
Travel stay at -- hotels they're telling everybody that's the new lexicon that's what it is.
Now what that means that really means is beneath the capitol in movie -- is especially is an enormous capital.
-- -- uses an enormous amounts of capital all the way through the food chain from the making of the pictures the average effective.
The picture viewer and I talking is 75 million dollars the market and another seven driver on your million dollars you're talking about the studio pictures.
Enormous amounts of capital really needed.
And they're looking down the Biden saying where is about a company general Peter.
We we make a lot of movies here in New York, New York has all these tax deferral so that a lot of film companies come here.
And I have -- ought to tell you John probably gonna get a lot of people mad at me but.
But I see a lot of guys sitting down most of the damage that you see all kinds of crews that seemed to be first went outside observer overstaffed.
I mean it seems like they waste a lot of money -- these shoots MI wrong.
Well I think efficiency would be a good thing if proficiency really comes from this if is really a thoughtful way of spending the money better.
Of trying to utilize the funds and -- Affective way yes that'll be a good result but right now we're trying to keep the body alive we're really looking and say it's -- -- -- I don't.
It is that desperate were you say that there you know you're there are some companies that are just gonna die in the mind.
That you're gonna see a number of companies really take it in the -- look at stocks will be some of these companies.
They're at such -- all time lows the very vulnerable I mean you look at all across the board the question is going to be.
What are they gonna do to change video a worthy incumbents they're going to have to be a challenge they don't incumbency is not just about -- These things will milk cows they gave milk.
Now they got a tournament to a barbecue by cutting a leg off -- off a -- awful lot that had to be very careful because.
Movie is -- still want not a need for the public.
Nowadays a lot of this has to do with the fact that it's not only the United States we have become to rely for good and sometimes for bad like now.
On international sales how much of what is happening overseas is affecting the studios.
Well the thought is that most of the impact of this this rapid downturn of this.
Recession depression move.
Happened first in the US and we'll have a -- effect in the rest of the world so that we in the movie business where international play section of our.
An important part maybe 50% of the revenues come from overseas.
-- think that it's going to happen until later that we have to be prepared for but what's interesting is the second bite.
Out of them -- stuff.
Comes the constant change we -- -- dollar moved from and being Euro moved from almost a dollar seventy vowed to adults -- -- All the pound go from true and true to -- dollar.
25 or whatever the spread as those of enormous spreads that affect what the revenue potential.
But these films and these products.
-- of foreign revenue and what it used to be but let me let me ask -- a question a lot of it's it may sound far fetched.
But when you see what's happened over the past couple of months -- it may not be that far fetched subsidies might you have a delegation going from Molly Wood.
To Washington to say hey look Hollywood is is as American as Detroit is.
If were standing to lose hundreds of thousands of jobs don't we deserve subsidy or bailout just -- way we're in Detroit got one.
I think there you can hear the rattled the begging cop coming towards Washington but unfortunately.
I think it's going to be.
And immune -- the play I I think -- -- very hard that the bill what happens on the state level a lot of these states which have lost a lot of revenue and tax revenue.
From all of their businesses.
I've got to say we may not be able to provide the subsidy to these movies that come -- -- that great it's a great law.
For Hollywood to reduce its costs by going to states providing subsidies and even some of the foreign countries that.
That provide -- You look at the biggest companies like Spielberg there's no bigger star than Spielberg right -- raised 500 million dollars from Indian money -- gotta match it with something like one to one.
Like 500 million dollars in debt is gonna have to -- to a lot of begging -- looking to find that.
Indeed he is Peter -- by the way if anybody's had dental surgery recently you know how painful it is despite the dental surgery.
Peter Gerber came -- where -- his standup guy to -- -- a scoreboard tonight Peter thank you very much.
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