Hollywood is feeling the heat as the Chinese mainland announces plans to reduce imports of U.S. films, causing major American media companies’ stocks to tumble.
On April 10, shares of several leading U.S. film and media companies fell sharply. The Walt Disney Company and Warner Bros. Discovery, Inc. saw their stock prices drop by 6.79% and 12.53%, respectively.
At the market close on April 10, the stock performances of major U.S. media and entertainment companies were as follows:
The Walt Disney Company: Closed at $85.23, down $6.21 (–6.79%)
Comcast Corporation: Closed at $33.68, down $1.50 (–4.26%)
Netflix, Inc.: Closed at $921.17, down $24.30 (–2.57%)
Paramount Global: Closed at $10.92, down $0.22 (–1.97%)
Sony Group Corporation: Closed at $22.92, down $0.05 (–0.22%)
On Thursday, the Chinese mainland announced plans to moderately reduce the number of U.S. films imported. A spokesperson for the China Film Administration stated that the adjustment aligns with market principles and reflects audience preferences. The spokesperson added that the recent hikes in tariffs by the United States on Chinese imports are likely to impact Chinese audiences’ interest in U.S. movies.
As the world’s second-largest film market, the Chinese mainland has consistently pursued a high level of opening-up. “We will introduce more excellent films from other countries to meet market demand,” the spokesperson said.
