The $200 Billion Industry That Is Getting Wrecked By COVID-19

We know that many industries are suffering from the effects of the shut down due to COVID-19. There is one industry, that is $200 billion, that nobody seems to be talking about.

The film and television is basically at a standstill. Many are aware that movie theaters are closed, but few follow it through to movie production.

Since the COVID-19 outbreak, film and television production came to a standstill. While some areas started opening, this industry is still suffering.

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One of the challenges is that a production crew can be shut down by health officials. This creates a major problem for production studios when it comes to insurance. As we can expect, when dealing with production costs that can reach 9 figures, companies look to cover themselves.

Unfortunately, if a production is shut down due to COVID-19, this is not covered by insurance. This puts starting projects on hold.

Most are unaware of production schedules. This will become evident when the fall season is missing new episodes of people's favorite shows. Also, think of the difficulty in having award shows when films are not being made.

While few are going to fret about a bunch of Hollywood starlets being out of work for a while, this does affect a lot more than just the big names. Production crews are filled with hard working people who are struggling to get by. Like most, they have bills to pay and, if they are in California, suffer from high living costs.

The tentacles could reach many levels. We will likely see the networks running into issues without new content to present in the fall. This will filter through to advertising sales, affecting personnel in those departments.

When we think of the economic impact of this shut down, it gets baffling. Trillions of dollars is being destroyed which is falling upon the shoulders of middle and lower class families. They are the ones with little room to maneuver in an economic downturn.

What is sad is that taxes will be heading up as local governments try to make up for lost tax revenue. Those without the means to hire tax experts will end up having to carry the extra costs. This is one of the issues with our current system. The ultra wealthy tend to be exempt since they can afford the top level tax experts to utilize the intentional loopholes that exist.

A couple hundred billion here and a couple hundred billion there tends to add up over time.

It looks like the television and movie production industry is going to be very slow to open back up.

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