In 2025, Hollywood is trying to adapt to the cultural changes caused by the development of technology and integrate AI into its work. European politicians are concerned about the possible imposition of tariffs on film imports to the United States and want to create their own alternative to popular American services.
At the same time, according to forecasts compiled by Statista, in 2025 the revenues of the global film industry will reach 86.1 billion. On average, they will grow by 4.9% annually until 2029.
Finam tells what difficulties the film market is facing in 2025.
Hollywood is in decline. Trump threatens new tariffs on foreign films
American President Donald Trump is seriously concerned about the "decline in Hollywood." He wrote on his Truth Social network that he had already instructed the Ministry of Commerce to deal with the issue and impose 100 percent duties on imports of foreign films to the United States. According to Trump, the film industry in the country is dying as American filmmakers are lured to other countries. For example, tax incentives for filming in Canada and Ireland encourage studios to move film production there. Many American blockbusters are being shot abroad, for example, the highest-grossing film of 2025 at the moment is Minecraft.
However, according to The Guardian, film industry experts believe that the main threat to the American film market comes not from foreign films, but from streaming services, which flourished during the pandemic years. It is streaming platforms such as Netflix that have lured the lion's share of moviegoers. In addition, the threat of AI is causing protests from screenwriters, actors, and other industry representatives.
Opponents of the tariff approach to cinema point out that the film industry is a globalized service sector, not a factory producing goods. Therefore, imposing 100% tariffs on films produced outside the US is just as wrong as imposing tariffs on Netflix, Amazon, or Apple subscriptions depending on the country where their streaming content was created. Imposing tariffs on films could lead to higher movie ticket prices and discourage American moviegoers, which would hurt both movie theaters and the industry as a whole.
Meanwhile, Hollywood film studios may face competition from Google. According to Business Insider, the search giant has launched an initiative called 100 Zeros, which will seek out film projects to produce and finance. As Reuters notes, the American tech giant is seeking to raise awareness of its new technologies, including artificial intelligence. Google already has a partnership with Range Media, which has announced that over the next 18 months, it will collaborate with Google to produce films about artificial intelligence.
Macron wants to replace Netflix with local content
The European market is dominated by American media platforms such as Netflix, Walt Disney, and Apple. Local streaming services, such as the French state-funded Salto and the Italian ITsART, are losing the market race to American players. However, the likely introduction of 100% tariffs on foreign films in the US does not suit European leaders. In particular, French President Emmanuel Macron wants to discuss this issue with German Chancellor Friedrich Merz. Whereas previously the French leader simply financed American services so that they would show more local content, he is now considering a local European alternative capable of competing with popular streaming platforms from the US.
French and German leaders see this as a way to protect European culture and democracy. Macron and Merz want to work together to develop the Franco-German television and radio company ARTE, founded by their predecessors François Mitterrand and Helmut Kohl. According to Bloomberg, this company is usually associated with intellectual content such as opera. However, it has proven that it can attract millions of viewers with online heavy metal concerts. This step could be the first serious decision capable of leading to the consolidation of European media companies. Bloomberg Intelligence analyst Tom Ward sees obstacles in the form of regulation, language barriers, and consumer preferences. According to the expert, the real “Netflix killer” will not appear in Europe anytime soon. However, inaction could cost Europeans dearly in the tariff war with the US.
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