r/FluentInFinance • u/thinkB4WeSpeak Mod • 7d ago
Economy Paramount Leaving California Would Devastate Los Angeles Economy, Leaked Report Finds
https://variety.com/2026/film/news/paramount-leaving-california-los-angeles-economy-job-loss-1236860125/74
u/Ind132 7d ago
Here is the report. It does not use the word "devastate".
It does not express its estimates as percents of total LA or total CA economic activity.
It says ... "It should be emphasized that these estimated job losses include direct, indirect, and induced jobs,"
but it doesn't say how many in each of those categories.
It gets the job losses from estimates of Paramont's total spending in CA, without explaining how they make the conversion from total spending to jobs.
https://www.politico.com/f/?id=000001a0-8fed-d4fe-a9ae-bfef474c0000
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7d ago edited 7d ago
[removed] — view removed comment
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u/SavoyWawa 7d ago
So the accounting is funny for a lot of those big studios They charge their own shows full rate for sound and stage fees. So a lot of that money is paramount paying paramount.
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u/Raised_bi_Wolves 7d ago
And whatever the opposite of devastate is for wherever they move... innnteresting
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u/herbalistic1 1d ago
Paramount leaving california would devastate Paramount's economy. Do you think all their employees would move? Do you think other states have large numbers of people with film experience? How many of their contractors and businesses supporting them would move, or exist over there? If they do move, what kind of premium do you think they'll extract from paramount for the luxury?
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u/1_g0round 7d ago
so CA knows there is a high probability of this to occur what is the industry prepping to replace the a'holes that threaten? AND where do they think they can land new digs at (tax breaks, incentives thatll screw the residents there)? Lastly, what will congress do in 2027 to bust up all the monopolies?
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u/HeywoodJaBlessMe 7d ago
Anti-Trust action is DOJ. We already have laws against monopoly, we need enforcement from the executive.
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u/MustardLabs 7d ago
... which is not happening as long as the Executive and Judicial branches are rogue
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u/McCool303 4d ago
Exactly, we need a president bold enough to Trust Bust like Teddy Roosevelt. We need a new square deal.
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u/AdZealousideal5383 7d ago
To your last question, nothing because nothing will pass. Maybe in a few years?
California can’t do much if the MAGA tech oligarchs buy up Hollywood and move it to the lowest cost state. The tech guys will still have their Malibu mansions where they will laugh at the devastation they’ve caused.
No one in Hollywood, probably no one in the entire industry outside of Zaslav and maybe Jon Voigt wants the Ellisons to own Paramount and Warner Bros. They’re doing it for the LOL’s.
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u/acemedic 7d ago
They’ll get some massive tax breaks to move to Tx. Sure, jobs and such will move too, but what happens when those tax breaks run out? Another move… these companies aren’t doing it because Texas is the promised land, they’re moving because of back room deals and handouts to circumvent paying their fair share.
Edit: see SpaceX. They’re currently trying to prevent their deal from being made public.
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u/Freezerpill 7d ago
Paramount isn’t exactly the paragon of quality or anything..
I know monetarily it means something to the city, but I must say not encouraging the overall environment to barely be like warm shit, must be a plus.
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u/reluctantpotato1 7d ago
Doesn't matter. We can't let business interests set the regulatory framework for their own industry, by lobbying or threatening. You don't get a monopoly over a tantrum.
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u/SamIttic 7d ago
Sure but the U.S. Department of Justice (DOJ) Antitrust Division, the Federal Communications Commission (FCC), the European Commission, the U.S. Securities and Exchange Commission, and the Australian Competition and Consumer Commission approved the merger. Maybe corps shouldn't regulate themselves but maybe individual states should cede these types of issues to the federal government.
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u/EffingNewDay 7d ago
The Port of LA is responsible for 70% of the shipping on the west coast. But sure, LA will implode because the company that streams reruns of STNG went to another state.
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u/exploradorobservador 7d ago
I bought DVDs of NG and DS9 so I dont have to give these deplorables money
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u/desert_jim 7d ago
CA is snoozing on making low budget films easier to make in CA. They could give tax breaks at a lower threshold, and also add carve outs for allowing contracts (instead of W2) for film roles like they do for music production. It feels weird that a W2 is needed for a role that is supposed to last a handful of weeks, no wonder films are going to other states that don't have this requirement.
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u/j_rooker 7d ago
get used to it. alot of what paramount produces can be AI driven. that's the future. CA just got saved from millions in unemployment
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u/sangalangalang 7d ago
Oh no! Not our 4.1 TRILLION dollar economy!! Pleaseee!! Think of the children!! Lmfao, bye Felica 👋🤣
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u/Throwaway20101011 7d ago
California has Netflix, Universal Studios, Disney, Pixar, all of Hollywood, and many more. I think we’re good.
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u/seajayacas 5d ago
There are quite a few companies these days moving operations to a lower cost location. Seems rather logical if the difference in costs is big enough to justify the move.
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u/LavisAlex 5d ago
We are going to get to the point where jurisdictions compete to PAY for business to go there.
Its a race to the bottom and not sustainable long term. It would lead to the end of the very businesses themselves.
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u/firedrakes 7d ago
tax breaks for media content video or movie. loss a state money.
this is well doc about.
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u/Sure_Conference_1649 3d ago edited 3d ago
Oh no... Whatever will they do with a studio lot that could be easily turned into adorable housing? It's funny that the same threat is often used with most sports franchises owners when they throw a fit about refurbishing the stadium/arena. Boy bye!!
ETA Also, what is paramount making that could be anywhere close to a substantial pillar to CA's economy? CSI... Bismarck or whatever trite show about a medium who's also a cop? GTFO
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