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Talks signal further consolidation in Hollywood as Legendary evaluates Lionsgate’s studio assets amid divestiture plans.

With streaming churn at 47% and only 29% of viewers sticking with most franchises, studios face mounting pressure to innovate content pipelines and deepen fan engagement, according to Hub Entertainment Research.

Major players including Disney, Netflix, and Lionsgate have denounced the policy and signaled an intention to challenge it, both politically and operationally. Internationally, the proposal has raised concerns among U.S. allies who fear economic repercussions and potential job losses in their domestic film industries.

Facing fierce global competition and industry cutbacks, on-location filming in Greater Los Angeles fell 22.4% in early 2025, with all major production categories reporting declines, according to FilmLA’s latest report.

President Donald Trump's proposed tariffs on Chinese goods—potentially up to 60%—could derail the box office rebound and disrupt global production pipelines. Disney CEO Bob Iger has voiced concern over the escalating risks in a recent town hall with ABC News staff.