The entertainment industry is bracing for a period of significant upheaval, not just from internal shifts like streaming consolidation, but from a broader geopolitical realignment. At the Munich Security Conference , German Chancellor Friedrich Merz delivered a stark assessment: the post-World War II international order is effectively over. This declaration, echoed by US Secretary of State Marco Rubio, has sent ripples through Hollywood, raising questions about the future of global collaboration, financing, and distribution.
Merz’s comments, as reported by multiple outlets including the BBC and CNN, weren’t delivered in a vacuum. They came against a backdrop of escalating tensions – Russia’s ongoing war in Ukraine, strained relations with China, and, perhaps most surprisingly, US President Donald Trump’s increasingly assertive foreign policy. Trump’s recent suggestion of annexing Greenland, dismissed by many as outlandish, has nonetheless been interpreted by European leaders as a sign of eroding trust with the United States. This isn’t simply a political issue; it’s a business one for an industry deeply reliant on international markets.
The implications for Hollywood are multifaceted. For decades, American studios have benefited from a relatively stable global order, facilitating co-productions, international financing, and access to diverse audiences. A fractured world, characterized by protectionism and geopolitical rivalry, threatens to disrupt these established patterns. The potential for increased tariffs, as alluded to in reports about Trump’s policies, could significantly impact the cost of producing and distributing films and television shows internationally.
The shift also raises questions about the future of content itself. Will studios be forced to cater to increasingly nationalistic sentiments, prioritizing local stories over global narratives? Will co-productions become more difficult to navigate as political alignments shift? These are questions executives are undoubtedly grappling with, even if they aren’t publicly addressing them.
The timing of Merz’s warning coincides with a period of intense scrutiny within the streaming landscape. News reports indicate President Trump has expressed concerns about Netflix’s market dominance, specifically in relation to its potential acquisition of Warner Bros. Discovery. While the specifics of his concerns remain vague, the intervention highlights a growing trend of governments taking a more active role in regulating the tech and entertainment sectors. This increased regulatory pressure, coupled with the geopolitical instability, creates a complex and unpredictable environment for media companies.
The German Chancellor’s address at the World Economic Forum in Davos , as reported by the World Economic Forum itself, further underscored the need for a new approach to global challenges. While the details of that address weren’t focused specifically on entertainment, the underlying message – that the old rules no longer apply – is profoundly relevant. Merz’s call for Europe to become a “geopolitical power” suggests a desire for greater self-reliance, which could translate into policies that favor European content and production companies.
The growing divide between Europe and the United States, as highlighted by Merz, is particularly concerning for Hollywood. Europe remains a crucial market for American films and television shows, and European investment has become increasingly important for financing major productions. A strained transatlantic relationship could jeopardize these vital partnerships. The suggestion of a European nuclear deterrent, raised by Merz during the Munich conference, signals a willingness to pursue greater independence from the US, a move that could have far-reaching consequences for the entertainment industry.
The situation isn’t entirely bleak. The demand for content continues to grow, driven by the proliferation of streaming platforms and the increasing global reach of entertainment. However, the rules of the game are changing. Studios will need to adapt to a more fragmented and unpredictable world, forging new alliances, diversifying their financing sources, and embracing a more nuanced understanding of geopolitical risks. The era of frictionless global entertainment may be coming to an end, replaced by a more complex and challenging landscape.
The question now is whether Hollywood can navigate this new reality. The industry has always been adept at adapting to change, but the scale and scope of the current geopolitical shift present a unique set of challenges. The coming months and years will be critical in determining whether the entertainment industry can maintain its global reach and continue to thrive in a world where the old order “no longer exists.”
