By MARGARET A. LOVETT, Associated PressThe entertainment industry, with more than $2 trillion in revenues, is poised to rebound from its biggest year-to-date slump since 2011.
But for the industry’s financial backers, its biggest asset is the $2.2 trillion it has already received from the federal government.
“It’s like the Titanic,” said Jeff Siegel, CEO of Siegel and Company, a financial advisory firm.
“The question is, ‘How much more can it go on?'”
Financial industry investors, most of whom have long held out hope that the economy would get better, are hoping the federal bailout package will help the industry recover.
They are optimistic that the Treasury Department, which has been responsible for most of the industry bailout, will help it recover some of its more fragile assets.
“This is the only time in the history of the financial industry that we have been able to get the government to bail out the industry,” said Robert Schmitt, the chairman of the American Bankers Association.
Schmitt said the industry is in a good place, but that the government is unlikely to help it out of its predicament.
“I don’t see that coming from the government,” he said.
Siegel and Co. is not alone in thinking the industry will rebound.
Others, including Goldman Sachs, Goldman’s parent company, have said the government has a responsibility to provide support to the industry.
And some entertainment industry leaders, like Michael Oreskes, the CEO of Fox Networks, believe the government will help them recover some or all of the $3 billion in losses they’ve taken from the entertainment industry.
Oreskes said he believes the Treasury has made good on a promise to provide aid to the entertainment sector and is ready to help the rest of the entertainment economy.
“They have a responsibility as a responsible entity to help make this economy better,” he told The Associated Press.
“It will be very beneficial to all of us if they do.”
The Hollywood Reporter has compiled a list of the top five Hollywood studios that received the largest share of the bailout.
The top five companies that received $1.1 billion in bailout funds were Disney, Universal, Sony Pictures, 20th Century Fox and Warner Bros.
Among the studios that were bailed out were: Paramount Pictures, Universal Pictures, Lionsgate, Disney and DreamWorks Animation.
The companies that were taken out include: Warner Bros., 20th century Fox, DreamWorks, Sony and Paramount.