Georgia’s anti-abortion law
A law restricting abortion will likely take effect in Georgia starting in January next year. Walt Disney (DIS) has raised concerns about the law impacting its film production business. Speaking to Reuters, Disney’s CEO, Bob Iger, said that many of the company’s actors and producers won’t want to work in Georgia because of the state’s anti-abortion law. Disney has filmed a number of movies in Georgia.
Disney’s film production business, reported as “Studio Entertainment” in the company’s financial records, generated $2.1 billion in revenues in the March quarter. The revenues from the business fell 15% year-over-year in the March quarter due to weak theatrical and home distribution results.
Hollywood threatens to dump Georgia
Disney doubts that it will continue producing movies in Georgia after the state’s anti-abortion law takes effect. Disney isn’t the only major Hollywood production company rethinking operations in Georgia. CBS (CBS), Viacom (VIAB), and Comcast (CMCSA) have also said that they might relocate their Georgia productions if the anti-abortion law comes into force. CBS and Viacom have common ownership. They have explored merging their operations. Viacom has contracts to produce shows and movies for digital video providers including Netflix (NFLX) and Snapchat (SNAP).
Legal challenges have been launched against Georgia’s abortion law.