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Hollywood movies and TV are feeling the effects of supply chain challenges amid global inflation

Yahoo Finance Senior Reporter Alexandra Canal discusses how Hollywood movie productions are feeling the impacts of global inflation amid supply chain challenges and takes a look at studio budgets for Walt Disney, Warner Bros. Discovery, and Netflix.

Video transcript

ALEXANDRA CANAL: Not even Hollywood is immune to inflationary pressures, supply chain constraints. The Hollywood Reporter did break down what's hitting the entertainment industry most right now. And the biggest issue is building some of these sets and soundstages. If we take a look at where price increases are at, we see lighting rigs 85K now, was half that cost two years ago, according to the report. Same with sheets of plywood and electrical equipment.

Not only that, but the amount of time that it takes to fulfill these orders for some of these items has quadrupled. For example, lighting orders used to take two to four weeks. Now some purchasers are having to wait up to 16 weeks. So we're seeing the supply chain drive up costs, increase wait times. The demand is certainly there. Disney plans to spend $33 billion, Warner Bros Discovery, $23 billion, Netflix, between $17 and $18 billion. And those numbers should only go up, moving forward amid inflation.