Business
Forget the celebrities. Meet L.A.'s small businesses that depend on the Oscars
For more than 20 years, Sherman Oaks florist Mark’s Garden has designed the towering greenery and blooming displays seen at the Oscars.
Getting that Hollywood awards-season work is key, particularly during the business’ typically slow first quarter of the year. And the free advertising that comes with your floral arrangements gracing the year’s biggest stage? Priceless.
“People love being associated with the florist that designs for the Oscars,” owner Michael Uncapher said. “It has shaped our reputation in a way no marketing campaign ever could.”
A report commissioned by the Academy of Motion Picture Arts and Sciences estimated that the economic effect of last year’s Oscars and related events was $134 million in Los Angeles County, when using conservative estimates for visitor counts, average hotel rates and personal spending.
Last year, the nonprofit reported that its “Academy Awards and related activities” brought in about $147 million in revenue, which includes the nonprofit’s TV licensing deal with Walt Disney Co.’s ABC.
But despite long-term pressure on the event’s TV ratings, the Oscars remain an important driver of business for local companies.
Scores of small businesses — including Mark’s Garden, limo and car services, hotels, stylists, restaurants, caterers, security companies, designers and jewelers — make money from Oscars week, the related activities and events and the show itself, which airs Sunday.
Beyond small businesses, broadcast network ABC also stands to benefit from airing the show — in 2020, a 30-second ad during the telecast cost $2.15 million, on average, according to marketing data firm Kantar. Total ad revenue for that year was about $150 million.
“It is really a huge operation,” said David Offenberg, an associate professor of entertainment finance at Loyola Marymount University. “It’s not just the people onstage, but so many people behind the scenes.”
A floral installation at the 2024 Oscars. Mark’s Garden owner Michael Uncapher said his business’ association with the awards show “has shaped our reputation in a way no marketing campaign ever could.”
(Michael Uncapher)
Last year’s show on ABC an average of 19.5 million viewers, up 4% from 2023, according to Nielsen data. Viewer interest in the Oscars that year was piqued by the best picture face-off between theatrical blockbuster nominees “Oppenheimer” and “Barbie,” along with a highly anticipated performance of the song “I’m Just Ken” by star Ryan Gosling.
The 2024 telecast marked the third consecutive time the Oscars saw viewership growth after an all-time audience low of 10.5 million in 2021. But it still paled in comparison with the 30 million people who once tuned in to watch the awards show. Oscar pundits have worried about ratings for this year’s telecast because so many of the best picture front-runners are relatively obscure.
But as television viewing habits have changed, so should the metric for success for the Oscars, academy Chief Executive Bill Kramer said.
This year, the show will be streamed live on Hulu for the first time, and it has garnered an increasingly international audience in 200 markets around the world. The academy also said its social media presence has increased.
Flowers from Mark’s Garden adorn the Academy Awards. Owner Michael Uncapher says the exposure his business gets on the biggest stage of the year is priceless.
(Michael Uncapher)
“Of course, night-of ratings on broadcast television have traditionally been how we’ve defined our success in the U.S., but we reach people in so many different ways,” Kramer said. “We really have to think about our reach in a variety of ways.”
On the ground in Hollywood, more than 1,000 production workers have been at work, creating sets for the show, working on lighting and installing the red carpet, he said.
Speaking on Zoom this week from a hotel room at Ovation Hollywood, Kramer said the show not only supports these direct workers and the businesses that economically benefit from the show’s presence in L.A. but also the entertainment industry as a whole.
That was an important consideration for the academy as it considered how to steer the glitzy awards show in the aftermath of the recent fires in Southern California.
Though there were calls to cancel or not broadcast the Oscars from people including “Hacks” star Jean Smart, Kramer said the academy decided to move forward after consultation with its board of governors, academy members and city leaders. (The academy did delay its nomination announcement and rescheduled other related events.)
“There’s a huge business impact to our industry,” said Kramer, who has led the academy since 2022. “This is an industry that’s had a complex several years with COVID and the strikes, so we thought it was really important to keep a positive energy surrounding the Oscars and our industry.”
Keeping the Oscars on track was especially important to Uncapher of Mark’s Garden, particularly because many of his January events were canceled due to the Palisades and Eaton fires. He’s also recovering from an arson attack on his business two years ago that left him operating out of a pop-up until later this year, he said.
“We have to continue on and keep the economy moving,” Uncapher said.
The Oscars represent a stable and predictable source of revenue for marketing firm Distinctive Assets, which makes swag bags for the nominees for the acting and directing awards.
The Miracle Mile-based company, which connects brands with celebrities, has put together its “Everyone Wins” bags for 23 years.
This year, the gift bags are filled with products and offers from 61 brands and include a four-night stay at resorts in the Maldives, cosmetics and hair care products from L’Oreal and 10 one-year subscriptions to a disaster recovery support firm that can be gifted to anyone.
The bags are not affiliated with the Oscars or the academy and are delivered to nominees well before the telecast airs. Company founder Lash Fary declined to disclose revenue information but said this promotion is on target and perhaps slightly above average for what he’d want to make from any promotion he does.
The “Everyone Wins” gift bag is one of two big events Distinctive Assets works in the first quarter. The other is the Grammys.
“This is the Super Bowl of awards shows, at least from a film perspective,” Fary said. “That’s what the brands are looking to be part of.”
In the past, actor Viola Davis has shown up at the resort gifted to her, and director Ron Howard hosted his son’s wedding at a resort advertised in the bag. Amy Adams was once photographed in a T-shirt from the “Everyone Wins” package while walking to the gym.
It’s these kind of celebrity associations that brands pay for, Fary said, that “instant cachet that Oscar week has.”
Early in April, Ruben Hallali got an unusual alert on his phone: The evening temperature at Paris Charles de Gaulle International Airport had jumped about 6 degrees Fahrenheit in seconds.
Mr. Hallali, the chief executive of the weather risk company Sereno, had set up notifications for extreme weather swings. Then, nine days later, it happened again.
“It was an isolated jump, at one single station, early in the evening,” said Mr. Hallali, who added that he noticed another strange coincidence about the spikes: The timing was just right for somebody to reap a windfall on the betting site Polymarket.
He wasn’t the only one who sensed a problem. Météo-France, the country’s national meteorological service, filed a complaint last week with the police and local prosecutors, saying it had evidence that a weather sensor at Charles de Gaulle, the country’s largest airport, may have been tampered with.
The temperature swings, experts said, coincided with a period of unusual activity on Polymarket, one of the leading online prediction markets, which allow users to wager on the outcome of virtually anything.
One increasingly popular area is weather betting, where speculators can make real-time wagers on temperature readings, rainfall totals, the number of Atlantic hurricanes in a year and much more — with payouts in the thousands of dollars and higher.
As the stakes rise, so has the temptation to tamper with the instruments used to generate weather readings in hopes of engineering a lucrative outcome. Experts warn that this could have dangerous ripple effects, like degrading the information that underpins safe air travel.
Temperature data is used in a host of calculations at airports, helping determine correct takeoff distance, climb rate and whether crews need to apply frost treatment to planes. It’s crucial to airport safety, Mr. Hallali said.
“The Charles de Gaulle incident is not an isolated curiosity,” Mr. Hallali said. “It is what happens when financial incentives meet fragile data infrastructure.”
On April 6, the temperature reading at Charles de Gaulle jumped from 64 degrees Fahrenheit to 70 degrees at 7 p.m., before slowly falling over the next hour, according to data from Météo-France.
On April 15, the recorded temperature climbed even more sharply, from 61 degrees at 9 p.m. to 72 at 9:30 p.m., then dropping back to 61 a half-hour later.
In both instances, the spikes set the high temperature for the day, the metric on which some Polymarket wagers rest.
Laurent Becler, a spokesman for Météo-France, said the service contacted the police after noticing the discrepancies in temperature data. He declined to comment further on the case, saying it was under investigation.
Mr. Hallali said that after the first instance, experts and commenters on the French weather forum Infoclimat began to search answers. Theories were floated, including user error. But after the second spike, commenters zeroed in on the unusual Polymarket wagers, which totaled nearly $1.4 million over the two days, according to the company’s data.
The sums bet on April 6 and 15 were hundreds of thousands of dollars higher than on typical days this month.
It is not the first time that strange bets on prediction markets have raised accusations of insider trading.
On Thursday, a U.S. Army special forces soldier who helped capture President Nicolás Maduro of Venezuela in January was charged with using classified information to bet on outcomes related to Venezuela, making more than $400,000 on Polymarket. Late last year, another trader on the site made roughly $300,000 betting on last-minute pardons from President Joseph R. Biden Jr. before he left office.
Polymarket did not immediately respond to a request for comment. While the site used to tie some bets to temperature readings at Charles de Gaulle, this week, after Météo-France filed its complaint, the platform began using temperatures taken at another airport near the city, Paris-Le Bourget, according to recent bets on the site.
Representatives for Charles de Gaulle airport declined to comment beyond saying that the case was under investigation. The airport police also declined to comment. The Bobigny Public Prosecutor’s Office, which is handling the case, declined to answer questions about the investigation but said that no complaint had been filed against Polymarket.
As to how the instruments could have been tampered with, a number of theories have been offered online, including by use of a hair dryer or a lighter. Mr. Hallali said that the precision of the spike on April 15 suggested the use of a calibrated portable heating device, although he declined to speculate about what kind.
“Markets are expanding into every domain where an outcome can be observed, measured, and settled,” he said. “As these markets multiply, so does the surface area for manipulation.”
As the war in Iran strangles the flow of oil around the globe, California’s jet fuel reservoirs are running low.
The state — which refines much of its own fuel in El Segundo and elsewhere but still relies on crude oil imports — has seen its jet fuel stock decline by more than 25% from last year’s peak to a level not seen since 2023, according to data from the California Energy Commission.
The supply is shrinking as a global shortage is already affecting travelers’ summer plans with canceled flights and higher fares. It could even affect plans for people coming to Los Angeles for the 2026 World Cup, which starts in June, said Mike Duignan, a hospitality expert and professor at Paris 1 Panthéon-Sorbonne University.
“People don’t know exactly how this is going to escalate,” he said. “There’s a huge black cloud over the sea for the World Cup and the travel slump that we’re seeing is all linked to this oil shortage.”
As fuel supplies shrink, flight prices are rising. Airlines are adding baggage surcharges to cover fuel costs. Several routes leaving from smaller California hubs, including Sacramento and Burbank, have already been canceled.
Air Canada has suspended flights for this summer, cutting routes from JFK to Toronto and Montreal.
“Jet fuel prices have doubled since the start of the Iran conflict, affecting some lower profitability routes and flights which now are no longer economically feasible,” the airline said in a statement last week.
Europe had just more than a month’s supply of jet fuel left last week, the International Energy Agency said. In an effort to cut costs, the German airline Lufthansa slashed 20,000 flights from its summer schedule this week.
Without a fresh oil supply flowing through the Strait of Hormuz, the situation is unlikely to improve, experts said. The oil reserves countries and companies have in storage are helping fill shortfalls, but the squeezed supply chain could still wreak economic havoc.
“When there’s a shortage somewhere, everything is affected,” said Alan Fyall, an associate dean of the University of Central Florida Rosen College of Hospitality Management. “Airlines are being cautious, and I would say that is a very wise strategy at the moment.”
California’s jet fuel stock reached its lowest levels in two and a half years at 2.6 million barrels last week, down from a peak of more than 3.5 million barrels last year.
The California Energy Commission, which tracks fuel inventory, said the state’s current jet fuel stock is sill sufficient.
“Current production and inventory levels of jet fuel are within historical ranges,” a spokesperson said. “Although supply is tight, no structural deficit has emerged yet. The present tightness reflects short‑term global market stress. As long as refinery operations remain stable, California is positioned to meet regional jet fuel needs.”
Europe has been affected more directly because it relies on the Middle East for the vast majority of its crude oil and many refined products, experts said. California gets crude oil from the Middle East but also from Canada, Argentina and Guyana.
The state has the capacity to refine around 200,000 barrels of jet fuel per day, most of it from refineries in El Segundo and Richmond.
The amount of crude oil originating in the state has been declining since the early 2000s, as state regulations and drilling costs have led to more imports.
California has become particularly vulnerable to supply-chain shocks like the war in Iran, says Chevron, one of the companies that provides jet fuel in the state.
“The conflict in the Mideast Gulf has exposed the danger of California’s decision to offshore energy production,” said Ross Allen, a Chevron spokesperson. “Taxes, red tape and burdensome regulations cost the state nearly 18% of its refinery capacity in just the past year, and we urge policymakers to protect the remaining manufacturing capacity.”
In 2025, 61% of crude oil supply to California’s refineries came from foreign sources, according to the California Energy Commission. Around 23% came from inside the state, down from 35% five years ago.
The state’s refining capacity has also been declining, said Jesus David, senior vice president of Energy at IIR Energy. The West Coast region’s refining capacity has decreased from 2.9 million to 2.3 million barrels a day since 2019, he said.
“California’s had issues prior to the war,” David said. “Nothing new has been built over the past 30 years, and California has closed a lot of capacity.”
The result is higher prices for both gasoline and jet fuel in the state. Jet fuel at LAX costs close to $15 per gallon this week, compared with almost $10 at Denver International Airport and $11 at Newark International Airport.
Gasoline prices have also been hit hard by the global conflict. Average gas prices in California are close to $6 a gallon, around $2 higher than the national average.
The West Coast is a “fuel island” because it’s not connected by pipelines to the rest of the country, United Airlines chief executive Scott Kirby said in an interview last month. That means oil and refined products have to be brought in by ships.
“Fuel price is more susceptible to supply weakness on the West Coast than anywhere else in the country,” Kirby said.
Some airlines might not survive the turmoil if oil prices don’t level out soon, he said. Spirit Airlines, a budget carrier based in Florida, is reportedly facing imminent liquidation if it isn’t bailed out by the Trump administration.
Nike is cutting about 1,400 jobs in its operations division, mostly from its technology department, the company said Thursday.
In a note to employees, Venkatesh Alagirisamy, the chief operating officer of Nike, said that management was nearly done reorganizing the business for its turnaround plan, and that the goal was to operate with “more speed, simplicity and precision.”
“This is not a new direction,” Mr. Alagirisamy told employees. “It is the next phase of the work already underway.”
Nike, the world’s largest sportswear company, is trying to recover after missteps led to a prolonged sales slump, in which the brand leaned into lifestyle products and away from performance shoes and apparel. Elliott Hill, the chief executive, has worked to realign the company around sports and speed up product development to create more breakthrough innovations.
In March, Nike told investors that it expected sales to fall this year, with growth in North America offset by poor performance in Asia, where the brand is struggling to rejuvenate sales in China. Executives said at the time that more volatility brought on by the war in the Middle East and rising oil prices might continue to affect its business.
The reorganization has involved cuts across many parts of the organization, including at its headquarters in Beaverton, Ore. Nike slashed some corporate staff last year and eliminated nearly 800 jobs at distribution centers in January.
“You never want to have to go through any sort of layoffs, but to re-center the company, we’re doing some of that,” Mr. Hill said in an interview earlier this year.
Mr. Alagirisamy told employees that Nike was reshaping its technology team and centering employees at its headquarters and a tech center in Bengaluru, India. The layoffs will affect workers across North America, Europe and Asia.
The cuts will also affect staffing in Nike’s factories for Air, the company’s proprietary cushioning system. Employees who work on the supply chain for raw materials will also experience changes as staff is integrated into footwear and apparel teams.
Nike’s Converse brand, which has struggled for years to revive sales, will move some of its engineering resources closer to the factories they support, the company said.
Mr. Alagirisamy said the moves were necessary to optimize Nike’s supply chain, deploy technology faster and bolster relationships with suppliers.
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