"Il est bon", refers to the actor or the film? If it is the film, shouldn't it be "c'et bon"?
No, if referring to the specific film being good, it is ‘il est bon’, as it is “le film est bon’.
Il/elle/ils/elles = it/he/she/they (French Subject Pronouns)
To supplement Maarten's answer, take a look here too: C'est vs il/elle est
Bonne journée !
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