Hollywood unions are expressing significant alarm over potential sales of Warner Bros. Discovery assets, with Netflix and Paramount reportedly circling deals. Unions representing writers, directors, actors, and crew fear that further consolidation in the media industry will lead to reduced competition, lower payments for content, and fewer job opportunities. This anxiety stems from a history of such mergers, where promises of synergy often result in job losses and decreased production.
Specifically, Netflix has agreed to purchase Warner Bros. Discovery's film and TV studio, backlot, HBO, and HBO Max for $72 billion, while also assuming over $10 billion in debt. Paramount has countered with a $78 billion bid for the entire company. Both potential deals anticipate substantial cost-cutting measures: Netflix expects $2 billion to $3 billion in savings, and Paramount plans over $6 billion in cuts within three years. These reductions are predicted to result in thousands of layoffs, exacerbating an already challenging employment landscape for entertainment workers, with WGA writers seeing a significant drop in episodic television work.
Union leaders remain skeptical of assurances from executives at both Netflix and Paramount that their deals would benefit creative talent. They are seeking written commitments, particularly regarding the retention of filming in Los Angeles. Concerns are also being raised about the potential impact on theatrical exhibition if Netflix acquires Warner Bros.' film and TV businesses, as well as censorship issues if Paramount's bid places CBS News and CNN under the same ownership. These worries are amplified as major union contracts are set to expire next year, following recent strikes by writers and actors over AI protections, wages, and benefits. While unions like the DGA and SAG-AFTRA are engaging with the companies and emphasizing the need for increased production, their ultimate influence on the merger's outcome is uncertain, with experts suggesting their role may be limited to raising awareness and potentially attracting regulatory scrutiny.