Sale to Warner Bros. — whether partly by Netflix or entirely by Paramount — is causing growing concern among Hollywood union leaders about the possible consequences for their members.
Unions representing writers, directors, actors and crew members have expressed growing concern that further consolidation in the media industry will reduce competition, potentially leading to studios paying less for content and making it harder for people to find work.
“We have already seen this film and we know how it will end,” said Michelle MulroneyPresident of the Writers Guild of America West. “There's a lot of promise that one plus one equals three. But it's very difficult to see how two giants like Warner Bros. and Netflix… can maintain the level of productivity that they have now.”
Last week, Netflix announced its agreement to buy film and television studio Warner Bros. Discovery, Burbank site, HBO and HBO Max for $27.75 per share, or 72 billion dollars. He also agreed to take on more than $10 billion from Warner Bros.” duty. But Paramount, whose previous proposals were rejected by Warner Bros., appealed directly shareholders with an alternative offer to buy the entire company for approximately $78 billion.
Paramount said it will have reduction of more than $6 billion within three years, and also stated that the combined companies would produce at least 30 films per year. Netflix said it expects its deal to include $2 billion to $3 billion in cost cuts.
The cuts are expected to trigger thousands of layoffs across Hollywood, which has already been hit by flight of production abroad and the shrinking of the once-thriving television business.
Mulroney said employment of WGA writers in television is declining. as much as 40% when comparing the 2023-2024 writing season to the 2022-2023 season.
Executives from both companies said their deals would benefit creative talent and consumers.
But Hollywood union leaders are skeptical.
“We can hear these generalizations all day long, but they don't really mean anything unless it's on paper, and we just don't know if these companies are even willing to make promises in writing,” said Lindsay Dougherty, Teamsters vice president at large and general director of Local 399, which represents drivers, location managers and casting directors.
Dougherty said Teamsters is working with both Netflix and Paramount to secure commitments to continue filming in Los Angeles.
“We have a lot of members who are struggling to find work or have not worked at all for the last year or so,” Dougherty said.
Mulroney said her union is concerned about both Netflix and Paramount bids.
“We don't think a merger is imminent,” Mulroney said. “We think there is an opportunity here to fight back.”
If Netflix bought Warner Bros.” The television and film business, Mulroney said, could further undermine the theater business.
“It’s hard to imagine them fully embracing theatrical exhibitions,” Mulroney said. “The exhibition business is struggling to get back on its feet after the pandemic, so a move like this could be truly existential.”
But the Writers Guild also has problems with Paramount's bid, Mulroney said, noting that it would combine Paramount-owned CBS News and CNN under one parent company.
“We have concerns about censorship,” Mulroney said. “We saw problems around [Stephen] Colbert And [Jimmy] Kimmel. We are concerned about what the news will look like if there is sole ownership here.”
The issue became even more pressing this week after President Trump, who has for years sharply criticized CNN's anchors and news coverage, said he believes CNN should be sold.
The concern comes as major studio contracts for some unions, including the DGA, WGA and SAG-AFTRA, are set to expire next year. Two years ago, writers and actors went on a long strike to demand greater AI protections and better wages and benefits.
The Directors Guild of America and the artists union SAG-AFTRA have voiced similar objections to the coming media consolidation.
“A deal that is in the best interests of SAG-AFTRA members and all other entertainment workers should lead to more creativity and more production, not less,” the union said.
SAG-AFTRA national executive director Duncan Crabtree-Ireland said the union is negotiating with both Paramount and Netflix.
“It's unclear what path forward will best protect the legacy that Warner Brothers represents, and that's something we're very actively exploring right now,” he said.
However, it is unclear how much influence unions will have on the outcome.
“They simply don’t have a seat at the final decision-making table,” said David Smith, an economics professor at Pepperdine Graziadio Business School. “I would expect that their main involvement may be to raise awareness of the potential problems associated with the merger and perhaps increase regulatory oversight… I think that is what they are trying to do.”
