As Netflix and Paramount circle Warner Bros. Discovery, Hollywood unions voice alarm

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Hollywood union leaders are increasingly concerned that the potential sale of Warner Bros. – either in parts to Netflix or as a whole to Paramount – could negatively impact their members’ jobs and working conditions.

Hollywood unions representing writers, directors, actors, and crew are increasingly worried that more media companies merging will limit choices for viewers and creators. They fear this could lead to studios offering lower pay for films and TV shows, and fewer job opportunities for those working in the industry.

Michele Mulroney, president of the Writers Guild of America West, expressed skepticism about the future, saying, “We’ve seen this situation play out before, and we know the likely outcome.” She explained that studios often make unrealistic promises, and questioned whether major companies like Warner Bros. and Netflix can maintain their current production levels.

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The entertainment industry has struggled recently due to the COVID-19 pandemic and the writers’ and actors’ strikes. A potential combination of two large companies could lead to further layoffs, according to industry analysts.

Netflix recently announced a deal to acquire Warner Bros. Discovery’s film and television assets – including its studio, HBO, and HBO Max – for $72 billion, or $27.75 per share. The deal also includes taking on over $10 billion of Warner Bros.’ debt. However, Paramount, after having previous offers rejected, is now making a competing offer directly to Warner Bros. shareholders to buy the entire company for approximately $78 billion.

Paramount plans to reduce spending by over $6 billion over the next three years and release at least 30 films annually. Netflix anticipates that the deal will lead to cost savings between $2 billion and $3 billion.

These cuts will likely lead to thousands of job losses in Hollywood, which is already facing challenges from more productions moving abroad and a slowdown in the television industry.

As a big fan of television, it’s really worrying to hear that writing jobs are way down. Apparently, according to Mulroney, writers for TV shows are earning about 40% less this season compared to last year – that’s a huge drop! It makes me concerned about the future for the talented people who create the shows we all love.

Executives from both companies have said their deals would benefit creative talent and consumers.

But Hollywood union leaders are skeptical.

Lindsay Dougherty, a Teamsters leader representing drivers, location managers, and casting directors, explained that verbal agreements aren’t enough. She questioned whether companies are willing to commit to anything in writing, as that’s where real accountability lies.

As a huge movie fan, I was reading that the Teamsters union has been talking with both Netflix and Paramount, trying to get them to promise to continue filming projects here in Los Angeles. They really want to keep the industry local, which is great news for our city!

I’m hearing from a lot of folks in the community who are really having a tough time finding jobs, or haven’t been able to work consistently for the past year. It’s definitely a concern I’m picking up on.

Mulroney said her union has concerns about both bids, either by Netflix or Paramount.

Mulroney stated they don’t believe the merger will definitely happen, and they see a chance to prevent it.

According to Mulroney, if Netflix purchased Warner Bros.’ television and movie operations, it could cause even more problems for traditional movie theaters.

According to Mulroney, it’s unlikely these companies will fully commit to showing films in theaters. The movie theater industry has been recovering since the pandemic, and this decision could be a major turning point for its survival.

However, the Writers Guild also objects to Paramount’s offer, according to Mulroney, because it would combine CBS News and CNN under one corporate owner.

I have to say, I share the concerns Brian Mulroney raised. He pointed to instances with late-night hosts like Stephen Colbert and Jimmy Kimmel, and it really made me think about what would happen to the news if one company ended up owning everything. It’s a valid worry – would we even have diverse perspectives anymore? It definitely gives you pause.

The issue gained more attention this week when President Trump, long critical of CNN’s reporting and personalities, stated he thinks the network should be sold.

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Ted Sarandos, now a top executive at Netflix, wasn’t always a Hollywood insider. He started as a video store manager in Arizona and has since become one of the industry’s most powerful figures.

I’m starting to feel a bit anxious knowing that the contracts for key Hollywood unions – like the Directors Guild, Writers Guild, and the actors’ union, SAG-AFTRA – are up for renewal next year. It feels like just yesterday that the writers and actors were on strike, fighting for things like protection against the misuse of AI and fairer pay and benefits. I really hope they can reach agreements without another disruptive strike!

Both the Directors Guild of America and the actors’ union, SAG-AFTRA, have expressed concerns about the proposed merging of media companies.

The union stated that any agreement must lead to increased opportunities and production for its members and everyone working in the entertainment industry, rather than fewer.

SAG-AFTRA’s national director, Duncan Crabtree-Ireland, stated that the union has been talking with both Paramount and Netflix.

“It is as yet unclear what path forward is going to best protect the legacy that Warner Brothers presents, and that’s something that we’re very actively investigating right now,” he said.

It’s not clear, however, how much influence the unions will have in the outcome.

According to David Smith, an economics professor at Pepperdine University, these groups lack real power in final decisions. He believes their main influence will likely come from highlighting possible problems with a merger, which could lead to increased oversight. That’s essentially the approach they’re taking right now.

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2025-12-13 14:33