The leading US guilds have spoken out against Netflix’s proposed $82.7bn acquisition of Warner Bros Discovery’s (WBD) studios and streaming businesses, calling to block the deal and warning of job losses and a less competitive marketplace.
Writers Guild of America West and Writers Guild of America East said in a statement on Friday morning: “The world’s largest streaming company swallowing one of its biggest competitors is what antitrust laws were designed to prevent. The outcome would eliminate jobs, push down wages, worsen conditions for all entertainment workers, raise prices for consumers, and reduce the volume and diversity of content for all viewers.
“Industry workers along with the public are already impacted by only a few powerful companies maintaining tight control over what consumers can watch on television, on streaming, and in theaters. This merger must be blocked.”
SAG-AFTRA issued a statement that read: ”The potential Netflix/Warner Bros transaction is a consolidation that may serve the financial interests of shareholders of both companies, but which raises many serious questions about its impact on the future of the entertainment industry, and especially the human creative talent whose livelihoods and careers depend on it.
“This $82B transaction reaffirms the true value of legacy media companies and the long term economic prosperity they create due in large part to the contribution of the creative talent who are at the core of their success. A deal that is in the interest of SAG-AFTRA members and all other workers in the entertainment industry must result in more creation and more production, not less. It must do so in an environment of respect for the talent involved.
“Any decision about SAG-AFTRA’s position on this transaction will be made with the best interests of SAG-AFTRA members as the standard and following a complete and thorough analysis of the details of the deal, with particular focus on jobs and production commitments.”
In its statement, Producers Guild of America said: “Producers are rightfully concerned about Netflix’s intended acquisition of one our industry’s most storied and meaningful studios. For the last century, the entertainment industry has employed millions of Americans, delighted audiences, and showcased the very best of our nation at home and abroad.
“As we navigate dynamic times of economic and technological change, our industry, together with policymakers, must find a way forward that protects producers’ livelihoods and real theatrical distribution, and that fosters creativity, promotes opportunities for workers and artists, empowers consumers with choices, and upholds freedom of speech. This is the test that the Netflix deal must pass. Our legacy studios are more than content libraries – within their vaults are the character and culture of our nation.”
Directors Guild of America, led by its president and staunch theatrical champion Christopher Nolan, has said it will meet with Netflix leadership to discuss concerns. “We believe that a vibrant, competitive industry — one that fosters creativity and encourages genuine competition for talent —is essential to safeguarding the careers and creative rights of Directors and their teams,” the guild said in a statement.
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