WGA Strongly Objects to Netflix-Warner Bros. Deal: ‘This Merger Must Be Blocked’

The Writers Guild of America (WGA) has formally opposed Netflixs plan to acquire Warner Bros. Discoverys studios and streaming operations in an $83 billion deal, citing serious concerns for industry workers and consumers alike.

In a statement, the guild highlighted that merging the worlds largest streaming platform with one of its major competitors could lead to job losses, reduced wages, and higher prices for viewers. The WGA warned that the deal could also shrink the variety of content available, giving a small number of companies greater control over what audiences can watch across theaters, television, and streaming platforms.

This merger threatens both employment and creative opportunities for writers, and it could diminish the diversity of available content, the guild said. Antitrust laws exist to prevent such concentration of power. This transaction must be stopped.

The WGA has a history of opposing media consolidation, arguing that it limits opportunities for writers. The union previously resisted major industry mergers including Comcast-NBCUniversal in 2011, AT&T-Time Warner in 2016, Disney-Fox in 2017, Amazon-MGM in 2021, and Warner Bros.-Discovery in 2022. In 2023, the guild cautioned that Netflix, Disney, and Amazon were on track to become the industrys new gatekeepers.

Other industry groups have echoed these concerns. The Producers Guild of America (PGA) emphasized the importance of protecting creative work and theatrical distribution. As the entertainment landscape evolves, its crucial to safeguard producers livelihoods, encourage creativity, provide audience choices, and uphold freedom of expression, the PGA said. Legacy studios carry cultural significance beyond their content libraries.

The Directors Guild of America also expressed caution after Netflix won exclusive negotiation rights with Warner Bros. Discovery. The guild highlighted the need for a competitive, creative industry to protect directors careers and stated that discussions with Netflix are ongoing.

Cinema United, representing movie theaters, warned that the proposed acquisition poses an unprecedented threat to the global exhibition business. CEO Michael OLeary said that Netflixs business model, focused on streaming over theatrical releases, could negatively affect theaters from large chains to small independent venues worldwide. He urged regulators to examine the potential consumer and industry impacts closely.

Netflix responded by assuring that Warner Bros. current operations will continue, including theatrical film releases and maintaining HBO Max as a separate service for now. Netflix co-CEO Ted Sarandos indicated that release windows for movies will be adjusted to be more consumer-friendly, aiming to bring first-run films quickly to audiences.

Author: Connor Blake