Hollywood Erupts in Major Panic Over Netflix Merger
Top Hollywood stars, producers, and guilds are slamming the major Netflix merger with Warner Bros.
Among the leading critics of the deal: Actress Jane Fonda. She said that the deal "threatens the entire entertainment industry." In a statement posted to Instagram, the actress labeled the deal "catastrophic" and warned that the deal "could destroy our creative industry." She's not the only one. Concerns about layoffs and the quality of moviemaking are leading the discussion.
An Expert Says the Movie Industry Is 'Worried' About Potential Job Losses
(Photo by Michael Tullberg/Getty Images)
A top expert on the movie industry says that people have two key concerns.
"Lay-offs and the future of [cinematic releases] are the two things the industry is most worried about,” said Stephen Galloway, dean of Chapman University’s Dodge College of Film and Media Arts, to the Financial Times.
According to Variety, a "consortium of top industry players have sent an open letter full of alarm to Congress," and they are arguing that the deal could lead to a "potential economic and institutional meltdown in Hollywood.
The group chose to stay anonymous out of fear of retaliation, Variety reported, describing themselves as simply "concerned feature film producers.” Among the issues: Variety reported that Netflix/Warner Bros. may "have a theatrical window as thin as two weeks of exclusivity before moving to streaming," although this claim was disputed. Some of the producers involved are "prominent," the trade publication noted.
Despite the dissent, Netflix has argued in favor of the deal. “Today’s announcement combines two of the greatest storytelling companies in the world to bring to even more people the entertainment they love to watch the most,” said David Zaslav, President and CEO of Warner Bros. Discovery, in a December 5 release. “For more than a century, Warner Bros. has thrilled audiences, captured the world’s attention, and shaped our culture. By coming together with Netflix, we will ensure people everywhere will continue to enjoy the world’s most resonant stories for generations to come.”
Multiple Guilds Representing Artists Were Also Critical of the Deal
In addition, the Writers and Directors Guilds released statements critical of the deal. And it's not only U.S. groups. The European Cinema trade body UNIC (International Union of Cinemas) was also critical of the deal.
“As elsewhere, cinemas in Europe rely on one product for their viability: films. And to ensure they can attract and successfully serve the widest possible audience, that flow of content needs to be consistent and diverse, with an exclusive period of release supported by effective marketing," that group wrote. "By that measure, the planned acquisition of Warner Bros. by Netflix fails in every regard.”
The Writers Guild of America West called for the deal to be blocked, writing, "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."