Adam Schiff and Laura Friedman Urge Netflix, Paramount to Preserve Jobs in Warner Bros. Deal
Senator Adam Schiff and Representative Laura Friedman are advocating for job preservation in the film and television industry amid Netflix and Paramount’s proposed acquisition of Warner Bros. Their request details necessary commitments from both companies to maintain and enhance employment opportunities within Los Angeles’s vibrant media landscape.
Legislative Request for Job Security
The lawmakers penned a letter addressed to Netflix co-CEOs Ted Sarandos and Greg Peters, along with Paramount CEO David Ellison. They emphasized the necessity for “concrete steps” that ensure sustainable and lucrative job growth in the region.
- Preserve good-paying film and television jobs in Los Angeles.
- Engage in constructive negotiations with unions representing entertainment workers.
- Utilize artificial intelligence responsibly to avoid displacing current employees.
- Commit to ending the offshoring of production under the existing tax framework.
Impact of Mergers on Employment
The urgency of the situation is underscored by the potential job losses associated with the merger. Schiff and Friedman highlighted the alarming forecast of cuts that could accompany cost-saving measures undertaken by both companies. Specifically:
- Paramount forecasts a $6 billion reduction in expenses over three years.
- Netflix estimates savings between $2 and $3 billion.
Analysts note that these savings may lead to significant layoffs within the industry. The lawmakers are pushing for measurable commitments to safeguard jobs as integration proceeds.
The Role of Legislation in Supporting Jobs
Schiff and Friedman are also working on legislation aimed at establishing federal film tax incentives. This initiative seeks to combat the trend of production migrating abroad to benefit from more favorable tax breaks.
Regulatory Oversight of Mergers
The Justice Department is currently reviewing Netflix’s acquisition of Warner Bros., which includes HBO and HBO Max. This acquisition is part of Warner Bros. Discovery’s broader strategy to spin-off certain cable assets like CNN and TNT. Paramount’s ongoing hostile bid for Warner Bros. also falls under scrutiny from federal regulators.
In a recent Senate Judiciary antitrust subcommittee hearing, Schiff raised these critical issues related to the merger. Sarandos characterized the acquisition as “pro-competitive,” pledging that operational entities would remain independently functional.
Looking Ahead
As discussions continue, Netflix asserts that merger-related cost reductions will stem primarily from administrative efficiencies rather than workforce cuts. According to Sarandos, these changes would not take effect until approximately three years after the merger’s completion.
In a recent communication with the UK creative sector, David Ellison reiterated Paramount’s commitment to enhancing creative output and supporting a competitive marketplace. He expressed a belief that the community thrives with diverse choices and robust competition.
As this dynamic unfolds, the ongoing dialogue between lawmakers and media giants will be pivotal in shaping the future landscape of entertainment employment.
