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Hollywood unions and theater owners warn Netflix’s proposed $72B takeover of Warner Bros Discovery could slash jobs, shrink theatrical releases, and reshape the industry.

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A Merger That Has Hollywood on Edge

Netflix’s stunning $72 billion bid to acquire Warner Bros Discovery has ignited a wave of concern across Hollywood, with unions, theater owners, and industry leaders warning that the takeover could upend jobs, limit consumer choice, and drastically reshape the future of moviegoing. What Netflix frames as a bold expansion, many in the industry see as a consolidation of power that could ripple across every corner of entertainment.

A Deal That Redefines the Streaming Wars

If the merger wins approval from regulators in the United States and Europe, Netflix, already the dominant global streaming service would absorb HBO’s storied brands and one of Hollywood’s most iconic studios. Warner Bros, home to film classics and billion-dollar franchises, would shift from a legacy production giant to a subsidiary of a platform that built its empire on disrupting traditional cinema windows.

For Netflix, it’s a chance to fold prestige storytelling and blockbuster IP into its arsenal. For many in Hollywood, it’s a moment of reckoning: the leading streaming platform would gain new authority over titles such as “Batman,” “Casablanca,” and a vast archive central to American filmmaking history.

Growing Calls to Halt the Deal

The Writers Guild of America (East and West) was among the first to issue a forceful objection, declaring that the merger poses a direct threat to competition and workers. The Guild argued that allowing one streaming titan to absorb a key rival defies the very purpose of antitrust law.

The criticisms go beyond market share. Labor leaders fear that Netflix’s planned cost-cutting, estimated by the company at $2 billion to $3 billion annually within three years, will manifest as layoffs, weakened bargaining power, and tighter constraints on creative labor.

The concerns extend well beyond Hollywood’s workforce. Cinema United, representing more than 30,000 U.S. movie screens and tens of thousands more abroad, warned that the merger could erase a quarter of the domestic box office. The group stressed that Netflix’s track record of limited theatrical releases does little to sustain theaters, which rely on consistent, wide-distribution films to survive.

Netflix has defended its strategy, saying it intends to maintain theatrical rollouts for Warner Bros titles and expand opportunities for creative professionals. The company also emphasizes that the merger would allow it to invest more heavily in U.S. production and expand its slate of original films and series.

Warner Bros Discovery has not publicly responded to concerns about the merger.

Expert Insight & Industry Reaction | Unions Take a Stand

Writers Guild of America: “A merger designed to shrink competition.”

The WGA expressed deep alarm, arguing that letting the world’s largest streamer absorb a major competitor would diminish job security, reduce wages, and ultimately burden consumers with higher prices or fewer choices.
The Guild stressed that such consolidation represents exactly what regulators are meant to curb.

Theater Owners: “An unprecedented threat.”

Cinema United President Michael O’Leary delivered one of the sharpest warnings. He questioned whether Netflix would sustain the broad theatrical distribution that Warner Bros historically embraced.

O’Leary criticized Netflix’s tendency toward short, awards-qualifying theatrical runs, saying that releasing films in only a handful of venues “is not a commitment to the exhibition business.”

Teamsters: A direct challenge to workers’ livelihoods

The Hollywood Teamsters echoed these concerns, urging federal and state governments to intervene.
The union framed the deal as part of a larger trend of “greed-driven consolidation” that jeopardizes stable union jobs and the overall health of the entertainment sector.

Directors Guild of America: Cautious but measured

Unlike other unions, the Directors Guild of America stopped short of outright opposition. Instead, the DGA announced plans to meet with Netflix to understand how the merger would affect its members before issuing a more definitive position.

SAG-AFTRA: Concerns under review

The screen actors union said the deal raises “serious questions” and is committed to evaluating how the merger might influence employment, wages, and working conditions for performers. A more detailed response will come after its internal review.

What’s at Stake for Hollywood and Viewers

Should regulators approve the acquisition, Netflix’s influence over the global entertainment landscape would grow exponentially.

Potential industry-wide effects include:

• Reduced competition among studios and streaming platforms

• Fewer theatrical releases, placing pressure on cinemas already navigating a fragile recovery

• Greater leverage over talent contracts, potentially lowering wages or limiting bargaining power

• Consolidation of iconic IP under a single digital platform

• Possible price shifts for subscribers as streaming giants continue to compete for premium content

The merger also arrives at a time when Hollywood is still healing from strikes, production cuts, and shifting viewing habits. Many fear that consolidating two major content engines under one corporate roof could accelerate an era of fewer jobs and fewer choices both for creators and for audiences.

Netflix insists the opposite, arguing that a stronger content library will fuel more production, more employment, and a richer viewing experience. But unions and exhibitors remain unconvinced, pointing to decades of mergers that promised innovation but often resulted in layoffs and reduced output.

A Defining Test for Hollywood’s Future

The Netflix–Warner Bros Discovery deal is now poised to become one of the most consequential antitrust battles in modern entertainment. As regulators weigh economic benefits against cultural consequences, Hollywood’s workers and theater owners are drawing a clear line: the industry’s future cannot be built on consolidation that threatens creative diversity and job security.

Whether Netflix’s proposal is ultimately approved or rejected, the response underscores a broader truth: Hollywood is still grappling with the cost of its digital transformation, and this merger may determine who shapes the next generation of storytelling.

 

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