More than 2000 people in Hollywood, including prominent figures like David Fincher, Denis Villeneuve, J.J. Abrams and Joaquin Phoenix, are protesting Paramount's acquisition of Warner in an open letter.
The letter was published yesterday and, at the time of writing, nearly 2500 industry professionals in Hollywood have now signed it, ranging from directors and producers to actors and film technicians. The full letter can be found at the bottom.
They are concerned about Paramount's plans to acquire Warner Bros. and HBO Max in a $111 billion deal. They argue that it could lead to layoffs and further concentration of power in the media landscape, and are therefore calling for the deal to be blocked.
- "This transaction would further consolidate an already concentrated media landscape, reducing competition at a moment when our industries—and the audiences we serve—can least afford it. The result will be fewer opportunities for creators, fewer jobs across the production ecosystem, higher costs, and less choice for audiences in the United States and around the world. Alarmingly, this merger would reduce the number of major U.S. film studios to just four."
More studios than before
The group argues that the merger will reduce the number of major US film studios to four. This refers to the former 'Big Six': 20th Century Fox, Columbia Pictures (Sony), Paramount Pictures, Universal Pictures, Warner Bros Pictures and Walt Disney Pictures.
20th Century Fox has since been acquired by Disney, while Warner Bros is now set to be taken over by Paramount after Netflix withdrew.
However, the claim about a reduction in studios does not hold up entirely. The group's reasoning is based solely on the theatrical market, which has decreased significantly since covid.
Netflix is now the largest US film studio by number of titles, while Amazon – which owns MGM – and Apple have also begun producing large and mid-budget films for theatrical release or streaming.
Also read: Home entertainment now almost 8x bigger than theaters
Paramount responds
Paramount has already promised at least 30 theatrical releases annually and outlined plans to merge HBO Max with its own streaming services.
In a written statement to Variety, Paramount responded to the criticism from Hollywood:
- "We understand the concerns raised as a result of the disruptions caused to our industry by COVID, entry of big-tech, and changes in consumer behavior, but we promise this: Paramount remains deeply committed to talent, and this merger strengthens both consumer choice and competition, creating greater opportunities for creators, audiences and the communities they live and work in."
Paramount's acquisition of Warner is not expected to be completed until late 2026 at the earliest, pending regulatory approval.
The full letter
| As filmmakers, documentarians, and professionals across the movie and television industry, we write to express our unequivocal opposition to the proposed Paramount-Warner Bros. Discovery merger.
This transaction would further consolidate an already concentrated media landscape, reducing competition at a moment when our industries—and the audiences we serve—can least afford it. The result will be fewer opportunities for creators, fewer jobs across the production ecosystem, higher costs, and less choice for audiences in the United States and around the world. Alarmingly, this merger would reduce the number of major U.S. film studios to just four.
Our industry is already under severe strain, in large part due to prior waves of consolidation. We have witnessed a steep decline in the number of films produced and released, alongside a narrowing of the kinds of stories that are financed and distributed. Increasingly, a small number of powerful entities determine what gets made—and on what terms—leaving creators and independent businesses with fewer viable paths to sustain their work.
Media consolidation has accelerated the disappearance of the mid-budget film, the erosion of independent distribution, the collapse of the international sales market, the elimination of meaningful profit participation, and the weakening of screen credit integrity.
Together, these factors threaten the sustainability of the entire creative community. That includes endangering the professional lives of the tens of thousands of workers who help make up that community in predominantly small businesses and independent companies embedded in local economies and communities nationwide.
We are deeply concerned by indications of support for this merger that prioritize the interests of a small group of powerful stakeholders over the broader public good. The integrity, independence, and diversity of our industry would be grievously compromised.
Competition is essential for a healthy economy and a healthy democracy. So is thoughtful regulation and enforcement. Media consolidation has already weakened one of America's most vital global industries—one that has long shaped culture and connected people around the world.
Fortunately, someone is doing something about all this. California Attorney General Rob Bonta and his colleagues in other states are reportedly scrutinizing the merger and considering legal action to block it. We are grateful for their leadership, and stand ready to support all efforts to preserve competition, protect jobs, and ensure a vibrant future for our industry, for American culture, and for our single most significant export. |
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