Netflix’s proposed $72 billion takeover of Warner Bros Discovery has drawn sharp opposition from Hollywood unions, theatre owners and industry groups who say the deal would concentrate power, cut jobs and further weaken theatrical releases if it survives regulatory scrutiny.
The deal, announced this month, would put HBO brands and the historic Warner Bros studio under Netflix’s control. Netflix, the streaming giant behind Stranger Things and Squid Game, would also gain control of marquee Warner Bros titles such as Batman and Casablanca, a prospect that has prompted fresh concern across the film and television workforce.
- Advertisement -
“This merger must be blocked,” the Writers Guild of America East and West said in a joint statement, voicing worries about job losses, wage reductions, higher consumer prices and deteriorating conditions for entertainment workers.
Netflix told regulators it expects at least $2 billion to $3 billion in annual cost savings by the third year after the deal closes. The company said it would maintain theatrical releases for Warner Bros films and continue to support Hollywood creative professionals, but critics remain unconvinced.
Cinema United, the trade group representing roughly 30,000 U.S. movie screens and 26,000 internationally, warned the acquisition could eliminate as much as 25% of the annual domestic box office. Cinema United President Michael O’Leary called the merger “an unprecedented threat” and questioned whether Netflix would keep existing theatre distribution levels.
“Sporadic and truncated theatrical releases to meet awards criteria in a handful of theatres is not a commitment to exhibition,” O’Leary said.
The Hollywood Teamsters, who represent drivers, casting professionals, mechanics and other behind-the-scenes workers, urged “opposition across all levels of government” and asked antitrust enforcers to reject the deal. “Teamsters have been clear on our position that greed-fuelled consolidation of corporate power, no matter what industry, is a direct threat to good union jobs, the livelihood of our members and the very existence of our industry,” the union said.
Other guilds reacted cautiously. The Directors Guild of America said it has “significant concerns” and will meet with Netflix to better understand the company’s plans, adding that it would not comment further during its review. The screen actors union SAG-AFTRA said the merger “raises many serious questions” and that it will assess the impact on its members before offering detailed comment.
Beyond unions and exhibitors, the transaction faces close antitrust reviews in the United States and Europe. American lawmakers have already signalled scepticism, and regulators will weigh whether combining two of the industry’s largest studios and streaming services would substantially lessen competition in film and television production, distribution and licensing.
Analysts say the outcome could reshape business models established since the streaming era began, when services accelerated a shift from theatrical windows to direct-to-consumer releases. Netflix has periodically released films in theatres before streaming them to subscribers, but exhibitors worry that a combined Netflix-Warner would further reduce theatrical output or restrict distribution to suit streaming strategies.
If regulators permit the merger, industry leaders warn the consequences could be far-reaching for studio employment, theatre operators and the future of film releases. If blocked, the decision would signal continued antitrust scrutiny of large-scale consolidation in entertainment and digital media.
By Abdiwahab Ahmed
Axadle Times international–Monitoring.
