The Producers Guild of America said producers are “rightfully concerned” about Netflix’s planned acquisition of Warner Bros. hours after the streaming giant announced its plans to buy WB for $82.7 billion.
“Producers are rightfully concerned about the potential sale or merger of our industry’s most storied and meaningful studios. For the last century, the entertainment industry has employed millions of Americans, delighted audiences and showcased the very best of America at home and abroad,” the PGA said in a statement.
“As we navigate these dynamic times of economic and technological change, our industry, together with policymakers, must find a way forward that protects producers’ livelihoods and promotes creativity and opportunities for workers and artists, choice for consumers and freedom of speech,” the statement continued. “This is the test that potential mergers or sales of our legacy studios must pass. Within their vaults are more than content libraries – it’s the character and culture of our nation.”
The PGA isn’t the only Hollywood guild that’s responded to the industry-altering news that Netflix will be acquiring Warner Bros. Discovery. Late on Thursday night, the Directors Guild of America released a statement that the merger raises “significant concerns” for the organization. The DGA will be meeting with Netflix to outline its worries and understand Netflix’s vision for the future.
“While we undertake this due diligence we will not be commenting further,” the DGA statement concluded.
While most of the regulatory and antitrust concerns around this deal stem from Netflix’s position as the top premium streamer, most of the hand-wringing in Hollywood has to do with its history in the theatrical space. For years, Netflix has been adamant that it is not interested in backing theatrical runs. Even its awards fodder films only appear in theaters during a brief, Oscar-qualifying run.
Theater owners represented by the exhibition trade association Cinema United have also already spoken out about this deal, calling it “an unprecedented threat to the global exhibition business.”
“Cinema United stands ready to support industry changes that lead to increased movie production and give consumers more opportunities to enjoy a day at the local theatre,” Cinema United President and CEO Michael O’Leary said in a statement. “But Netflix’s stated business model does not support theatrical exhibition. In fact, it is the opposite.”
For its part, Netflix co-CEO Ted Sarandos has insisted that the streamer will continue to support WBD’s theatrical output. He also noted that Netflix isn’t opposed to movie theaters during a Friday morning investors call, clarifying that the company’s pushback comes from the long exclusive windows that come with the theatrical distribution model.
“But when we talk about keeping HBO operating, largely as it is, that also includes their output movie deal with Warner Bros., which includes a life cycle that starts in the movie theater, which we’re going to continue to support,” Sarandos said.
