The Warner Bros.-Netflix merger could doom Hollywood film workers
For media moguls, maximizing shareholder value is the only metric that counts.
For media moguls, maximizing shareholder value is the only metric that counts.
The mantra was supposed to be "Survive ’til ’25." After the brutal one-two punch of a global pandemic and historic double strikes in 2023, industry workers were just hoping to make it to the other side.
But as 2025 unfolds, that "other side" looks less like a recovery and more like a permanent downsizing. With production levels still cratering and legacy studios on the auction block, the "Dream Factory" is currently undergoing a massive, painful restructuring.
Here is what you need to know about the current state of Hollywood and the merger that has everyone—from grips to James Cameron—on edge.
The $83 Billion Elephant in the Room: Netflix x WBD
The biggest shockwave this year came from the news that Netflix is moving to acquire Warner Bros. Discovery (WBD) for a staggering $83 billion.
The deal would see Netflix swallow the legendary Burbank studio lots and HBO Max, while spinning off WBD’s linear cable channels into a separate entity. While Netflix CEO Ted Sarandos calls the move "pro-growth," the creative community is sounding the alarm:
The Monopoly Problem: If the deal goes through, Netflix would control roughly 43% of the streaming market.
The Death of Options: For writers and directors, one less studio means one less place to pitch. When the number of buyers shrinks, the power of the remaining executives to dictate wages and "kill" projects grows exponentially.
The Workforce Warning: The WGA and DGA have both slammed the deal, with the WGA stating it would "eliminate jobs, push down wages, and worsen conditions for all entertainment workers."
A Shrinking Footprint: By the Numbers
The "leaner" Hollywood isn't just a vibe; it's a statistical reality. Despite the strikes ending two years ago, the work hasn't returned to pre-pandemic levels.
| Metric | The Reality in 2025 |
| Industry Size | California’s film/TV sector is 25% smaller than in 2022. |
| Shoot Days | L.A. on-location filming is 30% below the five-year average. |
| Job Losses | L.A. industry jobs dropped from 142k to 100k in just two years. |
| Market Share | L.A. lost nearly 20% of its share of scripted TV projects to tax incentives abroad. |
The "Merger Curse"
History tells us that when media giants merge, workers lose.
Disney/Fox (2021): Led to 3,000 layoffs and the shuttering of Blue Sky Studios.
Paramount/Skydance: David Ellison’s recent acquisition of Paramount already resulted in 1,000 layoffs, with another 2,000 planned.
This creates a "monopsony" effect—a market with many sellers (workers) but only one or two buyers (studios). In this environment, visionary or "weird" art often gets sidelined in favor of safe, algorithm-friendly content that maximizes shareholder value.
What Happens Next?
The Netflix-WBD deal faces a grueling 18-month regulatory climb. The Department of Justice has blocked media mergers before (like the Penguin Random House/Simon & Schuster deal) based on the argument that it would harm creators' earnings.
Whether it’s Netflix or a hostile takeover bid from Skydance’s David Ellison, the message to workers is clear: The era of peak TV is over. Hollywood is no longer just competing for your attention; it's consolidating to survive.