David Smith Addresses Union Concerns Surrounding Warner Bros. Sale
As Netflix and Paramount pursue competing bids for Warner Bros. Discovery, Hollywood labor unions are voicing growing concern about how further consolidation could impact jobs, creative output, and competition across the entertainment industry. The high-stakes negotiations have drawn close attention from industry experts, including David Smith, Senior Associate Provost and faculty member at Pepperdine Graziadio Business School, who spoke with the Los Angeles Times about the limits of union influence in the deal-making process.
Union leaders representing writers, actors, directors, and crew members have warned that mergers of this scale could lead to widespread layoffs, reduced production, and downward pressure on wages. While executives from Netflix and Paramount have promised benefits for creators and consumers, labor groups remain skeptical, pointing to anticipated cost cuts and recent declines in employment across Hollywood.
Smith told the Los Angeles Times that, despite their concerns, unions may have limited power to directly shape the outcome of the transaction.
"They just don’t have a seat at the ultimate decision-making table," Smith said. "I expect their primary involvement could be through creating more awareness of potential challenges with a merger and potentially more regulatory scrutiny."
According to Smith, union advocacy may play a role in influencing regulators rather than corporate boards, particularly as federal agencies assess whether the proposed deals violate antitrust laws. Heightened scrutiny could slow or complicate approval, especially given the scale of the potential consolidation and its implications for competition and employment.
The concerns emerge as major studio labor contracts, including those for the Writers Guild of America, Directors Guild of America, and SAG-AFTRA, are set to expire next year, raising the stakes for workers already facing an uncertain employment landscape.
As the battle for Warner Bros. unfolds, Smith's analysis highlights the broader economic and regulatory forces at play, underscoring how media consolidation could reshape Hollywood well beyond the boardroom. Read more here.