In a comprehensive antitrust report, the Writers Guild of America West (WGA) has sounded the alarm over the escalating consolidation within the entertainment industry, flagging Disney, Netflix, and Amazon as potential “new gatekeepers.” The guild’s report raises concerns about the possible implications for creative talent, creativity, and audience diversity.
The WGA’s report, which delves into the growing consolidation and deregulation trends in Hollywood, points out that this trajectory might pave the way for three entertainment behemoths—Disney, Netflix, and Amazon—to wield unprecedented influence over content creation and consumption. The guild warns that this concentrated market power could potentially have adverse effects on both content creators and viewers.
“Streaming’s dominant employers have used their leverage to erode the sustainability of writing work; further consolidation could result in fewer writers able to earn a living and diminished variety in the marketplace of ideas. It is crucial that antitrust agencies and lawmakers take the following actions to protect the future of media,” emphasizes the WGA.
The report singles out Disney’s strategic acquisitions during the past decade, masterminded by CEO Bob Iger, as prime examples of this trend. The acquisitions of Marvel Studios, Lucasfilm, and 20th Century Fox have allowed Disney to substantially expand its market share in both box office and streaming.
“Disney’s size and power, along with its vertical integration, allowed the company to cut pay without losing talent, as writers negotiating against a massive combined producer-distributor cannot walk away from the distributor’s poor terms without also leaving the show they created,” the guild wrote in its report.
However, this expansion has not come without trade-offs for creatives. According to the WGA, Disney’s growing size and clout have enabled it to pressure creative professionals to forfeit their claims to future licensing revenue—a long-standing industry practice that ensures creators share in the success of their work.
The guild also turns its spotlight on Netflix and Amazon, accusing them of employing anticompetitive tactics through vertical integration to hike prices for their streaming services. Simultaneously, the guild argues, these actions have limited opportunities for writers to secure employment and gain project approvals. The report posits that the dominance of streaming giants has resulted in diminishing sustainability for writing work.
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Underscoring the significance of this issue, the WGA underscores the need for regulatory bodies and lawmakers to step in to safeguard the media industry’s future. The guild has been an active participant in past antitrust discussions, criticizing mergers such as Warner Bros. Discovery, Comcast-NBC Universal, and AT&T-Time Warner for their perceived negative financial and creative repercussions.
The release of the report comes at a pivotal juncture, as the Writers Guild of America continues negotiations with the Alliance of Motion Picture and Television Producers (AMPTP) to secure a new bargaining agreement. These negotiations are unfolding amidst an ongoing writers’ strike. While there have been reports of some progress, significant disagreements persist, particularly regarding issues like staffing within TV writers’ rooms and streaming residuals.
As Hollywood grapples with the prospect of further consolidation and its far-reaching implications, the WGA’s report offers a timely reminder of the intricate balance between industry expansion, artistic autonomy, and fair treatment of creative talent. The outcome of the ongoing negotiations could exert a profound influence on the future trajectory of the entertainment industry and the experiences of the individuals who power it.
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