Hollywood tensions rise as Netflix targets Warner Bros.

The entertainment capital shifted from mourning to fury when Netflix announced its $83 billion acquisition of Warner Bros. studio and HBO Max. What started as heartbreak over Warner Bros. Discovery’s October sale announcement has erupted into full-scale resistance against what many view as streaming’s most dangerous power grab yet.

Back in October, when the studio first hung its for-sale sign, Hollywood responded with grief. Megaproducer Larry Gordon compared it to losing a family member. Screenwriters filled WhatsApp chats with words like heartbreaking and tragic. But now that Netflix has emerged as the buyer, sentiment has curdled into something sharper.

Industry heavyweights sound alarm

Jane Fonda launched a blistering attack in a letter to an entertainment trade publication, warning the merger represents an alarming escalation in a consolidation crisis that threatens the entire entertainment industry, the public it serves and potentially even First Amendment protections. Her stark assessment captures growing fears that streaming monopolization carries implications far beyond quarterly earnings.

Theater owners reacted with particular intensity. Michael O’Leary, who leads Cinema United representing 30,000 movie screens nationwide, called the deal an unprecedented threat and vowed aggressive opposition. His concerns center on Netflix’s track record of offering only token theatrical releases before rushing films to its platform. Markets absorbed the anxiety immediately, with shares of AMC Entertainment, IMAX and Cinemark dropping as much as 8 percent.

Labor groups mobilized with equal force. The Writers Guild of America, representing over 12,000 screenwriters, declared the merger must be blocked, framing it as exactly what antitrust laws were designed to prevent. The Teamsters’ motion picture division similarly demanded that government regulators at all levels reject the transaction.

Promises meet deep skepticism

Netflix co-chief executive Ted Sarandos attempted damage control during a Friday investor call, insisting the company would honor Warner Bros.‘ theatrical release model. He emphasized that Netflix harbors no opposition to cinema releases and promised everything currently planned for theaters would continue reaching the big screen.

Hollywood insiders greeted these assurances with profound doubt. Several agents noted the careful qualifier, right now, which leaves ample room for future policy shifts. The skepticism has roots in Sarandos’ recent statements. Just last April at the Time100 Summit, he suggested declining box office numbers showed consumers prefer watching movies at home. He went further, calling theaters an outmoded idea for most people.

Workers brace for job losses

For Los Angeles entertainment workers, from camera operators to hairstylists to set designers, the Netflix deal signals another devastating blow to an already hemorrhaging job market. The industry has shed tens of thousands of positions since 2020, battered by the pandemic, two union strikes, production fleeing to cheaper markets and artificial intelligence’s creeping automation.

Industry veterans recognize that consolidation always translates to layoffs. Disney’s $71.3 billion Fox acquisition in 2019 triggered significant job cuts. The pattern repeated when Skydance Media completed its $8 billion Paramount takeover this year, with Paramount subsequently eliminating over 2,000 workers to slash $3 billion in costs.

Representative Laura Friedman, whose Burbank district encompasses major film institutions, emphasized that repeated consolidation has already cost countless jobs. She pledged close scrutiny to ensure the deal supports Los Angeles workers rather than gutting them.

Political response stays measured

Los Angeles political leaders trod carefully in their responses. Mayor Karen Bass highlighted how production studios contribute to the city’s status as the creative capital while promising to foster local production and job creation. City Councilwoman Katy Yaroslavsky, whose district includes major union headquarters and production facilities, focused on whether the deal strengthens local production or accelerates work migration elsewhere. She acknowledged Netflix as a strong city partner but noted the entertainment sector remains in crisis.

Austin Beutner, challenging Bass in the upcoming mayoral race, expressed direct concern about consolidation’s impact on community jobs.

Behind the scenes, City Hall sources revealed mixed feelings. Some liberals quietly welcomed Netflix’s victory over David Ellison and his father Larry, a prominent Trump supporter, preventing them from acquiring another landmark studio. Yet federal regulatory approval looms ominously, particularly given what Netflix might need to do to appease the incoming administration.

Creative freedom under threat

On the entertainment-heavy Westside, the news dominated conversations. Entertainment lawyer Chris Perez, who represents independent and documentary producers, reported nonstop phone calls. When only a few buyers control the marketplace, he explained, they gravitate toward safer, less risky content. The result is diminished experimentation and reduced creative boldness. Consolidation has real potential to kill creativity, he warned.

Michele Mulroney, president of Writers Guild of America West, called the merger a disaster. She noted that Netflix‘s business model already revolves around keeping audiences glued to couches consuming content. These mergers always promise benefits, she said, but consistently deliver diminished competition, lower pay and fewer jobs for workers. She called it a very dismal day for Hollywood’s creative community.

The deal now enters complex regulatory review where political considerations, antitrust scrutiny and labor advocacy will collide. For an industry already reeling from disruption, the outcome may determine whether Hollywood’s creative workforce survives or becomes another casualty of the streaming wars.