Laura Blum-Smith, the Writers Guild of America West’s director of research and public policy, considers the strike a result of a tsunami of Hollywood mergers that has handed studios and streamers the power to its exploit workers.
“Harmful mergers and attempts to monopolize markets are a recurring theme in the history of media and entertainment, and they are a key part of what led 11,500 writers to go on strike more than 100 days ago against their employers,” Blum-Smith said on Thursday at an event with the Federal Trade Commission and Department of Justice over new merger guidelines unveiled in July.
She pointed to Disney, Amazon and Netflix as companies that “gained power through anticompetitive consolidation and vertical integration,” allowing them to impose “more and more precarious working conditions, increasingly short term employment and lower pay for writers and other workers across the industry.” But she sees revisions to the merger guidelines that address labor concerns a key part of the solution to prevent further mergers in the entertainment industry moving forward.
“The FTC and DOJ’s new draft merger guidelines are part of a deeply necessary effort to revive antitrust enforcement,” she added. “Compared with earlier guidelines, the new ones are much more skeptical of the idea that mergers are the natural way for companies to grow. And they focus more on the various ways mergers hurt competition, including how mergers impact workers.”
In July, the FTC and DOJ jointly released a new road map for regulatory review of mergers. They require companies to consider the impact of proposed transactions on labor, signaling that the agencies intend to review whether mergers could negatively impact wages and working conditions. FTC commissioner Alvaro Bedoya, who was joined by agency chair Lina Khan, said in a statement about the guidelines that “a merger that may substantially lessen competition for workers will not be immunized by a prediction that predicted savings from a merger will be passed on to consumers.” Historically, transactions have been considered mostly through the lens of benefits to consumers.
The guidelines lack the force of law but influence the way in which judges consider lawsuits to block proposed transactions. They also tell the public how competition enforcers will assess the potential for a merger’s harm to competition.
Antitrust enforcers have steadily been taking notice of negative impacts to labor as a result of industry consolidation. “We’ve heard concerns that a handful of companies may now again be controlling the bulk of the entertainment supply chain from content creation to distribution,” Khan said last year during a listening forum over revisions to the guidelines, in a nod to anticompetitive conduct by studios that led to the Paramount Decrees. “We’ve heard concerns that this type of consolidation and integration can enable firms to exert market power over creators and workers alike.”
Adam Conover, writer and WGA board member, said in that April 2022 forum that his show Adam Ruins Everything was killed by AT&T’s acquisition of Time Warner in 2018 when TruTV’s parent company forced the network to cut costs. He stressed that a handful of companies “now control the production and distribution of almost all entertainment content available to the American public,” allowing them to “more easily hold down our wages and set onerous terms for our employment.” It’s not just writers that are impacted by an overly consolidated Hollywood either, he explained. After Disney acquired 21st Century Fox in 2019, he said that the studios pushed the industry into ending backend participation and trapping actors in exclusive contracts preventing them from pursuing other work.
Blum-Smith said that aggressive competition enforcement is necessary as “Wall Street continues to push for more consolidation among our employers despite the industry’s history of mergers that failed to deliver any of the consumer benefits they’ve claimed that left writers and audiences worse off with less diversity of content and fewer choices.”
“More mergers will leave writers with even fewer places to sell their work and tell their stories and the remaining companies will have even more power to lower pay and worsen working conditions,” she warned. “Strong enforcement against mergers is essential to protect workers in media and workers across the country and these guidelines are an important step in the right direction.”
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August 11, 2023 at 05:50AM
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Writers Guild West Official: Era of Hollywood Mergers Hastened the Strike - Hollywood Reporter
"Hollywood" - Google News
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