Senator Adam Schiff and Representative Laura Friedman wrote to Netflix co‑CEO Ted Sarandos and Paramount Skydance CEO David Ellison on Friday. They asked the two companies to spell out firm promises that protect Hollywood job security. The pair said the pending Warner Bros Discovery acquisition could shape the future of an industry that supports more than 680,000 workers and adds over $115 billion to the economy each year.
Why the Deal Matters
The film and TV sector has faced enormous disruption in recent years. Production often leaves California for cheaper locations abroad. The COVID shutdowns added further strain. Schiff and Friedman acknowledge the public statements about creating and protecting jobs, but they stress that words alone are not enough. They want written agreements that can be measured and enforced.
Specific Concerns About Cuts
Both companies have outlined large expense reductions. Paramount plans to cut $6 billion over three years. Netflix expects to cut between $2 billion and $3 billion. Analysts say much of that savings will come from job losses. The lawmakers call these projected cuts extremely concerning. They argue that any cost‑saving plan must include clear steps to keep good‑paying film and TV jobs in Los Angeles.
What CEOs Must Answer
Schiff and Friedman gave the CEOs eight questions that must be answered in writing by February 15, 2026. The questions ask how the new owner will keep Hollywood and California central to production and investment strategies. They also request details on how the companies will grow and protect well‑paid film and TV jobs in Los Angeles.
The legislators say they expect public commitments that show how the companies will protect, grow, and reassure the hundreds of thousands of industry workers and their families. They want to see measurable actions, not just promises. By setting a clear deadline, they aim to hold the companies accountable and ensure that the Warner Bros deal does not erode Hollywood job security.
These steps matter for the entire entertainment ecosystem. When studios keep production in California, they support local crews, post‑production houses, and related businesses. The lawmakers hope that the new owners will see the value of staying in Los Angeles and will invest in the community that fuels their content.
In summary, the letter to Netflix and Paramount is a call for concrete, written commitments that protect jobs, sustain the California film industry, and preserve the cultural export that Hollywood provides worldwide.
Source: The Wrap
