Netflix didn’t have to frame its attempt to absorb of one of Hollywood’s historic studios as pro-labor. No one would have faulted the streamer for simply talking up the stock price and various corporate efficiencies. But the company’s leaders have said Hollywood’s workforce will benefit, loudly.
First Ted Sarandos called the acquisition of the 102-year-old studio “pro-worker” in a call with Wall Street analysts on Friday. Then in a UBS conference conversation in New York on Monday the Netflix co-CEO doubled down, saying the merger is “a great way to create and protect jobs in the entertainment industry.”
Also, The Hollywood Reporter has learned, after news of the transaction broke, Sarandos called union leaders around the business, proactively explaining the deal to them and hearing them out.
The industry’s rank and file would be forgiven for rolling their eyes. Netflix, after all, is proposing to remove one of Hollywood’s major employers and top competitors for talent and crews from the business.
To Teamsters motion picture leader Lindsay Dougherty, the statements from Netflix are just talking points until the streamer brings the receipts. “When you get into these kind of generalizations, it’s important to have data, and it’s important to have information of what that actually looks like for people,” she said in an interview on Monday.
The same, in her view, goes for Paramount, which on Monday launched a hostile takeover offer for WBD.
In a conversation later that day, Dougherty didn’t rule out the possibility of supporting either merger attempt but said top priorities for labor would need to be addressed first. She also discussed the current state of the Hollywood workforce and what the best-case scenario for Hollywood workers would be as Warners hangs in the balance.
The Teamsters issued a statement to the news of the Netflix-WBD deal. Now that Paramount has launched a hostile takeover bid, what are your thoughts on that alternative scenario? Is Paramount-WBD any better or worse?
First and foremost, I don’t think it was surprising to hear that this morning, especially since Paramount-Skydance has been in the running to make this bid for quite some time. But at the end of the day the question still remains the same of what does this look like for Hollywood and its workforce? Most certainly that’s the question that I think anyone in Hollywood is asking. And in any merger or acquisition we’ve seen in our history, it hasn’t been good for workers. So I know there’s a lot of promises that have been made or generalizations of how good this will be for Hollywood, I think that’s not reassuring for our members, and it’s really not reassuring for Hollywood in general. When you get into these kind of generalizations, it’s important to have data, and it’s important to have information of what that actually looks like for people.
Do the Teamsters have data on any past mega mergers and the impact that it’s had on your members?
Local 399 does not have that kind of information that I’m aware of. I can just say even recently there’s been a number of layoffs at Paramount before this merger with Skydance, and then the same can be said for Warner Brothers in the last couple of years as well.
Entertainment workers have faced quite a bit of hardship over the last few years as major companies have cut back. What does it mean for this news to arrive now for the Hollywood workforce?
Well, it’s another blow, most certainly. I think the companies involved in the merger are trying to reassure the Hollywood workforce that this is good, but that doesn’t make anyone feel warm and fuzzy. Obviously our industry has been in a fragile state for quite some time, and even the things that we’ve done as the union and our coalition of trying to bring work back to Los Angeles with the film and television tax credit for the state, I think that kind of news is hopeful for our members. But concerning the mergers, people are skeptical because they want to actually see what that looks like or hear what that would look like for them in the next couple months or next couple of years in this industry.
The Directors Guild of America said that the union was planning on meeting with Paramount and Netflix. Do the Teamsters have any plans to do the same?
Yes. I’ve personally met with one of the companies. I’ve talked to Netflix, I’ve talked to Ted Sarandos as well. Based on the statements from the other unions, I think everybody is curious to hear what this is going to look like for their members. And that is going to require in-depth discussions for all of us internally and then also with these employers.
Are there any particular concerns you brought up to Sarandos initially?
Netflix is a global company, and obviously we want to see filming here in Los Angeles, and that was my main concern of how we can expand filming in the state of California. That’s going to continue to be a priority for us as well throughout this merger and throughout any other acquisitions or any other changes in the industry. We all see the amount of jobs that are available now, the opportunities that are there for our members, and quite frankly, it’s just not enough. So that’s going to be our number one priority is making sure our members are employed.
How do you think this situation with WBD kind of hanging in the balance will affect labor negotiations next year, if at all?
When you get to the bargaining table, there’s always going to be economics that are discussed. And when you have companies that are making these sorts of bids that include up towards a hundred billion dollars, they obviously have raised the capital or have the capital to do that. And so as a union, when you’re at the bargaining table, you’re going to want to see your members reap the benefits. And also when those numbers are thrown out there and somebody’s trying to get an extra dollar an hour, it seems like peanuts compared to what we’re talking about here.
So it’s actually maybe a point of leverage, at least when it comes to wages.
I mean, the benefits all around. Obviously the shareholders are going to benefit from these acquisitions. So we all want to see our members and the working people that bring success to these companies also reap the benefits.
Are there any best-case scenarios for Warner Bros. going forward when it comes to Hollywood workers, in your view?
I mean, ultimately I think the best-case scenario for everybody is for David Zaslav to leave our industry and never come back. What we want to see is the Hollywood studio system continue to make theatrical films and to produce here in the United States, especially here in Los Angeles. And Warner Brothers has been a major studio for decades upon decades. So I think everybody wants to see that studio still succeed. And I’m not sure what that exactly looks like, but I think most certainly, this is one of the old Hollywood studios that we want to see continue on in our industry.
If a mega-merger like Netflix-WBD or Paramount-WBD does come about and jobs are lost, what do the Teamsters do then? Do they organize other areas of entertainment?
Look, we’ve always been organizing, and there’s only so many jobs in the industry that you can organize. I mean, it’s already predominantly organized labor, so I don’t know what we could continue to do to expand in the entertainment industry, but obviously we’re all ears, and I would love to do that. But at this point, I think our fight is still going to continue to be maintaining the workforce here in Los Angeles and maintaining a strong and competitive film and television tax credit in the state.
In your talk with Ted, did you get the sense that unions might be able to negotiate anything as a result of this deal to put their weight behind it?
I think that our members need assurances. We need assurances that there are going to be jobs available to them throughout this merger and generalized statements that this is going to be a pro-worker acquisition are nice, but they’re not helpful. So we’re all ears to hear what the studio heads have to say in terms of these acquisitions or mergers and if it’s going to benefit our members. Obviously there’s a point at which we could not oppose or even possibly approve, but we’re nowhere near that. And obviously that requires negotiated conditions in order for that to be possible.
This interview has been edited for length and clarity.
