Attorney General James Secures Critical Protections for Entertainment Industry Workers from Paramount and Warner Bros.
NEW YORK – New York Attorney General Letitia James and a coalition of 11 other attorneys general today secured new commitments from Paramount Skydance Corp. (Paramount) and Warner Bros. Discovery, Inc. (Warner Bros.) to protect film and television industry workers and help ensure fair prices for consumers as the two companies combine. As a result of lawsuits brought by Attorney General James and the coalition and the Writers Guild of America (WGA), Paramount must release at least 30 films every year, increase and make new investments in its domestic film production, negotiate Paramount and Warner Bros. cable channel fees separately, and create an independent board to oversee CNN and CBS news networks to ensure journalistic independence. Attorney General James met with unionized film and television workers and partnered with WGA to secure important commitments to protect workers.
“The artists, writers, crew members, and other workers who create the films and television shows we love count on new productions and investments to sustain their careers,” said Attorney General James. “Paramount’s commitments will allow the film and television industry to continue to thrive with more movies produced in America and $1.5 billion of new investment in film production. I have met with unions representing entertainment industry workers as our case progressed, and I will continue to closely monitor Paramount’s activities to ensure they are following this agreement and the law.”
Attorney General James and the coalition have secured enforceable commitments from Paramount and Warner Bros. to protect entertainment industry workers during the merger of the two companies. Paramount will produce and distribute at least 30 films every year, including 20 wide-release films distributed to thousands of theaters nationwide. 20 percent of these films must be big-budget “tentpole” films that help sustain theaters and other businesses reliant on film production. Paramount will also commit to invest $1.5 billion more in domestic film production over the next five years, and will increase its domestic film production even more if new federal or state film tax credits take effect. If Paramount fails to meet its production requirements, it must sell Miramax and pay $30 million in penalties for every film that falls short of its commitment, most of which will be used to support health care benefits for unionized film and television workers.
To protect the television industry, Paramount will negotiate the licensing fees for Warner Bros. cable channels separately from its own, ensuring the company has less power to demand higher fees from distributors. Paramount must sell certain cable channels if it fails to abide by this commitment. Paramount will also institute an independent editorial board composed of independent journalists to oversee CNN and CBS.
Joining Attorney General James in securing this settlement are the attorneys general of Arizona, California, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, Oregon, and Washington.
For New York, this matter is being handled by Assistant Attorneys General Pratik Agarwal, Morgan Feder, and Will Margrabe and Attorney General Fellow Jaya Mantovani, all of the Antitrust Bureau, under the supervision of Bureau Chief Elinor Hoffmann and Deputy Bureau Chief Amy McFarlane, and with the assistance of Chief Economist Chitra Marti. The Antitrust Bureau is part of the Division for Economic Justice, which is led by Chief Deputy Attorney General Christopher D’Angelo and overseen by First Deputy Attorney General Meghan Faux.
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