Writers Guild Of America Also Sues Paramount, Citing Looming Merger Layoff Bloodbath

from the do-not-pass-go,-do-not-collect-$200 dept

Not long after twelve states sued Paramount claiming its $111 billion merger with Warner Brothers would harm market competition, the Writers Guild of America (WGA) filed their own lawsuit, warning that the massive debt load from the media industry’s latest megamerger will result in an ocean of layoffs for an already reeling U.S. entertainment industry.

The lawsuit notes that the current film industry is dominated by just five players: Disney (ABC), NBCUniversal (Comcast), Sony, Paramount (CBS), and Warner Brothers. Comcast recently restructured to make it easier to sell off its NBC and Universal properties, opening the door to a lot of very quick consolidation in addition to the speedy Skydance/Paramount/Warners merger.

“With fewer competitors, the merged Paramount-Warner Bros. entity would have both the ​incentive and the ability to lower costs by suppressing writers’ wages and reducing output. Writers will be paid less and ​have fewer employment opportunities,” the WGA complaint said.

Supreme Court precedent (for whatever that’s worth anymore) has long indicated that any merger
yielding a post-merger market share exceeding 30% (which this deal does) is presumptively anticompetitive. The WGA notes that muted competition will result not just in fewer jobs, but lower wages and fewer opportunities for creatives overall across both film and television.

“With fewer competitors, the merged Paramount-Warner Bros. entity would have both
the incentive and the ability to lower costs by suppressing writers’ wages and reducing output.
Writers will be paid less and have fewer employment opportunities,” the lawsuit states.

While Paramount would like to pretend this is a debate, and most U.S. press outlets bury the lede, U.S. history is vividly clear on the harms created by media consolidation. That was most recently personified by AT&T’s disastrous acquisitions of DirecTV and Time Warner, which resulted in upward of 50,000 layoffs, higher prices, worse service, and no shortage of shuttered creative projects.

The rushed acquisitions of both CBS/Paramount and Warner Brothers — all so Larry Ellison’s son can play media mogul — have created a particularly heavy debt load of $79 billion. Such debt is always paid for by consumers and labor, often in more ways than one.

Paramount has promised to release 30 theatrical releases per year and to keep them in exclusively for theaters for 45 days, but as I’ve long made clear, pre-merger promises are utterly worthless. Especially in a country dead set on steadily lobotomizing its public interest regulators. As we’ve seen with consolidation in sectors like wireless, America’s favorite pastime is pretending to ignore the harms of pointless mergers.

This is a pretty clear example of the kind of consolidation that should be blocked for the benefit of labor, markets, and consumers, but despite a lot of rambling pretense about a love of free market competition and entrepreneurial spirit, America consistently fails to walk the talk on antitrust, the impact of which is abundant and getting exponentially worse under pay-to-play Trumpism.

Filed Under: antitrust, consolidation, film, hollywood, jobs, larry ellison, layoffs, media, mergers, movies
Companies: paramount, warner bros., writers guild

Harlan Ellison Sues Again

from the it's-all-about-the-money dept

Harlan Ellison may be a well-respected writer, but he’s got something of a history of threatening and/or suing anyone who he believes is unfairly profiting off of “his” works. You may recall a while back that he mistakenly sued AOL when he discovered that fans of his (not that he’d call them fans) had posted some of his writings to Usenet. Yes, to Usenet. Not to any AOL property, but to Usenet. However, since he’d discovered it via AOL, somehow they were to blame… so he sued. And a court quickly explained to Mr. Ellison the DMCA’s safe harbors and the fact that Usenet isn’t AOL. Ellison appealed… and, amazingly, AOL eventually settled just to make him go away, knowing that even though the courts would reject such cases under DMCA safe harbors (and common sense), it was cheaper to just pay up.

This wasn’t just a one-off misunderstanding. Ellison has a long history of being economically and technologically illiterate about these sorts of things, as was made clear in this video that made the rounds a few years back:

In the video, he talks about how he doesn’t take a piss without getting paid, and screams about Warner Bros. Studios asking if they can use a video interview he did in the DVD for Babylon 5, which he worked on — and he demanded payment for it. When the woman pointed out that everyone else was doing it for free, he called them all assholes and then went on a rant about people doing stuff for free, talking about how he doesn’t do anything for free. Apparently, he missed the fact that the video was already recorded, so it wouldn’t be about any “work for free” because he wouldn’t be doing any work. The work was already done. Also, depending on who shot the video, it’s unlikely that WB actually needed to get his permission (or to pay him) to use the video, because he probably doesn’t own the rights to it, but that’s a separate point.

Either way, that’s all prologue to the news that Ellison is suing yet again. This time, he’s suing Paramount Pictures and the Writers Guild because he wrote an episode of Star Trek that aired in 1967, and Paramount hasn’t paid him for certain Star Trek books that include elements from that show or other merchandise like a (not making this up) talking Christmas tree ornament. He’s suing the Writers Guild because it apparently told him that he was nuts and they weren’t going to take on Paramount over this issue (he’s accusing the Guild of too narrowly interpreting its contract).

And, in classic Ellison fashion, his statement on the matter is all about the money:

It ain’t about the ‘principle,’ friend, its (sic) about the MONEY! Pay Me! Am I doing this for other writers, for Mom (still dead), and apple pie? Hell no! I’m doing it for the 35-year-long disrespect and the money!

Given these antics and ridiculousness, you have to wonder just how many folks won’t be hiring Ellison in the future, knowing he’s likely to blow up and potentially sue them, as well. You also should wonder how much “money” he’s missing out on from folks like me who will never buy any of his works. If it’s “all about the money” perhaps someone who writes sci-fi like Ellison can think about the future a little bit, and how many opportunities he kills off by demanding every penny today at the expense of dollars tomorrow.

Filed Under: harlan ellison, lawsuits, money
Companies: paramount, writers guild