The Writers Guild of America West warned of a potential media monopoly by Disney, Amazon and Netflix, highlighting the risks of consolidation, reduced creativity and increased control. The organization issued a report titled "The New Gatekeepers: How Disney, Amazon and Netflix Will Take Over Media," according to an Aug. 17 news release.
"Writers forced to strike in this climate should come as a surprise to no one," WGAW Research and Public Policy Director Laura Blum-Smith said in the release. "We’re transitioning from a period of rapid investment and competition that brought about new and diverse content to a monopolistic model that will concentrate control over entertainment programming in the hands of just a few large and powerful corporations."
The report outlines the potentially monopolistic future dominated by these three corporations. It said Disney, Amazon and Netflix have leveraged mergers, acquisitions and other anti-competitive practices to place themselves in positions of extreme influence. These actions are feared to lead to a future where creativity, choice and innovation are suppressed, with higher prices for consumers and reduced pay for writers.
The report's grim outlook also extends to companies like Paramount, Sony and Warner Bros. Discovery, which are anticipated as likely candidates for consolidation due to disadvantages like lack of scale or vertical integration. This ongoing trend may lead to some streamers leaving the market or being acquired by larger entities.
A core concern of the WGAW report is the unchecked rise of vertical integration, the unification of production and streaming distribution. This business strategy has escalated issues of media consolidation, leaving smaller players and new entrants at a significant disadvantage.
To address the growing power of these gatekeepers, the report calls for decisive action to mitigate consolidation within the media and entertainment industry. Recommendations include blocking further consolidation involving major streaming players, investigating anti-competitive practices and increasing regulation and oversight in the streaming industry.
The report notably calls for new rules against anti-competitive behavior and requirements for independent content on streaming services to ensure a level playing field.
The WGAW’s insights stress the urgent need for intervention, emphasizing the importance of maintaining a healthy competition to support the free exchange of ideas and diversity of content. While recent actions by the Department of Justice and the Federal Trade Commission against harmful mergers are promising, the report asserts more aggressive intervention is required to protect the public interest in an increasingly consolidated media landscape.
