The proposed merger between Paramount and Warner Bros. Discovery is poised to reshape much of the film industry. As the deal takes shape, a central concern in both Hollywood and Washington is how the consolidation of two legacy studios could affect jobs. Paramount CEO David Ellison addressed those concerns in a letter obtained by The Hollywood Reporter.
The Hollywood Sign – Photo Credit: Thomas Wolf, www.foto-tw.de, CC BY-SA 3.0 <https://creativecommons.org/licenses/by-sa/3.0>, via Wikimedia Commons
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“I firmly believe that uniting Paramount and Warner Bros. Discovery presents a unique opportunity to build a true champion for the creative community—one that can and will bring more stories to life, support filmmakers and talent with real scale, and compete effectively on the global stage as an independent media leader,” Ellison wrote.
Still, as California grapples with ongoing job losses in the entertainment sector, a larger question remains: can consolidation coexist with job security?
California Lawmakers Seek Assurances
Ellison was responding to Sen. Adam Schiff and Rep. Laura Friedman, who had pressed for clarity on how new leadership would protect local employment. Before it was clear whether Netflix or Paramount would take control of Warner Bros. Discovery, the California lawmakers requested specific assurances that any deal would “preserve and expand good-paying film and television jobs in Los Angeles.” In their letter, they emphasized, “We must see concrete commitments to Californian and American workers.”
Logos for Paramount Skydance and Warner Bros. – Paramount, WB
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The stakes for California are becoming increasingly clear. A recent survey found that of the 8.3 million square feet of soundstage space in Los Angeles, only 62% was in use during the first half of 2025—down one percentage point from the same period in 2024. Against this backdrop, some industry observers have raised concerns that a major studio merger could further reduce production activity rather than expand it.
Now that the dust is starting settle, Ellison is providing an outline of his plans moving forward.
Ellison Lays Out His Plan for Hollywood Jobs
In his letter, Ellison outlines four key commitments:
- Increased Creative Output: Paramount and Warner Bros. Discovery would each release 15 feature films per year.
- Third-Party Content and Licensing: In addition to licensing their own content, both studios would acquire projects from outside studios and independent producers.
- Preserving HBO: The established HBO brand would continue to operate independently.
- Theatrical Commitment: Feature films would receive a minimum 45-day theatrical window, with the goal of extending to 60–90 days of paid video-on-demand exclusivity for stronger-performing releases.
These are not empty platitudes from an incoming CEO, but as Ellison puts it, “measurable, objective, and verifiable” commitments.
Still, The Hollywood Reporter suggests that the letter from Ellison offers limited detail on how Hollywood jobs would be preserved in practice. Ellison maintains that the strategy will translate into employment stability, writing, “The Los Angeles area provides some of the most talented and well-trained film and television workers in the world, and it is my expectation that the commitments I have made will preserve and expand good-paying film and television jobs in the area.”
Lawmakers Weigh In
Rep. Friedman said in a statement to The Hollywood Reporter that the promises of 30 films a year and 45-day theatrical windows are the kind of concrete commitments she had been seeking. “Those are measurable, and I intend to measure them,” she wrote. “The thousands of workers on our soundstages and backlots need to see these promises show up in our lives, not just in a letter.”
David Ellison talks to Bloomberg – YouTube, Bloomberg Podcasts
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The Paramount–Warner Bros. Discovery merger is still moving through the regulatory process, with Paramount indicating it expects the deal to close in the third quarter of 2026. What follows remains an open question. Whether Ellison’s commitments translate into real job stability—or follow the familiar pattern of consolidation-driven cuts—is something the industry will be watching closely.
Do you think David Ellison has a plan to protect Hollywood jobs? Let us know in the comments!
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