Why do Hollywood writers want Netflix's takeover of Warner Bros to be blocked?

As Netflix's proposal of a $72 billion takeover of Warner Bros. Discovery looms, Hollywood unions have sounded the alarm, warning of job cuts, concentrated power, and reduced theatrical movie releases if the deal passes regulatory review.

The deal would place the streaming giant's HBO brands under the Netflix umbrella and also hand control of the historic Warner Bros studio over to Netflix, which has already upended Hollywood by hastening the shift from movie releases in cinemas to home streaming.

Netflix could gain control of marquee Warner Bros titles such as "Batman" and "Casablanca."

Netflix-Warner Bros deal

Netflix said it expects to generate at least $2 billion to $3 billion in annual cost savings by the third year after the deal closes.

The Netflix-Warner Bros deal risks eliminating 25% of the annual domestic box office, said Cinema United, the trade group representing 30,000 movie screens in the United States and 26,000 internationally.

Netflix does release some films in theaters before making them available to subscribers, and the company said it would maintain theatrical releases for Warner Bros films and support Hollywood creative professionals.

‘Must be blocked’: Writers Guild

The Writers Guild, which represents writers in motion pictures, television, cable, broadcast news, podcasts and online media, raised concerns over job cuts, wage reductions, higher prices for consumers and worsening conditions for entertainment workers.

“This merger must be blocked,” the Writers Guild of America East and West said in a statement. “The world’s largest streaming company swallowing one of its biggest competitors is what antitrust laws were designed to prevent.”

The deal faces antitrust reviews in the United States and Europe, and American politicians have already expressed scepticism.

‘An unprecedented threat’: Cinema United

Cinema United President Michael O'Leary called the merger "an unprecedented threat" and questioned whether Netflix would maintain the current level of distribution.

“Sporadic and truncated theatrical releases to meet awards criteria in a handful of theaters is not a commitment to exhibition,” O'Leary said.

‘Greed-fueled consolidation of corporate power’: Hollywood Teamsters

The Hollywood Teamsters, who represent drivers, casting professionals, mechanics and other workers in the entertainment industry, also opposed the deal, calling for "opposition across all levels of government" while urging antitrust enforcers to reject the deal.

"Teamsters have been clear on our position that greed-fueled consolidation of corporate power, no matter what industry, is a direct threat to good union jobs, the livelihood of our members and the very existence of our industry," the union said in a statement.

Directors Guild to discuss concerns with Netflix

The Directors Guild of America, however, was more reserved, saying it had significant concerns to discuss with Netflix.

"We will be meeting with Netflix to outline our concerns and better understand their vision for the future of the company. While we undertake this due diligence, we will not be commenting further," the DGA said in a statement.

Actors union says it's analysing the deal

The Screen Actors Guild- American Federation of Television and Radio Artists (SAG-AFTRA said the merger "raises many serious questions", and it would comment further on the impact on its members after analysing the deal.

(With Reuters inputs)