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Although much of the discussion around the proposed merger between Paramount and Warner Bros. has raised concerns about sweeping job cuts, a new report now suggests it could create thousands of jobs and add $1bn of investment in Hollywood film production.
The report, from the California Policy Center, argues that the deal could create thousands of jobs and generate almost $1billion annually in Hollywood movie production investment if commitments around output are maintained.
The analysis centered on David Ellison’s pledge for Paramount Pictures and Warner Bros. to each produce 15 films annually after the merger, creating a combined slate of 30 movies a year.
According to the report, that would represent a 50% increase from the studios’ recent combined output and a 14% increase in production across the five major Hollywood studios.
Hollywood production jobs under pressure
The employment angle arrives during a difficult period for the entertainment sector, with lower theater attendance, layoffs, reduced production activity and growing streaming competition reshaping workforce planning across the industry. Production jobs in the motion picture industry are now at a 30-year low, according to the report.
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The report's author, economist Jeff Ferry, wrote: “The period up to 2022 (excluding the pandemic year of 2020) is now referred to as the era of ‘peak content'. As that period unwound, Hollywood production studios laid off workers and cut back on output.”
The report said the five major studios produced 69 feature films last year, with Paramount producing eight and Warner Bros. producing 11.
Ferry wrote: “Our analysis finds that this commitment, if fulfilled, could add almost $1 billion to Hollywood’s annual investment in movie production. Paramount-Skydance would account for some 40,000 jobs in production and related industries.”
The report also linked movie production directly to broader workforce impact across suppliers and connected businesses.
According to the findings: “Assuming an average movie industry wage approximates to some $100,000 a year, we can estimate that this movie slate will generate 6,600 production jobs a year.”
Cost savings and workforce implications
But while the report focused heavily on job creation and investment growth, the merger also carries major restructuring implications.
The proposed deal would reportedly carry a value of $111billion, making it one of the largest media mergers in history.
Alongside expansion pledges, the report said: “David Ellison has promised to find $6billion of cost savings in the combined company.”
That combination of production growth alongside large-scale cost savings highlights the balancing act facing leadership teams across media, entertainment and content businesses as they attempt to maintain output while controlling operational costs.
Theatrical distribution also emerged as a workforce issue within the report, particularly for cinema operators still recovering from long-term audience decline. Box office ticket sales are down by 46% since 2000, the report states.
Ferry wrote: “In this environment, David Ellison’s commitment to maintain a 45-day theatrical ‘window’ for all of Paramount-Warner releases is a significant development for the struggling theater industry.”
It was also pointed out that movie theaters support more than 325,000 jobs nationally and generate billions in local economic activity.
Ferry ultimately framed the proposed merger as an attempt to reset Hollywood’s operating model during a period of structural change, saying: “The proposed Paramount-Warner Brothers Discovery merger is a bold, audacious attempt to meet the structural changes and challenges reshaping the filmed entertainment industry.”
