The merger of Paramount and Warner Bros. could cost about 4,500 film and TV jobs over three years, according to a new report issued by Los Angeles County.
The report, prepared by CVL Economics, argues that the merger would accelerate the downturn in L.A. production, which has already cost 52,000 jobs over the last four years. The report also notes that the combined company would face significant pressure to reduce costs in order to pay down debt, which could entail moving production out of Los Angeles and consolidating slates.
“Two buyers become one,” the report notes. “The merger reduces independent commissioning options, with the largest increases in buyer concentration occurring in unscripted, reality, and talk television.”
The 4,500 lost jobs would also have a ripple effect across the regional economy, the report argues, amounting to a total loss of 10,360 jobs.
L.A. County Supervisor Lindsey Horvath asked for a report in March on the economic effect of the merger. The firm, CVL Economics, issued a preliminary report in June forecasting that 2,495 corporate jobs would be “at risk” in L.A. County as the company moves to consolidate IT, real estate, marketing and other functions. The follow-up report, issued Tuesday, focused on production jobs.
