Following the Warner Bros. Discovery merger one year ago, some members of Congress have petitioned the Department of Justice to launch an inquiry into alleged anti-competitive behavior.
In a letter to the Department of Justice, Democratic representatives Elizabeth Warren, Pramila Jayapal, David Cicilline, and Joaquin Castro suggested that the “Warner Bros. Discover merger market share has enabled it to harm workers and heighten barriers to entry in the media and entertainment industry.” The implication is that harsh tactics employed by the company have adversely affected employees and those employed in the media and entertainment business. The lawmakers allege this harms the ability to fight for improved wages and job conditions by competing in the market.
WarnerMedia and Discovery officially became Warner Bros. Discovery in 2022, a year after announcing the intended merger. As a result, HBO Max, discovery+, and channels like CNN, TBS, and TNT all found a home under the same banner. Subsequent cuts meant a problem for customers and creators. Hundreds of movies and television series were taken down from the leading streaming platform without warning. In the most high-profile move, “Batgirl” was shut down, even though filming had already been completed.
These cuts were most likely the result of CEO David Zaslav’s goal to reduce costs by $3 billion. The cuts not only include content on the streaming platform but resulted in the loss of jobs. According to the letter to the DOJ, over 800 layoffs occurred at CNN, CNN+, and the WBD ad sales department. The lawmakers said these measures “adopt potentially anti-competitive practices that reduce consumer choice and harm workers in affected labor markets.”
Additionally, popular TV shows such as “The Time Traveller’s Wife” which has a large fan following and an IMDB score of 7.7, and “The Gordita Chronicles” with a 7.5, have been axed by the company, leaving customers unsure about the future of other favorites under the control of the media company. Primetime Emmy Award winner J. J. Abrams is now “shopping elsewhere” for a home for his TV show “Demimonde” which was originally picked up by HBO but was canceled before it began production.
The Congress leaders labeled this a “catch and kill” practice, implying that projects being canceled during late-stage development and post-production have an incalculable negative effect on content creators. Such a setback drastically decreases the projects’ appeal and value to potential purchasers.
The Democratic leaders noted this was not the first time they had urged the DOJ to investigate Warner Bros. Discovery, citing a letter they had sent regarding the issue in December 2021.