industry

California lawmakers are expressing concern about how the future of Warner Bros. Discovery could affect Hollywood’s workforce.

In an open letter addressed to Netflix Chief Executives Ted Sarandos and Greg Peters and Paramount Skydance Corporation CEO David Ellison, U.S. Sen. Adam Schiff (D-Calif.) and Rep. Laura Friedman (D-Glendale) call for the industry giants to make “concrete commitments to Californian and American workers.”

Late last year, Netflix won the highly anticipated bidding war for Warner Bros, which would give the streamer control over Warner Bros.’ storied Burbank film and TV studios, HBO and HBO Max. The pending $72-billion deal would greatly reshape the Hollywood landscape. Separately, Paramount has continually thrown in counter-bids and has been consistently rejected.

With all of these moving pieces, there’s a bipartisan fear among the nation’s lawmakers about how the acquisition could affect jobs in the U.S. entertainment industry . As stated in the letter, the industry “supports more than 680,000 jobs and contributes over $115 billion annually to the regional economy.”

Given the slowdown the industry has seen post-COVID and the growing number of international productions, Los Angeles film activity was down 13.2% from July through September 2025 when compared with the same period last year. This downward trend continues to build on the loss of 42,000 jobs in L.A. between 2022 and 2024.

Ellison and Sarandos have made arguments for why they believe their respective companies are best positioned to take over Warner Bros.

But each deal comes with major cuts. Paramount is projected to slash $6 billion in expenses over three years, and Netflix is projecting to cut $2 billion to $3 billion. Some analysts believe these cuts will have a significant effect on the workforce.

Previously, Ellison said, “We believe that what we are offering is better for Hollywood. It’s better for the customers and it’s pro-competitive.”

Sarandos is also quoted in the letter saying: “We think it’s great for consumers. We think it’s a great way to create and protect jobs in the entertainment industry.”

Earlier this week during a Senate subcommittee hearing, Sarandos said Netflix plans to increase its film and television production spending to $26 billion this year, with a majority of that happening in the U.S.

The lawmakers’ letter raises a series of questions surrounding the livelihood of creators, the use of AI and “concrete steps” about preserving jobs in L.A. Schiff and Friedman also offer the CEOs an opportunity to meet with them to discuss their answers.

In an effort to ensure “America continues to lead the world in the creative economy,” the letter said that Congress is currently working on bipartisan legislation that would establish a federal film tax incentive. It will be modeled after state programs in California, Louisiana and Georgia.

“We view this as a tool to not just protect but encourage more domestic filming and sustainable job creation on American soil,” wrote the lawmakers.

Last year, Spotify paid out more than $11 billion to the music industry, bringing the company’s total payouts since launch to nearly $70 billion.

The milestone year reflected the “largest annual payment to music from any retailer in history,” the company announced on Wednesday in a post. In 2025, Spotify’s payout amount grew by over 10%, making the Sweden-based streamer one of the industry’s main revenue drivers.

“Big, industry-wide numbers can feel abstract, but that growth is showing up in tangible ways,” wrote Charlie Hellman, the company’s new head of music. “Despite rampant misinformation about how streaming is working today, the reality is that this is an era full of more success stories and promise than at any point in history.”

When music streaming was first introduced, there was some controversy about how much artists earn from streams. According to Spotify, independent artists and labels accounted for half of all royalties. Additionally, the company said there are currently more artists earning over $100,000 a year from Spotify alone than were getting stocked on shelves at the height of the compact disc era.

Founded in 2006, the company, with a large presence in L.A.’s Arts District, has become the world’s most popular audio streaming subscription service. The platform offers access to over 100 million tracks, podcasts and audiobooks in over 180 markets.

At the top of the year, founder Daniel Ek moved from his CEO position to become executive chairman. Spotify named two co-CEOs, Gustav Söderström and Alex Norström, in his place.

This month, Spotify raised prices for its premium subscribers in the U.S., bringing the costto $12.99 per month. Hellman disclosed that as Spotify’s audience continues to grow, the higher prices are designed to help with the company’s ongoing expansion. According to the post, Spotify makes up roughly 30% of recorded music revenue and pays out two-thirds of all music revenue to the industry. The other third gets invested back into the company to maintain an “unrivaled listening experience.”

Recently, the streamer has been focused on growing its podcasting division by opening a new recording studio in Hollywood, premiering several shows in partnership with Netflix and expanding its creator monetization program.

Separately, Spotify said it is hoping to counter new developments in AI by reinforcing a human connection between artists and fans. This includes an emphasis on more artist-powered videos, continuing to promote artists’ live shows on the platform and expanding the role of the company’s music curators. The streamer also has plans to crack down on AI-driven artists on the platform.

“AI is being exploited by bad actors to flood streaming services with low-quality slop to game the system and attempt to divert royalties away from authentic artists,” said Hellman. “We’re going to introduce changes to the systems for artist verification, song credits, and protecting artist identity. It’s critical to ensuring listeners and rightsholders can trust who made the music they’re hearing.”