The Writers Guild of America (WGA) is calling on federal regulators to increase oversight of streaming media giants Disney, Amazon, and Netflix, arguing that these companies have amassed excessive power in the industry. The guild, currently on strike since May 2, claims that the three companies are on the verge of becoming the new gatekeepers of media and have abused their positions to the detriment of competitors, consumers, and creative workers.
In a report released by the union, they urged regulators to prevent further consolidation in the industry, proactively investigate anti-competitive issues, and enhance regulation and oversight of the streaming business. The WGA’s concern lies in the consolidation and vertical integration of these companies, claiming that it has resulted in lower wages for creatives, higher prices for customers, and a decline in the quality of content.
While representatives for Disney, Amazon, and Netflix have yet to respond, the Federal Trade Commission (FTC) has taken notice. FTC Chair Lina Khan expressed concern over the market structure created by consolidation and vertical integration, stating that it does not serve creators or viewers. Khan highlighted the decline in compensation and content quality as red flags that call for a reevaluation of the streaming industry.
The strike by WGA members, which includes approximately 11,500 writers, aims for higher compensation, staffing guarantees, and protections surrounding the use of artificial intelligence (AI). Simultaneously, the SAG-AFTRA actors union, which began striking on July 14, is also seeking increased base pay and residuals.
Negotiations between the WGA and studios have recently resumed but have yet to reach an agreement. However, the letter from the WGA did not specifically target other streaming companies like Apple, Google’s parent company Alphabet, and Warner Bros Discovery, despite their presence in the market.
As the regulatory push for increased oversight gains momentum, the streaming industry as a whole may face changes and potential limitations. The WGA’s call for scrutiny reflects the concerns of creators and labor unions regarding the power dynamics and economic conditions within the industry, signaling a potential shift in the streaming landscape.
In summary, the WGA is urging federal regulators to enhance oversight of Disney, Amazon, and Netflix due to concerns about their growing power within the streaming media business. The union claims that these companies have abused their influence to the detriment of competitors, consumers, and creative workers. The call for increased regulation reflects a broader push for change within the streaming industry as labor unions fight for better compensation, staffing guarantees, and protection around the use of AI.
