Former AG George Jepsen Advocates for Paramount-WBD Merger to Combat Big Tech Dominance

Enhancing Competition: The Case for Paramount-WBD Merger

In an insightful message, former Connecticut Attorney General George Jepsen urges a thorough evaluation of the proposed merger between Paramount Skydance and Warner Bros. Discovery (WBD). As the media landscape continues to be overshadowed by formidable tech giants, Jepsen emphasizes that antitrust enforcement should focus on bolstering competition rather than entrenching existing legacy media companies.

The heart of his argument lies in analyzing whether blocking this merger would genuinely benefit consumers, workers, and the industry at large, or merely bolster established players like Netflix, Amazon, and Disney. Since 2021, the average household in America has witnessed an alarming 26% surge in streaming expenses. Families now juggle various subscription services just to access essential entertainment, exacerbated by the rising costs of everyday goods. Jepsen asserts that a unified Paramount-WBD could present a competitive alternative in the streaming market, offering consumers better options and potentially lower costs.

In a media landscape currently dominated by tech giants boasting expansive resources and subscriber bases, the merger stands to invigorate competition. With Netflix capturing nearly one-third of U.S. streaming viewership and other heavyweights holding significant market shares, a combined Paramount-WBD would still rank fifth in household reach. This merger does not establish a monopoly; instead, it provides an opportunity for smaller players to thrive in a market increasingly controlled by tech behemoths.

The antitrust calculations reveal a clearer picture—the forthcoming merger would not exceed the 30% market share threshold that triggers legal presumptions of harm under current regulations. In contrast, the top three platforms—Netflix, Disney, and Amazon—command a whopping 65% of the U.S. streaming viewership. Therefore, hindering the merger primarily strengthens the already dominant players and diminishes the chances of healthy competition.

The implications of this merger extend beyond market share. The entertainment sector has lost over 15,000 jobs since 2021, highlighting the vulnerabilities workers face in an ever-changing industry. A combined Paramount-WBD is anticipated to ramp up production, thereby creating more jobs and ensuring stability for those who bring our beloved movies and shows to life.

However, pressure from various lobbying groups has mounted, pushing state Attorneys General to reconsider the merger. Jepsen reminds readers of the critical duty AGs bear in examining such substantial transactions and their repercussions on both consumers and workers. During his tenure as Connecticut's Attorney General, he fought relentlessly to uphold the credibility of antitrust laws, emphasizing that judgment must rest on factual evidence rather than transient news cycles or political influences.

Reassuringly, Paramount has committed to producing at least 30 films annually and maintaining a 45-day theatrical window, assuaging fears stemming from industry stakeholders like Cinema United. Historical context underscores that similar mergers—such as the Amazon-MGM deal—can lead to increased production, a trend likely to be mirrored by a Paramount-WBD merger.

While Connecticut may not be synonymous with Hollywood, it boasts its fair share of media giants, including ESPN and NBC Sports. Thus, decisions concerning this merger resonate deeply within the state’s businesses and communities, reaffirming the need for comprehensive reviews grounded in consumer interest.

In closing, Jepsen highlights that American families require more competition within the streaming arena, not less. The evidence suggests that the Paramount-WBD merger will facilitate this marketplace dynamism, and he advocates for allowing it to progress unhindered. This transaction stands to invigorate the entertainment economy while also furnishing consumers with viable options in an increasingly complex digital landscape.

George Jepsen served as Connecticut Attorney General from 2011 to 2019, bringing his experience into this pertinent discussion regarding the future of media and entertainment competition.