Paramount-WB Could Cost LA 4,500 Film, TV Jobs and $2.8 Billion

The Paramount -Warner Bros. Discovery merger could result in the loss of 4,500 film and TV jobs in Los Angeles County over the next three years when the two companies combine their operations, according to a new analysis by CVL Economics and the Department of Economic Opportunity.

The report also estimates that a total of 10,360 “job years” could be at risk, including 2,661 indirect jobs at small businesses that support production — such as prop houses, printers, transportation companies, and other vendors — and
3,204 induced jobs that exist because film and TV workers spend money in the local economy — including restaurants, retailers, and service providers.

A “job year” is defined as one job sustained for one year and measures employment over time rather than unique workers. For example, one job lasting three years equals three job years.

Overall, the economic impact of losing these jobs would be $1.26 billion in wages, $2.78 billion in economic value, $4.06 billion in total business output and $547 million in tax revenue, including $78.6 million in local taxes — most of which (63%) comes from property taxes.

The direct jobs at risk account for nearly 9% of the 52,016 film and TV jobs California has already lost since 2022 — and almost all those losses (99.6%) occurred in Los Angeles County.

The latest report, which was ordered by and submitted to LA County’s Board of Supervisors on Tuesday, comes after DEO previously found that the $110 billion deal could put nearly 2,5000 local jobs and roughly 6,000 jobs globally at risk due to consolidation. Those figures cover duplicative roles in corporate, tech, real estate and other shared functions across the two companies.

DEO’s interim report estimated that 17% of Paramount’s total workforce and 13% of WBD’s total workforce are located in LA County. When looking by unit, 35% of Paramount and 27% of WBD’s studios unit workforces are based in LA, while direct-to-consumer/streaming make up 15% and 17% and TV/media and global linear networks make up 10% and 2%, respectively.

In addition to the economic analysis, DEO is coordinating with state agencies including the Employment Development Department and the California Film Commission to create an action plan to provide job training, placement and other workforce programs, as well as access to unemployment insurance, public benefits and health and mental health services to any displaced workers.

DEO currently oversees $1.57 million in the Arts, Media, and Entertainment High Road Training Partnership (HRTP), which supports over 100 apprenticeships in editing, production, gaming and animation.

Los Angeles County’s creative economy supports more than 312,000 workers, including approximately 171,155 entertainment sector jobs.

More to come…