Paramount and Warner Bros. merger mandates film production quotas

A merger agreement between Paramount and Warner Bros. Discovery includes strict production mandates to prevent industry consolidation from reducing film output. Under terms negotiated with a coalition of 12 U.S. state attorneys general, the combined company must produce at least 30 films annually for the first two years, increasing to 32 films per year for the following three years. The agreement specifies that at least four of these must be independent productions, while 20% of the catalog must consist of major blockbusters.

Failure to meet these quotas could result in severe penalties. If production deficits are not corrected within a six-month grace period, the company may be forced to sell its interest in Miramax to an approved buyer. Additionally, a $30 million fine per unproduced film will be levied, with 90% of those funds allocated to film industry workers.

To address concerns regarding media concentration, the deal establishes a News Editorial Independence Board to oversee the editorial autonomy of CNN and CBS. While the agreement includes a $47.5 million fund for affected workers and a commitment to invest an additional $1.5 billion in U.S. production, FCC Commissioner Anna M. Gomez has expressed skepticism. Gomez questioned whether the safeguards are sufficient to protect newsrooms from political, financial, or regulatory pressures.