Chairman Lee, Ranking Member Booker and Members of the Committee – thank you for receiving this testimony, which I, Susan Sprung, submit on behalf of the Producers Guild of America, of which I am the Chief Executive Officer.

The Producers Guild of America (PGA) protects and promotes the interests of all members of the producing team within the entertainment industry and represents more than 8,400 members across 32 unique credits in film, television and emerging media, in addition to providing the Producers Mark (p.g.a) for feature-length productions. While some use "Hollywood" as shorthand for our industry, the reality is that entertainment jobs power economies across the United States. These jobs are held by carpenters, painters, lighting technicians, truck drivers, caterers, and other people who bring productions to life. The middle-class paychecks they earn support families and are spent in communities in every part of the country, sustaining and creating other industries and workers, extending the economic impact of this industry far beyond the set.

Producers occupy a unique position in our industry. Producers shepherd projects from idea to final product and are responsible for overseeing every creative, technical and financial element along the way. As a result, we have a comprehensive perspective on our industry and the potential consequences of a Warner Bros. Discovery (WBD) acquisition.

Producers are rightfully concerned about the intended acquisition of one of America's most storied and meaningful studios. At stake are the livelihoods of producers and other industry workers, the future of movie theaters and the community and economic ecosystems they support, consumer choice, creativity, and freedom of speech.

Additional consolidation, vertical integration and reduced competition in our industry will further contribute to sharp reductions in United States-based jobs and productions, and less consumer choice. Reduced competition results in lower compensation and fewer opportunities for producers, creators, and other workers. And when a smaller number of companies control what gets made and what gets seen, fewer ideas reach the public.

PGA urges this Committee to examine the potential acquisition of WBD and act to protect jobs, guarantee meaningful theatrical distribution, empower consumers with choice, foster creativity, and uphold free speech. Specifically, in order to ensure a competitive marketplace, this industry needs:

• a substantial increase in domestic production to create more American jobs;
• a minimum of 45–60 day theatrical runs, including robust and effective print and advertising campaigns and sufficient screen counts;
• the purchase of a meaningful percentage of productions from independent producers and other third parties; and
• strong pro-competitive and pro-free speech conditions.

This is an especially critical moment given how other countries have created lucrative tax and other economic incentive programs to lure away American productions and jobs. Our request for regulatory intervention is not an attempt to block progress or innovation, but to ensure that America's entertainment industry continues to be an economic powerhouse and global leader in creativity and content production. Whoever the buyer is, we need their guarantee to expand not contract our content creation industry and the way we are able to view that content.

Thank you – we appreciate your diligence on this matter of national importance.

Respectfully submitted,

Susan Sprung

Chief Executive Officer

Producers Guild of America