More than 1,000 Hollywood creatives have publicly opposed the proposed US$111 billion (A$170 billion) merger between Paramount Skydance and Warner Bros. Discovery, warning it could accelerate industry consolidation and reduce opportunities across the global screen sector.

In an open letter published this week, high-profile figures including Ben Stiller, Denis Villeneuve, Kristen Stewart, Joaquin Phoenix and J.J. Abrams voiced “unequivocal opposition” to the deal, arguing it would shrink the number of major US studios to just four and further concentrate power in the hands of a few media giants.

The group claims the merger would lead to “fewer jobs, fewer creative opportunities, higher costs, and less choice for audiences” worldwide – concerns that resonate in markets like Australia that rely heavily on US studio investment and distribution.

The deal, led by Paramount Skydance CEO David Ellison, is one of the largest media mergers in recent history and follows years of consolidation across the entertainment and streaming landscape. It is still subject to shareholder approval and regulatory scrutiny in the US and internationally.

For Australia, the implications are significant. The combined entity is expected to strengthen Paramount’s local position by boosting Network 10 and Paramount+ with a deep catalogue spanning Warner Bros., HBO, DC and Discovery content. This could sharpen competition with streaming rivals Stan and Disney+, even as Network 10 continues to grapple with declining advertising share and potential restructuring.

Critics say previous mergers have already contributed to fewer mid-budget films, reduced independent distribution and a narrowing range of stories being produced – trends that could impact Australian filmmakers and production companies seeking global partnerships.

Paramount has pushed back, stating the combined company would be better positioned to fund more projects and support talent at scale. The studio says it plans to release at least 30 films annually and maintain both Paramount and Warner Bros. as distinct production labels.

However, concerns remain about potential job cuts due to overlapping operations and the broader implications for competition in the global content market.