Adam Schiff Hearing: Film Incentives, Hollywood Merger & Industry Jobs

Schiff to Convene Hollywood Hearing Amid Studio Merger Scrutiny and Tax Incentive Push

Senator Adam Schiff (D-CA) will host a field hearing this Friday in Burbank, California, bringing together key figures from the entertainment industry – actor Noah Wyle, star of the California-filmed series “The Pitt,” and Matt Loeb, President of the International Alliance of Theatrical Stage Employees (IATSE) – to discuss the future of Hollywood jobs and the potential impact of ongoing studio consolidation. The hearing comes as the proposed acquisition of Warner Bros. Discovery by Paramount Global faces increasing scrutiny, and as Schiff champions a federal film tax incentive to bolster domestic production. This event underscores the growing concerns about the competitiveness of the U.S. Film and television industry in a global market increasingly incentivized by foreign governments.

The Looming Paramount-WBD Deal and Regulatory Concerns

The central focus of the hearing will be the proposed merger between Paramount and Warner Bros. Discovery, a deal currently valued at $111 billion. This follows the collapse of a previous agreement for Netflix to acquire a majority stake in Warner Bros. Discovery. Schiff, along with Representative Laura Friedman (CA-30), has already demanded answers from both Netflix and Paramount regarding their commitment to protecting American jobs should the acquisition proceed. The lawmakers expressed concerns about potential cost-cutting measures that could lead to significant job losses within the industry. Schiff reiterated these concerns in a statement released February 26, 2026, emphasizing the need for thorough scrutiny of the deal to safeguard American jobs, freedom of speech, and the industry’s global standing.

Federal Tax Incentives: A Bid to Keep Production Stateside

Beyond the merger, Schiff is actively advocating for a federal film tax incentive program. Currently, states like California offer tax credits to attract film and television production, but a federal incentive would layer on top of these, creating a more competitive environment for domestic filming. “The Pitt,” filmed on the Warner Bros. Lot in Burbank despite being set in Pittsburgh, serves as a prime example of how state incentives – in this case, $24.5 million in California tax credits – can successfully attract production. Schiff has spent the last year building congressional support for this federal incentive, recognizing the pressure facing the industry from countries offering generous incentives to lure productions away from the United States. The International Alliance of Theatrical Stage Employees (IATSE), representing 160,000 entertainment workers, is a key ally in this effort, believing increased incentives are crucial to preserving domestic production and employment.

What Each Side Wants: A Breakdown of Key Stakeholders

Several parties have a vested interest in the outcome of these developments. Senator Schiff and Representative Friedman are prioritizing the preservation of American jobs and the continued competitiveness of the U.S. Film industry. They see federal tax incentives as a vital tool to achieve these goals. IATSE, representing a vast workforce, is similarly focused on protecting jobs and ensuring fair labor practices. Paramount and Warner Bros. Discovery, from a business perspective, likely aim to maximize efficiency and profitability through the merger, potentially leading to cost-cutting measures. Noah Wyle, as an actor and producer, represents the creative workforce and likely seeks a stable and thriving industry. Jax Deluca, executive director of the Future Film Coalition, represents independent film professionals and is actively opposing the merger, launching a website, BlocktheMerger.com, to rally support for an injunction against the deal.

The Impact of Production Shifts and Job Losses

The entertainment industry is a significant economic driver, supporting over 680,000 jobs and contributing more than $115 billion annually to the regional economy. However, recent trends indicate a decline in on-location production in greater Los Angeles. Filings reveal a 13.2% decrease in the third quarter of 2025 compared to the previous year, resulting in a loss of over 42,000 motion picture jobs in Los Angeles County between 2022 and 2024. These figures highlight the urgency of addressing the challenges facing the industry and underscore the potential consequences of further production shifts overseas. The competition from international incentives is a major factor, as other countries actively seek to attract film and television production with attractive financial benefits.

How the Merger Review Process Works

The proposed Paramount-Warner Bros. Discovery merger will likely undergo a rigorous review process by federal regulators, including the Department of Justice (DOJ) and the Federal Trade Commission (FTC). This process typically involves an assessment of the potential impact of the merger on competition within the industry. Regulators will examine factors such as market share, potential price increases, and the impact on innovation. The review may also consider broader concerns, such as the preservation of jobs and the protection of consumer interests. The process can be lengthy and complex, potentially taking months or even years to complete. Schiff’s call for scrutiny “free from White House political influence” suggests a desire for an independent and objective assessment of the deal’s merits and drawbacks.

What Happens Next: A Timeline of Key Events

March 16, 2026: Senator Schiff holds a field hearing in Burbank with Noah Wyle and Matt Loeb. Ongoing: The Department of Justice and Federal Trade Commission continue their review of the proposed Paramount-Warner Bros. Discovery merger. Future: Schiff continues to lobby for a federal film tax incentive. The Future Film Coalition continues its campaign to block the merger. Further meetings between lawmakers and company executives are anticipated.

The outcome of these events will significantly shape the future of the entertainment industry, impacting jobs, production locations, and the overall competitiveness of the U.S. Film and television sector.