Paramount studio merger could boost California’s creative economy | Opinion

California's entertainment industry is often viewed through the lens of movie stars, streaming services and major studios. An often-forgotten piece of every film, television series and theatrical release is a vast network of small businesses that help make those projects possible. From caterers and transportation providers to equipment vendors, accountants, printers, event planners and countless other entrepreneurs, California's creative economy supports thousands of businesses that never appear on the big screen. That is why discussions about the proposed Paramount-Warner Bros. Discovery merger should not focus solely on the household names involved but also consider the broader economic ecosystem that depends on a healthy and competitive entertainment industry.

Paramount Skydance of Los Angeles is proposing to buy New York-based Warner Bros. Discovery in a deal worth an estimated $111 billion. It’s a deal with nationwide implications, but perhaps none greater than here in California, where businesses large and small stand to benefit. Paramount brands include CBS, Nickelodeon and Showtime, while Warner Bros. Discovery brands include HBO, CNN and HGTV.

As CEO and president of California's Asian American Pacific Islander (AAPI) business community, I understand the vitality of this opportunity and support this merger for the many benefits it will provide to the AAPI community in Hollywood and beyond. For decades, AAPI entrepreneurs, creators and small-business owners have contributed to California's economic growth by launching companies, creating jobs and building pathways for future generations. The entertainment industry has increasingly become part of that story.

Many AAPI-owned businesses play a critical role in the entertainment industry’s supply chain, contributing skills ranging from hospitality to marketing, design and technology. As the industry grows, so do the opportunities for the entrepreneurs and small business owners behind the scenes. The success of Warner Bros. Discovery films, such as “Crazy Rich Asians,” demonstrated that diverse stories are commercially viable projects that can attract large audiences while creating opportunities for writers, producers, marketers, vendors and creative professionals — many of whom came from the AAPI community.

While sharing diverse stories has grown in success in recent years, the AAPI community is still disproportionately represented both on and off the screen with many creators, entrepreneurs, talent and executives still facing barriers to access. California’s commitment to broadening the entertainment industry will help AAPI storytellers and businesses reach opportunities that did not exist for them before. Today’s entertainment landscape looks very different than it did even a decade ago. Traditional studios face growing competition from global technology companies that have fundamentally reshaped how content is financed, distributed and consumed. Audiences have more choices than ever, while creators face increasing competition for attention and investment. In that environment, maintaining a strong content pipeline matters. Paramount has committed to releasing more than 30 theatrical films annually amid the potential merger. That matters not only for audiences and theaters, but also for the many small businesses and workers that rely on a steady flow of production, marketing and distribution activity.

While some believe this merger may limit new entertainment, I believe it will strengthen the industry’s ability to produce content in scale that will contribute to more opportunities for AAPI creators, entrepreneurs and small business owners who depend on a resilient creative economy. The conversation around this merger should not ignore legitimate questions about competition. Careful regulatory review serves an important purpose and helps ensure consumer protection. At the same time, state attorneys general should also consider whether this transaction could strengthen the industry's ability to invest in content, support creative workers and sustain the broader network of businesses that rely on entertainment production. Attorney General Rob Bonta, drawing on his experience as chair of the AAPI Caucus, understands the intersection of business opportunity and creative representation. During his leadership of the caucus, he helped champion efforts to secure the film tax credit to benefit diverse communities. That same commitment to expanding opportunities for AAPI entrepreneurs and creators can inform the regulatory review ahead. Minority-owned businesses across the country are facing growing uncertainty as federal support for diverse and equitable programs comes under increased scrutiny. That makes California’s role in advancing inclusive growth even more critical. Sustaining industries like entertainment, where diverse entrepreneurs have gained ground, helps ensure those opportunities are not lost and strengthens the state’s long-term economic competitiveness. By considering how entertainment policies can strengthen the creative pipeline and economic participation of AAPI businesses, the state can ensure that California's industry remains not only globally competitive, but also a place where all communities have the opportunity to tell their stories and build thriving enterprises. For AAPI entrepreneurs, creators and small-business owners, the entertainment industry is more than what appears on screen. It is about the ability to access and reach opportunities tied to jobs, business growth and creative connections that make a healthy industry. That is something worth considering as California evaluates the future of one of its most important industries.

Pat Fong Kushida is president and CEO of the California Asian Chamber of Commerce.