Three of Hollywood’s largest talent agencies, Creative Artists Agency (CAA), United Talent Agency (UTA), and William Morris Endeavor (WME), have joined forces to establish the American Entertainment Alliance (AEA). According to Variety, the coalition is calling for federal legislation requiring streaming platforms to dedicate at least 50 percent of their content budgets to independent productions.
The alliance includes production companies such as Blumhouse, Imagine Entertainment, Legendary Entertainment, MRC and Anonymous Content. Its members are seeking greater opportunities for independent creators as Hollywood continues to experience major industry consolidation.
The coalition’s formation follows Paramount’s $111 billion acquisition of Warner Bros. Discovery, which closed last week. The merger has brought two major entertainment companies together, raising further concerns among independent producers about competition within the industry.
UTA vice chairman Jay Sures said the entertainment industry needs regulations that prioritize creators, protect workers and maintain competition. The AEA argues that consolidation and the expansion of streaming services have reduced opportunities for independent film and television production.
Variety notes that beyond its proposed spending requirement, the alliance wants licensing and syndication rights to return to independent production companies after several years. It also supports greater transparency in streaming recommendation algorithms and policies encouraging film and television production within the United States.
However, the Streaming Innovation Alliance, whose members include Netflix, Disney and Peacock, has criticized the proposal. The organization argues that government spending mandates could discourage creative risks and limit production opportunities rather than expand them.
The debate comes as lawmakers consider a separate federal production incentive that would offer a 20 percent tax credit for American labor costs. The proposed measure includes an additional five percent incentive for independent films and has received support from several major entertainment organizations.
The AEA also points to the repeal of the Federal Communications Commission’s Financial Interest and Syndication Rules in 1993 as a contributing factor to industry consolidation. Introduced in 1970, those regulations restricted major broadcasters from owning the programming they aired or controlling its syndication rights.
With Hollywood’s largest agencies now working together, the alliance hopes to reshape how streaming services finance and distribute independent productions. Its proposals have already drawn opposition from streaming companies, setting up a broader debate over competition and government regulation in entertainment.