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Media mega-mergers could cut production volumes and entertainment premiums
As Paramount-WBD and other large combinations close or advance, entertainment brokers warn that fewer productions could mean less premium volume for insurers, even as they shift growth toward sports and live events.
Insurance Business reports that consolidation across the media industry is already reducing production volumes and insurance premiums, prompting entertainment brokers to look for growth in areas outside traditional film and television.
John Galanis, senior vice president at Albert G. Rubin, the sports and entertainment division of Relation Insurance Services, said the number of productions fell after the Disney-Fox merger and that another wave of consolidation could repeat that pattern, leading to less business and fewer premiums for insurers.
The concerns come amid major deal activity, including Paramount Skydance’s roughly $111 billion acquisition of Warner Bros. Discovery after a bidding process involving Netflix. WBD shareholders approved the deal in April, the Department of Justice cleared it in June without requiring divestitures, and a federal judge issued a 14-day pause on closing after a coalition of attorneys general sued in July.
The article also points to Nexstar’s $6.2 billion acquisition of Tegna, which closed in March after the FCC waived a cap on station reach, and notes the deal remains under legal challenge with an injunction halting integration activities. It adds that large media projects typically drive demand for production-related coverage, including media E&O and cyber, as well as general liability and specialized policies, while insurers and brokers adapt to deal-driven changes in underwriting demand.