Lisa Nandy faces US media tests as Burnham courts Trump
The UK culture secretary has kept her job, and Deadline reports three looming decisions could hit Hollywood, streamers and tech giants.
By Poppy Nakagawa · Culture Writer
3 min read
Lisa Nandy stayed put after Andy Burnham became UK Prime Minister this week, and that leaves her holding a stack of decisions with serious consequences for American media giants.
Deadline reported that Nandy, the UK Culture Secretary, had been widely expected to move jobs because of her close ties to Burnham. Instead, she remains in place and is now the longest-serving holder of the role in more than a decade, according to the publication.
Her inbox is not quiet. Deadline pointed to three live issues that could affect major US studios, streamers and tech companies while Burnham tries to maintain warm relations with Donald Trump.
The Paramount-WBD deal is waiting on Britain
The first major test is the proposed $110 billion merger between Paramount and Warner Bros. Discovery.
Deadline reported that Nandy had previously said she was “minded to intervene” in the deal over media plurality concerns, but did not issue an update before Parliament broke for recess and before Burnham took office.
That means David Ellison and the companies involved must wait until at least September 1 to learn whether UK regulators will examine the deal or allow it to proceed, according to Deadline.
The timing could be costly. Deadline reported that the merger agreement includes a ticking fee payable to WBD shareholders if the takeover has not closed after the third quarter: 25 cents per share, equal to roughly $650 million for each quarter of delay.
Deadline also reported that Ellison met Nandy during a January trip to Europe. In the US, the merger is already paused in response to a lawsuit filed by a dozen states, the publication said.
The BBC fee fight could land on streamers
Nandy’s next headache is the BBC licence fee, currently £180, or about $240, a year.
The BBC has floated a plan to expand the fee to people who subscribe to streaming services such as Netflix, Disney+ and Prime Video, according to Deadline. The broadcaster has said 94% of the UK population uses its services each month, while fewer than 80% pay the fee, leaving it short by hundreds of millions of pounds a year.
Deadline reported that Nandy recently indicated support for a proposal under which people watching non-live streaming content would have to pay the licence fee, with streamers potentially helping collect it.
The Motion Picture Association, which represents major studios and streamers, has already objected, saying the plan would have a “downstream impact on viewers and their viewing experience,” according to Deadline.
Nandy has said she has discussed several ideas with streamers, Deadline reported. She has also said the government will not introduce a streamer levy, a separate policy used in some countries that requires subscription video services to pay part of local revenue into a cultural fund.
Tech giants face UK rules too
The third front is tech. Deadline reported that the UK is moving ahead with a full social media ban for under-16s and preparing legislation that would require YouTube and TikTok to give public service content prominent placement.
Nandy first raised that prominence idea at the RTS Convention, where she said it would be “vital in the fierce battle against mis and disinformation,” according to Deadline.
The decisions arrive as US entertainment and technology companies have grown closer to Trump during his second presidency, Deadline reported. Burnham invited Trump to Manchester during their first call after he became Prime Minister, according to the publication.
This story draws on original reporting from Deadline.