On December 5, Netflix announced a huge global deal to buy Warner Bros. for $82.7 billion. This cash and stock deal also allows Netflix to acquire its film studios, HBO and HBO Max, which has raised concerns over the future of the entertainment industry. The obtainment of Hollywood’s iconic studio would make Netflix one of most powerful entertainment companies in the world as it blurs the line between streaming and traditional film. Netflix would not only gain Warner Bros.’ immense catalogue of movies and shows, but it would also gain control over what the studio will produce in the future.
The power Netflix is going to gain has garnered conversations around antitrust laws and monopolization of media. Netflix already has the most subscribers out of any streaming service, and with the new deal, Netflix would have more global influence than other streaming platforms like Disney and Amazon. Analysts have stated that the Netflix-WBD merger would dominate 30-40% of the United States’ streaming market, putting it under the review of the Depart of Justice and Federal Trade Commission. When Bear Tyree (12) was asked about if he thought the consolidation of Netflix and WBD would beneficial or harmful, he stated that he thought it would be harmful to the entertainment industry and the quality of production in movies.
While the deal has faced backlash, some benefits are also to be accounted for. Combining Warner Bros. and Netflix’s libraries onto a single app would give consumers some relief from constant subscription fatigue that has been steadily increasing over the past few years with the growth of subscription services. John Paul Stamps (12) voiced that while he doesn’t wholly agree with the article, he is happy that he has access to more movies without having to pay for additional streaming services. The merger also provides new job opportunities in the industry and will allow WBD’s movies to reach a larger global audience.
Overall, this deal signals a shift in the entertainment industry and reflects the rise of streaming platforms around the world.
