Netflix and Warner Bros. The deal may be good for the shareholders, but not for anyone else

Netflix’s $82.7 billion acquisition of Warner Bros. is, in many ways, the last thing Hollywood is weak at the moment. The industry is still recovering from the Covil-19 pandemic, which forced the return of media outlets and large audiences for home-run films. The WGA and sag-aftra strike in 2023, which was driven by legal concerns surrounding the studio’s generative ai furnace, delayed the production and promotion of many film and TV projects. And the rise of broadcast content has forced many media companies to take on debt and unreasonable mergers (see: Warner Bros. Discovery), which has led to a higher production of subscriptions, which has led to the production of the production belt.

How can a troubled media company survive today? The answer seems to be mixed. Taking Amazon’s $ 8.45 billion MGM in 2022 future deals are documented, such as the acquisition of Skydance $ 8 billion of paramoous. But the WB deal for Netflix continues to repeat itself: Basically it can reverse the news industry as we know it, from the movie theater – to the presence of Media.

Will Netflix and Warner Bros.

After the split the following year of Warner Bros. And the acquisition, Netflix says it plans to acquire all of Warner Bros.’s assets. According to Game Developer, they also represent Warner Bros. Games, including Mortal Kombat NetherRealm Developers, shall also be party to the Agreement.

Will Netflix and Warner Bros. Deal approved by regulators?

Even before the deal was officially announced, it was clear that whoever bought WB would be facing opposition from the government at every turn. Yesterday, Paramount sent WB a letter questioning the “fairness and adequacy” of the acquisition bidding process (which also included Comcast as a potential buyer). After that, The New York Post It has been reported that the most important CEO David Ellison, son of oracle-raised oracle ceo Larry Ellison, met with management officials to make his case for buying Netflix. As of this morning, the Trump administration is viewing the Netflix/WB deal with “grave skepticism,” the official said CNBC.

On the other side of the aisle, Satanist Elizabeth Warren (D-MA) called out the Netflix/WB deal calling it “anti-monopoly.” He added, “Netflix-Warner Bros. will create a media giant with close control over part of the streaming market. It can force you to have high prices, you choose the options for that and how to put, and it can put American workers.”

At this time, it is too early to tell if the Netflix / WB deal will make it past the regulators, but it is clear that both companies must prepare for a rocky approval process.

Will Netflix and Warner Bros. What does video streaming mean?

According to data from JustWatch, Netflix combined with HBO can account for 33 percent of the US video market, which they put before sharing 21 percent. As for how the two media companies will merge, Netflix says it will “save Warner Bros.

“We think it’s too early to talk about the specifics of how we’re going to expect this consumer offering,” Def Co-CO-Greg Peters told Investor this morning, when asked if HBO would remain a separate service. “It goes without saying, we think the HBO brand has a lot of potential, and it can form part of our consumer plan. That gives us a lot of options to figure out how to package things to give consumers the best options.”

At the very least, we can expect to increase the board prices on the board of HBO and Netflix. There is potential for the company to offer bundled subscriptions, similar to how Disney juggles Disney +, Hulu and ESPN.

Will Netflix and Warner Bros. What does theater mean?

In short, Netflix / WB combined would not be good in theaters. Previous mergers, like the union of Disney and FOX, have resulted in a few theatrical releases, not many. Since its transformation into a premier streaming company, Netflix has also focused heavily on subscriptions and engagement, with theatrical releases of its original content treated as an afterthought.

“We’ve released 30 movies to theaters this year, so it’s not like we’re against theatrical release,” said the Netflix boss “It’s long windows that are not customer friendly. The life of the cycle that starts in movie theaters, we will continue that. Over time, the windows will appear more and more buyers, to meet more consumers.”

He added: “Everything that goes to theaters through WB will continue to do so. Our main goal is to deliver original movies that deliver movies that work for consumers, and we intend to continue that.” In an April interview at the time100 conference, Sarandos was also called the “outdated” theater model, since most people in the US cannot easily travel to the Multiplex.

CINEMA United, a trade group that represents more than 30,000 theater screens in the US, is suddenly against the entire agreement. “The proposed acquisition of Ferner Bros. by Netflix poses an unprecedented threat to the Global Exhibition business.

“Cinema United stands to support industry changes that lead to increased movie production and give consumers more opportunities to enjoy a day at the local theater,” he added. “But Netflix’s stated business model does not support the sports show. In fact, it’s the opposite. Regulators need to look closely at the specifics of this proposed operation and understand the negative impact it will have on consumers, the show and the entertainment industry.”

What artists think about Netflix and WB.

Writers, directors and producers are already having a hard time getting projects off the ground, so one little place to screw up isn’t going to help. There are also a few artists, including former WB darling Christopher Nolan, who refused to work with Netflix altogether.

“The end goal of these appeals is to reduce the choices of entertainment to a select few, so they can be completely focused, so all our dollars are available,” C. Robert Cargill, the screenwriter behind The doctor is surprised and Black phonesaid a press release at Engadget. “The result will be a victim of diversity and new voices in the industry, sending thousands, if not tens of thousands, where not Films to anywhere and Television” The word “all”

“The WB made a lot of bold decisions this year, with management taking big risks that made real cultural and financial impacts at the box office,” he added. “HBO, HBO, the name is always changed, it will still make one of the best television, will those creative areas survive the merger, or will most of those good, and writers be sent?”

“In short, it’s a very scary and sad time to be a shadow film. No shade to Netflix and the people who work there;”

What About Body Matters?

Aside from noting that Netflix used to be a DVD-by-mail company, there was no mention of physical media in the press release or investor pitch. That’s not too surprising, since physical releases have always been Netflix’s go-to. A few movies, like Coal consumes war and Frances Haare available as a disc through the corridor collection, and other shows like Stranger Things and on DVD and Blu-ray.

Netflix claims it will continue to use WB’s businesses as usual if the deal goes through, should it include physical media, but those kinds of pre-acquisition promises rarely last long. WB’s home video business is not its own, either: in 2020, it created a joint studio distribution services with Universal, which also handles physical media distribution to Pictures, PBS and Neon.

Given Scouding’s demand for organic media, it’s likely to be one of the first things the Netflix/WB merger has finally gone down. But there’s also been a resurgence of premium physical releases from distributors like Arrow Video, so there’s a chance letflix might want to keep it around for special releases.

Steve Dent contributed to this report.