Industry players frown on Netflix-Warner deal
NEW YORK—Netflix’s $72 billion deal to acquire Warner Bros. studio drew praise and criticism from film and television industry players on Friday.
In announcing the deal, Warner Bros. and Netflix executives touted the deal’s benefits.
Warner Bros. Discovery CEO David Zaslav said the deal “will ensure people everywhere will continue to enjoy the world’s most resonant stories for generations to come,” while Netflix co-CEO Ted Sarandos said it would “give audiences more of what they love.”
But other film and television entities met the news with grave concern.
“Netflix’s stated business model does not support theatrical exhibition,” said Michael O’Leary, CEO of trade association Cinema United, as quoted by the Associated Press (AP).
O’Leary added, “In fact, it is the opposite. Theaters will close, communities will suffer, jobs will be lost.”
The Writers Guild of America (WGA) declared on its website that “This merger must be blocked.”
The takeover of Warner Bros. by Netflix would “eliminate jobs, push down wages, worsen conditions for all entertainment workers, raise prices for consumers and reduce the volume and diversity of content for all viewers,” added the guild that represents thousands of screenwriters in the United States.
‘Test’
The Producers Guild of America said, “together with policymakers, (we) must find a way forward that protects producers’ livelihoods and real theatrical distribution and that fosters creativity, promotes opportunities for workers and artists, empowers consumers with choices and upholds freedom of speech.”
It added, “This is the test that the Netflix deal must pass. Our legacy studios are more than content libraries—within their vaults are the character and culture of our nation.”
Kansas Sen. Roger Marshall noted that “Netflix’s $82 billion attempt to buy Warner Bros. would be the largest media takeover in history—and it raises serious red flags for consumers, creators, movie theaters and local businesses alike.”
‘Antitrust problem’
“One company should not have full vertical control of the content and the distribution pipeline that delivers it,” a statement on the Republican lawmaker’s website warned. “Combining two of the largest streaming platforms is a textbook horizontal antitrust problem. Prices, choice and creative freedom are at stake.”
For Democratic Sen. Elizabeth Warren, “This deal looks like an antimonopoly nightmare. A Netflix-Warner Bros. would create one massive media giant with control of close to half of the streaming market—threatening to force Americans into higher subscription prices and fewer choices over what and how they watch, while putting American workers at risk.”
The WGA highlighted a similar concern: “The world’s largest streaming company swallowing one of its biggest competitors is what antitrust laws were designed to prevent.”
California Rep. Laura Friedman, whose district includes Hollywood, said on her website, “Repeated consolidation in this industry has already cost so many film and television jobs and any merger should be evaluated on its impacts on competition and employment.”
Friedman, who said that she was a former film producer, has constituents in areas where Netflix’s headquarters and the Warner Bros. studio are located. —WITH REPORTS FROM INQ, AP
