If the government approves Netflix’s megadeal to buy Warner Brothers Discovery—the parent company of HBO Max and the mammoth library of Warner Bros. content—it would be a disaster for consumers and a deathblow for Hollywood. Giving the world’s largest streaming platform even more control over what Americans watch and what content gets produced will mean fewer options for consumers and, inevitably, higher prices.
There is another path forward. Paramount Skydance has submitted its own hostile bid to compete with Netflix’s. Combining Paramount Skydance with Warner Bros. Discovery would create a new competitor with the scale and resources necessary to challenge Netflix’s dominant grasp on the streaming and entertainment landscape. That deal would maintain – and arguably enhance – competition in the space, bolstering cost discipline and choices for consumers. Importantly, Paramount has also said it remains committed to theatrical releases, a stark contrast to Netflix, whose leadership has written off theaters as outdated and anti-consumer.
Instead, the Netflix acquisition of Warner Brothers will create an entity that would dominate the media industry. This year, Netflix announced its largest-ever subscriber increase to over 300 million users, making it the largest Subscription Video on Demand (SVOD) service in the U.S. and the world.
