Netflix announced on Friday that it will acquire Warner Bros. for $82.7 billion, making a better offer than Paramount and Comcast. The deal includes Warner Bros. studios as well as the HBO channel.
Donald Trump stated that there could be antitrust issues from the acquisition, saying that Netflix already has a “large market share.” By acquiring Warner Bros., Netflix would control over 30% of the streaming market, which is the legal threshold in the United States.
Netflix, which started in 1997 by renting DVDs through the mail, has become the largest subscription-based on-demand streaming service in the world.
However, it is expected that Netflix will request the inclusion of players not currently counted in the market, such as YouTube, in order for the deal to proceed. The final decision on approval rests with the Antitrust Division of the Department of Justice, as well as the U.S. president himself, who has stated that he will be personally involved in the decision.
If the deal is ultimately approved, Netflix will acquire franchises such as Harry Potter, Batman, and Superman, as well as HBO series including Game of Thrones, Succession, and Friends. Although Netflix assures that it will continue theatrical releases of Warner Bros. films (approximately 15 releases per year), many in the film industry remain skeptical. A group of producers expressed serious concerns in a letter to Congress, arguing that Netflix has no incentive to support theatrical distribution and may in fact undermine it.
Sources: Guardian, The New York Times
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