Netflix-Warner merger rocks streaming world
The Netflix-Warner Bros union has the potential to reshape the media landscape in a particularly momentous fashion.
In a note to subscribers on the weekend, Netflix said the acquisition of Warner Bros would have no immediate impact on its streaming service.
“Nothing is changing today,” trumpeted the deliberately underwhelming spin.
True enough. If you’re one of Netflix’s 300 million global customers (6.2 million of whom live in Australia), when you plonk yourself on the couch tonight and hit that particular button on the remote, you’ll still be greeted with the same red N. You’ll still hear the same iconic ‘der-der’ sound that accompanies the logo. You’ll still have access to the same library of content.
But while nothing might be changing today, in the short space of a year, everything might look different.
Should Netflix’s acquisition of Warner Bros secure regulatory approval – and that is by no means a sure thing – the movie business could be up-ended in a manner not seen for decades.
Will the merger be the nail in the coffin of watching movies in theatres?
In its relatively short history, Netflix has been reluctant to release its original content into cinemas. If the acquisition proceeds, and Netflix effectively becomes not only the biggest streaming service but also the owner of one of the globe’s most culturally significant studios, then the big red N will pretty much decide the future – or at least the schedule – of cinematic releases.
Smaller theatre chains would almost certainly go to the wall, the world over.
Whether that happens, though, remains unclear – Netflix co-CEO Ted Sarandos has pledged to maintain Warner Bros’ theatrical releases.
But he would say that. Right now, before the deal is finalised, there’s no upside in Netflix rattling too many cages.
Perhaps much of the initial shock of the merger is that up until a few days ago, Netflix was not considered to be the frontrunner to acquire WBD – Larry and David Ellison’s Paramount was in the box seat.
With Netflix now getting the jump on the deal, the industry is asking whether a company that built its success on growing from within can smoothly transition to a merger and acquisitions model.
Will Netflix and HBO Max merge to create one enormous global streaming juggernaut? And what would that mean for other streamers in the market?
Consolidation is the name of the game in the media industry but not all mergers are created equal.
The Netflix-Warner Bros union has the potential to reshape the media landscape in a momentous fashion.
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