You can hardly have missed it: a takeover battle has emerged between Netflix and Paramount over Warner Bros.
The number of video streaming services is set to shrink in the coming period. Netflix is on the acquisition trail and wants to buy Warner Bros. Paramount has now also entered the fray with a hostile takeover bid, leaving the final decision in the hands of the shareholders. The problem is that, no matter who ends up acquiring Warner Bros., it is bound to create issues for consumers.
Warner Bros. owns HBO Max, CNN and Discovery. If the entire package were to end up with Netflix — even though Netflix has already indicated that CNN and Discovery would not be part of the deal — a major and relatively affordable streaming service would disappear from the market. Netflix would then become an almost dominant force in the streaming landscape, with significant influence over pricing. As it already is far from the cheapest option, subscription prices would likely rise sharply as a result.
The shadow of Trump
Whether the situation would be any better if Paramount were to acquire Warner Bros. remains to be seen. That scenario brings a different set of concerns. Paramount is widely seen as being sympathetic to Trump and has stated that it would want to acquire the entire package, including Discovery and CNN. Trump has already indicated that, should this happen, CNN would be subjected to major changes in terms of its editorial direction. In short, this would also be bad news for consumers who value journalistically responsible content.
Either way, it seems unavoidable: Warner Bros. will be taken over, and the choice appears to be between two evils. All that remains is to wait and keep a close eye on your subscription terms once the dust settles. One thing is clear, however: the more consolidation through takeovers, the more expensive streaming will become for consumers. For the film industry as a whole, this is also far from good news, for a variety of reasons.