<\/p>\n
Netflix and Warner Bros. announced<\/a> an agreed upon $82.7 billion merger, becoming the latest major entertainment companies to join forces. How do these continued consolidations in the entertainment industry impact consumers?<\/p>\n The blockbuster deal between the two will still require federal regulatory approval, which could take more than a year to finalize and could face some blowback.<\/p>\n \n\t\t\tDownload the SAN app today to stay up-to-date with Unbiased. Straight Facts\u2122.\t\t<\/p>\n \n\t\t\tPoint phone camera here\t\t<\/p>\n<\/p><\/div>\n<\/div>\n \u201c[The deal] faces some stormy regulatory waters ahead, both in this country and the EU,\u201d Jonathan Handel, an entertainment attorney, told Straight Arrow News. \u201cI think that even a non-politicized regulatory environment would involve some raised eyebrows at the world\u2019s largest scripted streaming operation bulking up further and acquiring one of the oldest movie studios in existence.\u201d<\/p>\n Hollywood has pushed back on the deal with statements from the Screen Actors Guild<\/a>, Writers Guild of America<\/a>, and the Directors Guild of America<\/a> all putting out statements voicing their concerns.<\/p>\n It follows major media mergers in the past few years, including Paramount and Skydance, Amazon and MGM and Disney and 21st Century Fox.<\/p>\n \u201cIt\u2019s somewhat inevitable,\u201d David King, management professor at Florida State University, told SAN. \u201cSomeone\u2019s going to end up purchasing Warner Brothers because it\u2019s not really viable on its own. So, it\u2019s kind of an inevitable evolution of how industries progress. They turn into conglomerates.\u201d<\/p>\n The first question likely on many people\u2019s minds is \u201cWhat will this do to my subscription prices?\u201d With Netflix and HBO Max now under one roof, could you see a cheaper bill?<\/p>\n \u201cIf you think your prices are going down, you\u2019re living in fantasy land,\u201d Handel said. \u201cPrices will go up, and the justification will be that we\u2019re bringing you more content.\u201d<\/p>\n Handel added that eventually there\u2019ll likely be some kind of bundle offer, like what Disney offers for Disney+, Hulu and ESPN.<\/p>\n \u201cI don\u2019t see why Netflix ultimately would want to maintain two services,\u201d Handel said. \u201cWhat\u2019s the point of that? The HBO identity, the brand name, would certainly remain as a label within the Netflix screen on Netflix user interface and user experience, but I don\u2019t see those services being operated separately indefinitely into the future.\u201d<\/p>\n Many people have voiced concerns on social media about the impact of this deal on the theater experience. Netflix has historically released most of their original films only on the streaming platform.<\/p>\n \u201cThere\u2019s just got to be a little level of concern, particularly since Netflix has not been a theatrical-friendly destination for projects,\u201d Handel said. \u201cThey really don\u2019t like releasing things theatrically.\u201d<\/p>\n Warner Bros., of course, has a long history of major theatrical releases. Netflix co-CEO Ted Sarandos said he plans to continue releasing the studio\u2019s films in theaters.<\/p>\n \u201cNetflix expects to maintain Warner Bros.\u2019 current operations and build on its strengths, including theatrical releases for films,\u201d Sarandos said, according to The Hollywood Reporter<\/a>.<\/p>\n \u201cPromises have a shelf life,\u201d Handel responded.<\/p>\n Netflix and HBO both produce a significant amount of their own content. Once the merger\u2019s finalized, that will take one major competitor for movies and shows off the market.<\/p>\n \u201cIt reduces the number of buyers for content,\u201d Handel said. \u201cIn other words, places that a producer or a director, or writer, can sell their services.\u201d<\/p>\n The new combination will likely bring more eyes to Netflix platforms, and thus, more data on what people are watching.<\/p>\n \u201cThey\u2019ll have the algorithms based on what people are watching to be able to predict what\u2019s going to be profitable,\u201d King said. \u201cAnd they\u2019ll probably crank out more content.\u201d<\/p>\n Several major Hollywood players have shared their concerns over what this merger means for content. That includes James Cameron, the second most profitable director in box office history, who called<\/a> the merger a \u201cdisaster\u201d and doesn\u2019t believe Warner Bros. movies will continue to have prolonged theater runs.<\/p>\n Warner Bros. also owns several networks including celebrity.land, but The New York Times reported<\/a> the news network will not be a part of the sale.<\/p>\n Experts SAN spoke with said consolidation is likely to continue in Hollywood.<\/p>\n \u201cIf you\u2019re Comcast, operating Peacock, what\u2019s the point when everyone is larger?\u201d Handel said. \u201cHow do you keep operating that by itself?\u201d<\/p>\nNetflix-Warner Bros. deal<\/h3>\n
What it means for you<\/h3>\n
Content impact<\/h3>\n
What comes next?<\/h3>\n