In one of the biggest moves in the complex American media chessboard — built on countless mergers, sales, and, most recently, widespread interference from big tech companies — Netflix announced that it will acquire Warner Bros. Television. and HBO, two of the most traditional film and television companies in the world, after taking Paramount and Comcast off the negotiating table.
This announcement comes at the request of parent company, Warner Bros. Discovery, in freeing itself from its entertainment arms to devote itself to reality programming and journalism, amid a multi-billion-dollar debt scenario and an inexplicable rebranding — followed by a “rebranding” — on its streaming platform, seemed like a shot in the foot.
As much as it seems like Warner Bros. It has been doing relatively well at cinema’s fragile box office since the Covid-19 pandemic, with hits like “Barbie” and “A Minecraft Movie,” but century-old cinema companies have fallen behind as Netflix and other digital originals get into the game — Amazon bought MGM and Apple has been circling Disney for years.
Even the combination that today makes up Warner Bros. Discovery is the result of a not-so-old merger between WarnerMedia and Discovery, which was completed just three years ago. Little has changed, practically speaking, in the lives of spectators – but none of the agreements mentioned here bear the brutal dimension of this agreement.
According to Netflix, the deal was agreed for US$82.7 billion, or about R$440 billion – a figure higher than the GDP of countries like Bolivia, Slovenia and Tunisia. Each share was sold at $27.75. The decision still depends on US and foreign regulatory authorities, but the process is expected to be completed in 12 to 18 months.
Now begins the typical flattery of the authorities, so that they view the deal not as a step towards monopoly, but as a boost to the audiovisual industry and the American economy.
Judging by Donald Trump’s authoritarian outbursts in culture, the two studios are likely to rein in policies and content that don’t please Republicans, especially that focused on diversity, the area on which Netflix has built much of its empire. So expect to see fewer same-sex kisses.
But this is not all that will affect the lives of consumers. Netflix is already the leader in the streaming market, but HBO Max isn’t far behind. The focus is expected, which would make life easier for those who subscribe to both services, if bundled. In this scenario, it is possible that the subscription price will increase to cover the high expenses.
In its catalog, Netflix will have its own superheroes to play with – when it inherits DC Studios -, it will solve its problem with classics – “The Wizard of Oz” and “Casablanca” will be its properties – it will bolster its animation division – with “Looney Tunes” and the Hanna-Barbera gang – and it will have a lineup of series that will dominate the Emmys, joining the demogorgon of “Stranger Things” to the dragons of “The Game.” “Thrones.”
It will also solve your intellectual property problem, famous intellectual property. As much as he devotes large sums of money to creating expanded universes and pop characters, inheriting “Harry Potter,” “The Lord of the Rings” and “Conjuring Up” is like winning the lottery.
Therefore, the agreement will include improving Netflix’s relationship with exhibitors around the world. Everything the giant has released in cinemas so far has been sheer glamor, ticket-buying the exclusive Hollywood club and its prizes. So much so that while Netflix is persona non grata at Cannes, Warner Bros. It is one of the main partners of the event.
Although the deal includes a promise to release Warner Bros. films, will be released in cinemas, it will not be difficult for Netflix to stifle this division in the medium term. Netflix CEO Ted Sarandos has already said that viewing windows between big-screen release and streaming should be reduced, in a more “consumer-friendly” move.
Your words ignore the fact that the root of local spectator behavior lies in the lack of audience formation and investment in the exhibition park. Thus, the company goes against the principle of preserving cinematic culture by saying that it is necessary to “meet the audience where they are.”
“We’ve released about 30 films in theaters this year, so we have no opposition to movie theaters,” Sarandos said to calm nerves. In Brazil, as in many other countries, none of these films reached commercial cinemas. It’s rhetoric without weight, and the exhibitors are already screaming. This year, Warner Bros. 24% of ticket sales in the United States.
Recently, the series “O Estúdio,” from rival Apple TV+, invited Sarandos to make a special appearance. The plot is a love letter to cinema, with the head of Netflix presenting himself as a strategist, little interested in art and very concerned with its glories. But was his performance a reflection of the truth or a joke on the bogeyman image the industry had created for him? Today’s agreement is Sarandos’ chance to show he’s more of a cinephile than a pro-corporate one.
If the moviegoing experience is under threat, Netflix’s more assertive entry into that market could represent one of two very different things — a miracle move or a checkmate. The second is more likely so far.