Warner Bros Discovery CEO David Zaslav sent a statement to his employees explaining The reason for the operation And remember, aside from the sale to Netflix, the plan is for WBD to become two different companies.
“This decision reflects a reality An industry that is going through a generational change (…) Over the past few months, the Board of Directors has evaluated a number of strategies,” Zaslav announced.
“His conclusion is that This structureand Warner Bros. joined the company. to Netflix and Discovery Global to become an independent company, It will provide the strongest long-term foundation for both companies“, he announced.
now, What does this mean? What will happen to iconic brands like HBO or DC Comics?
What’s going on with the big Warner franchises?
When you complete your purchase, Warner Bros.’ big IPs will be completely reliant on Netflix. Movie epics like Lord of the Rings, Harry Potter Or DC superheroes, as well as fictional stories like game of thrones, The soprano, friends also Big bang theory You will become the property of the platform.
This will include the extensive catalog from both Warner and HBO. Titles like trance, succession, The last of us also True blood. Distinctive characters such as Looney Tunes and Scooby-Doo Or Hanna-Barbera animation will be based on the company led by Ted Sarandos and Greg Peters.
HBO logo at its offices in New York, United States.
Evie
What will happen to the HBO Max platform?
In the short term, HBO Max and Netflix will remain two different platformsWith different content and will work independently. The integration process is estimated to last between 12 and 18 months, so no major changes are expected.
Now, as you analyze it ForbesIt turns out It is “unlikely” or not very useful to have two platforms from the same company. In reality, IndieWire It was reported that Netflix stressed that offering HBO Max content would be “complementary” to its own content, which raised skepticism among US media.
And what will happen with HBO?
Although HBO Max is the platform, HBO is the original brand. Born as a TV subscription, it has become a stamp of quality in the field of TV series and TV movies.
Unlike its platform, The HBO brand has enough standing to avoid disappearing. This has been analyzed by media outlets such as Hollywood Reporter and diverse. As happened with Hulu and Disney, which became part of another division of Disney+, the HBO brand will be integrated as a brand within Netflix.
What will happen to theatrical releases?
This point has raised many doubts. Although Netflix has stated this previously You will respect WBD’s contractual agreements, One of its CEOs, Ted Sarandos, is known for his “anti-cinema” politics.
On several occasions, Sarandos has described the movie theater business as an “old enterprise.” Hence the surprise that he decided to buy one of the major companies Specialties Mecca of cinema.
“Superman” star David Corenswet at the premiere with fans in London.
Evie
For now, Sarandos has confirmed this The agreements concluded by WBD will be respected until 2029. Now, the executive has already confirmed that he will seek to shorten the exclusivity window for titles, even if they are popular.
“My opposition has been based mainly on long periods of exclusivity, which… We do not consider it very favorable for the consumer“, he announced at the last Netflix shareholder conference, on the occasion of the third quarter results.
How did cinemas react?
Just as posted diverse, Theater chain owners question the agreement. Sarandos has disparaged this type of business on several occasions. Additionally, WBD’s contractual agreement with cinemas expires in 2029.
This would leave the door open to Netflix has chosen to impose its watch-everything model My neighbor. Titles that triumphed this year such as Superman, Sinners, Minecraft movie also Battle after battlewill have a limited theatrical release so it can only be seen on the platform.
Will Warner stop producing for third parties?
Unlike the big Hollywood studios, Netflix rarely transfers its properties to third parties. Many titles produced by WBD and broadcast on one of its channels or platforms have been seen on other channels.
game of thrones It was exclusive to Movistar Plus+ until the arrival of HBO Spain. friends It can be watched on Netflix, where it is available Adventure Time.
In the same way, Produced by Warner Bros. Series for third parties. In Netflix’s case, WBD was produced Sandman also invincible. For ABC, it produces Abbott CollegeAnd for Apple, Ted Lasso. for now, Neither Sarandos nor Zaslav spoke about whether this distribution and production model would continue..
Could the purchase not happen?
The agreement is conditional on a very strict antitrust review. The Ministry of Justice in coordination with The Federal Trade Commission (FTC) can ban it.
In reality, There are movements that support this matter, whether in the Democratic or Republican parties. Senator Elizabeth Warren has become the clear head of skepticism in the progressive district. He described this movement as a “nightmare.”
The US Federal Trade Commission’s headquarters are in Washington, DC
Reuters
“It would create a media giant controlling nearly half the market. My neighbor“, warned. According to ReutersMany Republican members of Congress supported Warren’s words. Republican Senator Mike Lee, who leads the Senate Antitrust Committee, warned that this agreement “should set off alarm bells.”
Added to this is that Donald Trump was not very inclined to make this purchase. The US President preferred reaching an agreement between Warner Bros and Paramount Skydance. As he pointed out Delivery timeAnother possible option is conditional approval.
What will happen in the rest of the world?
If your purchase is complete, Local branches From Warner Bros., in Europe, Latin America, Africa and Asia Pacific, They will become dependent on Netflix. Both production, project development and content distribution offices.
What will happen to CNN, TNT or Discovery?
Netflix’s purchase only affects the movie studio and its entertainment part My neighborThe rest will become part of Discovery Global. In his statement to the workers, Zaslav revealed that the CEO of this new company will be Gunnar Wiedenfels.
This follows WBD’s strategy of separating into two companies. Warner Bros. will move on. into the hands of Netflix and Discovery Global will operate as an independent company. This will prevent TV channels like CNN, TNT, HGTV, Eurosport or Discovery Channel from passing into Netflix’s hands.
What will happen to other assets?
In the agreement, Netflix has agreed to stay with Warner Studios (Burbank and Interviewer International), as well as affiliated production companies.
in case Theme parks, WBD has worked with third parties, Negotiate their licenses so that their franchises are located in parks bearing their own names, such as Parque Warner in Madrid (operated by Six Flags), and in overseas parks, such as World Harry Potter At Universal.
After purchase, Netflix will be the one to negotiate if it retains these licenses To third parties for parks.
Regarding the publisher DC ComicsIt will become part of Netflix as well.