Netflix Warner Bros. Discovery could be a group of names that end up combining if what was announced today goes ahead: Netflix enters the exclusive phase of negotiations with Warner to draw up a purchase agreement.
If we had been informed of this possibility five years ago, we would have said it was crazy, if we had done it a year ago it would certainly seem very strange to us, a few weeks ago we saw bidders in doubt… Not today.
We have been clear for some time the change in context that exists in the world of cinema and how spectators’ habits have been changing. In addition to national productions, which have their own operations, international productions and blockbusters are increasingly becoming events rather than cinephile events.
There are many examples of what I mentioned. There is less of a habit of going to the cinema and more of going to see the film of the month, which will be talked about on social media, which represents our niche/identity. It is very difficult for companies to adapt to the situation.
At Netflix they say they will respect Warner’s legacy, but is that possible?
As would be expected from any company taking an advantageous position in purchasing Warner, On Netflix they state that they will maintain the legacy and distribution in the usual cinemas. Let us not forget that Warner was founded in 1923, nor its vast catalog and the history that this entails.
That said, Warner is a company that goes beyond DC universes and blockbusters. In his productions it was possible to see throughout these 102 years of history, even today, titles committed to the quality and honor of continue to be one of the great references of cinema on a global level.
The conflict that may arise arises when Compare Warner’s Legacy Vision to Netflix’s Algorithm Formula and the rapprochement that can exist between both fronts. I use the word fronts because in the algorithm weighs immediacy and not historical continuity.
In Warner’s path there are not only the films, but also the trust, or bet, on directors loyal to a company, or in assuming that there are years of losses and others of profits. The key is to keep a company that means much more than a name or specific films.
Buying Warner likely means they or Netflix will have to completely adapting to a different business model, an almost traumatic change in company culture. If this is successful, a time of absolute uncertainty will prevail.
Now negotiations will continue and legal fronts will be importantboth by these companies and by third parties, such as Paramount, who have the advantage of directly contacting Donald Trump.