Netflix’s $72 billion deal to acquire Warner Bros. studio and its film and television operations drew quick reactions Friday.
Film and television industry entities including guilds and the lobbying group for movie theater owners criticized the deal, warning it would harm consumers and cinema owners.
In announcing the deal, Warner Bros. and Netflix executives touted the deal’s benefits. Warner Bros. Discovery CEO David Zaslav said the deal “will ensure people everywhere will continue to enjoy the world’s most resonant stories for generations to come,” while Netflix co-CEO Ted Sarandos said it would “give audiences more of what they love.”
Here’s a roundup of notable early reactions to the deal:
Michael O’Leary, CEO of Cinema United
“Netflix’s stated business model does not support theatrical exhibition. In fact, it is the opposite. Theaters will close, communities will suffer, jobs will be lost.”
Producers Guild of America
“As we navigate dynamic times of economic and technological change, our industry, together with policymakers, must find a way forward that protects producers’ livelihoods and real theatrical distribution, and that fosters creativity, promotes opportunities for workers and artists, empowers consumers with choices, and upholds freedom of speech. This is the test that the Netflix deal must pass. Our legacy studios are more than content libraries – within their vaults are the character and culture of our nation.” — in a statement.
Sen. Roger Marshall, R-Kan.
“Netflix’s $82 billion attempt to buy Warner Bros. would be the largest media takeover in history — and it raises serious red flags for consumers, creators, movie theaters, and local businesses alike. One company should not have full vertical control of the content and the distribution pipeline that delivers it. And combining two of the largest streaming platforms is a textbook horizontal Antitrust problem. Prices, choice, and creative freedom are at stake.” — in a statement.
U.S. Sen. Elizabeth Warren, D-Mass.
“This deal looks like an anti-monopoly nightmare. A Netflix-Warner Bros. would create one massive media giant with control of close to half of the streaming market — threatening to force Americans into higher subscription prices and fewer choices over what and how they watch, while putting American workers at risk.” — in a statement.
Writers Guild of America|
“The world’s largest streaming company swallowing one of its biggest competitors is what antitrust laws were designed to prevent. The outcome would eliminate jobs, push down wages, worsen conditions for all entertainment workers, raise prices for consumers, and reduce the volume and diversity of content for all viewers. … This merger must be blocked.” — in a statement.
U.S. Rep. Laura Friedman, D-Calif.
“Repeated consolidation in this industry has already cost so many film and television jobs, and any merger should be evaluated on its impacts on competition and employment.” — in a statement. Her district includes Hollywood and the areas where Netflix’s headquarters and the Warner Bros. studio are located.
Jason Kilar, former WarnerMedia CEO and a Hulu co-founder
“If I was tasked with doing so, I could not think of a more effective way to reduce competition in Hollywood than selling WBD to Netflix.” — in a post on X.
SAG-AFTRA
“The potential Netflix/Warner Bros transaction is a consolidation that may serve the financial interests of shareholders of both companies, but which raises many serious questions about its impact on the future of the entertainment industry, and especially the human creative talent whose livelihoods and careers depend on it.
“This $82B transaction reaffirms the true value of legacy media companies and the long term economic prosperity they create due in large part to the contribution of the creative talent who are at the core of their success.
“A deal that is in the interest of SAG-AFTRA members and all other workers in the entertainment industry must result in more creation and more production, not less. It must do so in an environment of respect for the talent involved.
“Any decision about SAG-AFTRA’s position on this transaction will be made with the best interests of SAG-AFTRA members as the standard and following a complete and thorough analysis of the details of the deal, with particular focus on jobs and production commitments.” — in a statement.
Editor’s note: SHOOT received the statement from SAG-AFTRA and added it to this AP report.
