Reviews are in, and Hollywood insiders aren’t pleased with the Netflix-Warner Bros. deal
In a groundbreaking move that has sent shockwaves through Hollywood, Netflix has announced its $72 billion acquisition of Warner Bros., a deal that promises to reshape the entertainment landscape significantly. The acquisition, which is still pending regulatory approval, has sparked widespread concern among industry professionals, with many fearing that it could lead to job cuts, stifle creativity, and reduce competition in an already consolidating market. Notable figures in the industry, including former WarnerMedia CEO Jason Kilar, have voiced their apprehensions, suggesting that this merger would effectively diminish the number of key players in Hollywood, thereby limiting opportunities for writers, directors, and actors. The Writers Guild of America has echoed these sentiments, warning that such consolidations typically result in adverse outcomes for entertainment workers, including job losses and lower wages.
Critics of the deal are particularly worried about the potential impact on content diversity and the creative process. The Directors Guild of America has expressed significant concerns, emphasizing that the merger could hinder innovation and creative freedom within the industry. James Cameron, the acclaimed director known for blockbuster hits like “Titanic” and “Avatar,” has also weighed in, labeling the acquisition a “disaster” and criticizing Netflix’s previous dismissal of theatrical releases. He pointed to Netflix co-CEO Ted Sarandos’s comments suggesting that traditional theatrical films are “dead,” raising alarms about the future of cinema. Meanwhile, movie theater owners are apprehensive about the implications for their businesses, fearing that Netflix’s control over iconic intellectual properties, such as the “Harry Potter” franchise, could lead to a shift in release strategies that would undermine the traditional exclusivity of theatrical windows.
Despite the backlash, Netflix maintains that the acquisition will ultimately create more jobs and enhance its operational capabilities, including its theatrical release strategy. Sarandos has promised that existing Warner Bros. operations will be preserved, and he aims to evolve release windows to better cater to consumer preferences. However, the skepticism from industry veterans and creative professionals remains palpable, with many warning that the merger represents a significant escalation in the ongoing consolidation crisis within the entertainment sector. As Hollywood grapples with the potential ramifications of this megadeal, the future of creativity, competition, and job security in the industry hangs in the balance. Jane Fonda, a revered figure in the industry, has cautioned against the merger’s implications, stating that it poses a threat not only to the entertainment industry but also to the public and potentially to First Amendment rights. As the situation unfolds, all eyes will be on the regulatory process and how this acquisition will ultimately shape the future of film and television.
Netflix’s $72 billion acquisition of Warner Bros. is raising eyebrows across Hollywood.
Illustration by Algi Febri Sugita/SOPA Images/LightRocket via Getty Images
Netflix
said it’s buying Hollywood titan Warner Bros. in a blockbuster deal.
Reacting to the news, several industry professionals raised concerns.
Some said the acquisition could lead to job cuts, while others worried it could stymy creativity.
The critics have spoken, and the
Netflix-Warner Bros. deal
isn’t getting rave reviews from Hollywood insiders.
Hollywood heavy hitters
and rank-and-file industry workers alike have spoken out against the megadeal.
“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,” Jason Kilar, who previously ran Warner Bros. as the CEO of WarnerMedia, posted on X shortly after news of the deal broke.
The
$72 billion acquisition
, which requires regulatory approval, would reshape an industry that is still reeling from the introduction of streaming services nearly two decades ago.
By purchasing
Warner Bros.’
iconic studio, Netflix would knock out a major funder of TV and film projects, leaving creatives with fewer buyers and, potentially, audiences with a less diverse slate of content.
The consolidation could also result in fewer jobs for creative talent and crew members.
“All
media mergers
end up hurting writers, actors, directors, and everyone else who works in the industry,” “Parks and Recreation” creator Mike Schur
posted
Friday on Bluesky. “Fewer companies means fewer jobs, period.”
The Writers Guild of America’s West and East branches said in a statement on Friday that the deal 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.”
And the Directors Guild of America said in a statement that the deal “raises significant concerns,” specifically about hampering creativity and competition.
The deal would also mean the tech giant, which has historically snubbed theatrical releases, controls some of Hollywood’s most storied pieces of IP, from “The Wizard of Oz” to the “Harry Potter” franchise.
Last week, James Cameron, the legendary director behind “Titanic” and “Avatar,” said that such a deal “would be a disaster” on an episode of the podcast “The Town.”
“Sarandos has gone on record saying theatrical films are dead,” Cameron said, referencing Netflix co-CEO Ted Sarandos.
For its part, Netflix has said the deal will lead to “more jobs created across the entire entertainment industry” and that it “expects” to maintain Warner Bros.’ existing operations, including its theatrical release pipeline. Sarandos also said that the deal would be “pro-worker.”
Still,
movie theater owners
have echoed Cameron’s concern.
The acquisition “poses an unprecedented threat to the global exhibition business,” Michael O’Leary, the president of theater owner association Cinema United, said in a statement on Friday. UNIC, a European trade group of cinema owners, echoed the disapproval.
And theaters have reason to worry.
One veteran Hollywood producer, who spoke to Business Insider on condition of anonymity to avoid damaging their relationship with Netflix, said “Netflix is about to be a beast in the IP space,” after years of having a deficiency in that part of its feature film portfolio. And in the process, it could strip movie houses of their beloved exclusivity to titles.
“Netflix can now drop a new ‘Batman’ movie or ‘Harry Potter’ on a 30-day theatrical window, maybe even day-and-date, and theaters will still want them because they are big movies,” the producer said.
Studio movies currently play exclusively in theaters between 60 and 90 days; however, Sarandos said during a call with investors and press on Friday that “over time, the windows will evolve to be much more consumer-friendly, to be able to meet the audience where they are quicker.”
There may have simply been no possibility for a Hollywood ending.
Before the deal was announced, Hollywood royalty Jane Fonda wrote an op-ed about the ripple effects of any deal, no matter the buyer.
“We don’t need to know the final outcome to understand the danger,” she wrote in The Ankler. “The threat of this merger in any form is an alarming escalation in a consolidation crisis that threatens the entire entertainment industry, the public it serves, and — potentially — the First Amendment itself.”
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