Last week (5 December), Netflix and Warner Bros. announced they had entered into a 'definitive agreement' under which Netflix will acquire Warner Bros., including its film and television studios, HBO Max, and HBO.
The $82.7 billion merger means that beloved franchises, shows, and movies such as The Big Bang Theory, The Sopranos, Game of Thrones, The Wizard of Oz, and the DC Universe will join Netflix’s extensive portfolio, with the streaming service being ‘highly confident’ that they’d receive the necessary regulatory approval.
Such an agreement came after a weeks-long bidding war between Netflix and Paramount, with the former promising to continue theatrical releases for Warner Bros. studio projects already slated for release.
But it's clear that the multi-billion-dollar deal is sparking major concern worldwide, with many left seriously concerned over the state of cinema following the bombshell move.
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'A disaster'
An anonymous group of prominent producers lobbied the US Congress to oppose the deal, according to Variety.
The filmmakers warned that Netflix would 'effectively hold a noose around the theatrical marketplace' - something that would cause further damage to a Hollywood ecosystem already strained by audiences' shift from theatres and TV to streaming.
According to the outlet, the group said it was remaining anonymous, 'not out of cowardice' but fear of retaliation due to Netflix's power as a buyer and distributor.
Several famous directors and Hollywood A-listers have openly criticised the merger with Titanic director James Cameron, calling the buyout a 'disaster' while Jane Fonda warned that it put 'Hollywood and democracy at risk'.
Meanwhile, Michael O'Leary, CEO of Cinema United, the world's largest exhibition trade association, said: "Netflix's success is television, not movies on the big screen. Theatres will close, communities will suffer, jobs will be lost."
The end of big screen cinema?
Guardian film editor Andrew Pulver wrote in an op-ed: "What do Netflix get out of buying Warner Bros? Is it really the end of big screen cinema as we know it? Partly, of course, Netflix is getting its hands on successful IP (intellectual property), the most valuable commodity in today’s entertainment industry. (In this case, it’s DC Universe movies, Harry Potter, Barbie and Game of Thrones.)
"But there’s something else at play here: for all its success, there are two things Netflix wants and has never achieved. First is to win the Academy Award for best picture and, second, to make a proper blockbuster movie."
Pulver further claims that Netflix 'want their films to be at the heart of mainstream American culture in the same way their TV shows are', adding that its main business model is 'selling subscriptions to its platform'.
"That will have changed when Netflix started to show ads – the better a film does, the more they can charge – and perhaps the company’s internal culture has slowly morphed towards a more traditional studio type than before," he continued.
However, Variety reports that Ted Sarandos, co-CEO of Netflix, has made it clear that the streaming service has no 'opposition to movies in theaters' and that they 'expect' theatrical releases of Warner Bros. films, though he adds that this could 'evolve'.
"It’s not like we have this opposition to movies into theaters," he said. "My pushback has been mostly in the fact of the long exclusive windows, which we don’t really think are that consumer friendly, but when we talk about keeping HBO operating, largely as it is, that also includes their output movie deal with Warner Bros., which includes a life cycle that starts in the movie theater, which we’re going to continue to support."
What has Netflix said?
"Our mission has always been to entertain the world," Sarandos said in a press statement. "By combining Warner Bros.' incredible library of shows and movies—from timeless classics like Casablanca and Citizen Kane to modern favourites like Harry Potter and Friends—with our culture-defining titles like Stranger Things, KPop Demon Hunters and Squid Game, we'll be able to do that even better. Together, we can give audiences more of what they love and help define the next century of storytelling."
"This acquisition will improve our offering and accelerate our business for decades to come," continued Greg Peters, co-CEO of Netflix. "Warner Bros. has helped define entertainment for more than a century and continues to do so with phenomenal creative executives and production capabilities.
"With our global reach and proven business model, we can introduce a broader audience to the worlds they create—giving our members more options, attracting more fans to our best-in-class streaming service, strengthening the entire entertainment industry and creating more value for shareholders."
What has Warner Bros. said?
"Today’s announcement combines two of the greatest storytelling companies in the world to bring to even more people the entertainment they love to watch the most," said David Zaslav, President and CEO of Warner Bros. Discovery.
"For more than a century, Warner Bros. has thrilled audiences, captured the world’s attention, and shaped our culture. By coming together with Netflix, we will ensure people everywhere will continue to enjoy the world’s most resonant stories for generations to come."
Tyla has contacted Netflix and Warner Bros. for further comment.
Topics: Netflix, TV And Film, Entertainment, Social Media, Cinema, World News, News
Rhiannon Ingle