Netflix taking over H’wood empire, political intrigue may be eliminated

Agencies :

The popular streaming platform Netflix is acquiring the legendary film studio Warner Bros. Discovery and the popular HBO streaming network. Netflix said on Friday that it
is buying Warner Bros. Discovery for $72 billion. This is not just any ordinary deal-it is a kind of Hollywood drama, with powerful buyers, political intrigue and multiple tense dramas. The acquisition is actually going to be the story of the rise of a victorious monster. If the deal is completed, it will be almost impossible for Netflix to
compete with it.
But with regulators and rival bidders still in the fray, the story is far from over. Key issues are capturing the attention of political and industry circles ahead of the massive deal:
Netflix has been solidifying its position in Hollywood for years, now the world’s largest streaming subscription service and the largest producer of new content. But this deal-the industry’s largest in years-will take Netflix to new heights. What’s more, it will add to its archive- Netflix will gain access to a catalog of nearly a century of classic titles and famous franchises.
Netflix will add HBO’s roughly 128 million subscribers to its existing subscriber base of more than 300 million. “Netflix is already the largest streaming service, and now with HBO Max added, it would arguably be out of reach,” said Mike Proulx, vice president at research firm Forrester.
The deal brings ‘Looney Tunes’, ‘Harry Potter’, ‘Friends’ and HBO’s hit shows such as ‘Succession’, ‘Sex and the City’ and ‘Game of Thrones’ to the same platform as popular shows such as Netflix’s ‘Stranger Things’. The purchase also includes TNT Sports outside the US.
Netflix expects the deal to close within the next year to a year and a half.
But executives have not yet been clear about how Warner Bros. and its flagship brand HBO will be integrated into Netflix’s existing services. Netflix co-CEO Greg Peters called the HBO brand ‘very strong’ and said it would give them ‘a lot of options.’
Netflix could bundle films and programmes together in various bundles, but analysts say they would be surprised if the HBO brand were to disappear entirely. Netflix’s dominance could allow it to charge more to its subscribers.
On the other hand, if viewers pay for one streaming service instead of two, their costs could be reduced.