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The movie and TV industry, known as Hollywood, is already having a hard time. The business is changing fast. People watch less TV and more streaming. This has made the economic ground shaky.
Now, there is even bigger news. Netflix, the streaming giant, wants to buy Warner Bros. Discovery (WBD). WBD is a huge studio. This deal would create a mega-Netflix. A mega-Netflix would be too powerful.
The idea of this one giant company makes the rest of Hollywood shudder. Shudder means to shake with fear. This deal could hurt many people. It could hurt actors, writers, and small studios. This article looks at why Hollywood is so afraid of this one huge company.
Shaky Ground: Why Hollywood Is Already Weak Hollywood
Hollywood was already in trouble before this deal. The old way of making movies and TV shows is dying.
The Streaming Shift
The biggest change is the move to streaming.
- Fewer Ticket Sales: Fewer people are buying movie tickets. They wait for the movie to come to streaming.
- Cable TV Dying: Many people are stopping their cable TV service. This was a huge source of money for big studios like Warner Bros.
- Too Much Content: Every company launched its own streaming service. This means there is too much content. It has hard for any one show to be a big hit.
This shift has hurt the profits of all the old studios. They are all looking for a way to survive.
The Double Strike Effect
Just recently, Hollywood had a major problem. It had strikes by writers and actors.
- Stopping Work: The strikes stopped all movie and TV production for many months.
- Lost Money: This lost money hurt the studios a lot. It hurt the small businesses that work with the studios.
So, Hollywood is weak. It is tired. It is looking for stability. But this Netflix deal brings a huge new risk instead of stability.
The Fear: A Single Buyer for Content Hollywood
The biggest worry is about content creation. Content means movies, TV shows, and scripts.
Fewer Places to Sell
Right now, a writer or producer can sell their script to many places. They can sell it to Warner Bros., to Netflix, to Disney, or to Amazon.
- Losing a Buyer: If Netflix buys Warner Bros., one big buyer disappears. There will be one less big company to sell to.
- Price Control: When there are fewer buyers, the remaining buyers have more power. Netflix could say, “We will only pay half the price for your show.” Writers and producers would have to accept the lower price. They would have no other major place to go.
This lack of competition hurts the entire creative industry. It lowers the wages for writers, directors, and actors.
The Independent Producer Problem
Independent producers are small companies. They make shows and movies and then sell them to the big studios.
- Harder to Start: These small companies rely on the big studios buying their ideas. If Netflix becomes the only giant, it will only buy the safest ideas. It will stop taking chances on new, unique ideas.
- Lack of Diversity: This means fewer different kinds of stories would made. It means the content becomes standardized. Standardized means all the same.
The Window Will Close: The Theater Threat Hollywood
The movie theater industry is shaking the most. They have terrified of a mega-Netflix.
The Theatrical Window
The theatrical window has the time when a movie has only shown in theaters. It is about 90 days. Movie theaters depend on this time to make their money.
- Netflix’s Plan: Netflix hates this long window. Netflix wants people to watch the movie at home right away. They want the movie on their platform quickly.
- Killing Theaters: If Netflix controls Warner Bros., it will cut the window short. It might make it only two weeks long. Movie theaters say this short time will destroy their business completely.
- Jobs Lost: If theaters close, millions of jobs will be lost. This includes people who work at the theater and people who own the small businesses near the theaters.
Netflix has promised to keep releasing movies in theaters. But Hollywood does not trust this promise. They say Netflix’s basic business plan is to kill theaters.
The Danger of Creative Control
Another big fear is about creative control. This is about who decides what movies and shows look like.
The Algorithm’s Rule
Netflix uses a computer program called an algorithm. The algorithm tells Netflix what people like to watch. Netflix then uses this to decide what shows to make.
- Making Safe Choices: The mega-Netflix would focus only on what the algorithm says is safe. It would make shows that are just like the last hit show.
- No Risky Art: Art is sometimes risky. Art sometimes challenges people. The old studios, like HBO (owned by WBD), were famous for making risky, unique, high-quality shows. These were shows that an algorithm might never recommend.
If Netflix controls WBD, the unique, high-quality, risky TV shows might stop being made. The world of entertainment will become flatter and less interesting.
The IP Problem Hollywood
IP means Intellectual Property. It means the rights to characters and stories.
- One Owner: Netflix would own almost all the best stories. It would own Game of Thrones, DC Comics, Harry Potter, and Stranger Things.
- Blocking Rivals: Netflix could block its rivals from ever getting access to these stories. This makes it impossible for other studios to compete.
The Antitrust Hope Hollywood
The only real hope for Hollywood is the government. They are hoping the government will stop the deal.
The Department of Justice (DOJ)
The DOJ is the part of the US government that enforces antitrust laws. Hollywood is pushing the DOJ hard.
- Filing Suit: They want the DOJ to file a lawsuit to stop the merger. They want the government to say that Netflix has too much power.
- Defining the Market: The whole fight comes down to how the DOJ defines the market. If they say the market is just premium streaming, Netflix is too dominant.
Political Pressure Hollywood
The deal is also facing political pressure. Many politicians from both parties have worried about big tech companies. They have worried about these companies getting bigger.
- Global Scrutiny: Regulators in Europe are also looking at the deal very closely. If Europe has worried, that makes the US government worry more, too.
Shaky Economic Ground
Hollywood is on shaky economic ground. The prospect of a mega-Netflix is causing a huge fear. The entire industry is worried about losing competition.
If Netflix buys Warner Bros. Discovery, it will hurt many people. It will hurt independent producers by giving them fewer places to sell their ideas. This will hurt actors and writers by lowering their pay. It will hurt the movie theater industry by cutting the release window.
The hope of stopping the deal rests with the Department of Justice (DOJ). Hollywood needs the government to agree that a mega-Netflix would have too much power. This deal is seen as an earthquake for the entire creative world. It is a defining moment for the future of entertainment.
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