US President Donald Trump has raised concerns about Netflix’s proposed $72 billion deal to buy Warner Bros. Discovery. At a recent event in Washington, he warned that Netflix’s significant market share could create issues if the merger goes through.
This deal could bring popular franchises like Harry Potter and Game of Thrones to Netflix, making it an entertainment giant. However, it still needs approval from competition authorities. The BBC has reached out to Warner Bros., Netflix, and the White House for comments.
Netflix started in 1997 as a DVD rental service. Now, it’s the largest subscription streaming platform in the world. If this deal goes forward, it would strengthen its position even more.
The US Justice Department could challenge this merger if it believes the combined companies will dominate the streaming market. Trump pointed out that Netflix’s market share could significantly increase, raising doubts among industry watchers.
Interestingly, Trump’s involvement in the decision-making process has caught attention. He highlighted a meeting with Netflix co-CEO Ted Sarandos, commending his leadership. Sarandos acknowledged the surprise around the agreement but saw it as a way to secure Netflix’s future.
The merger hasn’t been without criticism. The Writers Guild of America urged regulators to block it. They argue that this merger could lead to job losses, lower wages, and fewer diverse shows for viewers. This concern reflects broader worries about the entertainment industry consolidating power, which can affect the quality and variety of content available.
In recent years, many have seen a trend of big companies merging, raising antitrust issues. As of late 2023, a survey showed that 63% of Americans are concerned about the increasing concentration of media ownership. This trend can stifle creative diversity and put power in the hands of a few.
The outcome of Netflix’s acquisition attempt could shape the media landscape for years to come. For more on the implications of media consolidation, check out this report from the Federal Trade Commission.
