All year on The Vergecast, we've been tracking the many bizarre and problematic actions of FCC Chairman Brendan Carr. There has been a lot to discuss! Then, this week, ahead of one of our last episodes of the year, Carr appeared in front of the Senate Commerce Committee and spent three hours explaining how he thinks about his job, the FCC, and the state of online communication and entertainment. It was a lot.
Last Friday, Netflix announced that they would be acquiring Warner Bros. Discovery, a massive megamerger that would let the number one streaming service acquire the third biggest streamer (HBO Max), the entire Warner Bros. film catalog, its cable channels, and the Discovery+ streaming service. But before any shareholders could celebrate, Paramount Skydance, the megaconglomerate led by the Trump-favored Ellison family, launched a hostile takeover. Which company will emerge victorious here...will the biggest loser be the cinephile consumer?
Paramount Global has sweetened its offer to acquire Warner by a bunch, offering an all-cash deal valued at $108 billion to take over the parent company of HBO, Warner Bros. Studios and CNN, among other notable properties. It would appear to significantly outstrip the deal worth $83 billion that Netflix and Warner announced just last Friday, although that agreement is solely for Warner's streaming service and studios.
It is significant that the new Paramount regime's first move was to prise Stranger Things creators Matt and Ross Duffer away from Netflix. And Netflix, of course, have made their billions by upending the traditional pitch-session-to-cinema pipeline that had sustained the film industry for decades. They have signed up legions of the classiest directors, hogged nearly all the audience-friendly documentaries and premiered one water-cooler series after another.
Execs have insisted Netflix is superior to YouTube while also making it clear they're open to deals with its stars. "We're looking for the next generation of great creators, and we're looking everywhere," co-CEO Ted Sarandos said in April. It's not just talk. Netflix has done deals with star creators, including kids entertainer Ms. Rachel, The Sidemen, and, most recently, science educator Mark Rober.
The cost of acquiring [intellectual property], attaching talent, and producing quality content has surged due to the streaming wars, making it unaffordable for many.
