It's a winner-take-most economy

"Driving the news: Netflix said Friday it will acquire Warner Bros. Discovery's studio and streaming assets, potentially combining two of the world's largest streaming platforms. It's part of a larger trend of dealmaking soaring under the Trump administration due in part to its friendlier regulatory practices. In streaming specifically, scale has become one of the only viable strategies for growth. (Netflix can't increase its subscriber count forever, which may be why they stopped reporting that figure in earnings releases.)"

"Between the lines: Concentration comes with risk, as it's (obviously) the opposite of diversification. For investors: Concentration into AI stocks has worked well, delivering a bull market with back-to-back years of double-digit gains. But if there's a wobble in AI, it could take down the broader market. For the economy: When spending is concentrated among high-income households, and profits among a few megacap firms, any pullback by that small group can drag down growth."

Netflix will acquire Warner Bros. Discovery's studio and streaming assets, combining two major streaming platforms and increasing concentration in the streaming market. Dealmaking has soared under the Trump administration, aided by friendlier regulatory practices. In streaming, scale is now one of the only viable growth strategies, and Netflix stopped reporting subscriber counts. Broader consolidation mirrors trends elsewhere: a handful of megacap AI stocks account for 40% of the S&P 500, while the top 10% of earners now supply half of consumer spending. Concentration raises risks for investors and the wider economy because pullbacks by a small group can drag down growth.

Read at Axios