"Netflix's $82.7 billion acquisition of Warner Bros. is, in many ways, the last thing a weakened Hollywood needs right now. The industry is still recovering from the COVID-19 pandemic, where theaters were forced to close and audiences became even more comfortable with streaming films at home. The WGA and SAG-AFTRA strikes in 2023, which were driven by legitimate concerns around studio interest in generative AI, delayed production and promotion of many film and TV projects."
"How can a troubled media company survive today? The answer seems to be further consolidation. Amazon's $8.45 billion MGM takeover in 2022 heralded future deals, like Skydance's $8 billion acquisition of Paramount . But Netflix's WB deal goes even further: It could fundamentally reshape the media industry as we know it, from theatrical movie-going to the existence of physical media."
Netflix plans to acquire Warner Bros. remaining assets, including film and TV studios, HBO Max and HBO, for $82.7 billion. Hollywood remains weakened by the COVID-19 pandemic after theaters closed and audiences shifted toward streaming. The WGA and SAG-AFTRA strikes in 2023 delayed production and promotion amid concerns about studio interest in generative AI. The streaming boom pushed media companies into debt and risky mergers, exemplified by Warner Bros. Discovery, resulting in higher subscription costs, layoffs, and production belt-tightening. Prior consolidations include Amazon's MGM takeover and Skydance's Paramount acquisition. Regulatory scrutiny and competitor objections complicate large-scale deals.
Read at Engadget
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