The recent news that Netflix has agreed to buy part of Warner Bros Discovery (WBD) for US$83 billion (£61.8 billion), followed by Paramount Global’s hostile counterbid to acquire WBD in its entirety for US$108.4 billion (£81 billion), has triggered shockwaves through Hollywood and the wider entertainment industry.
Initial responses – and passionate outcries – have largely centred on fears over job cuts, subscription fee rises, anti-trust concerns regarding the increased market share either bid would create, and the potential negative impact that Netflix’s acquisition might have on the future of the film industry.
While these issues are no doubt important, one aspect of the Netflix deal has been relatively overlooked: the streamer’s decision to cut out Discovery’s portfolio of cable channels from its agreed acquisition of WBD. But this element of the deal is significant for what it reveals about the current state, and future, of the television industry.
