Drastic effects on the entertainment industry
So, why is Paramount Skydance— not to mention many others in the entertainment industry — so upset by Netflix purchasing Warner Bros. Discovery? First, Netflix would achieve a virtual stranglehold on the streaming business. After all, why would a consumer need to purchase any other streaming services (Hulu, Paramount+, Peacock) with all the content the combined media library from the new Netflix/Warner Bros. would offer viewers?
Second, and perhaps more importantly, Netflix’s purchase of Warner Bros. Discovery could mark the beginning of the end for the theatrical experience. If Netflix puts such a premium on subscribers, and how to retain their memberships from month to month, why in the world would the streaming giant release new film titles in theaters at all?
Hypothetically, a Netflix Warner Bros. combo could release brand-new titles on their new streaming service without even offering a theatrical window. Worst case scenario — I’ll use a Warner Bros. title set to open in the summer of 2026 — the DC Universe’s Supergirl. Say the Milly Alcock and Jason Momoa-led Supergirl opened as a billion-dollar blockbuster next year. Well, all that revenue does nothing for a Warner Bros.-less Netflix and everything for those in the theater-going business.
Warner Bros. would make money, theater chains like AMC, Cinemark, and Regal would make money, but Netflix wouldn’t see a dime of profit. Netflix without Warner Bros. Discovery wouldn’t get any money from the film’s streaming life either because Supergirl would eventually debut on HBO Max, not Netflix.
However, if Netflix controlled Supergirl, which it would through acquiring Warner Bros. Discovery, the streaming giant could just release the film on its streaming service, charge a premium subscription price — much more expensive than what is offered by any tier now — and this would leave the theater chains out in the cold. The Netflix/Warner Bros. company would make a killing and, in all likelihood, kill the theater-going experience in the process.
In a best-case scenario, the new Netflix/Warner Bros. company could release Supergirl theatrically for a brief window, kind of like the streaming service did with Guillermo del Toro’s Frankenstein. In this case, the theater chains would again take a serious financial hit, but they still would make some money. This creates another problem, though.
If Supergirl is only going to be playing in theaters for say two weeks, and then almost immediately drop on Netflix/Warner Bros., many people are just going to say, “Why shouldn’t I just a wait and watch it from the comfort of my own home rather than go out and fight a Friday-night crowd?” (Continued...)