Ever since the “cut the cord” movement of the old cable television model, streaming giants have been battling for dominance, and traditional studios have struggled to adapt. Recently, Netflix moved to acquire Warner Bros. Discovery, and now Paramount has also entered the conversation with its own bid. These megadeals have the potential to reshape Hollywood.

Two faculty experts from the Department of Film, Television & Digital Media in Texas Christian University’s Bob Schieffer College of Communication — Associate Professor Kimberly Owczarski and Assistant Professor Anne Major — shared their insights on what the proposed acquisition could mean for content creation, theatrical releases and the entertainment industry at large.

Why would a company such as Netflix want to acquire something like Warner Bros. Discovery?
Major: First, considering that all major U.S.-based streamers are owned by conglomerates with ties to Hollywood studios — Peacock/Universal, Amazon Prime Video/MGM, HBO Max/Warner Bros — it is not surprising that Netflix wants to acquire Warner Bros. Discovery’s assets. Over the past decade, Netflix has endeavored to generate its own media franchises with globally popular series like Stranger Things, Squid Game and Wednesday. That said, acquiring WB’s valuable intellectual property — especially the DC Universe — would be a game-changer for Netflix because it would expose them to new areas such as gaming and themed experiences. 

What are potential outcomes or challenges?
Owczarski: To start, the merger between WarnerMedia and Discovery has not gone smoothly, and their assets haven’t fully integrated. That makes it much easier for Netflix to acquire specific divisions. DC’s intellectual property, for instance, is incredibly attractive, and Netflix has long struggled to break into live sports. So those areas are key targets. Netflix will not purchase Warner Bros. Discovery outright — there is little interest in the company’s vast cable assets. They are most interested in the WarnerMedia side, which includes DC Entertainment, HBO and TNT Sports. So far, every acquisition Netflix has made has been on a much smaller scale, mostly in gaming, and this represents a huge change for them. 

Are there risks or downsides, particularly economic or consumer impact? 
Owczarski: There are several concerns. First would be the number of jobs potentially eliminated with such a merger. Redundancies such as marketing departments, for example, could lead to layoffs, and the entertainment industry is already reeling. There would be fewer buyers for film and TV content, which would affect the creative community negatively as well. Consumers would also have fewer choices in the media they consume, as it is doubtful that the combined company would maintain multiple streaming services that are competing. 

What impact could this have on theatrical film distribution? 
Major: Since Warner Bros. is a major player (and at times an industry leader) in theatrical film distribution — evidenced by its recent string of box office successes (e.g., Sinners, A Minecraft Movie, Superman and Weapons) — Netflix would come to occupy a new position of power in the traditional film business. If Netflix is in such a position, its efforts to either maintain theatrical distribution or upend it by prioritizing streaming will indelibly shape the film industry’s future. 

-Rian Schultz