The Netflix-Warner Bros. deal could reshape the film industry for the worse. Many Hollywood stars and directors have already spoken out against it and even Donald Trump is admitting it could be a problem.
The president warned that the huge merger, which would see notable IPs like the DCU, Harry Potter, and The Lord of the Rings all absorbed into the streaming giant’s catalogue, could pose concerns with regard to competition. The problem is that Netflix has a “big market share,” Trump explains.
Combining with another large corporation, such as Warner Bros. could put the company over the 30% market threshold as per The Guardian. The threshold is in place to prevent a monopoly with one company owning a large majority of sales or products within a certain industry. It’s supposed to encourage competition, but if the deal goes ahead, that means that Netflix would potentially have too much control.
Netflix has disputed the figures, arguing that streaming services such as YouTube should be included as part of the industry.
Donald Trump says we’ll have to wait and see
The president has historically been in opposition to regulations, so it’s surprising to see him speak against the Netflix-Warner Bros. deal. While he did praise Netflix CEO Ted Sarandos, claiming “He’s done one of the greatest jobs in the history of movies,” for now, Trump simply left it at, “we’ll see what happens.”
But some suspect the president has ulterior motives for dampening the prospects of the deal. Reports suggest that Trump had preferred Paramount as the winner in the bid for the company. His reasons for siding with the company behind Transformers, Star Trek, and more is apparently because it’s backed by Larry Ellison, a billionaire and huge Trump supporter.
It seems that this is yet another case of Donald Trump trying to line the pockets of his own rich friends or anyone willing to pay him. A Paramount-Warner Bros. deal could likely have the same problems the Netflix one has, as in it would possibly cross the 30% market threshold.
Trump has claimed he will have a say in whether the deal goes through, which seems to invite these billionaires to start fawning over him. It seems the inevitable result of this deal is yet another billionaire becoming richer while the arts and entertainment industry declines, something which Trump has only helped speed up during his time in office.
