Netflix has sent a letter to customers assuring them “nothing is changing today” amid backlash over its plans to acquire Warner Bros.’ film and TV studio and HBO Max.
ICYMI, the streaming giant sent shockwaves across the industry on Saturday when it confirmed it was pursuing a merger with the studio as part of a $125 billion (AUD) deal.
The announcement followed a weeks-long bidding war between Netflix and Paramount. It means Netflix is poised to add a host of Warner Bros.’ and HBO’s most popular titles to its portfolio — but only if the deal clears regulatory and shareholder approvals.
Questions and criticisms quickly erupted following the news, culminating in an email sent by Netflix to its subscribers earlier today. “Nothing is changing today,” the streamer wrote. “We have more steps to complete before the deal is closed,” the letter added.
Netflix assured customers that its service will continue “to operate separately” from HBO Max until the deal is finalised, saying “you’ll hear from us when we have more to share”.
Preempting questions about changes to subscription prices — a concern shared by many in response to the acquisition — Netflix’s letter said customers can “continue to enjoy watching as much as you want, whenever you want – all on your current membership plan”.
The letter arrived amid mounting concerns over the deal from both industry members and everyday movie and TV fans.
On the former side, a bunch of anonymous heavyweight producers sent an open letter to US Congress sharing their fears that the merger will monopolise entertainment, slash theatrical windows, and “hold a noose around the theatrical marketplace”, the letter said (per Variety).
Prior to the deal, Titanic director James Cameron said the acquisition would be a “disaster”, while actress Jane Fonda said “consolidation at this scale would be catastrophic for an industry built on free expression”.
Despite the knee-jerk panic, Netflix still has a bunch of obstacles to overcome en route to actually securing the deal and landing titles like Friends, Game of Thrones and Harry Potter, among many others.
From approvals by shareholders and government regulators to potential hearings scrutinising the fine print and its impact on consumer choice, Netflix still faces an uphill battle in getting it all over the line.
Until then, we only have the streamer’s assurances that “nothing is changing”. Only time will tell whether that remains the case.
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