Third-Party Commentary
Independent voices on the benefits of the Netflix and Warner Bros. transaction
In terms of Netflix and Warner Brothers, they’re complementary assets on both sides and the way you could combine these assets in order to generate even more compelling content - stream content in a more efficient way, find consumers, create content that is appealing to viewers, this is how you grow the service. And I think that’s going to be good for Netflix and Warner Brothers… and I think it’s going to be good for the entire industry. We need this kind of dynamic competition to drive more innovation, better content, better ways of delivering content to viewers, and also to use data more effectively to reach viewers with content that they’ll find appealing.
Dr. Jay Ezrielev | Founder of Elevecon and Adjunct Professor, George Mason University
Netflix is a disruptor that harnessed new technology to make the market more competitive, and is now moving to join the big leagues by acquiring one of the legacy players. This is how competition is supposed to work.
James Erwin | Federal Affairs Manager for Telecommunications, Americans for Tax Reform
Ultimately this is great news for consumers as they’ll be able to get far more from one streamer rather than being forced to sign up with multiple providers.
Paolo Pescatore | Media & Telco Analyst, PP
When streaming services – like Netflix and Warner’s HBO Max – combine, they pool their content libraries, eliminate redundant expenses, and create a more stable business model that benefits viewers and streamers alike. Consumers have greater choice while paying for fewer subscriptions, and businesses operate more efficiently. It’s a win-win.
Rep. Scott Fitzgerald | U.S. House of Representatives
The deal is more likely to increase content supply than reduce it, supported by Netflix’s expanded production capacity, WBD’s development engine, and long-term AI-driven efficiencies that should broaden the volume and diversity of films reaching theaters.
Mike Hickey | Equity Research Analyst, Benchmark Equity
Proposed mergers may hold the promise of significant economic efficiency gains and commensurate benefits for consumers. But even horizontal aspects of mergers, such as those involved in [the] Netflix-Warner Brothers Discovery deal, may benefit consumers. Increased selection, cost savings, more accurate recommendations are all possibilities.
Jessica Melugin | Technology and Innovation, Competitive Enterprise Institute
The combination of Warner’s intellectual property, Netflix’s data engine, and production efficiency offers a path to long-term value that no legacy studio could achieve alone... This isn't another contraction but a second life for one of Hollywood's most important institutions, supported by the reach, technology and investment capacity needed to thrive in today's entertainment landscape.
Josh Harlan | Founder/Managing Partner, Harlan Capital Partners
We’ve sort of forgotten about YouTube and Google positioning here... YouTube is generating about $40 billion in ad revenue this year, plus an additional $10-15 billion in subscription revenue—so that’s almost $60 billion in revenue just coming from YouTube... they are the largest player and simply the largest share of streaming viewing hours.
Mark Mahaney | Senior Managing Director and Head of Internet Research Team, Evercore
I do believe this deal is going to go through for Netflix because there is plenty of streaming competition out there. This will not result in a monopoly or even a duopoly.
Seth Berenzweig | Managing Partner, Berenzweig
Regulators must recognize that traditional media companies require the flexibility to adapt to prevent meeting the same fate as the Blockbuster dinosaur. Constraining these entities from pursuing such arrangements by pretending the market is static will neither benefit consumers nor competition in the long run.