Paramount stalks Netflix with Warner Bros takeover set to change Hollywood forever
If you cast your mind back to the last time you were absolutely gripped by a bit of television or a great movie, chances are it was made by one or two companies.
Warner Bros, the studio behind Harry Potter, Game of Thrones, The Dark Night, and probably half of whatever you were watching growing up. Or Paramount, the Hollywood giant responsible for Top Gun, Mission Impossible, Titanic, and the entire Nickelodeon empire that raised a generation of kids on (occasionally questionable) cartoons.
Two of the most powerful names in entertainment history, who will soon potentially oversee a huge chunk of the US's on-demand subscriptions.
In the US, according to streaming guide JustWatch, HBO Max controlled about 12 percent of on-demand subscriptions in the first quarter of this year, compared to 3 percent for Paramount+.
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Combining those two services would mean they start to catch up to some of the bigger streamers, falling just slightly below Prime Video’s 17 percent market share, and the 19 percent of the market commanded by Netflix.
Comparatively, Disney owns about 27 percent of the market between Hulu and Disney+.
As of this week, it looks increasingly likely the two are going to merge into one gigantic company, in a deal that has left a lot of Hollywood absolutely furious.
Warner Bros. Discovery shareholders have voted to approve a staggering $111 billion takeover by Paramount Skydance, in what could be one of the most seismic shakeups in Hollywood history.
The deal would hand Paramount control of some of the biggest franchises on the planet, including Harry Potter, Game of Thrones, and even news network CNN.
But not everyone is popping champagne at the news.
Who is tech billionaire Larry Ellison?
Paramount, backed by tech billionaire Larry Ellison, and run by his son David, is swallowing up Warner Bros whole.
According to the BBC, the company merger would absorb HBO Max's streaming subscribers, the Food Network, the Discovery Channel, and a load of sports content, on top of Paramount's existing brands like Nickelodeon, CBS and Comedy Central.
Paramount reckons the deal will be all wrapped by by September, pending regulatory approval from both the US Department of Justice, and European competition regulators. The former shouldn't be too tricky, as Larry Ellison is friends with Donald Trump and a major Republican donor.
This has created more concerns, as Trump has been highly critical of Warner Bros owned CNN in the past, often brandishing them 'fake news' and calling for the network to be sold off. It will be now in the hands of one of his friends.
Why are actors angry about the Paramount deal?
Multiple reports have highlighted that the merger would slash the number of major US film studios from five down to four, and huge chunk of the industry think that's a disaster waiting to happen.
Over 4,000 people from the film and TV world have now signed an open letter at BlockTheMerger.com, opposing the deal.
And we're talking some real heavyweight names here: Joaquin Pheonix, Robert De Niro, Jane Fonda, Florence Pugh, Emma Thompson, Bryan Cranston, Ben Stiller, Sofia Coppola, David Fincher, Denis Villenue and Javier Bardem - just to name a few big hitters.
Their open letter warns that the merger would 'consolidate an already concentrated media landscape, reducing competition at a moment when our industries, and the audiences we serve, can least afford it'.
"The result will be fewer opportunities for creators, fewer jobs across the production ecosystem, higher costs, and less choice for audiences in the United States and around the world.
"Alarmingly, this merger would reduce the number of major U.S. film studios to just four."
The letter added that it would grievously compromise the 'integrity, independence and diversity' of the industry too.
In simple terms: fewer films, fewer jobs and less creative freedom for the people who make the stuff we know and love.
Will the deal get blocked?
The deal still has to get past the aforementioned regulatory bodies, so questions do remain.
Democrat Senator Elizabeth Warren said the merger was an 'antitrust disaster', and vowed to fight it, adding that state attorneys across the US are reportedly rallying to stop the deal.
The Writers Guild of America is also involved in organizing opposition,. alongside groups including Democracy Defenders Fund, Jane Fonda's committee for the First Amendment, and Reporters Without Boundaries.
But speaking to the BBC, Mike Prolx from market research firm Forrester said Washington is highly likely to rubber stamp the deal.
He said: "The real regulatory pressure sits overseas, where European authorities will focus on structural market impact. A process that is likely to shape the timings and terms of the deal.
It's still up in the air, but it looks increasingly likely the deal is going to be approved.
Topics: Warner Bros, Hollywood, Streaming
Thomas Bamford