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From films to streaming prices
Confirmed
In Short: Mike Proulx, research director at Forrester, noted that with streaming services constantly raising fees to increase profitability and Skydance saddled with massive debt, price increases are likely to come.
The $110bn (£82.8bn) merger between Paramount and Warner Bros Discovery has finally been completed, forming a new entertainment behemoth named Skydance.
The deal welds two legacy Hollywood powerhouses, uniting franchises such as Harry Potter and Game of Thrones into one company.
The merged company, Skydance, carries a massive $80bn in debt from the deal, even as executives target $6bn in annual cost savings.
Analysts warn that consumers will ultimately bear the financial burden of the $110bn deal.
While existing subscribers to both might enjoy short-term savings, analysts expect overall prices to rise as the combined giant seeks profitability.
The deal also brings HBO Max, home to The Sopranos, House of the Dragon, and Euphoria, under the Warner Bros umbrella.
Proulx warns that despite the broader catalog, it's far-fetched to think it'll prevent downstream price hikes.
The merger also comes with strict rules about what the combined business can and cannot do, from how many films it must produce a year to the editorial independence of its newsroom.
Criminal Minds star Kirsten Vangsness told the BBC she was 'heartbroken' over the merger, highlighting the impact on the entertainment industry's everyday creatives.
Syleecia Thompson, a business professor at National University, said that 'it hits small businesses, vendors, caterers and local communities'.
What this adds
The battle between Netflix and Paramount for Warner Bros Discovery may face prolonged regulatory challenges.
Background
Warner Bros. is a brand name that has been used by several multinational mass media and entertainment companies and corporations, mostly based in the United States, with attributions to Warner Bros. Pictures, a major American film studio founded on April 4, 1923, and the original namesake.
What's confirmed
- The $110bn (£82.8bn) merger between Paramount and Warner Bros Discovery has finally been completed, forming a new entertainment behemoth named Skydance.
- The deal welds two legacy Hollywood powerhouses, uniting franchises such as Harry Potter and Game of Thrones into one company.
- The merged company, Skydance, carries a massive $80bn in debt from the deal, even as executives target $6bn in annual cost savings.
- Analysts warn that consumers will ultimately bear the financial burden of the $110bn deal.
- While existing subscribers to both might enjoy short-term savings, analysts expect overall prices to rise as the combined giant seeks profitability.
- The deal also brings HBO Max, home to The Sopranos, House of the Dragon, and Euphoria, under the Warner Bros umbrella.
- Proulx warns that despite the broader catalog, it's far-fetched to think it'll prevent downstream price hikes.
- The merger also comes with strict rules about what the combined business can and cannot do, from how many films it must produce a year to the editorial independence of its newsroom.
- Criminal Minds star Kirsten Vangsness told the BBC she was 'heartbroken' over the merger, highlighting the impact on the entertainment industry's everyday creatives.
- Syleecia Thompson, a business professor at National University, said that 'it hits small businesses, vendors, caterers and local communities'.
What's still developing
- Mike Proulx, research director at Forrester, noted that with streaming services constantly raising fees to increase profitability and Skydance saddled with massive debt, price increases are likely to come.
- Here are four ways this could affect you and the movies, TV and news you watch.
- On December 6, Netflix announced it had signed a definitive agreement valued at US$83 billion (NZ$143 billion) or US$27.75 per share to acquire Warner Bros, including its film and television studios, and streaming platforms HBO Max and HBO.
- Three days later, Paramount – which has had been busy since September with six separate proposals to buy Warner Bros Discovery – launched a counteroffer directly to shareholders of US$30 per share in cash.
- The merger would bring HBO shows, Warner movies, DC Studios and Warner Gaming Studios straight into Netflix’s lineup, but with higher subscription fees and tiered pricing models.
- Meanwhile, Warner Bros’ New Zealand production arm – which produces shows such as The Bachelor, Married At First Sight NZ, The Block NZ, Celebrity Treasure Island and The Great Kiwi Bake Off – may be sold under the merger if Netflix carves off Discovery.
- The battle between Netflix and Paramount for Warner Bros Discovery may significantly affect New Zealand’s screen sector, audience choice, local production opportunities and industry growth.
- Paramount argues the Netflix deal is anti-competitive and could face prolonged regulatory challenges.
- Disney+, its closest competitor, has 200 million streaming subscribers.
- For New Zealand audiences, a Netflix acquisition of Warner Bros would see a bundling of content into a bigger library, and also increased costs specific to the local market.
- Maybe it’s your streaming services raising prices again, or that tub of ice cream at the supermarket coming in smaller and smaller than the half gallon it’s supposed to be.
- In a statement on Tuesday, Amazon executives touted the new bundle as a first-of-its-kind offering in which five services are offered together at a deeply-discounted rate. (Comcast offers a five-service bundle through its Stream Saver perk, but the deal is only available for Xfinity TV and Xfinity Internet customers, so it is limited to areas where Comcast offers service.) “Today marks a milestone for our customers, the launch of the first-ever five-service streaming bundle on Prime Video,” Ryan Pirozzi, the Head of Prime Video Channels, said in a statement.