Dear Ted Sarandos,
Congratulations on creating winning bid for Warner Bros.. In direct contradiction to your famous “build, don't buy” mantra, you've managed to plunge the already beleaguered entertainment industry into apoplectic collapse, just in time for the holidays!
On the other hand, the thought of Paramount's David Ellison throwing a “but I want it” tantrum when he heard the news was a source of considerable grim amusement.
I'm afraid this isn't enough to calm the overwhelming outrage and fear that many are currently voicing that you personally won't be happy until all the movie theaters are closed, every other network/streaming service is down, forcing every single person in the world to only watch Netflix through a crystal embedded in their hand, like something out of Logan's Run. (Which isn't on Netflix, so you might not have seen it yet.)
In other words, a lot of people, including thousands who actually act in movies and television, are unhappy, not happy at all, Precious. (Including the stock market, where Netflix has fallen after the deal was announced.)
Indeed, there's a chance your purchase of Warner Bros., which includes HBO and HBO Max, won't go through; this undeniably gives you a monopoly on streaming, and since HBO, like Netflix, is a global company, the deal will be scrutinized by regulators at home and abroad. This will all take some time, so Netflix subscribers shouldn't cancel their HBO Max subscription just yet.
On the other hand, there are too many streaming platforms (I'll give you my credit card bill as proof) and everyone has been saying for years that only a few can survive—Disney already owns Hulu (which is part of Disney+) and Amazon owns MGM.
If the sale goes through, here are some thoughts from a man who, although ethical considerations prevent him from owning shares of Netflix or any other entertainment company, still watches a lot of TV shows and movies.
Leave HBO and HBO Max alone.
I understand that Netflix has spent a lot of money trying to prove with the Emmy Awards that it is just as good on television as HBO, but don't make the same mistake that the Warner Bros. CEO made. Discovery David Zaslav pretending it's nothing special. Instead of forcing it into mass production, let it continue to be the standalone high fashion brand that it is. And don't force subscribers to pay extra for access to it. (Bonus points if you get rid of “Max.”)
Likewise, let Warner Bros. will be Warner Bros.
You bought a film studio, and a successful one at that. Don't start firing a bunch of people in the mistaken belief that Netflix's infrastructure can handle running a movie studio too. First, you'll just have to hire all the lawyers and World Bank executives again as consultants when you realize you don't quite understand how things work, and that's just awkward and expensive.
Don't contribute more to the decline of movie theaters than you already have.
Seriously, it's time to think about your legacy. Netflix is ​​now an innovative and successful company that has changed the entertainment industry in ways that millions of people are willing to pay for. Are there negative aspects to some of these changes? Certainly. But being known as the head of the company that sparked the streaming revolution is very different from going down in history as the man who bought a movie studio with the goal of dealing the death blow to the theatrical experience.
A theatrical release gives a film prestige and better marketing opportunities; there is nothing wrong or disadvantageous in serving as a secondary platform for films. Original content may attract new subscribers, but it's the library that keeps them. With little room for subscriber growth, Netflix should focus on retaining the millions they have.
Remember the Bilbao effect
Honor instead Frank Gehrywho died on the day the deal was announced, remembering the Bilbao effect – providing one shining example of greatness could spark a global renaissance. Most people enjoy both the opportunity to go to the movies and watch them at home. I'd love to see last year's excellent holiday thriller Carry-On in the theater, for example, and watch it again on my flat-screen TV this year. As streamers continue to take over Hollywood, Netflix has an opportunity to provide a template that will support exhibitors. And home offers.
Don't expect the consumer to pay for it.
I get that Netflix wants to be the only game in town, but that's not the case yet, and if you dramatically raise rates or create a maddening maze of add-ons, you'll lose subscribers – after all, there are only so many hours in the day to watch TV. If you do this while simultaneously laying off workers and drying up the cinema's supply, the sound of Tudum could be a herald or an elegy.
