Netflix is trying to convince people that it is planned acquisition by Warner Bros. for US$82.7 billion (CAD$114.12 billion). actually good for Hollywood.
In a memo to employees on Monday published by the US Securities and Exchange Commission (SEC).Co-CEOs Ted Sarandos and Greg Peters answered various questions related to the deal. One of the questions concerned the opinion that this move means “the end of Hollywood.” In response, executives said they had heard the comments “for a long time” but their position remained unchanged: “We view this as a victory for the entertainment industry, not the end of it.” They argued that the deal was for “growth” because “Warner Bros. brings in business and opportunities that we don't have, so there's no duplication or studio closures.”
Naturally, this is a tribute to Paramount, one of Hollywood's Big Five studios along with Warner Bros., Disney, Sony and Universal. Netflix says that figure will drop further if Paramount which launched its own US$108.4 billion (about C$150 billion) bid for Warner Bros.win the acquisition bet instead. Paramount argues that its deal is better because it wants Warner Bros.'s entire share. Discovery, not just film and streaming divisions such as Netflix, while its rival's proposal would also result in “a lengthy regulatory approval process in multiple jurisdictions with an uncertain outcome.”
During the Q&A, Netflix also addressed another long-standing issue: the Warner Bros. buyout. will virtually destroy movie theaters. After all, the streaming giant has traditionally held only limited theatrical screenings for select films in contention for awards, while Sarandos Previously he called the theatrical model “outdated.” When asked if Netflix would “keep theatrical releases as part of the WBD distribution model,” executives said they would.
“Yes, we are fully committed to releasing Warner Bros. films in theaters as they do today. The theatrical experience is an important part of their business and legacy, and we do not want to change what makes Warner Bros. so valuable,” they wrote. “If this deal had happened two years ago, then hits like Mining craft And Superman it would still have premiered on the big screen just like they did, and we plan to keep it that way. We didn't prioritize theater before because that wasn't our thing at Netflix. Once this deal closes, we will be in this business.”
Shortly after the deal was announced with Warner Bros. Sarandos stated that he wants the theatrical model to “evolve” and become more “consumer friendly”. Presumably this will mean shorter theatrical runs before its release on Netflix. It should also be noted that Netflix will have to honor all existing agreements made regarding theatrical releases by Warner Bros. However, there is still no real guarantee that the film will play in theaters after this.
On the streaming side, Netflix says that even with content from HBO and HBO Max, its share of the U.S. TV market will still be smaller than Disney and YouTube. (However, it is unclear what will happen in other markets, such as Canada, where HBO/HBO Max games are licensed to Crave.)
Looking ahead, the CEOs say they have a “small but mighty team of experts working on [the deal]Of course, Netflix and Paramount's proposals are also subject to regulatory approval.
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