Concerns Raised Over Potential Netflix-Warner Bros. Deal
Representative Darrell Issa (R-Calif.) has voiced his opposition to a possible agreement between Warner Bros. Discovery and Netflix, arguing that it might lead to antitrust issues and negatively impact consumers.
Last month, Warner Bros. Discovery, the parent company of CNN and HBO, announced plans to sell. The company has garnered interest from several potential buyers, including Paramount Skydance and, as recent reports suggest, Netflix.
In a letter sent on Thursday, Issa expressed his worries to Attorney General Pam Bondi, FTC Chairman Andrew Ferguson, and Justice Department Antitrust Division Chief Gail Slater regarding Netflix’s potential acquisition of Warner Bros. Discovery’s studio and streaming assets.
“I am writing regarding recent and continuing reports that Netflix is considering acquiring the studio and streaming assets of Warner Bros. Discovery. As you know, Netflix is already the dominant streaming platform in the United States, and allowing it to absorb a major competitor raises antitrust concerns that could harm consumers,” Issa noted.
He further pointed out that with its over 300 million subscribers and extensive content library, Netflix holds significant market power. “We’re adding both HBO Max subscribers and Warner Bros. Premier content rights, which could enhance this power. Reports indicate that the combined company might control over 30 percent of the streaming market—this level is typically seen as potentially problematic under antitrust law,” Issa remarked.
Issa’s concerns extend beyond market dominance: “This consolidation would reduce motivation for producing new content and large-scale theatrical releases, as Netflix has previously labeled movie theaters as ‘old-fashioned.’ This could diminish opportunities for all industry professionals, both in front of and behind the camera.”
He concluded his letter by appreciating the government’s efforts to foster competitive markets and urged them to continue supporting America’s essential industries and job opportunities.
Currently, Warner Bros. Discovery has not set a definitive timeline for finalizing the review process regarding potential strategic alternatives and has indicated that further announcements will only occur if a specific transaction is approved.
As for Netflix, there hasn’t been an immediate response to requests for comments. Warner Bros. Discovery also chose not to comment at this time.
