Concerns Over Netflix-Warner Bros. Merger

If you’re a fan of cinema, you’ve probably heard that the merger between Netflix and Warner Bros. isn’t exactly great news. It’s a bit worrisome, to be honest.

About 15 years ago, I started to feel disillusioned with modern films. Sure, there are some fantastic movies released yearly, but the ones playing in theaters on weekends? They seem to be getting worse. Most of them just aren’t memorable—or, honestly, they’re downright terrible.

Here’s my reasoning:

I tend to buy the films I enjoy without any hidden agenda. If it resonates with me, it gets a spot in my collection. I usually prefer getting the Blu-ray versions.

As we edge closer to 2025, my purchase list for the year only has three titles on it: F1: Movie, Weapons, and Sinner. I feel like I’ve seen just about everything worth watching this year. I hope there are some surprises in Marty Supreme.

That’s actually one more than my rather disappointing purchase count for 2024, which was just Anora, Touch.

In 2023, I bought five films: Coup de Chance, Holdovers, Oppenheimer, Perfect Days, and John Wick 4.

Looking back, 2022 was even less exciting, with only six purchases: Revenge, Top Gun: Maverick, Tar, Sith, Emily the Criminal, and Banshees of Inisherin.

My best year for film collection was in 2019 when I picked up over 20 movies.

In contrast, back in 2003, there were about 40 additions to my collection. It was 51 in 2000 and 62 in 1997. Looking further back, 1993 saw around 74 films added. Since then, I’ve generally averaged about 60 to 75 annually…

This trend is a telling factor in the decline of movie theaters. The allure just isn’t the same anymore. Or maybe it doesn’t appeal enough to shift the film industry out of its current cycle of divisive and preachy narratives. People still love going to the movies, no doubt about that. If a film looks enticing enough—take Top Gun: Maverick, Barbie, or Avatar: Way of the Water—people will show up.

To revitalize the film industry, Hollywood really needs to step up and produce better content. But if the Netflix-Warner Bros. deal happens, it may create a situation where 2025 appears to be a peak year for moviegoing—while simultaneously providing little reason to enhance quality and audience appeal.

Sasha Stone sums it up well:

With streaming, there are no competitive pressures or quality checks. There’s no urgency to get people to leave their homes, and you don’t need a big star to drive box office sales. It can ignore the voice of the general public that’s long been overlooked. Those who are frustrated with certain agendas pushed within films? Their discontent barely registers for Netflix.

This shift seems like a convenient fix for Hollywood’s issues. It allows for the desired content without the pressures of box office success.

In essence, streaming services have little motivation to craft genuinely compelling movies that would entice people to venture to theaters.

Look, I have Netflix. I’m at the bottom tier in terms of advertising. It’s useful for work, and my spouse enjoys some shows on it. But let’s be real—Netflix’s catalog is like a mountain of uninspired content, driven by algorithms and a generation that’s just looking for something to watch while scrolling through their phones.

Should Netflix be allowed to absorb Warner Bros., it’s hard to imagine theaters sticking around. The merger would likely decrease the number of major studios from five to four. Netflix claims it will keep releasing Warner Bros. titles to theaters, but they’ve hinted at shortening the window between theatrical and home release. If it happens, why bother going out when you can wait a few weeks to stream it?

And it’s likely that eventually, Netflix will phase out Warner’s theatrical releases entirely. Why? The answer’s straightforward…

Subscription, subscription, subscription.

That’s what Netflix is focused on. Just subscriptions. That’s all that matters. While you can’t fault them for this focus, it doesn’t mean it’s beneficial for the industry.

So here’s the takeaway:

If you’re an entertainment company laser-focused on subscriptions, there’s really no reason to bother with theatrical releases. Exclusive content is what drives subscriptions—if you want to see the latest Knives Out sequel or catch up on Stranger Things or Squid Game, you need to subscribe.

Unfortunately, Warner Bros. isn’t going to rescue the theater experience just because of a contractual clause mandating Netflix to continue releasing titles in cinemas. Some may think Warner Bros.’ Chairman, David Zaslav, has a nostalgic connection to preserving theaters, but let’s not forget: he’s the guy who’s lighting up movies for tax benefits.

Zaslav understands that the real money lies in subscriptions, not in ticket sales. As noted earlier, Hollywood prefers avoiding the pressures of box office returns. But if you bow to a dominant algorithm, the quality of your content doesn’t matter as long as people keep subscribing.

Are you ready for this?

Netflix proudly boasts around 301.6 million subscribers worldwide. HBO Max follows with approximately 128 million.

Post-merger, Netflix could reach an estimated 430 million subscribers.

Imagine this:

If Netflix charged just $1 a month, that would still bring in about $5.2 billion annually. But the average user tends to pay closer to $12 monthly, leading to nearly $60 billion a year.

No one else comes close to matching that.

End of Physical Media

The most concerning aspect for me is Netflix’s potential control over a vast treasure trove: the Warner Bros. catalog, which includes numerous classic titles.

Interestingly, subscription services tend to shy away from DVD, Blu-ray, and 4K releases. Netflix rarely puts out physical copies anymore. Unless you’re opting for a potentially pirated version from eBay, these shows and films are largely available only through subscriptions.

It really is becoming a reality where people might find themselves with nothing yet are expected to be content.

We’re moving into a world where just four major studios might control nearly all our cultural content: determining what can be viewed, what’s left out, and what ideas should be censored or eliminated.

No doubt, the lack of engaging content has been a major factor in the struggles facing theaters. This Netflix-Warner Bros. merger might just be the final blow for cinemas, signaling a decline in quality, creative competition, and accessible hard copies of the films we cherish.