US President Donald Trump has issued a warning about potential competition concerns surrounding Netflix's $83 billion acquisition of Warner Bros' movie studio and streaming networks.
The deal, which was won by Netflix in the recent auction, could pose significant challenges for regulators as it would increase the company's market share to over 30% in the US. However, Netflix disputes this figure, arguing that other streaming services such as YouTube should also be taken into account.
Trump expressed his concerns about the potential dominance of a single player in the market, stating that Netflix had a "very big market share" which would "go up by a lot" if the deal went ahead. He also mentioned that he has a great respect for Netflix's co-chief executive Ted Sarandos and praised him for his work at the company.
Industry voices, including Hollywood unions, have argued that the deal should be blocked due to concerns about reduced competition in the market. Trump's involvement in deciding whether the government approved the takeover is unprecedented, according to William Kovacic, a former chair of the Federal Trade Competition.
The acquisition would give Netflix control over several prominent franchises, including Harry Potter and Batman, as well as HBO, which houses popular shows like Game of Thrones and Succession. Trump aims to bring "pizzazz back" to Hollywood by reviving the US film industry, which has seen its star fade in recent years due to increased production overseas.
Netflix is under pressure to boost domestic production to appease Trump's demands. The deal is not expected to be completed until 2026 or later and will undergo regulatory approval in both the US and Europe.
The deal, which was won by Netflix in the recent auction, could pose significant challenges for regulators as it would increase the company's market share to over 30% in the US. However, Netflix disputes this figure, arguing that other streaming services such as YouTube should also be taken into account.
Trump expressed his concerns about the potential dominance of a single player in the market, stating that Netflix had a "very big market share" which would "go up by a lot" if the deal went ahead. He also mentioned that he has a great respect for Netflix's co-chief executive Ted Sarandos and praised him for his work at the company.
Industry voices, including Hollywood unions, have argued that the deal should be blocked due to concerns about reduced competition in the market. Trump's involvement in deciding whether the government approved the takeover is unprecedented, according to William Kovacic, a former chair of the Federal Trade Competition.
The acquisition would give Netflix control over several prominent franchises, including Harry Potter and Batman, as well as HBO, which houses popular shows like Game of Thrones and Succession. Trump aims to bring "pizzazz back" to Hollywood by reviving the US film industry, which has seen its star fade in recent years due to increased production overseas.
Netflix is under pressure to boost domestic production to appease Trump's demands. The deal is not expected to be completed until 2026 or later and will undergo regulatory approval in both the US and Europe.
netflix is already a big deal and they have a lot of awesome shows lol. i think its kinda funny that he's trying to bring "pizzazz back" to hollywood but honestly its not like they're not makin movies overseas or anythin 
anyway i feel bad for the people who work in the industry cuz this takeover thing could really hurt them. im all for competition tho, its what makes life interesting 
? it's not like they're trying to strangle competition or something. i mean, a 30% market share is still pretty far from monopoly territory... plus youtube's got some major clout too. and what's with the hype about pizzazz back in hollywood? can't they just make good movies instead of relying on trump's ego 
. anyway, hope netflix is ready for a regulatory headache 
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. I'm low-key worried about the whole market share thing... if they get that 30%+ figure, it could get really sketchy 
, having one company control so much of the streaming world isn't ideal. But at the same time, Netflix is like, "Hey, other services are out there too, don't count us out!" 
?
. It'll be wild to see how it all unfolds! 
he's like a superhero trying to save hollywood but idk if it's just a publicity stunt 
the market share thing is kinda fishy too 30% sounds like a lot but is it really? 
I'm telling ya, this is all about control... They're gonna push Netflix around and get 'em to produce more content for the old Hollywood crowd 
. I mean, 30% market share is nothing to sneeze at... it's like they're trying to corner the entire streaming market 
. And what about Ted Sarandos? Sounds like he's got some secrets up his sleeve 
. This deal stinks, mark my words 
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. We need more players in this game, not fewer 
. But what can we expect from this acquisition? Will Netflix just shut down production on non-Netflix shows and focus on their own content 
?
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Trump's trying to bring back the US film industry, but this deal might just do the opposite. Netflix is already a major player, and now they're gonna be like a monopoly? 
And what about Ted Sarandos? I'm not saying he's bad, but does he really deserve all that praise from Trump? 
It's like, what about all the other streaming services out there trying to make a go of it? YouTube, Disney+, Hulu - they all bring something unique to the table. And let's not forget, Hollywood unions are worried that this deal will stifle competition and hurt their members' careers... 
But at the end of the day, it's all about what's best for the industry, right? 
taking over our favorite studios and shows. It's not like they're not already super popular 
It's not all bad for consumers or anything. I'm not saying Netflix is a bad company, Ted Sarandos seems like a cool guy 
, and Trump actually respects him. As long as they're making good stuff and keeping it American 
πΈΎ, who cares about the numbers? Maybe this deal is just what Hollywood needs to get that old magic back 
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. i mean, netflix already has a huge following but adding warner bros to its portfolio would be game changing 
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I don't think it's surprising that there are concerns about Netflix dominating the market 
... I mean, what if YouTube gets in on the action? 
. Industry voices are saying it should be blocked due to reduced competition, but wouldn't that just stifle innovation?