Netflix is making a huge deal to acquire Warner Bros – how much are they offering, and what exactly is at stake? Here is a history of both companies and an overview of what this may mean for viewers.
By Jayne Turner – Staff Writer
A History of Warner Bros
Warner Bros. Pictures was founded in 1923 by brothers Harry, Albert, Samual, and Jack Warner. The studio’s first official release was a silent film, Main Street, but they soon invested in sound with their first “talkie,” Don Juan.
By the 1930’s. Warner Bros. was producing about 100 movies annually. This decade also came with the release of Looney Tunes films, created to compete with Walt Disney.
Warner Bros. also owns the rights to MGM classics, such as The Wizard of Oz and Gone with the Wind. They continued to produce classics, like A Streetcar Named Desire and Rebel Without a Cause.
1955 marked their expansion into television, where they produced western and detective dramas.
In 1967, the company was acquired by Elliot and Ken Hyman. It was renamed Warner Bros.-Seven Arts. Under this name, Bonnie and Clyde was released, along with The Exorcist in 1973 and Blade Runner in 1982.
When Kinney National Company bought Warner Bros in 1969, it was renamed Warner Communications Inc and acquired rights to DC Comics. There, they began releasing superhero movies like Superman and Batman.
In 1989, Warner Bros. merged with Time Inc. to form Time Warner. Some of their networks were HBO, CNN, TBS, TNT, Cartoon Network, and Turner Classic Movies.
In 2000, Time Warner merged with America Online in a $350 billion deal, which was an unfortunate failure.
Warner Bros continued to release successful movies and TV shows throughout the 90s and 2000s. In 2018, AT&T acquired Time Warner for $85 billion, and in 2022, Warner Bros. Discovery was formed when AT&T’s WarnerMedia merged with Discovery.
Meanwhile, Netflix
Started as a DVD-by-mail rental service in 1997. A year later, they launched a website offering 925 DVD titles for rent and began offering a monthly subscription service.
In 2007, Netflix launched its video streaming service, with a library of 1,000 films. It existed as an added benefit to existing DVD subscribers all the way until 2023, when the DVD-by-mail service was retired.
Now, Netflix produces original shows and movies, offers live sports, and licenses all new content. Some popular Netflix originals include Stranger Things, Squid Game, and Black Mirror.
However, this comes at a high fee for subscribers. Prices have slowly been creeping up for the past two decades, but they have reached an all-time high of $25 a month for premium.
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The Merge
Netflix has agreed to buy Warner Bros Discovery’s film and television studios, along with its streaming assets, for an equity value of $72 billion.
Netflix says that this combination will offer more choice, more opportunities, and more value. They are hoping to attract and retain more members with the HBO and HBO Max libraries. They hope to create a stronger entertainment industry.
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Viewer Costs
Many consumers worry about what this merger means. It has ignited fears about consolidation, creativity, and the future of Hollywood.
Netflix subscribers are concerned about yet another price increase or the introduction of pay-per-view fees for popular films. Some worry that Netflix is too big; this is causing political backlash due to the industry’s monopolization.
Only time will tell what happens with the new Netflix x Warner Bros merger. Raising anti-monopoly concerns and price debates, they will have to be careful to avoid backlash. As consumers, it will be important to put your money where your mouth is!
