Why the Netflix – Warner Bros. Deal Has the Industry and Regulators Rattled

05 December 2025

Netflix will have access to the storied Hollywood studio's vast catalogue of films and TV shows. (Reuters: File)

The news that Netflix has struck a deal to acquire Warner Bros. for roughly $82.7 billion, a move that would fold iconic studios, HBO Max, and a vast film and television library into the streaming giant has unleashed fierce backlash from Hollywood insiders, lawmakers, and theater owners alike.

Opponents warn the merger would concentrate too much power, shrinking competition, limiting creative freedom, and threatening traditional film distribution and independent cinema. Even before the ink dried on the agreement, a group of prominent producers had urged Congress to block the takeover. They cautioned that handing control of Warner’s production pipelines and content libraries to the world’s largest streaming service could endanger Hollywood’s economic and artistic ecosystem.

One of the loudest critics was Elizabeth Warren. She called the plan “an anti-monopoly nightmare,” claiming it would give Netflix control of nearly half the streaming market, a shift that could lead to higher prices, fewer choices for viewers, and job losses across the industry.

Concerns run deeper than market dominance. Many fear the deal will accelerate the erosion of the theatrical experience in favor of streaming. Theater-owner groups and exhibition chains argue that with Netflix in control of franchises like Batman, Harry Potter, and Game of Thrones, theatrical releases could dwindle, undermining the future of cinemas and jeopardizing millions of livelihoods tied to box-office distribution.

Creative professionals too have voiced alarm. They warn that fewer companies controlling more content means less bargaining power for writers, directors, and actors potentially leading to lower wages, reduced creative autonomy, and fewer opportunities for independent voices.

Supporters of the merger, including Netflix executives, argue the acquisition could yield benefits bundling services, reducing costs, and ensuring steady work for studio staff and content creators. Netflix has framed the deal as pro-consumer, claiming that economies of scale will lead to broader distribution, streamlined content delivery, and enhanced global reach.

But the opposition remains determined: many believe what’s at stake is not just balance sheets, but the soul of entertainment. The distinct identities of studios, the independence of cinemas, and the diversity of voices in film and television all risk being subsumed under one corporate umbrella.

As regulators in the United States and Europe prepare to scrutinize the merger and as new bidders emerge challenging the terms, the future of Hollywood hangs in the balance. The Netflix-Warner deal may be painted as the dawn of a new media era. For critics, it feels more like a closing curtain on an industry built on creative competition and diversity.