Netflix-Warner Bros deal all about consumer value

Like so many Americans who have partially pulled the plug on traditional TV, I am a streaming fan and love Netflix.

Netflix has evolved from a DVD rental service into an entertainment powerhouse, revolutionizing how we consume stories.

Netflix has an agreement with Warner Bros., a film and television company that is part of Warner Bros. Discovery, Inc., locked in on Dec. 5, 2025. This deal is not expected to close until late 2026, which is allowing a competitor, Paramount Studios, to mount a challenge. Paramount is launching a hostile bid to push out Netflix. The hope is that this plays out in the free market and that the government does not get involved in a way that favors either company.

Netflix’s great success is a commitment to original content that reflects diverse voices and narratives, providing an alternative to traditional media.

By captivating audiences and inspiring creators, Netflix champions a new media era. Netflix has grown on its own merits, redefining its own narratives.

If you haven’t guessed, I’m a little biased because my family uses Netflix as the hub of our home entertainment.

As a consumer, I am happy to see Netflix’s technology, including an algorithm that helps consumers find what they want to see, being applied to the amazing entertainment library owned by Warner Bros. It is the new innovative streaming company offering consumers a better choice, merging with one of the great historic Hollywood studios. It seems like a marriage made in entertainment heaven, with only government bureaucrats potentially standing in the way of a deal.

American consumers love high-quality services at low cost. Netflix was a company that embraced change when the old Hollywood companies resisted. Consumer behavior has shifted from physical media to streaming and more original content. Netflix figured that out and invested heavily in algorithms that helped consumers find content they wanted to view. What followed was a greater use of the streaming company’s service.

This ethos champions meritocracy, where hard work and grit are recognized. A straightforward fight, whether in sports or business, is celebrated, embodying the spirit of resilience and the belief that victory should come from genuine effort and skill.

Consumer value will be infringed if the government meddles and second-guesses the deal using antitrust law as a pretense. One potential block for Netflix is if Paramount can pressure regulators into blocking the deal. Paramount owns CBS. There is concern that the recent CBS spike of a 60 Minutes story critical of the Trump Administration’s immigration policy might be tied to Paramount’s hostile bid to acquire Warner Bros. There may be no link, but the idea that the company that owns CBS and CNN could use editorial content to buy some political juice over regulators is a valid one.

The government should dispassionately assess whether the deal is more of a vertical merger, one acceptable, or a horizontal merger, one that combines competing companies and eliminates direct competitors. A merger of Netflix and Warner Bros. would appear to still have competition from Amazon Prime, YouTube, TikTok, Apple TV, and Disney, making it vertical. This merger would promote the growth of both companies, not one that would consolidate two similar companies into one big one.

Netflix is a 20-year-old American company that has made the entertainment consumer market more accessible while creating thousands of jobs nationwide.

On the other hand, a Paramount deal would lower the value for consumers vis-à-vis a Netflix deal. The Paramount bid would combine two major Hollywood studios, resulting in only four remaining by concentrating production of film and television content. If Paramount can pressure the government to stop the Netflix deal, it is ironic that a Paramount-Warner Bros. merger would merge those two competitors in a way that would remove competition and provide consumers with less content because two competitors would not need to compete for customers.

This deal seems like a good one for my family and me.

Leif Larson is a noted strategist with 20 years of experience in PR, public affairs, and politics. He has contributed to the success of prominent political, corporate, and advocacy groups across the country throughout his career.

The views and opinions expressed in this commentary are those of the author and do not reflect the official position of the Daily Caller News Foundation.

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