The proposed sale of Warner Bros. Discovery to either Netflix or Paramount is a cause for concern, and a potential disaster for streaming consumers. It's time to stand up for our rights as consumers and demand fair prices, more choices, and an end to the frustrating maze of streaming platforms.
The Battle for Streaming Supremacy
Netflix's $83 billion acquisition of Warner Bros. Discovery, and Paramount Skydance's counteroffer of $108 billion, are the latest moves in a high-stakes game. This arms race for content and customers follows Disney's acquisition of 21st Century Fox, leaving us with a fragmented, expensive streaming landscape. The average consumer now juggles 4.6 streaming subscriptions, with monthly costs soaring to $69, a 13% increase from last year, on top of internet bills.
The Rise of 'Big Streaming'
Streaming companies are replicating the predatory practices of Hollywood studios, broadcast networks, and cable monopolies. They lure us in with low introductory prices, only to hike them once we're trapped in their walled gardens. Netflix, for example, has increased its ad-free price from $7.99 to $17.99 over 13 years. Disney+ has seen an even steeper rise, with its ad-free subscription jumping from $6.99 to $18.99 since 2019.
A History of Control
This isn't a new phenomenon. Since the days of talkies replacing silent films, the concentration of control over what we watch in a few hands has been a perennial concern. Policymakers have successfully addressed this issue in Hollywood and broadcast television, and they can do the same for the digital age.
In the 1930s, the government sued the major Hollywood studios, forcing a permanent separation of production and exhibition. This allowed independent theaters and content to thrive, known as the Paramount Decrees. Later, the government adopted 'financial interest and syndication' rules for broadcast television, preventing broadcasters from owning their content and shows. These rules fostered the growth of independent production houses and cable television.
Breaking Up 'Big Streaming'
The streaming conglomerates are no different from the Hollywood studios or broadcast networks that came before them. Netflix, Disney, Paramount, and Amazon can be regulated in the same way. 'Big Streaming' should be forced to divest production or exhibition assets, preventing vertical integration. Independent streaming platforms should enjoy compulsory licensing requirements, allowing them to license content from any provider for a fair fee. This would eliminate the need for multiple apps and walled gardens.
Platforms would then compete on price and user experience, not on content ownership. Independent producers and studios could compete with the giants, offering consumers fair prices, more choices, and a simpler streaming experience.
The Way Forward
The fate of this merger will be decided by the courts, but the Justice Department and state attorneys general should sue to block it. Congress should legislate separation between the production and exhibition of film and television. While the conglomerates may cry government overreach, the days of loss-leading streaming prices are over. As subscriber growth slows, 'Big Streaming' is focusing on revenue maximization.
History shows that prudent regulation boosts quality. The Paramount Decrees, for example, led to an explosion of independent filmmaking. Blocking the acquisition of Warner Bros. Discovery and re-establishing competition will bring prices down, give viewers more choices, and keep movie theaters alive.
It's time to take a stand and demand a better streaming experience.
