In today’s edition of cinema issues we talk about the fact that at the moment of writing it seems as though Paramount is going to win in it’s bid for WBD.
Ultimately there was always a chance of this as the current American administration favours them, and could have made things very difficult for Netflix at the regulatory stage.
There are some people who are saying that this is a win for cinemas, as Netflix would have led to them closing down, however, this is not the win they think it is. Two major studios merging means there will be mass layoffs, which will further contract the industry and also likely lead to less things coming out in cinemas overall.
So far Paramount has confirmed they intended to keep a large theatrical output going forward, much higher than what they are currently doing however , the numbers that have been floated likely aren’t realistic.
Moreover, this move seems threatening to other studios, you have to think now that players like Sony and Universal will be thinking about expansion and to buy up independent studios and production companies in order to compete. Really a lot of this started during Disney’s era of expansion, in that sense the Paramount WBD merger appears similar to Disney buying 21st Century Fox.
There is also the Netflix question of it all, and what their next move may be, they had other studios on their list, will they move on to one of those or reflect over the strategy. Could Netflix make a bid for Universal or the film parts of Sony.
One thing is for sure we are in the era of monopolies.
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