Why Netflix Buying Warner is NOT Anticompetitive

There are plenty of reasons to worry, but that's not one of them.

With the news this week that Netflix has agreed to acquire the studio and streaming business from Warner Bros. Discovery, there has been a lot of talk about antitrust. ON DTNS and Cordkillers, we’ll cover the actual way that plays out. But here I thought I’d talk about what the competitive landscape has been.

I hear a lot of people decrying the unprecedented consolidation of studios. And that rings untrue to me. Simply because we have brand new players that weren’t in the conversation 25 years ago.

In 2000, the “Big Six” were:

Disney,

Time Warner,

Viacom (Paramount),

Seagram/Vivendi’s NBC Universal,

20th Century Fox, and

Sony Columbia.

In 2025, they are

Disney (which owns 20th Century Fox)

Warner Brothers Discovery

Paramount

Comcast NBC Universal

Sony Columbia

Amazon (MGM)

Netflix

Apple

You also have media companies and small studios like Lionsgate, A24, Fox (the TV operations)

That’s looking at it from the perspective of old movie studios. TV is the dominant form of video entertainment right now, and probably a better measure of media company dominance.

So you can make an argument that Google with YouTube, Meta with Facebook and Instagram, and TikTok belong in the conversation. People watch as many or more shows on YouTube than they do on any other TV service.

According to the October version of Nielsen’s The Gauge (https://www.nielsen.com/data-center/the-gauge/), YouTube has 12.9% of YouTube TV viewing. That doesn’t count mobile. Just TV. All of TV. Cable, broadcast, and streaming. The full list is as follows

YouTube 12.9%

Disney 11.4%

NBCUniversal 8.6%

Fox 8.4%

Paramount 8.2%

Netflix 8.0%

Warner Bros. Discovery 5.6%

Amazon 3.8%

Roku 2.8%

Scripps 1.9%

Weigel 1.4%

Hallmark 1%

A+E 0.9%

AMC Networks 0.7%

Roku is just based on its free streaming channel, so quite impressive. Scripps and Weigel are mostly local TV stations. Hallmark A+E and AMC are almost entirely cable. Though they do have streaming offerings.

From that perspective, Netflix buying Warner is the 6th-place TV company buying the 7th-place one. That doesn’t sound like a huge antitrust concern when you put it that way. Their combined 13.6% share of viewing, however, would put them in front of YouTube and in the lead. That sounds more like something worth investigating.

Even so, this is a much more competitive market than people realize.

You may wonder what the numbers look like if you take out TV and Cable and focus only on the growing part of the market, streaming.

In that case, it breaks down this way.

YouTube 12.9%

Netflix 8.0%

Disney 4.8%

Amazon 3.8%

Roku 2.8%

Tubi (Fox) 2.2%

Paramount 2.1%

Peacock (NBC Universal) 1.6%

Warner Bros. Discovery 1.3%

So you have the second-place streamer buying the 9th place. Also, something that doesn’t sound like an antitrust violation. Combining them gives Netflix 9.3% of the streaming, still second place to YouTube.

So when considering the growth market of TV, the acquisition doesn’t currently change anything. Netflix’s huge addition in viewership comes from legacy media in this acquisition. From that point of view, you might argue that Netflix is better for WBD than WBD is for Netflix.

What Netflix really gains is something it doesn’t have right now, which is IP. Superman, Casablanca, Harry Potter, and more. Those are things Netflix can use to supercharge its main service. The HBO brand itself means quality and is useful as well.

After looking at all of this, I’m not personally concerned about a lack of competition in this space. I’m concerned about workers. Any merger brings an economy of scale that will mean job losses eventually, no matter what Netflix says.

I’m concerned about respect for the theater. It’s not in Netflix’s best interest, as it has made clear, to develop theatrical releases. It will respect any pre-existing agreements, but after 5 years, I’m curious what kind of theatrical approach Warner would have under Netflix.

And I’m concerned about stewardship. Will Netflix be a good steward of legacy properties like the WB heritage films, Looney Tunes, and DC? They haven’t been around long enough to know.

But I am not concerned about competition. There’s plenty of it here. In fact, there’s LESS competition for independent creators, with the outsized dominance of YouTube over Twitch, TikTok, and Instagram.

The big media space seems to have quite a healthy landscape.

The Print Version of My Tech Book Is out

• I have published Synced! My book about understanding tech is now out as an ebook and this close to being out as a print book as well.

• Print book is HERE direct from Lulu.com! It still is in the cure to come to Amazon.

• You can find the ebook wherever books are sold, BUT if you want to help me out the most get it from the DTNS Store!

  Synced: Know A Little More About Tech by Tom Merritt is only $10 (regular $13)

• It’s also available on Kindle. Don’t feel bad if you need it that way. It’s all good.

Speaking of books. Now to fiction.

Here’s this week’s novel excerpt.

The Girl at the Bottom of the Lake reaches a turning point: decisions made, futures claimed, friendships tested. Nera finally learns what comes next… and what she might be leaving behind.

The Departure

“Congratulations, Nera,” said Inspector Bellia, blocking her view of Kel, who was talking to Assistant Garel.

“Thank you, Inspector,” Nera managed. She was only half-listening and caught Assistant Cassandra saying, “…so come with me and we’ll get you home to pack.”

“What?”

“Your parents. They’ll be here any minute, so come along.”

Nera looked over her shoulder but couldn’t see Kel. Before she knew it, Assistant Cassandra had walked her outside in front of the building, and her mother and father were getting her in the car. She finally started to comprehend what Assistant Cassandra was saying to them.

“With the intercycle starting this week, she does have to go now. I’m so sorry for the late notice…”

👉 Subscribe to keep reading Chapter 28

And now, your moment of Seven