Netflix-Warner Bros. deal sparks reactions at the highest level

The world of film is facing a turning point caused by an unprecedented deal. Reactions are at the highest level, with US President Donald Trump confirming that he recently met with Ted Sarandos, co-CEO of Netflix, at the White House to discuss the proposed deal that would see Netflix acquire Warner Bros. studios and the HBO Max streaming business, signaling that the market share of a combination of Netflix, Warner Bros. and HBO Max "could be a problem,” Variety reports. Trump said the deal would require a government review and that he would be involved in the process: "I will be involved in that decision.” The deal, valued at $83 billion, would add HBO Max to Netflix's already massive customer base, which exceeds 300 million users, and could reduce competitiveness for other content producers. Meanwhile, Trump made a surprise appearance at the 48th Kennedy Center Honors in Washington, D.C., presenting awards to celebrities including Sylvester Stallone, KISS, Michael Crawford, George Strait and Gloria Gaynor. It was the first time the president had hosted the ceremony, breaking with decades of tradition at the event, and he joked that he was "acting like Johnny Carson.”

The Netflix-WB deal is both a horizontal merger between competing streaming services and a vertical merger, giving Netflix a massive distribution channel for Warner Bros. content. That could hurt the market for content producers. Regulators, particularly the Justice Department and the Federal Trade Commission (FTC), will review the deal. Ted Sarandos said he was optimistic the deal would be approved within 12 to 18 months, touting the benefits for consumers, innovation and economic growth.

The stunning acquisition of Warner Bros. by Netflix has put French distributors on high alert in a market where Warner Bros. - along with Disney and Universal - dominate the local box office. France is both one of Netflix's strongest international markets and one of its most combative, shaped by the country's strict regulatory environment for streaming services. The distribution rules, which force Netflix to wait 15 months after a film's theatrical release before it can stream it on its platform, have long caused tension with French distributors. It's also why the streaming platform left Cannes after the 2017 festival, when the festival set screening requirements that effectively excluded Netflix films from competition. The distribution system, considered the backbone of the French film economy, is shaping up to be the next battleground. Netflix has already appealed to France's Council of State in an attempt to shorten the distribution period to allow for faster access to films. This attempt now carries a much greater weight, given that one of the most powerful distributors of American blockbusters in France is under the control of Netflix. But Richard Patry, president of the National Association of Cinema Operators in France (FNCF), made it clear in an interview with Variety that the association "will fight back.” Patry was among the first to sound the alarm about the impact that Netflix's takeover of Warner Bros. could have on the core of the French film ecosystem, even though Ted Sarandos said on a conference call with investors and the press on Friday that Netflix has "no opposition to films in theaters” and "expects” to release Warner Bros. films in theaters.