The Paramount Hegemony: Why the Death of the Netflix Deal Didn't End the Monopoly Panic

Opinion by Donggeon Kim (Grade 11)

Paramount has effectively won the bidding war for Warner Bros. Discovery. Back in December, Netflix reached an 83 billion deal to acquire a large chunk of Warner Bros. Discovery, including Warner Bros. film and television studios and HBO Max. This deal was countered by Paramount, which offered 111 billion. Netflix refused to counter with a higher offer, effectively having Paramount win the bid. 

For their initial deal, Netflix came under heavy criticism, as concerns arose surrounding the possible monopoly that Netflix may hold in the streaming and film industry and the subsequent impact on creative power and the job market. Notable directors such as James Cameron and Christopher Nolan have spoken out against the deal, specifically Netflix’s streaming-first approach and how that could impact theatrical distribution windows and the theatrical exhibition business as a whole.

Other groups, such as the Writers’ Guild of America, warned that the deal would threaten to eliminate jobs, create a reduction in market competition, and raise prices for consumers, with specific concerns over the merger between two big competitors in the film industry. Since the deal’s announcement, Netflix’s market value dropped by over 60 billion, which may have put pressure on the company to back away from raising its bid.

With the public turned against Netflix, many came in favor of Paramount’s competing bid. But now that Netflix has dropped out of the race, what does Paramount’s bid mean for the future? 

A main point of contention with Netflix’s bid was their prioritization of direct-to-streaming. The limited theatrical releases for their movies, such as Wake Up Dead Man (2025) and Frankenstein (2025), highlight how Netflix was quick to move movies to their streaming platform, using these limited theatrical showings merely for award eligibility rather than for supporting the traditional theatrical experience.

Despite Netflix CEO Ted Sarandos’ statement on committing to maintain 45-day theatrical windows, many critics remained skeptical of how long this commitment would last, given Netflix’s historical tendency to prioritize streaming over theatrical releases.

In contrast, Paramount has had a long theatrical history with franchises such as Mission Impossible and Transformers, often prioritizing theatrical releases over streaming despite having their own streaming service, Paramount+. 

Although Paramount’s emphasis on traditional theatrical experiences may make their deal seem better at first, it is important to consider the difference between the two bids in terms of their scope. Netflix’s deal was only a partial acquisition of Warner Bros’ Discovery, covering areas such as the film studios and HBO Max.

On the other hand, Paramount’s offer was a full buyout, meaning that not only do they receive the film studios and HBO Max, but all of Warner Bros Discovery’s linear cable networks, including CNN. So, despite not following Netflix’s streaming-first model, Paramount's potential merger with Warner Bros’ Discovery could still hold grave implications for the future.

If the deal were to close, Paramount would effectively control a large portion of the media with their film studios (Paramount Pictures, Skydance, and Warner Bros), streaming services (Paramount+ and HBO Max), and two major news networks (CBS and CNN).

This expansive media control raises questions about what happens when large corporations get to control and shape public discourse, not only in the news but also in art forms like filmmaking. Although Paramount’s deal may have a different and ultimately better outcome for theaters, the same concerns with Netflix over monopolistic control persist in Paramount’s case.

The question was never about theaters versus streaming, as public discourse makes it out to be. It was always about how much of our culture, our news, and our art should fall into the hands of one company.