The Netflix and Warner Bros. deal might be great for shareholders, but not for anyone else

Netflix's $82.7 billion acquisition of Warner Bros. is, in many ways, the last thing a weakened Hollywood needs right now. The industry is still recovering from the COVID-19 pandemic, where theaters were forced to close and audiences became even more comfortable with streaming films at home. The WGA and SAG-AFTRA strikes in 2023, which were driven by legitimate concerns around studio interest in generative AI, delayed production and promotion of many film and TV projects. And the rise of streaming content pushed many media companies towards taking on debt and unwise mergers (see: Warner Bros. Discovery), which led to higher subscription costs, layoffs and production belt-tightening.

How can a troubled media company survive today? The answer seems to be further consolidation. Amazon's $8.45 billion MGM takeover in 2022 heralded future deals, like Skydance's $8 ...