As Charles Sauer explains in a recent column for RealClearMarkets, the backlash against Netflix’s proposed acquisition of Warner Bros. reflects today’s reflexive antitrust panic—not the realities of competition in the entertainment marketplace. Critics on both the left and right have rushed to portray the deal as a threat to consumers, culture, and even movie theaters themselves. But those claims collapse under even modest economic scrutiny.
Far from creating a monopoly, Netflix’s acquisition of Warner Bros. would allow it to better compete in an entertainment market that is already intensely competitive.
Netflix’s interest in Warner Bros. would give the streaming company access to a vast film library and iconic franchises, including DC Comics, Harry Potter, The Lord of the Rings, and Superman. That access would allow Netflix not only to expand its streaming catalog, but also to invest in new content for both theatrical and online release.
Opponents argue that owning a major studio would give Netflix excessive market power. But as Singleton notes, this concern ignores recent precedent. Disney acquired Fox to strengthen Disney+, and Amazon purchased MGM—moves that expanded consumer choice rather than diminished it.
Disney bought Fox. Amazon bought MGM. No monopolies followed—just more content and more choice for consumers.
Streaming services also face competition far beyond traditional Hollywood rivals. Netflix competes not only with Disney and Amazon, but with YouTube, TikTok, Facebook, Instagram, and countless independent creators who can now reach massive audiences with minimal barriers to entry. In fact, some online creators are more popular—and more profitable—than traditional movie stars.
Some critics claim the deal would hasten the decline of movie theaters. But Singleton points out that theater attendance has been falling for years due to consumer preferences, not corporate consolidation.
Streaming is winning because consumers prefer it—not because of consolidation.
At $17.99 per month for unlimited content, streaming offers dramatically more value than a single $11.99 movie ticket—before factoring in travel, scheduling hassles, and overpriced concessions. Netflix executives have also committed to maintaining theatrical releases, even if release windows are shorter.
Concerns that streaming undermines the communal experience of movies are similarly misplaced. Online forums, social media platforms, and fan communities allow viewers to engage with films in more interactive and lasting ways than a one-time theater visit.
Online communities now offer a more meaningful shared experience than sitting silently among strangers in a dark room.
Blocking Netflix’s acquisition of Warner Bros. would not protect competition. It would shield incumbents, discourage innovation, and replace consumer choice with political discretion. As Singleton concludes, approving the deal would expand choice, spur innovation, and intensify competition across the entertainment industry—exactly what a functioning market should do.
Read more in RealClearMarkets by clicking here.
