Trying to sit down with your family to watch a television show or movie is never that simple. Instead, it often ends up as a half-hour search between multiple apps, remembering passwords, only to realize the programming you want is on a service you don’t have. This leaves many Missourians navigating an increasingly complex streaming landscape and a mounting pile of monthly bills.
The recently announced merger between Netflix and Warner Bros. puts a spotlight on the real problem in streaming: fragmenting distribution with consumers having to purchase multiple subscriptions to access the sports and entertainment content they want to watch. A Warner Bros./Netflix merger will simplify the streaming experience, support U.S. jobs and local economies, and strengthen an American studio, enabling it to compete with foreign rivals, including those backed by China. Policymakers in Washington ought to ask themselves one basic question: Do we want U.S. companies that can deliver better value to consumers and stand toe-to-toe with global rivals, or do we want to hobble them and watch foreign platforms gain ground?
For many households, streaming has become both confusing and expensive. A combined Netflix–WBD could offer more content on existing platforms at a better value over time. Today, over 75 percent of HBO Max subscribers already pay for Netflix. A merged company would allow Netflix to stop licensing Warner Bros. content, freeing up resources to invest in new films and series built around beloved franchises, characters and American institutions at a lower overall cost to viewers. For this deal, consolidation does not equal fewer choices. It means less duplication and increased value for consumers tired of being nickel-and-dimed.
Netflix has a proven track record of investing here at home. They recently announced a nearly $1 billion studio in New Mexico, and hired more than 140,000 cast and crew members in a five-year span. As many in the media and entertainment space are faced with questions about their future, a combined Netflix and Warner Bros. would be well-positioned to offer the industry more stability.
Make no mistake: competition in this space will remain intense. Even after a Netflix–WBD merger, consumers would still have a broad array of services to choose from, including Amazon Prime, Paramount+, Peacock, AppleTV+, and Disney+. And the biggest rivals are platforms like YouTube, which continue to grow and expand, adding forays into sports, movies and shows, and even traditional media (such as YouTube TV). It’s vital that the streaming industry has the flexibility needed to meet evolving consumer preferences where they are and compete with strength in the entertainment market.
The streaming landscape has become a stage for geopolitical influence recently, with powers such as China aggressively shaping messaging and content viewed by the world. All global powers are anxious to spread their influence worldwide, and America is their prime target. By empowering Netflix to continue to grow, we can ensure that American companies remain at the forefront of global entertainment. Keeping America competitive and protecting our ability to produce and distribute content rooted in American values is critical, and we need to empower our best vehicles to do so.
Policymakers should resist the temptation to meddle in this market. Historically, similar deals have been permitted – see Disney’s acquisition of Fox or Amazon’s purchase of MGM. There is no reason to single out this deal for scrutiny when there is ample precedent for it. Moreover, policymakers have an imperative to lower costs for consumers and ease pricing pain wherever possible. Obstructing this deal would block a clear path forward for reducing costs and restoring consumer value.
Missourians understand that prosperity comes from hard work, competition, and innovation—not more red tape in D.C. At a time when families are stretched thin and America faces serious competition abroad, our leaders should focus on what helps consumers, workers, and our country’s long-term strength. It’s the right decision for Missouri, and for the United States at large.
Business owner, educator and coach residing in Barnhart, Missouri.
