Netflix, Warner Bros. and The Future of Black Creatives
- John Eriomala
- 1 day ago
- 7 min read
Netflix’s $82.7 billion acquisition of Warner Bros. Discovery has raised questions about the future of film and TV for black creatives in media.
Yes, it’s true. No, you are not dreaming. Save for other technical details that should be fulfilled in due course, Warner Bros. Discovery is effectively a Netflix company. It’s one of those moves no one could have predicted when two men sat down in the Summer of ‘97 in the small town of Scotts Valley, California, and launched their video-rental service. But here we are now. The merger is happening. And a new legacy is forming.
For a considerable majority, the questions being asked are, “How and why did this happen?’. The question that’s raised the most cyberstorms of discourse on the internet considers the future: “What does this mean for both companies and the future of film and TV?” We, at Black Film Wire, want to take this a step further by exploring what it means for us, black creatives worldwide. Of course, there are no absolutes, but it doesn’t hurt to examine the deal through the lens of precedents. So sit back, relax, and prepare for some spicy analysis in this explainer!
How and Why The Deal Came About
For want of a simple term, Warner Bros. Discovery has struggled financially in recent times. In October, Nasdaq reported that it had begun contemplating a sale amid a steep debt burden and surmounting costs. As of June, the company had announced a potential split into two companies: a Warner Bros half, led by current CEO David Zaslav, which includes HBO, HBO Max, and its sprawling Burbank lot, and Discovery Global, led by Gunnar Wiedenfels, which includes its cable channels and news and sports sections.
This was part of a series of cost-cutting actions to turn the company’s fortunes around. Fans might have seen the tax write-offs for movies like Batgirl and Coyote vs Acme, alongside mass layoffs that failed to stem the tide. The debt burden from AT&T’s disastrous 2016 Time Warner acquisition also contributed its fair share. And so, by the time Paramount made its first bid, following an “inadvertent declaration that Warner Bros. had begun a strategic review of the company”, there was a $35 billion debt burden, and an overall $85 billion price tag to contend with for anyone involved.
Paramount (more accurately, Paramount Skydance) would go on to have three bids rejected. Other companies reported to have been on the lookout include Comcast, Amazon, Apple, and Netflix; although the latter initially denied it. Earlier that same month, Netflix Co-CEO Greg Peters told the audience at the Bloomberg Screentime Conference that the streaming giant had no interest in a merger, preferring to uphold their heritage of building, rather than buying, as Deadline reported. Well, something definitely gave, and $82.7 billion later, here we are. Warner Bros. ’ Blue and Gold is about to meet the mighty Red of ‘Tudum’. But wait. Don’t cue the credits yet.
What the Deal Entails
The fandoms are jittery, and they have a right to be. After all, this is a 102-year-old company housing some of the greatest IPs of all time. You have classic films from the 1940s like Casablanca up to the 1970s’ The Exorcist and A Clockwork Orange to The Matrix in the 1990s, Harry Potter and The Lord of the Rings in the 2000s, a cultural behemoth like Game of Thrones in the 2010s, and this year, an instant classic like Sinners. It’s understandable to want to know what goes where.
A cursory glance at Warner Bros. Discovery’s Wikipedia page gives a fair idea of the value the company wields. Under Warner Bros. Entertainment, there are: Studio facilities, Digital Networks, DC Studios, WaterTower Music, Fandango Media, Turner, and Flagship Entertainment, among others. There’s the Warner Bros. Motion Group, which includes New Line Cinema, Spyglass Media, and their world-famous Animation group, among others. There’s the expansive Television Group, which also includes Animation (Cartoon Network, Hanna-Barbera), the CW, Telepictures, Free TV Networks, etc. It goes on to include Warner Bros. Streaming (HBO and all its subsidiaries, Cinemax, TNT), Global Experiences, and Publications (DC Comics, Wildstorm, etc). Then, the Global Linear Networks that include Cartoon Network’s subsidiaries (Toonami, Boomerang, Adult Swim), Entertainment, Factual & Lifestyle (TNT, TBS, HGTV, Discovery Channel, TLC, Animal Planet, etc), CNN and its subsidiaries, and other assets.
According to a Los Angeles Times report on the subject, the deal includes all assets bar Warner Bros.’ cable networks, including TNT, CNN, and HGTV. They’ll be part of a new publicly traded company, Discovery Global, by mid-2026. Netflix have promised to maintain theatrical operations, although there’s been massive pushback from industry players and other corporate and state stakeholders who are worried about a monopoly in the making. This would inevitably make Netflix’s catalogue the most prestigious in the rapidly evolving streaming market, as both Netflix and HBO Max are the first and third-largest streamers worldwide.
As of Tuesday, it’s far from over. Paramount Skydance launched a hostile takeover bid worth $108.4 billion at $30 per share for investors. Netflix’s deal is $23.25 in cash and $4.50 in shares for investors. There’s some corporate warfare in the offing. We can only watch how this plays out.
What it Means for Black Creatives
Paramount’s merger with Skydance earlier this year is a solid reference point for what can happen when the establishment favours getting a deal across the line over upholding policies that benefit people of colour. As part of its deal, Skydance pledged to eliminate DEI programs within its body in favour of what it called ‘a diversity of viewpoint across the political and ideological spectrum, ' per NBC News. This came on the heels of a $16 million settlement with President Trump in July over a ‘deceptively edited’ Kamala Harris interview.
In the absence of such a condition for Warner Bros., does it mean that black creators in Hollywood and across the globe should expect no changes? Well, no. They definitely should.
To begin, the complaints by trade groups like Cinema United, regulators, directors, screenwriters and other stakeholders stem from the potential job losses in sight. Netflix is known for disrupting traditional film and TV, opting for smaller writers' rooms, shorter theatrical runs, and other values that hint at more than the mass layoffs that typically accompany a merger. This comes fresh off one of Warner Bros.’ most successful years ever in terms of revenue and critical acclaim. A number of these were either helmed by or featured Black creatives in prominent roles. Ryan Coogler’s vampire thriller, Sinners, leads the way in that regard with a prominent black cast that’s snagged multiple nominations and awards from the Gotham Awards to the Golden Globes. Interestingly, his deal includes a clause which grants him full ownership of the movie’s rights after 25 years. As the industry becomes more tech-led, potentially endangering creatives, it would not be unusual to see even more black creatives toe this line. Producers and directors might begin to negotiate more rights over their work, protecting their interests in the event of any incompatible takeovers or alignments.
Another concern is the implications for film and TV in Africa, particularly Nollywood. Since Genevieve Nnaji’s Lionheart broke the mould in 2018, Netflix has been one of the biggest supporters of Nollywood original content, contributing to the new cinema wave and the rise of innovations such as limited series. However, last year, there were shockwaves as the company rolled back projects, following in the footsteps of Prime Video, which announced it would stop greenlighting African originals. Despite assurances from their spokesperson and comments from former Licensing Manager for Netflix Originals (Sub-Saharan Africa), David Karanja, the industry metrics say otherwise. Numerous projects haven’t been released globally, including last month’s The Herd, and newer commissions are rarer than unicorns. Seeing as the company has now taken on HBO Max, a streamer that had minimal penetration on the continent to begin with, what could our fate possibly be?
Again, we can only speculate. Some of HBO Max’s content was available to African viewers via Showmax. Showmax itself recently became a property of the French media corporation Canal+ via their MultiChoice purchase. Consider these facts, and you have several variables: one in which Netflix maintains the status quo with Showmax’s HBO deal, one in which renegotiations occur to streamline more content to Netflix instead, or one where efforts are made to push HBO Max as a whole into the African market. The eventual option would be the one that maximises Tudum penetration on the continent. As of 2023, Omdia reported that Showmax had a 39% market share in Africa compared to Netflix’s 33%, so such a deal would aim to expand that share and possibly deepen its content base.
Another intriguing layer to this deal is that back in June, Netflix signed an agreement with Canal+ that effectively integrated the streamer into Canal+’s Francophone Africa base. For a company that’s invested over $175 million into Africa, per Prime Progress NG, this represents a consolidation of efforts to own the market. With the Warner Bros. deal, who knows what else might happen?
In addition, we must consider how this influences production for the black diaspora. A shift in messaging is not out of the question. Paramount Skydance’s counter bid includes alleged promises to alter CNN’s messaging. There’s nothing to suggest this acquisition won’t influence content direction. Netflix has drawn praise and criticism alike for its more liberal programming. Warner Bros.’ slate of productions also appears to toe that line. If this deal goes through, we just might see more left-leaning black-produced content.
It remains to be seen how this deal proceeds in the coming years, but an industry-wide shakeup is nevertheless certain. Creatives in Hollywood, Nollywood, and elsewhere will have to pay more attention to the fine details and be prepared for the mercurial state of affairs. And fans, well, fans should hope for the best outcome.