As the streaming business grew, everyone recognised it was unsustainable. When the market fragmented (so much so that the cost of all streaming services combined was higher than cable) it was clear that there had to be some mergers, acquisitions or failures. The market had to rationalise.
And it seems when it rains it pours. The merger of Warner Bros and Discovery was the first step in the market rationalising. And now, just months after the merger was completed, there are reports that Comcast wants to buy Warner Bros Discovery and merge it with NBCUniversal.
There is a level of opportunism to this all. Warner Bros Discovery is struggling. The company has cancelled upcoming titles, including Batgirl, has purged a number of films and shows from HBO Max, and has announced massive layoffs. As a result, the share price is down 50% since April. And Comcast are sensing a bargain.
According to The Hollywood Reporter, there are legal hurdles that prevent Comcast buying WBD until April 2024. But the Reporter believes Comcast are counting down the days. This would bring NBCUniversal’s Peacock streaming service under the same company as Warner Bros Discovery’s two services HBO Max and Discovery+. Combining the content of these three streaming services would create a massive competitor to Netflix and Disney.
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