A few months before the Justice Department blessed Warner Bros. after Discovery’s $43 billion merger, 30 members of Congress warned the agency in a letter that the resulting competitive vacuum would allow the newly formed giant to ignore what consumers want. Among them were antitrust concerns that it could stifle diverse and inclusive programming, a common criticism since the WBD funded its $90 million HBO Max movie. Bat girl, The first DC film directed by Latina Leslie Grace.
“There was no indication bat girl that they will buy it,” says Rep. Joaquín Castro, R-Texas. the hollywood reporter. “So this incredibly talented Latina actress and her wonderful story are going down the tax deduction drain.”
In the four months since the deal closed, CEO David Zaslav has reviewed the entertainment powerhouse. During an August 4 earnings call, he laid out a 10-year plan for DC and a “reboot” that included the bookshelf. bat girl — Part of cost reduction and project creation for theaters. “It’s not about how much,” Zaslav said of his content offerings. “That’s as good as it gets.”
The message was clear: bat girl It doesn’t fit Warner’s new standards for theatrical releases and has no place in their broadcast plans. (Blue Beetle, DC’s first Latino superhero starring Xolo Maridueña, was slated for a December 2023 theatrical release after being originally slated for HBO Max.) Scoob!: Vacation spot, wonderful twins and JJ Abrams’ big-budget sci-fi drama worldly women – to help pay off more than $50 billion in debt, he raised to complete the deal.
Experts question whether the measures indicate the newly merged company has too much market power under antitrust laws that seek to encourage innovation, choice and product variety. The merger executives are considering whether the deal will provide an incentive for the company to “remove a product preferred by a significant number of customers,” according to Department of Justice and FTC guidelines. “You have to ask whether this combined entity has enough market share to unilaterally act on traditional parameters of competition, like price and output,” says USC law professor Jonathan Barnett. “You will be concerned about some of the post-shutdown actions.”
Castro agrees that the company’s plans to cut content spending raise antitrust concerns, noting that “there have already been big cuts across the company and they expect more.” He also points out that the prospect of killing off a long-term project for tax purposes will drive talent away. “I don’t know if that was the best way for David Zaslav and his new team to present themselves in Hollywood,” he says. “I don’t see people who want to do business with them.”
Courtesy of the 113th Congress; Alberto E. Rodriguez/Getty Images
The WBD’s reputation among creators and viewers certainly drew attention. “It’s hard not to feel like it’s a pattern,” he says. chubby chronicles Showrunner Brig Munoz-Libowitz. Her HBO Max series about a 12-year-old Dominican girl (Oliva Gonçalves) in 1980s Miami adjusting to life in the US, despite critical acclaim and popularity, was also cancelled. According to review channel Whip Media, the series was the seventh most-watched comedy of 2022. Munoz-Libowitz adds, “I think they want to honor their commitments in future decisions and not alienate their customers.”
WBD, which declined to comment on this story, said the move was inspired by a strategic shift away from children’s and family programming, even though the show is not listed in HBO Max’s “family” category, only “Latino.” “
By decision on the shelf bat girl And we will continue with the second season. chubby chronicles, Warner Bros. Discovery may be ignoring the importance of the Latinx community, a group that is severely underrepresented in Hollywood. While Latinos make up about 19% of the country, they hold only 6% of the jobs, according to the 2021 UCLA Diversity Report. “The new leadership at Warner Bros. Discovery is based on cost-saving formulas and measures that have historically excluded marginalized communities,” says Rafael Agustín, Executive Director of the Latino Film Institute. “They assume they are doing everything right for their bottom line, not realizing the damage investing in diversity and inclusion today will do to their business in the future.”
HBO Max offerings are known for their cultural diversity as well as their quality and ambition. Some of the streamer’s most captivating content is made possible by partnerships with Japanese animation house Studio Ghibli and Crunchyroll, which specializes in anime distribution. (HBO’s licensing agreement with Crunchyroll expired in January.) But the goodwill and competitive advantage came from having a broad collection of titles across multiple genres, for example, Unreliable, black lady drawing show and Studio Ghibli inspiring, may be collapsing right now. “To be honest, it looks like self-harm,” says Muñoz-Libowitz. “Let’s say you’re a fast food restaurant and you have a very popular menu. When purchased by another company, would you get rid of this item? It’s no use getting rid of something popular just because you’re changing businesses.”
In addition to content, another indicator that Warner Bros. for the Discovery merger are what the new combined entity will have is the combined HBO Max/Discovery+ service when it launches in 2023. Under antitrust law, the impact on purchase price is the most important factor when considering a merger . It’s worth looking at the fallout from AT&T’s acquisition of WarnerMedia before the Texas phone giant gave up on its entertainment ambitions. Less than two years after the Justice Department’s failed attempt to block the deal, the agency’s first challenge to a vertical merger in 40 years, AT&T has raised DirecTV’s prices despite promising to lower post-merger fees during the battle. cool.
HBO Max is among the most expensive streaming platforms at $14.99 a month, and it remains to be seen how much appetite consumers have for a price hike to add Discovery+ offerings. There may not be much overlap in demand for content on the two platforms. The company said during its quarterly earnings call that HBO Max skews men, specializes in scripted content and dating, and is “home to fans,” while Discovery+ caters to women, focuses on unscripted programming and viewing. comfortable, and it is “home.” of genres.” Viewers may protest if Zaslav doesn’t understand the synergies offered by bringing HBO Max and Discovery+ together into one service. “When there is consolidation and few companies control the market, they become more monopolistic,” says Castro. There is a greater possibility that they could raise prices for consumers and limit choice.”
A version of this story first appeared in the August 17 issue of The Gossipify. Click here to subscribe.
Source: Hollywood Reporter
Camila Luna is a writer at Gossipify, where she covers the latest movies and television series. With a passion for all things entertainment, Camila brings her unique perspective to her writing and offers readers an inside look at the industry. Camila is a graduate from the University of California, Los Angeles (UCLA) with a degree in English and is also a avid movie watcher.
