EYDER PERALTA, HOST:
Big news out of Hollywood yesterday. Netflix is set to buy the storied Warner Bros. studios in a deal worth almost $83 billion. And if that goes through, the deal could change what movies are shown in cinemas. NPR culture correspondent Mandalit del Barco joins us from Los Angeles to tell us more. Buenos dias, Mandalit.
MANDALIT DEL BARCO, BYLINE: Buenos dias.
PERALTA: So tell us which companies did Netflix have to beat for its winning bid for Warner Bros. Discovery?
DEL BARCO: Yeah. So Netflix beat out its deep-pocketed competitors Paramount Skydance and Comcast, the cable company that also owns Universal Pictures. And, Eyder, Tuesday night, my editor and I were at the Netflix holiday party...
PERALTA: Lucky you.
DEL BARCO: ...And we saw co-CEOs - Ted Sarandos looking especially happy. And by Friday morning, he broke the news to investors.
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TED SARANDOS: I know some of you're surprised that we're making this acquisition, and I certainly understand why. Over the years, we have been known to be builders, not buyers. But this is a rare opportunity, and it's going to help us achieve our mission to entertain the world and to bring people together through great stories.
DEL BARCO: And, you know, Ted Sarandos said the merger made sense that Netflix and Warner Bros. compliment each other.
PERALTA: OK, compliment each other. What do you think he means by that?
DEL BARCO: Well, you know, if this deal is finalized and approved, Netflix is getting a lot - basically, the crown jewels of a century-old Hollywood studio and its intellectual properties. I mean, Warner Bros. is known for its classic films like "Casablanca," its "Looney Tunes" cartoons, the "Harry Potter" films and even its TV shows like "Game Of Thrones." And all of that will belong to Netflix now, along with a library that includes "The Wizard Of Oz" and DC Comics with superheroes Batman and Superman. But one note here is that some of Warner Bros.' cable channels, like CNN, are not part of this deal.
PERALTA: I imagine that Netflix is feeling pretty great at the moment. But what about everyone else in the industry? How are they feeling?
DEL BARCO: Well, theater owners are very worried about this megadeal. In fact, Cinema United, the trade organization representing thousands of theaters around the world - it says it opposes the deal. And they say that 25% of the annual domestic box office could disappear if Warner Bros. movies go straight to the streaming platform. That's been Netflix's business model. James Cameron, the director - he's always just urging people to watch movies in the theaters. Well, last week, before the deal was made, he speculated about what would happen. Here he is on the podcast "The Town."
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JAMES CAMERON: Netflix would be a disaster. Sorry, Ted, but...
MATTHEW BELLONI: Yeah.
CAMERON: ...Geez. Sarandos has gone on record saying theatrical films are dead.
BELLONI: Outmoded. Yeah.
CAMERON: No. "Theatrical is dead," quote-unquote. Theatrical is dead.
DEL BARCO: So Ted Sarandos says he'll continue to open movies in theaters, but for how long before they're streamed on Netflix? A lot of people are skeptical.
PERALTA: Are Hollywood's major unions among those skeptics?
DEL BARCO: Yes. The Producers Guild, the actors union - they say they're very concerned, and the Writers Guild wants the merger blocked. They warn in a statement that the deal will eliminate jobs, push down wages and raise prices for consumers. The Directors Guild of America - that's headed by filmmaker Christopher Nolan - they say it will be meeting with Netflix to understand more of what all of this means. And actress Jane Fonda calls this a catastrophic business deal that could destroy Hollywood and the entire entertainment industry. She spoke on behalf of the Committee for the First Amendment, which her father, Henry Fonda, helped create during the McCarthy era.
PERALTA: So this is a huge business deal. Will regulators OK it?
DEL BARCO: Well, we'll have to see, but there is bipartisan concern about the deal. Utah Senator Mike Lee - he tweeted that there's sure to be an antitrust hearing. Another Republican, Kansas Senator Roger Marshall - he suggests the deal could hurt consumers and even Western society. Massachusetts Senator Elizabeth Warren, a Democrat, tweeted that the Netflix deal looks like an anti-monopoly nightmare. She said it'll create a massive media giant that would force consumers into higher prices and fewer choices. California Congressman Ro Khanna, a member of the Progressive Caucus - he told NPR the deal should be scrutinized by regulators.
RO KHANNA: These kind of mergers are anti-worker. They're anti-writer. They're anti-consumer. They're for corporate billionaires. And it's really a question of whose side the Trump administration is going to be on, the side of workers or the side of big corporations.
DEL BARCO: You know, we reached out to the White House for comment and haven't heard back yet. But Ted Sarandos told investors and reporters that he's confident of the regulatory process, and he says Netflix is going full steam ahead. If the deal's approved by investors, Netflix Warner Bros., or whatever they'll call it - it could be in business later next year.
PERALTA: That's NPR's culture correspondent, Mandalit del Barco. Thank you for your reporting, Mandalit.
DEL BARCO: Thank you.
(SOUNDBITE OF EZRA COLLECTIVE'S "SPACE IS THE PLACE") Transcript provided by NPR, Copyright NPR.
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