What the Warner Bros deal could mean for streaming, cinemas and news

An important development from the financial markets: What the Warner Bros deal could mean for streaming, cinemas and news 7 days ago Share Save Add as preferred on Google Jemma Crew , Business reporter and Natalie Sherman , Business reporter Getty Images The takeover of Warner Bros by Paramount Skydance could significantly reshape Hollywood and the wider media landscape. It has received shareholder approval but is not yet a done deal - requiring the green light from regulators. If it does go ahead, here's how it could shake up things for viewers.

Streaming costs could change Paramount is planning to merge its Paramount+ service with Warner Bros' HBO Max to create what it hopes would be a must-have streaming service that can hold its own against competitors Netflix, Amazon and Disney. Viewers would be able to enjoy a broader range of content with one single subscription, from current hits such as The Pitt, to classics like Casablanca, Star Trek, Friends and the Sopranos. What it would mean for prices is less clear.

Economic Details

Initially, analysts say it is likely that people who currently pay for both services could get a cheaper overall deal. But over time having a more compelling offer could allow Paramount to raise prices, while less competition between streamers could mean people pay more overall for their streaming subscriptions. "There'd be just less competition," says Tom Harrington, a TV analyst from Enders.

"The ability there would be to charge a bit more. " However, Ben Barringer, head of technology research at Quilter Cheviot, says any increased costs would be limited by the rate charged by Netflix, which he calls the "price-setter in the market". But none of those changes are on the immediate horizon.

Under US President Donald Trump it is expected to be "full speed ahead" for regulatory approval, says Scott Wagner, head of the antitrust practice at the law firm Bilzin Sumberg. However concern over consumer prices and harm to workers could lead state attorneys general to try to block the deal further down the line, he adds. California's attorney general has already vowed a "vigorous" investigation.

Analyst Views

So given the regulatory timeline and existing distribution deals, we are years away from any major change to the services currently offered to viewers. A reprieve for cinemas but less content Getty Images Hollywood has raised questions about how a takeover might affect the larger industry, including cinemas Movie theatre operators and others in Hollywood had feared a Netflix takeover. It could have meant one of the last major studios - behind titles last year such as Ryan Coogler's Sinners, The Minecraft Movie and One Battle After Another - deserting the cinema.

But unlike Netflix, Paramount and Warner Bros still rely on ticket sales to bolster the returns on their movies, points out Hargreaves Lansdown's Matt Britzman "which should mean fewer films being rushed straight to streaming".

Financial markets are tracking the development closely as investors assess the likely impact.