The proposed takeover of Warner Bros by Paramount Skydance could dramatically reshape Hollywood and the broader media landscape. Here's how it might affect viewers, cinemas, and the news industry.
Streaming Costs Could Change
Paramount plans to merge its Paramount+ service with Warner Bros' HBO Max, creating a powerhouse streaming platform to compete with Netflix, Amazon, and Disney. Subscribers would enjoy a wider range of content from one service, spanning hits like The Pitt to classics such as Casablanca, Star Trek, and Friends.
Price implications remain uncertain. Analysts suggest that existing subscribers to both services might initially get a cheaper combined deal. However, a more compelling offering could eventually allow Paramount to raise prices. Reduced competition between streamers might lead to higher overall costs for consumers.
"There'd be just less competition," says TV analyst Tom Harrington of Enders. "The ability there would be to charge a bit more."
Ben Barringer, head of technology research at Quilter Cheviot, counters that price hikes would be limited by Netflix's rates, which he calls the "price-setter in the market."
Immediate changes are unlikely. Under President Donald Trump, regulatory approval is expected to move "full speed ahead," according to antitrust lawyer Scott Wagner. However, concerns over consumer prices and worker harm could prompt state attorneys general to challenge the deal later. California's attorney general has already promised a "vigorous" investigation.
Given regulatory timelines and existing distribution agreements, significant changes to current streaming services are years away.
A Reprieve for Cinemas, but Less Content
Hollywood had feared a Netflix takeover, which could have meant studios deserting cinemas. Unlike Netflix, Paramount and Warner Bros still rely on ticket sales to boost movie returns, notes Hargreaves Lansdown's Matt Britzman. "That should mean fewer films being rushed straight to streaming."
"That won't reverse long-term trends in cinema attendance, but it may reduce the disruption that filmmakers feared under a Netflix-led model," he adds.
Enders' Tom Harrington agrees a Paramount takeover is likely "a better outcome" for cinema. However, consolidation may lead to fewer films being made, as happened after Disney bought Fox. Paramount is already cutting costs following David Ellison's merger with Skydance. Many analysts expect further cuts due to debt taken on to finance the deal.
"Having more debt means you've got more burden, and that means you've got less to spend on content," says Quilter Cheviot's Ben Barringer.
A Trump-Friendly CNN?
If the deal proceeds, CNN would fall under the Ellison family's control, which has a friendly relationship with the White House. This has alarmed Democrats and media advocates, who fear more cautious coverage of the Trump administration. They point to changes Ellison has made at CBS, such as appointing someone to police bias, workforce reductions, and clashes with journalists over editorial independence.
The Ellison family has reportedly discussed changes to CNN with President Trump, a frequent critic of the network. In December, Trump called for CNN to be sold, labeling its leaders "corrupt or incompetent."
"I don't think CNN would become Fox News overnight," says Seth Stern of the Freedom of the Press Foundation. "But coverage could be softened, critiques of the Trump administration could be reduced, hosts that are known for being particularly critical could be fired."
Rodney Benson, a media professor at New York University, calls the deal "concerning," as it would concentrate more media power in conservative hands. Many owners, including the Ellison family, have business interests that depend on government contracts, making them vulnerable to pressure. "This is not just an ideological shift, it's a threat to democracy and the rule of law," he warns.
The choice of CNN's new editor-in-chief will be pivotal. "He is going to make this choice knowing that Donald Trump is watching," Benson adds.
YouTube Remains the Biggest Disruptor
The success of merging two legacy media outlets facing financial pressures is uncertain. The "overriding" threat to streaming services isn't each other, but YouTube, says Harrington. Short-form video has eroded audiences for traditional media. "Staying competitive is not just about being competitive with one another, it's being competitive with short-form video," he explains.