Netflix’s proposed $72 billion acquisition of Warner Bros. Discovery is drawing skepticism over its claim that the deal helps it compete with YouTube. Netflix says combining its streaming service with Warner Bros and HBO Max will allow it to challenge YouTube’s high viewership reach. Antitrust experts, however, doubt regulators will accept this argument.
Netflix and Warner combined will have about 428 million subscribers worldwide. Netflix spends billions on original scripted content like Stranger Things and KPop Demon Hunters. But YouTube leads in viewing time with user-generated content, ads, and creator videos, giving it a very different audience and model.
Legal analysts say the U.S. Department of Justice (DOJ) is unlikely to see YouTube as a direct rival. They argue YouTube’s ad-supported, short-form format does not substitute for Netflix’s paid, long-form shows and movies. If Netflix cannot show regulators that YouTube is a real competitor, its rationale may weaken.
The deal is now under close review by U.S. and global regulators, who will look at competition risks. Critics are watching to see if regulators focus on specific digital entertainment markets or broader streaming competition.
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