Media Mergers: Are They Really the Answer?

Big media companies are always looking to grow. Recently, Warner Bros. Discovery has caught the eye of several potential buyers. But is merging the best way to succeed? Greg Peters, one of Netflix's co-CEOs, isn't convinced. He thinks that just buying another company won't solve the industry's problems. Peters believes that real success comes from hard work and building skills over time. He pointed out that past mergers, like Disney-Fox and Amazon-MGM, didn't really change the competitive landscape. These deals didn't magically make things better for the companies involved. Peters also highlighted the many challenges that media companies face. They need to produce content in different genres and languages. They must also keep up with new technologies, like AI. Plus, they have to figure out how to attract and keep customers, handle global payments, and build strong partnerships. These are big tasks that can't be fixed by simply buying another company. Meanwhile, Warner Bros. Discovery is exploring its options. The company is considering splitting into two parts: Warner Bros. (focused on streaming and studios) and Discovery Global (focused on traditional TV networks). This move could make it more attractive to potential buyers. Ted Sarandos, Netflix's other co-CEO, has a different view. He said Netflix isn't interested in buying old media networks. However, he didn't completely rule out the idea of acquiring studios. Sarandos emphasized that Netflix carefully evaluates every opportunity. They look at whether it strengthens their entertainment offerings, adds value, and fits their strategy. Sarandos also addressed concerns about losing access to third-party content. He said Netflix isn't worried because they have a diverse range of content. No single supplier makes up a large portion of their view hours. Plus, licensing content to Netflix has proven to be beneficial for other companies' IP.