Hollywood unions and theater owners believe that Netflix's $72 billion acquisition of Warner Bros. Discovery will lead to a reduction in film releases in theaters if the deal passes regulatory review, warning that the deal represents an 'unprecedented threat to the industry.' The deal would bring the brands of the giant streaming company HBO under the Netflix umbrella and also place the control of the historic Warner Bros. studio in the hands of the streaming platform, which has already turned Hollywood upside down by accelerating the shift from watching films in cinemas to watching them online. The deal could give Netflix, producer of popular shows like 'Stranger Things' and 'Squid Game', control over Warner Bros.' flagship works such as 'Batman' and 'Casablanca'. The Writers Guild of America said in a statement: 'This merger must be blocked... the largest streaming company in the world swallowing one of its largest competitors is precisely what antitrust laws were designed to prevent.' The deal is facing antitrust reviews in the US and Europe, and American politicians have already expressed doubts. The union represents writers in film, television, cable and news channels, podcasts and online media, and expressed concerns about job losses, wage cuts, price increases for consumers and a decline in working conditions in the entertainment industry. Netflix said it expects to cut annual costs by between $2 billion and $3 billion by the third year after the deal closes. United Cinema, a trade group representing 30,000 movie screens in the US and 26,000 screens worldwide, also warned that the deal could wipe out 25% of theater business locally. Netflix releases some films in theaters before making them available to subscribers on the platform, and the company said it would continue to release Warner Bros. films in theaters and support Hollywood creatives. However, United Cinema President Michael O'Leary called the merger an 'unprecedented threat' and questioned whether Netflix would maintain its current level of distribution. The Directors Guild of America said it has serious concerns to discuss with Netflix. They added: 'We will meet with Netflix to clarify our concerns and better understand their vision for the future of the company.'
