Federal Communications Commission Chairman Brendan Carr has raised notable concerns about market competition stemming from Netflix Inc.’s proposed acquisition of Warner Bros. Discovery Inc.’s studios and streaming operations. In a recent interview, the FCC head underscored the "legitimate competition concerns" triggered by the potential deal, highlighting the risks connected with increased market consolidation and the resulting scale within the streaming industry.
While Carr applauded Netflix for its impressive growth trajectory, he conveyed unease regarding the significant concentration of content and market influence that could follow from this acquisition. Notably, Carr contrasted the Netflix-Warner Bros. proposal with a separate speculative deal in which Paramount would acquire Warner assets, expressing fewer reservations about the latter. This perspective was attributed to Paramount's streaming platform being substantially smaller in scale relative to Netflix.
Despite the FCC lacking direct jurisdiction over the Netflix application, Carr indicated the commission might intervene in a potential deal involving Paramount and Warner Bros. This possibility hinges in part on Paramount’s plans to secure funding from international sources, which could elevate the regulatory oversight requirements.
Last month, Warner Bros. agreed to divest substantial portions of its studios and streaming businesses to Netflix. This development came amid Paramount’s aggressive attempts to sway regulators and Warner Bros. shareholders to reject Netflix’s offer in favor of Paramount's bid. Nevertheless, Warner Bros.’ board has affirmed its commitment to the Netflix transaction.