America Is Fighting the Wrong Hollywood Monopoly
Summary
Paramount Skydance wants to buy Warner Bros. Discovery, which some states and a court are stopping because they worry it will reduce competition in movie theaters. However, the bigger issue may be that streaming platforms like Netflix now control most viewers, data, and advertising, changing how entertainment companies compete.Key Facts
- The European Commission approved the Paramount-Warner deal with conditions on July 22, 2025.
- A judge in California temporarily stopped the deal while 12 states challenge it as an antitrust issue.
- States worry fewer big studios mean fewer places for creators to sell their work and less competition.
- The Writers Guild of America sued to block the merger, fearing harm to writers and the creative market.
- Antitrust law focuses on specific markets, like movie theaters, and does not allow losses in one market to be balanced by gains in another.
- Streaming services like Netflix have grown hugely, with over 325 million paid members and $45.2 billion revenue in 2025.
- Streaming now controls much of TV viewing, advertising, and data to decide what content to produce and promote.
- Traditional studios lack the direct customer relationships and technology that streaming platforms use to compete.
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