Netflix’s proposed acquisition of Warner Bros. from Warner Bros. Discovery Inc. for $72 billion could significantly disrupt the Canadian streaming landscape. This deal has raised concerns over Crave, the domestic streaming service operated by Bell Media, which currently holds exclusive rights to HBO content in Canada.
Impact of the Netflix-Warner Bros. Deal on Crave
If the acquisition goes through, HBO’s extensive library will likely become available on Netflix, potentially making Crave redundant. As Netflix has approximately nine million subscribers in Canada, its market share could exceed 30 percent with access to HBO content, further distancing it from rivals such as Prime Video, Disney+, and Paramount+.
- Netflix current subscribers: 9 million
- Crave current subscribers: 4.3 million
This scenario raises concerns regarding competition. Many Canadians subscribe to Crave primarily for its HBO offerings. Should the U.S. Department of Justice approve the transaction, it may compel Netflix to divest its HBO assets in Canada to maintain market balance.
Challenges for Crave
Crave faces severe challenges if Netflix consolidates HBO content. Bell Media recently extended its partnership with Warner Bros. Discovery, which will leave Crave with a content gap as popular titles migrate to Netflix.
The departure of HBO programming could lead to significant subscriber losses for Crave. This potential exodus could number in the hundreds of thousands, putting the service’s future in jeopardy.
Regulatory Considerations
As Netflix prepares for potential regulatory scrutiny, the impact of this acquisition raises questions about monopolistic practices in the streaming industry. While the immediate outcome may increase subscription costs for consumers, it could also prevent monopolistic price-setting in the long term.
Canadian regulators, specifically the Competition Bureau, may need to intervene to ensure Hulu’s acquisition does not stifle competition, which is vital for a robust media landscape.
In conclusion, the Netflix-Warner deal poses significant risks for Crave and the Canadian streaming industry. Without regulatory intervention, the landscape may shift dramatically, ultimately affecting consumer choice and content diversity.
