Joe Flint

Netflix, when they put out their earnings letter every quarter, when Netflix does an earnings letter, they used to like to say that they don't just view their competitors as Disney+.

Fortnite is a competitor.

Sleep is a competitor.

Sleep is a competitor.

So they view anything as a competitor.

They would argue that the streaming market includes TikTok, includes Facebook with all their videos now, Instagram.

You can't just look at Netflix versus Disney+, versus Paramount+.

In fact, in that world, they argue that they actually, as a company, have a smaller market share of TV viewing than Paramount.

But what Paramount is going to argue and what the Justice Department will have to decide is whether that is just too broad a way to look at this marketplace.

That it needs to be looked in a more narrow fashion of subscription video service providers

Paramount kind of dismisses the idea that TikTok or Instagram can be seen as competitors in the streaming world.

David Ellison said, look, that's like Coke tries to buy Pepsi and the deal gets approved because Budweiser is seen as an alternative to Coca-Cola.

it's not and he said you know the next maker of game of thrones isn't going to go to instagram or tick tock to make their show they're gonna go to a hollywood powerhouse so that's going to be really what the thrust of the argument will be there will be other issues too about the consolidation of movie studios and what that could mean for the theatrical business what it means for creative talent

But those are issues both companies are going to have to answer.

So it really comes down to defining what the streaming marketplace is.

I think it's both those things.

I think some would argue in many ways Netflix has already taken over Hollywood or at least radically changed the landscape out here.

But Hollywood is always, even now, all these years later, a little distrustful of Netflix.

They're still seen as a disruptor.

So Netflix, in many ways, already is the big force out here, and that's why so many people are a little bit scared about them even getting bigger with Warner.