Nicole Sperling

They say that they have about a 75% overlap when it comes to subs, but that still will increase their subscriber base, especially in the U.S., where they already feel like they're pretty saturated.

It also allows them to go into two different businesses that they're not currently in.

Yes, they make television shows, but they don't have a television studio and they're not able to sell television shows to other entities, which is something Warner Brothers does all the time.

Ted Lasso that you see on Apple TV, that's a Warner Brothers television show.

So they can go into that business as well.

They also are going into the domestic and international theatrical movie business, which is something they have never wanted to be in, much to the chagrin of many movie directors who want desperately to both be in theaters and be on Netflix.

Netflix has always just resisted being in theaters.

Their whole thing is we want to bring our product right to the consumers right away.

And this pesky business of theatrical distribution, which costs a ton of money because you have to spend a ton of money to market movies so that people will go to theaters, is inefficient and it doesn't give consumers what they want when they want it.

Well, Netflix has never given any assurances that they really believe in the theatrical experience to begin with.

Ted Sarandos, the co-CEO of Netflix, has constantly dismissed the theatrical experience.

He's called it marketing stunt.

He's said it's outdated.

He's constantly kind of maligned the whole thing.

to a point where no one really believes him.

And though now they're in this business, because they have to say they're in this business in order to get this deal to close, it is not a crazy idea that they're only going to do it so that they can get the deal through and will ignore the theatrical market moving forward.

I mean, let's be clear, the theatrical market and what is required to sell movies into theaters is really an inefficient business.

If you have a newcomer come in and say, like, hey, look at how this movie business works, they would say, this is ridiculous.

Like, you have to spend...

$50 million to market a movie in the US so that people will show up on opening weekend.