How Netflix's Potential Acquisition Of Warner Bros. Discovery Affects M-Net, DStv And Showmax?

Not long ago, it was reported that Netflix won the bid to acquire Warner Bros. Discovery valuing the deal at $72 billion. This deal would DC Entertainment/Studios, Cartoon Network Studios, HBO, Warner Bros. Pictures/Television and New Line Cinema.

Below is a how this deal is bad news for MultiChoice

M-Net and Showmax

MultiChoice had been licensing Game Of Thrones and Penguins from HBO to M-Net and Showmax. In the event of an acquisition, Netflix had expressed interest to continue these partnerships with local broadcasters but it may not be easy.

If MultiChoice continues to license content from Warner Bros. they could as well look to increase the rates. This is something MultiChoice's new owners Canal+ may not find amusing as they've begun cost cutting due to DStv's shrinking consumer base.

Besides that, the previous owners at MultiChoice had been anti-Netflix for sometime so the general audience had sort of painted a certain image of the company. While free-to-air broadcasters such as SABC and eMedia Investments had been licensing from the streamer.

MultiChoice put up a wall between them and Netflix again this was the previous owners regime as Canal+ does view them as partners. They do have an agreement to bundle their services in francophone markets alongside a content deal through K+.

The reality is while Warner Bros. continues to license content to M-Net and Showmax, Netflix will likely make further productions exclusive to their services. If they do continue licensing, I doubt MultiChoice would want their scraps.

Netflix is already available in the market which further complicates things as M-Net and Showmax are meant to go hand in hand with their content. But then again, MultiChoice is part of StudioCanal's parent company which gives them leverage.

Netflix may offer Stranger Things, Squid Games and Wednesday but with Canal+'s MultiChoice there's Paris Has Fallen, Spinners and iShaka iLembe.

DStv

For this part, I feel there's a lot of exaggeration as Netflix is not acquiring Discovery, TLC or the linear Cartoon Network as that is being spun off into a separate company. Of course, Netflix's bid to be frank sort of dilutes the value of Cartoon Network.

Cartoon Network under Discovery Global will be leaning more toward third party programming such as Lego Ninjago, Dragonball Super and Totally Spies!. While what made Cartoon Network, Nickelodeon and Disney "The Big 3" like Regular Show and Tiny Toons Looniversity goes to Netflix.

It's likely that they will be a licensing agreement for these shows but they'll most definitely be like DreamWorks Channel - reruns. Under a separate company, they're not going to prioritise on these Netflix originals.

If it is deemed expensive these shows could as well get phased out and again that just dilutes Cartoon Network who had been reliant on these IPs.

Turning over the torch to Discovery Global, this is the company that MultiChoice is involved in a carriage dispute with over the future of its 12 channels. These include Discovery Channel, HGTV, TLC and as mentioned the linear Cartoon Network.

Of course, the matter of concern here to me is that as mentioned with Cartoon Network while the Netflix deal makes the company more leaner. There's still another 20 billion worth of debt they need to clean out.

Expecting for content to be reduced, potential sales or closures to operations or channels and lastly massive layoffs particularly for international feeds.

All of this might as well unfold while these channels are no longer on DStv but then again it's likely that MultiChoice could opt to keep a few channels. My guess would be Discovery Channel, TLC, Cartoon Network, Real Time, Cartoonito, ID and CNN.

MultiChoice Is In Trouble As M-Net And Showmax Are Also At Risk Of Losing Content From HBO, TLC And Cartoon Network

A few days ago, it was announced that Netflix had won the bid to acquire Warner Bros. Discovery (excluding it's cable networks). This comes after MultiChoice and the company made it transparent to viewers that their 12 TV channels on DStv could be going dark from next year.

These include Discovery Channel, TLC, Discovery Family, TNT, Real Time, Investigation Discovery, Food Network, HGTV, Travel Channel, Cartoon Network, Cartoonito and CNN. A petition had been going around following news of its possible demise.

According to sources, not only does this deal affect these cable networks but also their licensing deal with M-Net and Showmax for shows like House Of Dragons, The White Lotus and The Gilded Age.

MultiChoice had stated at the time that they were open to replacing these channels and if that's so none of the content from HBO or Warner's cable networks would form part of the lineup. Warner Bros. is one of MultiChoice's biggest clients.

Compared to Disney and Paramount that offer only 6 channels each, they offer a combined figure. Since Disney+ inception, content from the brand had been further reduced on M-Net, DStv and Showmax but that wasn't the case for Warner Bros. Discovery.

For MultiChoice and it's owner Canal+, there is a lot in stake for them should they opt to have these channels removed. In two years, they've lost over 2 million subscribers particularly in Kenya where it lost 85% of its subscribers and this will just accelerate.

Paramount already plans to close CBS Reality, CBS Justice, BET and MTV Base, and although the consumer numbers are expected to decline. It will be more severe as seen in Kenya should consumers miss out on 90 Day Fiance and Craig Of The Creek. 

Channel Closure: CBS Reality And CBS Justice Will Also Be Going Dark On StarTimes And StarSat Platforms Across Africa By The End Of 2025

As some consumers already know, CBS Reality and CBS Justice would be exiting DStv platforms across Africa by the end of December. This decision wasn't made by MultiChoice but rather CBS AMC Networks International who provide these channels within the market.

They made the call to have the channels removed affecting not only DStv and GOtv customers but even the likes of StarSat and StarTimes.

StarTimes sent a notice to subscribers that both channels also be looking to exit their platforms by the end of December. Consumers on both MultiChoice and StarTimes end will be starting the new year with even lesser content.

CBS Justice brings you authentic criminal cases and investigations expertly dissected using cutting edge forensic technologies, always factual, always true. Some of the shows include Cold Blood, Coastal Killers, Forensics, Evidence Of Evil and Homicide's Elite. 

CBS Reality offers captivating television guaranteed to shock and entertain. It features one of the most beloved TV personalities, the queen of the courtroom herself: Judge Judy. Other great shows include the ever-popular Cheaters.

MultiChoice is currently embroiled in a carriage dispute with Warner Bros. Discovery regarding its 12 channels on their platforms. StarTimes went through a similar route years prior and the CBS channels served as their replacements.

Now that these two channels are going off the air soon consumers can tune into TLC, Discovery and Investigation Discovery. Consumers here are in a better position as opposed to that of MultiChoice.

CBS Reality and CBS Justice's terminations were confirmed last month and Warner Bros. Discovery was the only alternative for consumers. Now that could as well be wiped out unlike South Africa where MultiChoice is the only player in the field consumers can run to StarTimes, Azam TV or even Zuku TV.

‘HBO, DC, Cartoon Network’: 10 Companies That Netflix Will Now Own After The Warner Bros Buyout

Following Netflix’s agreement to acquire Warner Bros Discovery’s TV and film studios and streaming division in a deal valued at roughly $72 billion, the streaming giant will take control of some of the most influential brands in global entertainment. Based on the assets included in the sale, here are 10 major companies and brands Netflix will now own.

1. HBO

The deal includes Warner Bros Discovery's streaming and premium-TV business, giving Netflix full ownership of HBO, one of the strongest content brands in the world, known for Game of Thrones, Succession, The Last of Us and more.

2. HBO Max / Max

Netflix will also acquire the HBO Max (rebranded as Max) streaming service, a direct competitor. This dramatically increases Netflix’s control over prestige television and reshapes the streaming landscape.

3. Warner Bros Television

The acquisition includes Warner Bros’ television production unit, one of the industry’s largest suppliers of scripted and unscripted programming, producing shows for networks globally.

4. Warner Bros Pictures

Netflix gains control of Warner Bros Pictures, the centerpiece film studio behind franchises such as Harry Potter, DC Films, Mad Max and Fantastic Beasts.

5. DC Entertainment / DC Studios

The DC superhero universe featuring Batman, Wonder Woman, Superman, Joker and more, falls under Netflix’s ownership as part of the studios division.

6. New Line Cinema

The iconic studio behind The Lord of the Rings, The Conjuring and IT will become part of Netflix’s content empire through the Warner Bros acquisition.

7. Cartoon Network Studios

The animation division producing global hits like Ben 10, Adventure Time and The Powerpuff Girls will be owned by Netflix, expanding its youth and animation catalogue.

8. Adult Swim

Known for Rick and Morty, Aqua Teen Hunger Force and cult animation, Adult Swim also moves under Netflix as part of the studios and TV assets it is buying.

9. Turner Classic Movies (TCM)

TCM’s extensive classic-films library and broadcast brand will fall under Netflix's control, giving it unmatched catalogue depth.

10. Vox Media Partnership Assets

Warner Bros Discovery maintains multiple joint ventures, including content partnerships with Vox Media (such as digital news/documentary collaborations). These partnership rights transfer to Netflix as part of the studio and streaming business purchase.

The article was originally published by Wionews

Netflix Wins the Warner Bros. Discovery Bidding War, Enters Exclusive Deal Talks

Warner Bros. Discovery is moving forward with exclusive deal talks with Netflix, TheWrap has learned.

WBD has selected Netflix after the streaming giant offered $30 a share for the studio and streaming assets, according to two people familiar with the deal talks. The deal also includes a $5 billion break-up fee to match the terms that Paramount added with its bid.

While its unclear what the makeup of the new bid looks like, the prior bid was a mix of mostly cash and stock.

Netflix securing a win over rival suitors Paramount and Comcast represents a stunning turnaround from just two months ago, when co-CEO Greg Peters shaded big media mergers as not having an “amazing track record,” and Paramount buying WBD seemed like a foregone conclusion. Fast forward to today, and Netflix has won a furious M&A bake-off after three rounds of bids.

Representatives for Netflix and WBD weren’t immediately available for comment.

These exclusive talks clear the road for Netflix to acquire the Warner Bros. studios, HBO Max and a treasure trove of IP assets like “Harry Potter” and the DC Universe. Netflix, which once aspired to be like HBO when first embarking on original content, is on a course to become its next owner. Obtaining such assets could dramatically reshape the entertainment landscape and give Netflix even more power over Hollywood — concerns the streamer will have to assuage.

Regulatory hurdles

The willingness to include the unusually large breakup fee was likely critical with questions arising on how Netflix will get a deal with Warner Bros. through regulatory approval. It would face stiff antitrust scrutiny and opposition from the U.S. Department of Justice, New York Post’s Charles Gasparino reported on Tuesday.

A representative for the Department Justice declined to comment on the report.

In a Nov. 13 letter to U.S. Attorney General Pam Bondi, Federal Trade Commission Chairman Andrew Ferguson and Department of Justice antitrust division assistant attorney general Gail Slater, Republican Rep. Darrell Issa warned that a Netflix bid would raise antitrust concerns that could harm consumers and Hollywood alike. He noted that consolidation between the two companies would “diminish incentives to produce new content and major theatrical releases,” which could “undermine opportunities for the full range of industry professionals both in front of and behind the camera.”

California Attorney General Robert Bonta has previously voiced his opposition to any deals involving WBD. “Further consolidation in markets that are central to American economic life — whether in the financial, airline, grocery or broadcasting and entertainment markets — does not serve the American economy, consumers or competition well,” his office told TheWrap last month in response to Paramount’s initial offer.

“We are committed to protecting consumers and California’s economy from consolidation we find unlawful,” the spokesperson added.

The process of completing the deal could distract the company from executing its core business. There’s also the X factor of Netflix jumping into the deep end of the theatrical business, a part of the entertainment world it has kept its distance from. Netflix shares fell 5% on Wednesday when investors realized the prospect of a deal happening was very real.