Clash of the TV titans: How it will shape what we watch and what we pay

The battle for ownership of Warner Bros. is a rare case of Goliath vs. Goliath.

In one corner, there’s the behemoth streaming service Netflix. In the other, Hollywood’s legacy powerhouse, Paramount.

The prize is a treasure trove of iconic franchises that stretches back over a century, to include the DC Comics Universe, home to Batman and Superman, Harry Potter’s Wizarding World, the Looney Tunes, and JRR Tolkien’s Middle-earth. Its most glittering jewel is HBO, the gold standard of Premium TV that redefined the medium with cultural watercooler hits like The Sopranos, The Wire, Game of Thrones and The White Lotus.

Both are serious contenders. Netflix lashed out first with an $88 billion offer that was quickly accepted by the Warner Bros. board. That should have been the KO blow, but Paramount countered with a $108.4 billion hostile takeover bid. Both fighters have now lumbered back to their corners to await the shareholder vote and the naming of the victor.

While they catch their breath, the minnows are circling. Sky TV, which also owns our streaming service Neon, recently announced it had strengthened its ties with Paramount. This new agreement secures exclusive New Zealand rights for Sky and Neon to franchises like the Yellowstone ‘Duttonverse’, as well as franchises like Star Trek, Mission: Impossible, Teenage Mutant Ninja Turtles, South Park and the kids Nickleoden channel.

This was a smart play. Even if Netflix wins and pulls Warner Bros. content off, Sky will still have globally recognised franchises to lure subscribers with. That said, HBO is one of Sky’s biggest drawcards. It feels critical for them that Paramount comes out on top.

“There’s a cultural gravity to HBO and Warner titles. The Paramount deal will strengthen Sky’s slate, but Yellowstone ain’t The Wire, and as good as Mobland is, I don’t think it’ll ever be Succession,” Tamar Münch says. “If Netflix takes Warner Bros., Sky/Neon can stay competitive, but my sense is that the Paramount deal alone won’t plug that hole.”

Münch, a film and TV reviewer and media and entertainment communications specialist, describes the clash as “old-school Hollywood vs new-school streaming”. She says Netflix is betting that scale and control beat heritage, while Paramount is banking on Hollywood experience and that a bigger cheque still counts.

“But, in the end, US regulators will decide whether Netflix becoming that powerful is a step too far,” she says.

No matter who comes out on top, the impact here in Aotearoa will be felt. If Paramount win, things will likely stay as they are. However, if Netflix triumphs, then those big HBO and Warner Bros. shows and movies will slide over to its platform.

While HBO is certainly a big drawcard, Sky hasn’t put all its eggs in that basket. In recent years, they’ve been investing heavily in producing high-quality local television. This year they have comedian Tom Sainsbury’s upcoming series Small Town Scandal, Josh Thomson’s dark comedy Good Bones and Jazz Thornton’s true crime doco series Stalked, to name a few.

“Hat tip to Sky for their dedication to Sky Original programming in recent years. The team there are very passionate about local content. I think the way they support our New Zealand-made shows is hands down the best out of our major players,” Münch says. “Sky’s local production pipeline may get pressured financially if premium global content is lost, but it’s likely to remain a strategic priority given brand differentiation and audience value.”

“For most New Zealanders, it comes down to where your favourite shows live and how much you’re paying for them,” Münch continues.

With such big numbers sitting on the table, there’s little doubt that no matter which entertainment behemoth wins, our wallets will be real losers. It’s a sentiment backed up by Münch.

“Increases on streaming fees should join death and taxes as one of the few things of which we can all be certain.”