Netflix is reported to be exploring a bid for the Warner Bros Discovery studio and online video business. It has hired an investment bank to evaluate a possible offer and has been given access to the data room with the financial details of the company.

Netflix has hired Moelis & Co, the investment bank that advised Skydance Media on its successful bid for Paramount Global, to consider a prospective offer, according to Reuters reports. The companies involved have declined to comment.

Warner Bros Discovery is evaluating its own options, after receiving multiple offers from Paramount Skydance to acquire the entire company. The WBD board is currently considering whether to proceed with a planned split to separate its studio and television businesses or to pursue a sale of all or parts of the company.

Netflix has not looked to acquire potential competitors previously but could be considering the threat of the alternatives. The combination of Paramount Skydance and Warner Bros could provide real competition. On the other hand, if Netflix were to make a successful bid, it could strengthen its hand with a strong catalogue including the Superman, Batman, Harry Potter, and Barbie franchises, among many more.

Ted Sarandos, the joint chief executive of Netflix, told analysis in its recent earnings call that the company as “no interest in owning legacy media networks”, saying it can be choosy and is “predominantly focused on growing organically”.

Greg Peters, the other joint chief executive, said “We’ve also seen a lot of industry consolidation over the years” and “we have also seen a wide range of outcomes from such mergers”.

“Watching some of our competitors potentially to grow bigger via M&A does not change in and of itself, at least our view of the competitive landscape”. However, it said “it’s our responsibility to look at every significant opportunity” and “we’ll do whatever we thing is best to grow the business”.

www.netflix.com
www.wbd.com

An independent group of media experts, academics and producers is calling on the Culture Secretary, Lisa Nandy, to use the review of the BBC Charter to separate the corporation entirely from the influence of government, calling the current arrangements “no longer fit for purpose”. It wants a new permanent charter to establish the BBC in pertpetuity.

The British Broadcasting Challenge, set up four years ago to support public service broadcasting in the United Kingdom, proposes that the forthcoming review of the BBC Charter should be used to give the BBC a permanent status and to remove the ability of the government to appoint BBC Board members.

The recommendations are contained in a report, Renewing the BBC: A New Charter for Britain and for the World published online by the group. The recommendations include:

• A new and permanent Charter establishing the BBC’s right to exist in perpetuity
• An independent body with responsibility for appointing the governing board
• An independent assessment of BBC funding
• A new BBC purpose of countering disinformation
• Operating agreements between BBC and government to be updated every 10 years.

The campaign suggests that the BBC is Britain’s most effective defence against the dangers of global media power being concentrated in the hands of a few private individuals, and that Charter renewal offers “a perfect opportunity for this government to future-proof a uniquely British institution, and to insulate our democracy as well as our culture”.

Pat Younge, the chair of the self-appointed group, who was previously chief creative officer of BBC Television Production, said: “With the untrammeled consolidation of traditional broadcasting and tech platforms, privately controlled by a small number of seemingly like-minded individuals, the universal ownership and standing of the BBC as an independent institution is a vitally important bulwark to protect our democracy. The status quo arrangements are no longer fit for purpose.”

www.britishbroadcastingchallenge.com

The global market for television and video is forecast to reach $1 trillion in annual revenue by 2030, based on reports from Omdia. The growth will come from online, with online video advertising predicted to account for over half the total.

The combined online video and traditional TV markets, including revenue from subscriptions, on-demand transactions and advertising, are on track to reach $1 trillion in annual revenue by 2030.

Over half the global revenue, 52%, is forecast to come from online video advertising, with a further 21% from online video subscriptions and transactions. 16% will come from traditional pay television subscriptions and transactions, while 11% will come from traditional television advertising.

With pay television flat or declining, all the growth will come from online video. Global video streaming revenue is expected to reach $214.6 billion in 2025, representing an annual growth rate of 12.8%. Online video subscription revenue will account for $165 billion, or 77% of that.

Omdia expects the advertising revenue from the big five online video services, Netflix, Amazon, Disney, HBO Max, and Paramount, will exceed $24 billion a year by 2030, or 20% of their combined revenues.

While traditional pay television is declining globally, this is happening slowly, says Adam Thomas of Omdia. “Pay TV will continue to contribute substantial revenue for many years. Combined with strong, ongoing growth in online video, this creates a highly positive scenario and leads Omdia to forecast that the two markets together will top $1 trillion in revenue by 2030.”

Tony Gunnarsson of Omdia says that while online video subscriptions continue to grow steadily, annual growth rates are expected to reduce as streaming reaches mass-market penetration.

Global Streaming: Key trends 2025–30and Pay TV & Online Video: Global are published by Omdia.

www.omdia.com