The Journal. – "The Man Who Wants Netflix to Save Hollywood"

Date: January 8, 2026
Hosts: Ryan Knudson
Guest: Joe Flint (WSJ reporter)
Podcast: The Journal (WSJ & Spotify Studios)

Episode Overview

This episode examines Netflix's groundbreaking attempt to acquire Warner Brothers, a move that could reshape Hollywood’s power dynamics. Through a deep dive into Ted Sarandos’ unconventional rise and leadership style, hosts Ryan Knudson and guest Joe Flint explore how Netflix transformed content deals, antagonized the old guard, and is now fighting battles on multiple fronts—against both industry competitors like Paramount and wary government regulators.

Key Discussion Points & Insights

1. Netflix’s Bid for Warner Brothers: Disrupting Hollywood

• Announcement & Industry Reaction

  • Netflix's tentative $72 billion deal to acquire Warner Brothers stirs unease, especially among traditional Hollywood creatives and studios.
  • Joe Flint describes Hollywood’s anxiety about Silicon Valley “disruptors” overtaking creative control:

    "They're a tech company. What are they gonna do? Are we all gonna be making movies and TV shows based off their algorithms and creativity will fly out the... So all the Netflix boogie monsters are coming out right now." (00:14–00:38)

• Stakes in the Merger

  • If successful, the acquisition would meld the largest streaming service (Netflix) with a classic Hollywood studio, consolidating power and content libraries.
  • Concern among Hollywood professionals about one less buyer for content—lessening competition and opportunities.

2. Ted Sarandos: Video Store Clerk to Streaming King

• Sarandos’ Background & Rise
  • Grew up in Arizona, worked at a video store, became a regional content distributor. Early passion for indie movies set him apart.
  • Reputation for savvy deal-making led Reed Hastings to recruit him to Netflix in 2000 as head of content acquisition.
  • Early vision: Netflix must create its own original programming to control its destiny.
    • Ted Sarandos (previous interview):

      "...In this world where we're going to be a digital channel, and I don't know of any network or that exists that doesn't have some form of original differentiating program from each other." (03:57–04:13)

3. Rewriting the Hollywood Deal-Making Playbook

• Unique Content Deals

  • Netflix upended norms by giving creators big upfront payments, buying out backend and syndication rights.
    • Joe Flint:

      "We're gonna give you all this money upfront. And in return, of course, the show's ours now. You know, we're going to keep it for ourselves... At first this was like— the town was like, 'Ooh, this is awesome... I don't have to wait around for this money.'" (04:35–05:03)

• "House of Cards" Breakthrough

  • Netflix’s risk: greenlighting two seasons upfront—no pilot, full trust in David Fincher and Kevin Spacey’s vision.
  • Creator-first approach combined necessity and a deliberate edge over incumbents.

• Broad Genre Domination

  • Netflix rapidly diversified into genre-defining originals:
    • House of Cards, Orange Is the New Black, Arrested Development revival, Stranger Things
    • Pushed aggressively into stand-up comedy (Chris Rock, Dave Chappelle), luring major talent while rivals faltered.

4. From Darling to Dominator: Hollywood’s Changing Attitude

• Initial Creator Enthusiasm Turns to Wariness

  • Creators enjoyed upfront deals but later questioned payment fairness, given Netflix’s secrecy around viewership data.
    • Joe Flint:

      "Some creators begin to wonder, but am I getting paid enough? ... How do I really know how popular it is if we don't test the waters to sell the rerun somewhere? ... Netflix is very cautious about the information they release in terms of who's viewing it." (09:12–09:36)

• Distribution Model Friction

  • Netflix eschewed traditional theatrical releases, angering theater chains and Hollywood purists.
    • Joe Flint:

      "Oh, my God. You can't not put a movie in the theaters. Are you insane, man? ... Ted's belief was, hey, people want to watch stuff at home, and we're about the customer first..." (09:41–10:33)

5. Sarandos’ Perspective: “We’re Saving Hollywood”

• Pushback Against Critics

  • Sarandos insists Netflix is a lifeline, not a destroyer, for a struggling industry:

    • Ryan Knudson:

      "Have you destroyed Hollywood?"
      Ted Sarandos:
      "No, we're saving Hollywood." (11:11–11:12)

  • Argument: Netflix invests more money than ever in content, offers global reach, and innovates access for both creators and audiences.

    • Joe Flint:

      "Look at how much money we invest in movies and TV... We're not here to ruin it. We're here to build it out..." (11:14–11:38)

6. The Business Battle: Paramount’s Counter-Bid

• Rival Offer
  • Paramount, backed by David and Larry Ellison, is aggressively pursuing Warner with repeated and increasing bids, promising up to $40B personal guarantee from Larry Ellison.
    • Joe Flint:

      "Paramount is still aggressively pursuing Warner. They are not taking no for an answer." (12:18)
      "The question becomes, is Paramount gonna come back now with a sweeter offer? And if they do, does Netflix come back with a sweeter offer too? Or does Netflix say, eh, no, we're out." (13:05–13:17)

7. Regulatory Hurdles & DC Lobbying

• Political Scrutiny

  • The deal’s size and impact draw government and industry attention; President Trump has weighed in on its significance and anti-competitive risks.
    • Joe Flint:

      "President Trump, he's expressed some concern about Netflix. He's praised Netflix and Ted Sarandos, but also said their size is a concern." (13:38–14:05)

• Industry Objections

  • Cinema United (theater owners’ group) argues the merger would devastate theaters and diminish consumer choice.
  • Sarandos (public statement):

    "We think it's gonna be great for consumers, really great for creators. You know, we invest heavily in production and then we intend to run those businesses exactly like they run today." (14:25–14:35)

• PR and DC Strategy

  • Netflix launches a lobbying and PR blitz: websites, direct appeals, hiring DC talent with strong GOP/Trump connections, arranging CEO meetings with the President.
    • Joe Flint:

      "He [Sarandos] did go to the White House before this deal with Warner was officially announced. Netflix has been hiring lobbyists as well who have close Republican and Trump ties..." (15:10–15:51)

8. The Hollywood Ending?

• Sarandos’ Victory Lap

  • Photo ops at Warner studios, walking the lot and reflecting on Hollywood’s legacy—a symbolic near-triumph.
    • Joe Flint:

      "It was almost a victory lap, even though the deal hasn't closed. ... Ted Sarandos is, you know, a lover of old Hollywood. He loves creatives. He loves the quote, unquote, Hollywood magic." (16:33–17:04)

• Personal Arc

  • Sarandos’ journey from a Phoenix video store to entertainment’s zenith is worthy of a movie itself.
    • Joe Flint:

      "If this deal goes through and is successful, I mean, you'd pitch it as a movie. The guy in a video store ends up running all of Hollywood..." (17:15)

Notable Quotes & Memorable Moments

• "Some might argue Ted is already the king of Hollywood. But if he gets the Warner deal, he'll have a castle to go with his kingdom."
  —Joe Flint (01:14)

• "Here's a big fat check."
  —Ryan Knudson & Joe Flint (05:04)

• "No, we're saving Hollywood."
  —Ted Sarandos (11:11)

• "They produced House of Cards, but they haven't really had to play House of Cards, right?"
  —Ryan Knudson (16:05)

• "It was almost a victory lap, even though the deal hasn't closed. ... He loves the quote-unquote, Hollywood magic."
  —Joe Flint (16:33–17:04)

• "The guy in a video store ends up running all of Hollywood..."
  —Joe Flint (17:15)

Timestamps for Important Segments

• 00:05-01:24 — Netflix’s Warner deal, industry anxiety, Ted Sarandos
• 02:26-03:54 — Sarandos’ origin story & career beginnings
• 03:54-06:02 — Netflix’s new content model, first major hits, creator relations
• 06:02-07:13 — Netflix’s genre expansion and comedy push
• 07:13-09:04 — Co-CEO promotion, Chappelle controversy, talent loyalty
• 09:04-10:33 — Creator misgivings, data secrecy, clash with theatrical tradition
• 10:52-11:38 — Sarandos’ defense: “saving Hollywood,” Netflix’s global content argument
• 11:38-13:17 — The Paramount face-off: rival bids escalate
• 13:38-15:51 — Politics, regulation, and Netflix’s DC offensive
• 16:24-17:15 — Sarandos’ near-victory lap at Warner, Hollywood fairytale

Tone & Language

The conversation is fast-paced, sharp, and often tongue-in-cheek, demonstrating both awe and skepticism toward Netflix’s industry-shaking moves. Sarandos is depicted as pragmatic, creator-friendly, but also fiercely competitive and unafraid to challenge the old guard—unless, as the episode suggests, he needs to learn Washington’s own rules of power.

Ideal for listeners curious about:

• How Netflix changed Hollywood’s basic business deals
• The rise of tech in entertainment
• Political and business intrigue behind historic media mergers
• The personal saga of Ted Sarandos, from fanboy to mogul

End of summary.