Podcast Summary: The Brewing Backlash to Hollywood Consolidation
Podcast: The Town with Matthew Belloni
Host: Matthew Belloni (The Ringer, Puck)
Guest: Jonathan Kanter (former Assistant U.S. Attorney General for Antitrust under Biden; Professor at Washington University and Carnegie Mellon)
Date: November 19, 2025
Episode Overview
This episode addresses the intensifying debate around Hollywood consolidation, specifically focusing on the potential sale of Warner Bros. Discovery (WBD). With bids due imminently, three major suitors have emerged: Paramount (backed by the Ellison family), Comcast (Universal), and Netflix. Matthew Belloni and antitrust expert Jonathan Kanter discuss the legal, political, and industry ramifications of these potential acquisitions, examining the risks of further industry consolidation, antitrust concerns, and the broader influence of Big Tech.
Key Discussion Points and Insights
The State of the Warner Bros. Discovery Sale
- Three suitors identified: Paramount (Ellison family, looking to buy all of WBD), Comcast and Netflix (targeting only the studios and streaming side, i.e., HBO Max and Warner Bros. studios) [00:58]
- Major antitrust concerns: Any of these deals would face significant scrutiny from the DOJ, FTC, state attorneys general, and international regulators [05:09]
Antitrust Framework and Concerns
- Types of mergers:
- Horizontal: Direct competitors merging (e.g., two studios)
- Vertical: Company acquiring another to control more of the supply chain (e.g., Netflix acquiring a major content producer)
- Multiple regulators: DOJ, FCC, state AGs, international agencies (UK, EU) can delay or impede the deal [05:09]
Market Definitions and Power
- How regulators assess markets:
- Traditional: Studios as content producers/distributors; streaming platforms as competitors for consumer attention [07:01]
- Modern: Power focused, looking at entities like Google/YouTube as the biggest players [08:03]
- Monopsony concerns: Fewer buyers (studios) reduce negotiating power for content creators, similar to blocked Simon & Schuster–Penguin Random House merger [07:45]
Notable Quote
"It's like the ring in Lord of the Rings. Anyone who gets it turns crazy... At what point do you draw the line?"
— Jonathan Kanter on repeated arguments for 'scale' in media mergers [09:23]
The Big Tech Shadow
- Justification of media mergers: Merging to get "big enough" to compete with Big Tech (Google, YouTube, etc.) has historically not worked out or has led to further consolidation after a brief period [09:23]
- Kanter's suggested alternative: Instead of allowing media conglomerates to merge, target Big Tech’s power directly through antitrust enforcement [10:54]
Notable Quote
"If the media companies can't compete with these massive businesses because the tech companies have too much power, then let's do something about the tech companies."
— Jonathan Kanter [12:24]
Changing Standards in Antitrust
- Shifts from price to power: Earlier, consumer price was the main concern; now, it's also about negotiating leverage (monopsony), conflicts of interest (platforms owning content and distribution), and democracy-threatening concentrations [13:06]
Notable Quote
"If you own the platform and compete on the platform, is that really the kind of world we want?"
— Jonathan Kanter [13:46]
Political Influence and Process Risks
- Mergers becoming 'political footballs': Decisions influenced by partisan interests (Trump/Republicans backing Ellisons, targeting Netflix and Comcast for political grudges) [14:52, 25:51]
- State AGs’ role: States like CA and NY prepared to fight mergers they find problematic; effectiveness varies, but recent wins show potential [15:41, 16:15]
Analysis of the Three Main Suitors
Netflix [17:20]
- Criticisms: Republicans (Rep. Darrell Issa, Sen. Roger Marshall) argue a Netflix–WBD merger would suppress new content/theatrical releases [17:20]
- Market Power: Debate over how to define Netflix’s dominance—streaming vs. overall TV content [18:44]
- Risk to content market: Absorbing Warner Bros. would mean less variety for creators and could eventually allow price squeezing and content suppression [20:50]
- Netflix’s argument: Claims would actually increase production; only buyer ramping up output [21:25]
- Kanter’s skepticism: Every monopolist promises consumer benefits to justify mergers [22:00]
Notable Quote
"Every party to anti-competitive mergers came in and said, 'We need to be a monopoly so we can make everyone’s lives better.'"
— Jonathan Kanter [22:00]
Comcast [24:51]
- Peacock seen as weak: Needs HBO Max and global scale to compete [25:02]
- Two legacy studios merging: Universal and Warner Bros. would wield significant power; likely antitrust red flag [25:10]
- Politics: Trump’s hatred for MSNBC/Roberts family could shape outcome; attempts to 'swap faces' may not work [25:51]
- Industry sentiment: Creators largely oppose, only management/shareholders in favor [27:03]
- Kanter's principle: "Does everyone else need it? Does it harm competition?" [27:23]
Paramount/Ellison Family [28:18]
- Full acquisition: Would buy all of WBD, combining studios, news (CBS, CNN), and streaming [28:44]
- TikTok factor: With Oracle and TikTok (Ellisons’ involvement), could form vertically integrated giant possibly rivaling YouTube [28:44]
- Question of fairness: Why hold back Hollywood when Big Tech faces lighter regulation? But Kanter counters that antitrust law exists to prevent any industry from becoming too concentrated [30:32]
- Legal hurdles remain: Even with resources, law is law [30:32]
The Future of Antitrust Scrutiny
- Challenges will come: State AGs, international regulators can challenge/slow deals [32:17]
- Possible concessions: Could require Netflix or Ellisons to keep up theatrical releases or keep studios independent; challenges would drag deals out for years, possibly reducing value [32:53]
Notable Quotes
"All of these deals... have their own hair, meaning they all have their own problems. And it’s not going to get waved through quickly."
— Jonathan Kanter [32:53]
Memorable Moments & Quotes (with timestamps)
- "[About Hollywood mergers:] It's like the ring in Lord of the Rings. Anyone who gets it turns crazy..." — Kanter, 09:23
- "If the media companies can't compete...because the tech companies have too much power, then let's do something about the tech companies." — Kanter, 12:24
- "If you own the platform and compete on the platform, is that really the kind of world we want?" — Kanter, 13:46
- "Every party to anti-competitive mergers came in and said, 'We need to be a monopoly so we can make everyone’s lives better.'" — Kanter, 22:00
- "Does everyone else need it? Does everyone else want it? And is it going to harm competition?" — Kanter, 27:23
- "All of these deals... have their own hair, meaning they all have their own problems. And it’s not going to get waved through quickly." — Kanter, 32:53
Important Segment Timestamps
- WBD sale landscape and antitrust overview: [00:58] – [07:01]
- Big Tech as justification & failures of scale: [08:03] – [10:54]
- Modern antitrust theory—monopsony and concentration: [13:06]
- Political manipulation of mergers: [14:52], [25:51]
- Suitor-by-suitor analysis: [17:20] (Netflix), [24:51] (Comcast), [28:18] (Paramount/Ellison)
- Future of the process & likelihood of challenges/concessions: [32:17] – [32:53]
Tone and Language
The episode is candid and forthright, with Belloni’s pragmatic showbiz skepticism balanced against Kanter’s legal rigor and concern over unchecked industrial concentration. Frequent dry humor underscores the seriousness of the issues at stake.
Final Takeaways
- Hollywood’s urgency to consolidate is matched by growing political and legal resistance: New mergers won't solve the problems created by Big Tech's dominance—and may worsen them.
- Every merger faces significant, multi-layered scrutiny: Including DOJ, FTC, state AGs, international regulators, and political actors.
- No suitor presents a ‘clean’ option: All have negative implications for industry competition and creator leverage.
- Industry’s future may depend less on consolidation, and more on innovation or harder antitrust action against both Hollywood and Big Tech.
For listeners wanting a clear, accessible primer on why the Warner Bros. sale is such a flashpoint in the streaming wars, Big Tech dominance, and American antitrust law, this episode is essential.