The UK’s competition watchdog has raised serious concerns over the $111bn merger of Warner Bros and Paramount, warning that the deal could stifle competition in the streaming market and push up prices for British households. The Competition and Markets Authority (CMA) said late last night that the merger “may substantially lessen competition” in the supply of film and television content, as well as in the distribution of streaming services. The deal, which would create the world’s largest media conglomerate, was approved by US regulators on Thursday, but faces a Phase 1 investigation in the UK.
Labour unions have welcomed the scrutiny, with the Broadcasting, Entertainment, Communications and Theatre Union (BECTU) stating that “this merger threatens jobs and creative diversity”. The CMA has given the companies five days to offer legally binding remedies or face a full investigation that could block the deal entirely. For workers in Manchester’s production hub, the news is a fresh reminder of the fragility of the city’s creative economy.
Warner Bros has a major base in Leavesden, while Paramount’s UK operations are centred in London. The deal would concentrate power in the hands of a single behemoth, making it harder for independent producers to get their content seen. The merger follows a wave of consolidation in the entertainment industry, which has been criticised for driving up costs for consumers.
The price of streaming subscriptions has risen by an average of 25% in the past year alone, according to consumer group Which?. With household budgets already stretched by rising energy bills and food costs, any further increase would be a bitter pill to swallow. The CMA’s decision sets the stage for a bruising battle.
If the companies fail to address the concerns, the merger could be scuppered – a rare move by UK regulators in the media sector. For now, workers and viewers alike are watching closely.
