{"id":676926,"date":"2025-12-08T00:00:00","date_gmt":"2025-12-08T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2025\/12\/08\/the-netflix-takeover-pt-2\/"},"modified":"2025-12-08T00:00:00","modified_gmt":"2025-12-08T00:00:00","slug":"the-netflix-takeover-pt-2","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2025\/12\/08\/the-netflix-takeover-pt-2\/","title":{"rendered":"The Netflix takeover, Pt. 2"},"content":{"rendered":"

? This is Part 2 of our three-part series on Netflix\u2019s acquisition of <\/strong>Warner Bros. Read Part 1 <\/strong>here<\/a><\/strong> for the business breakdown.<\/strong><\/p>\n

That\u2019s all, folks. <\/strong>Over the weekend, Netflix announced<\/a> it would acquire Warner Bros. Discovery\u2019s film and television studios, along with HBO Max, for a staggering USD 82.7 bn in enterprise value. The agreement, which positions the streaming giant as the new owner of one of Hollywood\u2019s most storied studios, brings together Netflix\u2019s global streaming dominance with a century-long legacy that includes Game of Thrones, Harry Potter, the DC Universe, as well as timeless classics like Casablanca, Citizen Kane, and The Wizard of Oz. Yes, Netflix now owns Casablanca and Citizen Kane. We bet that wasn\u2019t on your 2025 bingo card.<\/p>\n

Netflix co-CEO Ted Sarandos promises the acquisition will \u201ccreate more <\/strong>[openings] for the creative community,\u201d but Netflix\u2019s track record tells a different story. <\/strong>The streaming giant has pioneered a compensation model that systemically underpays actors and writers, potentially setting a devastating precedent for how Warner Bros.\u2019 talent will be treated.<\/p>\n

The problem isn\u2019t just low upfront salaries, it\u2019s the evisceration of residuals<\/strong> \u2014 the payments actors receive when their work is aired or streamed. In traditional television, actors could rely on residual payments as shows enter syndication, providing steady income between jobs. Netflix\u2019s model has essentially eliminated this revenue stream.<\/p>\n

Despite being one of Netflix\u2019s first major hits and helping establish the platform as a <\/strong>serious content creator, Orange Is the New Black actors were paid shockingly little<\/strong>, and receive almost nothing in residuals. Kimiko Glenn, who appeared in 44 episodes of the show as Brook Soso, famously revealed in a viral TikTok that her total foreign residuals amounted to just USD 27.3\u2026 for a show that Netflix bragged at one point had more viewers than HBO\u2019s Game of Thrones. Emma Myles, who played Leanne Taylor across six seasons, told The New Yorker<\/a> that she receives approximately USD 20 per year in residuals from the show, compared to around USD 600 annually for just four guest appearances on Law & Order: SVU.<\/p>\n

Even as the show became a global phenomenon, Diane Guerrero tended bar, Emma <\/strong>Myles worked for a financial firm, and Lori Tan Chinn considered going on food stamps. <\/strong>Alysia Reiner, who played Natalie \u201cFig\u201d Figueroa, told The New Yorker: \u201cWe all took a risk together, and the reward for Netflix does not seem in line with the reward for all of us who took that risk. I can go anywhere in the world and I'm recognized\u2026 Many people say they've watched the series multiple times, and they quote me my lines. But was I paid in a commensurate way? I don't think so.\u201d Beth Dover added: \u201cThey're telling us, \u2018Oh, we can't pay you this much, because we're pinching pennies.\u2019 But then Netflix is telling their shareholders that they're making more than they've ever made\u201d \u2014 with USD 82.7 bn to spare, it seems.<\/p>\n

Even Breaking Bad star Aaron Paul has said that he \u201c<\/strong>doesn\u2019t get paid<\/a><\/strong>\u201d by Netflix for <\/strong>his breakout and iconic role as Jesse Pinkman.<\/strong> Neither does the creator of Squid Game<\/a> \u2014 which earned Netflix USD 900 mn \u2014 despite IP ownership.<\/p>\n

This isn\u2019t a bug in Netflix\u2019s business model, it\u2019s a feature.<\/strong> As Michael Schulman explained in The New Yorker<\/a>, Netflix\u2019s residuals \u201ccome from a portion of what [they] paid Lionsgate for the license fee to air Orange Is the New Black\u2026 it\u2019s just a miniscule amount of money compared to what these actors have made on traditional broadcast and cable shows.\u201d By structuring deals to minimize residuals, Netflix maximizes income for executives and shareholders, while creative talent struggles to make rent. Sarandos himself reportedly makes tens of mns annually, while actors from his platform\u2019s hit shows work second jobs. <\/p>\n

Warner Bros. is known for treating talent well and maintaining strong relationships <\/strong>with filmmakers. That reputation \u2014 and those relationships \u2014 are now at risk.<\/strong> Many A-list stars who will undoubtedly be compensated much more generously are SAG-AFTRA members that haven\u2019t shied away<\/a> from supporting writers and crewmembers on strikes related to fair compensation, and may refuse to work with a studio that will make for a poor custodian of the industry.<\/p>\n

Opposition from within the industry has been swift. <\/strong>The Writers Guild of America has called for the deal to be blocked entirely, arguing<\/a> that it would \u201celiminate jobs, push down wages, worsen conditions for all entertainment workers, raise prices for consumers, and reduce the volume and diversity of content for all viewers,\u201d with concerns voiced by the Directors Guild of America as well as the Producers Guild of America, asserting that \u201clegacy studios are more than content libraries\u201d to be bought.<\/p>\n

The deal comes at a precarious moment for Hollywood<\/strong>, as CNN Business<\/a> observes. The industry is \u201cupset by rapidly changing consumer behavior,\u201d with the industry\u2019s default response to the crisis being consolidation. Disney bought Hulu, WarnerMedia merged with Discover, Paramount merged with Skydance. And each combination has brought layoffs, reduced job openings, and failed to deliver on promises or provide sustainable solutions. Canadian director Sasha Leigh Henry told CBC<\/a> that the merger is a harbinger of \u201cfewer options, fewer voices, and fewer decision makers coming from different perspectives... It feels like a bit of a limitation that we're gonna be experiencing in one way or another, whether that be the kinds of content or the breadth of the perspectives and filmmakers and the kinds of stories that we're being told.\u201d<\/p>\n

We may look back at 5 December 2025 as the day the movie industry died, <\/strong>not with a bang, but with a merger.<\/strong><\/p>\n

In tomorrow\u2019s commute: The cultural cost of Netflix\u2019s acquisition and what it means <\/strong>for the future of moviegoing.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Over the weekend, Netflix announced it would acquire Warner Bros. Discovery\u2019s film and television studios for a staggering USD 82.7 bn<\/p>\n","protected":false},"author":1,"featured_media":676927,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[7215],"tags":[8651,633,6655,638,7128,640],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-676926","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-for-your-commute","tag-business","tag-enterprisepm","tag-film-and-tv","tag-for-your-commute","tag-ma-watch","tag-netflix","wpautop","entry"],"acf":{"mongo_id":"5abe80eb-cb55-4f31-9943-13bf29d935d8","order":"3","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2025\/12\/440.jpg","photo_position":"above","homepage_title":"","full_issue_title":"The Netflix takeover, Pt. 2","related_issue":[676921],"teaser":"Over the weekend, Netflix announced it would acquire Warner Bros. Discovery\u2019s film and television studios for a staggering USD 82.7 bn","voice_url":"https:\/\/s3.us-east-1.amazonaws.com\/ent.news\/audio\/2025\/12\/.6ac1fa60-1ca6-4a2f-a7d1-9dc2b4470d26.mp3"},"yoast_head":"\nThe Netflix takeover, Pt. 2 - EnterpriseAM Egypt<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/egypt\/2025\/12\/08\/the-netflix-takeover-pt-2\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Netflix takeover, Pt. 2\" \/>\n<meta property=\"og:description\" content=\"Over the weekend, Netflix announced it would acquire Warner Bros. 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Discovery, valued at USD 108.4 bn","rel":"","context":"In "FOR YOUR COMMUTE"","block_context":{"text":"FOR YOUR COMMUTE","link":"https:\/\/enterpriseam.com\/egypt\/category\/for-your-commute\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2025\/12\/557.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":589597,"url":"https:\/\/enterpriseam.com\/egypt\/2023\/07\/05\/the-barbie-movie-not-coming-to-a-theater-near-you-in-vietnam-major-studios-are-axing-streaming-content-for-better-profitability\/","url_meta":{"origin":676926,"position":3},"title":"The Barbie Movie: Not coming to a theater near you in Vietnam + Major studios are axing streaming content for better profitability","author":"enterpriseam admin","date":"5 July 2023","format":false,"excerpt":"Streaming platforms are devouring the lion\u2019s share of industry income","rel":"","context":"In "FOR YOUR COMMUTE"","block_context":{"text":"FOR YOUR COMMUTE","link":"https:\/\/enterpriseam.com\/egypt\/category\/for-your-commute\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2023\/7\/137.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":583326,"url":"https:\/\/enterpriseam.com\/egypt\/2023\/02\/19\/the-battle-for-man-utd-ownership-heats-up-netflix-drops-its-surprise-me-button\/","url_meta":{"origin":676926,"position":4},"title":"The battle for Man Utd ownership heats up + Netflix drops its Surprise Me button","author":"enterpriseam admin","date":"19 February 2023","format":false,"excerpt":"The race to become Manchester United's new owner is heating up:British b\u2019naire Jim Ratcliffe and Qatar\u2019s Sheikh Jassim bin Hamad Al Thani have both submitted bids to acquire the Premier League club. Ratcliffe, the chairman of INEOS and a lifelong Man Utd supporter, made a bid for a majority stake\u2026","rel":"","context":"In "FOR YOUR COMMUTE"","block_context":{"text":"FOR YOUR COMMUTE","link":"https:\/\/enterpriseam.com\/egypt\/category\/for-your-commute\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/wp-content\/uploads\/2023\/02\/glazersout_1600.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":664781,"url":"https:\/\/enterpriseam.com\/egypt\/2025\/05\/06\/cut-camera-industry-collapse\/","url_meta":{"origin":676926,"position":5},"title":"Cut, camera, industry collapse","author":"enterpriseam admin","date":"6 May 2025","format":false,"excerpt":"Trump took to Truth Social to express his grievances with Hollywood\u2019s current state, and announce a 100% tariff on foreign films. 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