Netflix's bid to buy Warner Bros. hinges on a key question: Who does it actually compete with?

"Would buying Warner Bros. give Netflix too much power? The streaming giant is telling regulators it won't, and antitrust experts say the answer ultimately depends on how you define who Netflix competes with. Does Netflix compete with only paid streaming services, a market where it dominates? What about the TV dinosaurs it disrupted, or the social video services nipping at its heels? Could sleep even be a competitor, as its cofounder Reed Hastings famously suggested?"

"Rival suitor Paramount Skydance has slammed the Netflix-Warner Bros. mega-deal as anticompetitive, arguing that it would harm consumers and Hollywood talent. Netflix is by far the largest paid subscription video streamer, and it would become even stronger with the addition of WBD's studio assets, including HBO and the Warner Bros. library (stocked with fare like Harry Potter and DC Comics)."

"Netflix, for its part, is advocating for a definition that considers total US TV viewing time. The streamer, which has expressed confidence in its regulatory case, pointed to this in a letter to its employees on Monday. "Even after combining with Warner Bros., our view share would only move from 8% to 9% in the US - still well behind YouTube (13%) and a potential Paramount/WBD combination (14%)," Netflix's co-CEOs wrote on Monday, citing Nielsen data."

Netflix is pursuing Warner Bros. assets, including HBO and the Warner library, which would bolster its position as the largest paid subscription video streamer. Rival suitor Paramount Skydance calls the proposed merger anticompetitive and says it would harm consumers and Hollywood talent. Netflix argues competition should be measured by total U.S. TV viewing time and cites Nielsen data showing a combined view share moving from 8% to 9%, still below YouTube and a potential Paramount/WBD combo. Antitrust experts expect regulators to define the relevant market narrowly around streaming, and political attention increases regulatory uncertainty.

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