zlacker

>>meetpa+(OP)
Any consolidation like this seems like a negative for consumers. But at least it wasn’t bought by Larry Ellison, as was considered very likely (assuming this merger gets approved, in the current administration you never know).

From a Hacker News perspective, I wonder what this means for engineers working on HBO Max. Netflix says they’re keeping the company separate but surely you’d be looking to move them to Netflix backend infrastructure at the very least.

>>afavou+Jd
> Any consolidation like this seems like a negative for consumers

This is a very common narrative to this news. But coming into this news, I think the most common narrative against streaming was essentially "There is not enough consolidation." People were happy when Netflix was the streaming service, but then everyone pulled their content and have their own (Disney, Paramount, etc.)

>>noneth+Rp
I think you're right, but I've always been a bit skeptical of that vision -- it implicitly relies on the assumption that "THE streaming service" will choose to make as much content available as technically and legally possible; they're imagining something like "Spotify but for movies and TV shows". But I was always worried about "Apple's App Store but for movies and TV shows": one company with ultimate gatekeeper status over what you can and can't legally watch. (The movie and television business is not like the music business; the financial incentives don't, as far as I can tell, support the same kind of distribution models.)

I'm not particularly thrilled about this kind of consolidation, but given that Warner was going to be bought by somebody, Netflix may be one of the least worst outcomes.

>>chipot+gy
HBO owns Westworld and stopped streaming it to avoid paying residuals.

>>themer+KV
Wow. That is dysfunctional.

I would be curious how the financial wires got crossed.

I would have assumed residuals were proportional to views, and views valued proportionally as contributing to subscription demand. And it would be a rare viewer to watch one show like that, over & over. I.e. only upside. Something went sideways.

>>Neverm+f91
I think that a show like Westworld is a great example of the realities of the streaming era. If HBO kept streaming it on HBO Max it probably costs them $2-4 million in residual liabilities. HBO removed dozens of scripted shows during that phase, and had a mandate to cut around $3B in post merger costs.

After Year 1, WGA/SAG residual formulas decrease: Year 2: ~80% of Year 1 Year 3: ~55% Year 4+: sometimes stabilize at a “floor” rate

So what did they do? They ran it for a few years, ran the numbers, realized that Westworld was no longer profitable on the platform. (Profitable would have to mean draws enough new subscribers to the platform). AND THEN - Warner Bros. Discovery made new deals with other platforms with ads. I think you can still find Westworld on Tubi and other ad-supported platforms that actually pay Warner licensing fees.