Netflix falls to earth – WSJ

Now, freed from lockdowns, people are watching less TV. Inflation is also squeezing personal budgets, potentially making people more selective when it comes to subscriptions. Netflix’s strategy has been to develop original content for a niche audience, but that’s expensive. It recently raised prices, but some subscribers seem to have decided that its library isn’t worth the $15.49 monthly fee for a standard subscription. A flattering documentary about the Duke and Duchess of Montecito may cost more than it excites the masses.

A decade ago, Netflix had a streaming monopoly. But new streaming platforms – NBC’s Peacock, Paramount, Disney,

hello apple,

Amazon and HBO Max – have become more competitive in part by charging less and acquiring exclusive rights to classic shows and movies. Few markets are as competitive as streaming.

That’s a point we raised when Trump’s Justice Department filed a lawsuit against AT&T‘s

Acquisition of Time Warner to protect competing streaming platforms. Courts ruled in favor of AT&T. But the telecom giant canceled the deal last year amid pressure from investors who viewed streaming as an expensive distraction. Acquisitions don’t always pay off.

Now Progressives are urging the Federal Trade Commission to reverse Amazon’s acquisition of MGM Studios. The deal was finalized last month as FTC Chair Lina Khan lacked the votes to stop it. The agency is split 2-2 on partisan lines, but President Biden’s nominee Alvaro Bedoya would give Democrats a majority to block deals. Mr. Bedoya is expected to be confirmed soon.

New York Rep. Mondaire Jones, an associate of Elizabeth Warren, called the Amazon deal a “corporate power consolidation that will undoubtedly drive up prices, lower wages and lay off even more workers.”

Where’s the evidence? Progressives think big is inherently bad, but Netflix’s billing is a reminder that today’s giants are no guarantee of future success.