- Netflix’s bid for Warner Bros Discovery has just been hit by a consumer class action lawsuit
- It was introduced by HBO Max subscriber Michelle Fendelander, who expressed concerns about what the deal could do to the industry.
- Netflix has responded to Fendelander’s lawsuit, calling it “baseless”
Netflix’s ongoing legal battle to acquire Warner Bros. Discovery (WBD) just got personal, and now the company is facing its first class-action lawsuit, issued by an HBO Max subscriber of all people.
The lawsuit, led by Las Vegas resident and HBO Max loyalist Michelle Fendelander, was filed Monday in U.S. District Court in San Jose. Fendelander sued Netflix over fears that its bid to buy WBD would lessen competition among streaming services, harming the entertainment industry as a result.
Last week, Netflix agreed to an $82.7 billion deal to buy WBD, meaning all HBO shows and its flagship streaming platform HBO Max would become part of the Netflix family, including popular franchises like harry potter, game of Thronesand the DC Comics franchises.
Since the deal was revealed, it has sparked a wave of concern among consumers, especially regarding the potential impact it could have on theaters and theatrical releases. This is also a concern of Fendelander who, in his lawsuit, asked the court to order an injunction to prevent Netflix from merging with WBD, sharing the following:
“American consumers, including SVOD buyers like the plaintiff, an HBO Max subscriber, will be hardest hit by this reduced competition, paying higher prices and receiving degraded and diminished services for their money.”
However, Netflix isn’t going down without a fight given its reputation for being one of the best streaming services out there, and responded to Fendelander by calling his lawsuit “simply an attempt by the plaintiffs’ bar to take advantage of all the attention on the settlement.” Amid the legal chaos, Netflix has assured consumers that it plans to keep Warner Bros.’ commitment to showing movies in theaters, but Fendelander is still not convinced.
Not only could the merger of this company lead to more price increases (for which Netflix is already facing a huge backlash), but Fendelander has expressed concern about the creative repercussions and shared another statement in his lawsuit:
“The elimination of this rivalry is likely to reduce overall content production, decrease the diversity and quality of content available, and reduce the spectrum of creative voices appearing on major streaming platforms.”
The legal battle between Netflix and WBD has not yet reached a conclusion, but its dramatic development has caught the attention of Congress, and now even Trump could weigh in on whether the deal moves forward. Netflix seems determined to come out on top, but with Paramount Skydance’s latest $108.4 billion counteroffer now on the table, it could go either way.
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