Warner Bros. Discovery Inc. (WBD.US) has decided to spin off into two independent companies, marking the beginning of a larger "reshuffling" in the entire media Industry.
According to Zhithong Finance APP, Netflix (NFLX.US) co-CEO Greg Peters said on Thursday that Warner Bros. Discovery (WBD.US) has decided to split into two independent companies, marking a larger scale "reshuffling" for the entire media industry, which is increasingly dominated by streaming and on-demand services.
Peters stated, "Everything is shifting towards streaming, everything is shifting towards on-demand. This brings a period of reshuffling and transition."
Faced with the costly streaming wars initiated by companies like Netflix and Amazon Prime, American media groups have struggled to improve profitability.
Warner Bros. Discovery announced this week that it will split into two companies to free the rapidly growing streaming business from struggling traditional media channels. Comcast (CMCSA.US) has also taken similar actions.
Peters stated, "They must streamline their business based on the reality of streaming demand. We are indeed seeing the results of doing so." When asked whether established companies in the market would merge, he said, "It is inevitable."
That said, Peters noted that Netflix is generally not keen on acquisitions. He remarked, "Our track record shows that we are builders, not buyers." However, he also mentioned that Netflix is looking to enhance the value of its intellectual property.
Peters stated that Netflix's user base is growing in all markets. He added, "We have a lot of growth potential in Asia," with strong growth in the South Korea and India markets.
