While consolidation can unlock capital and scale, it also raises fundamental questions about competition, creative independence and who ultimately benefits from growth in the creative industries.

The policy context: consolidation meets creative strategy

The UK Government has made clear its ambition to position the creative industries as a major engine of economic growth. Earlier this year, it announced a Creative Industries Sector Plan promising £380 million of investment for creative professionals and businesses, with the sector expected to contribute £31 billion to the economy by 2035.

At the same time, global media companies are under pressure to scale up content libraries, reduce costs and compete more effectively in the streaming wars. Acquiring established studios such as Warner Bros. is one way to do that.

The challenge for policymakers is aligning these two dynamics: encouraging inward investment while safeguarding a diverse and competitive domestic production ecosystem.

Why independent British studios are vulnerable

Mandy Girder, Partner, warned:

The looming concern for the British film industry is that consolidation risks reducing competition, weakening the position of independent producers, and narrowing opportunities for original British storytelling. Some of the UK’s independent studios are already struggling. Aardman, which is behind many of Britain’s most recognisable animations had a £5m loss in 2024.

This financial fragility matters. Independent studios are often the source of distinctive British voices and formats that later scale internationally. If they are squeezed out, the industry risks becoming more homogeneous and more dependent on overseas decision-makers.

Investment upside – but who really benefits?

The UK is a major production base for Warner backed film and high-end television, and any change in ownership could bring increased investment in large scale productions. But this money and the opportunities resulting from it needs to support the interests of British creatives and media businesses, not just those of the acquiring party.

Without safeguards, increased spending may primarily benefit large studios and service providers, while smaller producers see little long-term gain or lose rights to the content they create.

Structural risks for the wider media ecosystem

Beyond individual studios, consolidation has broader implications for how the UK media market functions. Fewer buyers can mean fewer routes to market. Greater emphasis on global streaming platforms may shift release strategies away from cinemas, placing further pressure on an already challenged exhibition sector.

Other key concerns for the British media industry include fewer commissioning buyers, pressure on intellectual property ownership, and possible shifts towards streaming first releases that could further challenge UK cinemas. Any change in Warner Bros. executive leadership team has the potential consequence of shifting priorities of the new consolidated group.

These shifts may be commercially rational at a global level, but they can conflict with the UK’s cultural and economic objectives if left unchecked.

A test case for government intervention

The Creative Industries Sector Plan announced earlier this year promised a £380 million investment for creative professionals and businesses across the UK, which would double to £31 billion by 2035. In light of the proposed acquisition, the Government must ensure the lion’s share of this money goes to independent studios and creators.

Mandy concluded:

The outcome of this proposed acquisition will be an important test of how global media consolidation can be balanced with the UK’s creative, cultural and economic interests.

Why it matters to businesses and individuals

For media businesses, the deal could reshape commissioning, funding and rights ownership for years to come. For investors and advisers, it underscores the importance of understanding regulatory risk and sector-specific policy. For individuals, from creatives to cinema-goers, it affects the diversity of stories told and how they are consumed.

What you should consider or do next

Independent studios and creators: Review your IP strategy, funding mix and contractual protections to ensure resilience in a more consolidated market.

Investors and media groups: Factor in regulatory scrutiny and potential policy conditions when assessing acquisition value and integration plans.

Professional advisers: Help clients model different outcomes, including changes to commissioning behaviour, tax incentives and funding access.

Policymakers and industry bodies: Use the Creative Industries Sector Plan strategically to reinforce competition, capability and creative diversity.

Would you like to know more?

If you have any questions, please get it touch with your usual Blick Rothenberg contact or Mandy using the form below.