The merger agreement between Paramount and Warner Bros. is one step closer to becoming a reality.

This week, Paramount settled an antitrust lawsuit brought against it by a group of state attorneys general, clearing a major hurdle for the deal to proceed. The five-year settlement includes multiple safeguards to protect the US film industry, including a commitment from Paramount to spend at least an additional $300 million each year on annual film production in the US, totaling $1.5 billion over the next five years. It also agreed to release at least 30 movies each year for the next two years, followed by 32 films per year for the three years after that.

While the settlement includes many commitments, one in particular imposes an important obligation on Paramount’s only free streaming platform, Pluto TV.

According to The Hollywood Reporter, the settlement agreement states that for the next five years, the new combined company “shall continue to maintain and make available a free, ad-supported streaming service under the Pluto TV brand or a successor or substantially equivalent replacement brand or service.”

So not only is Pluto TV likely not going anywhere, but if the merged company decides to shake things up in the next five years and move away from the Pluto TV brand, it has to make a successor service that offers similar free content.

Was Pluto TV even at risk in the first place?

It’s the only free streaming service between the two companies

After reading this new settlement agreement, it immediately made me wonder: was Pluto TV even at risk of shutting down in the first place?

Before this settlement, I don’t think there was much reason to worry about Pluto TV suddenly shutting down, especially since it’s the only free streaming service Paramount currently operates and Warner Bros. doesn’t even have a free streaming service. Imagine if Paramount merged with Warner Bros. and then, shortly afterward, shut down its only free streaming service? That would’ve caused a ton of outrage, not only among users but also among lawmakers. So I don’t think Pluto TV was ever really at risk of being shut down because of this merger.

But don’t get me wrong though, I’m glad to see it included and protected in this settlement agreement. It’s reassuring to know that the merged company will have to maintain Pluto TV, or if it decides to move away from the Pluto TV brand, a “successor or substantially equivalent service,” for the next five years if the merger is finalized. Which means that, no matter what, “ParaBros” will have some type of free streaming service.

Additionally, although there’s a lot of skepticism surrounding this merger deal, and rightly so given how consolidated Hollywood has become, I do think there’s an opportunity here for Paramount to grow Pluto TV by adding shows and movies from Warner Bros.’ extensive library.

The next step for the Paramount and Warner Bros. merger is for a federal judge to approve the settlement agreement between Paramount and the 12 state attorneys general. Once that happens, the $110 billion transaction can move toward closing, with the merger currently expected to be completed in October.

number of users

80 million

notable shows

The Andy Griffith Show (1960), Sanford and Son, The Twilight Zone, Charmed

notable movies

Top Gun, Trading Places, Mission Impossible, Indiana Jones: Raiders of the Lost Ark

Premium Subscription

No