This is the type of commercial development candidates are expected to analyse in training contract and vacation scheme applications. We explain how to approach more stories like this in our Commercial Awareness hub.

1. The first thing we will consider is the real estate shakeup happening.

Charlie Nunn, the CEO of Lloyds Bank, is proposing a new way for people to buy houses: tokenised deposits. Essentially, this involves creating a digital representation of customers’ deposits using blockchain technology. He believes that doing this, and pairing the technology with AI, could substantially cut down on how long it takes Britons to buy houses due to the efficiency of blockchain technology.

Lloyds is planning to roll out this sort of token system by 2027, and there is good reason to believe that businesses in other industries might follow suit as customers increasingly demand quicker admin processes.

This will come with a number of considerations:

• Compliance with blockchain and cryptocurrency regulations;

• The costs involved in building this digital infrastructure;

• Putting in the necessary cybersecurity protections;

• Looking to Financial Services and Real Estate lawyers to advise them

2. Netflix's acquisition of Warner Bros

Netflix has agreed to acquire Warner Bros for a total enterprise value of $82 billion. Total enterprise value refers to the equity / market value of a company and its debt - in this instance, the equity value of Warner Bros is $72 billion, and the remainder is constituted of debt. As part of this deal, Netflix would be acquiring Warner Bros’ streaming services, film studios, and TV studios. This would entail successful franchises like Game of Thrones and Harry Potter coming under Netflix’s oversight.

Netflix is the world’s biggest streaming platform, with over 300 million subscribers. As such, a deal of this magnitude would inevitably bolster Netflix’s dominance in the field.

Netflix will have to think of the following:

• How it will tackle scrutiny from antitrust regulations in the US and Europe;

• The $5 billion+ penalty it has agreed to pay Warner Bros if the deal falls apart (known as a break fee);

• Paramount’s complaint that the auction process was in favour of Netflix

  
  

Competitors will have to consider the following:

• How they will be able to compete with Netflix’s new roster of classic franchises;

• Alternative deals they might be able to secure to bridge this new gap (with Comcast and Paramount having bid in the Warner Bros auction process)

Knowing the story isn’t enough. In applications and interviews, firms expect you to explain why this matters commercially and how it affects clients. The Commercial Awareness Starter Pack shows you exactly how to do this using a simple, repeatable framework.