What the Netflix/Warner Bros. Merger Could Mean for Streaming
After The Wrap’s first report yesterday revealed that Netflix had won the bidding war for Warner Bros., the streamer stepped in this morning to confirm that it will acquire the home of HBO and HBO Max, DC Comics and Bugs Bunny for $82.7 billion. The acquisition would end attempts to merge companies like Paramount and Comcast, but the deal is also far from done.
According to Netflix, its acquisition of Warner Bros. will have to wait until at least the third quarter of 2026, to make way for the previously announced split from Warner Bros. and Discovery. Additionally, the deal will have to go through regulatory approval. Given these obstacles, businesses expect to “go out of business in 12 to 18 months.”
News of the acquisition follows Warner Bros. announced in October that it was open to a sale, at least partly motivated by its split from Discovery.
What happens next isn’t entirely clear. The Wrap reported that the deal between Netflix and Warner Bros. includes a $5 billion breakup fee in case regulators block the deal, highlighting some anxiety on the part of both companies. To that end, CNBC reports that “a senior [Trump] An administration official said the government was viewing the merger with “great skepticism,” and the New York Post and Wall Street Journal both reported yesterday that Paramount (which recently completed its own merger with Skydance Entertainment, led by Trump ally David Ellison) is currently warning the administration against allowing the deal.
It remains to be seen how regulators will react to this purchase, but if the deal goes through, it will mark a major shift for both Hollywood and consumers. Netflix hasn’t laid out full plans for how the merger would affect its customers, but in its press release it gave some hints. If a combination of Netflix and Warner Bros. was to come true, here’s how you can expect it to affect you.
HBO Max probably isn’t going away
Given that Netflix’s core business is a streaming app, the most obvious outcome of a Warner Bros. acquisition would be a streaming app. would likely be shutting down HBO Max and including its content in Netflix proper. However, it looks like we’re more likely to have a Disney+/Hulu situation, with the company running both services simultaneously.
In its post announcing the merger, Netflix said it would “keep Warner Bros. current operations”, and that HBO and HBO Max would be considered an “interesting and complementary offer” for its customers.
It’s unclear whether this means Netflix subscribers will benefit from add-on subscriptions to HBO, or if they will simply be able to add HBO to their packages as add-on “content”, although I would expect the latter interpretation to be the correct one. After all, Disney charges extra fees for users who also want to subscribe to Hulu, even as it works to kill the standalone Hulu app. There would be little reason for Netflix not to do the same.
This is supported by another line later in the press release which states that: “[b]By adding the extensive movie and TV libraries as well as HBO and HBO Max programming, Netflix members will have even more high-quality titles to choose from.
Some Warner Bros. shows. could come to Netflix
Netflix already offers a small handful of shows originally developed for HBO or HBO Max, such as Sex and the city And The Reign of the Scavenger. This is due to pre-existing content sharing agreements, but it’s possible that Netflix will continue to offer some HBO content for free to its existing subscribers, even as it continues to operate HBO as a separate entity.
For example, Netflix states in the merger announcement that “shows and movies such as The Big Bang Theory, The Sopranos, Game of Thrones, The Wizard of Oz and the DC Universe will join Netflix’s vast portfolio. “While this is likely simply an acknowledgment of acquired intellectual property, I wouldn’t be surprised to see some select shows come to Netflix from time to time, either to support sparse release schedules or to promote HBO’s subscriptions/add-ons.
What do you think of it so far?
Netflix co-CEO Greg Peters also said in the statement: “[w]With our global reach and proven business model, we can introduce to a wider audience the worlds in which they [Warner Bros.] create.” He adds that this would be an opportunity to attract “more fans to our streaming service, the best in its category”.
Expect Netflix to ramp up production in the US
Although Netflix is best known to consumers as an app, its wide selection of original content also means it functions as a production studio. Netflix says it will use the acquisition of the production side of Warner Bros. to “enhance Netflix’s studio capabilities, enabling the company to significantly expand U.S. production.”
This means viewers could expect to see more original Netflix content in the future, particularly more US-produced shows in the vein of Stranger Thingsalongside localized foreign programs like Squid game.
Players should also be careful
Alongside its film and television businesses, Netflix will also acquire Warner Bros. Games, a spokesperson confirmed to Game Developer. This means that the company will now be responsible for publishing the licensed works, as the Batman Arkham series, as well as original games, such as Mortal Combat series. Little is known about how Netflix will suddenly handle responsibility for these long-running AAA series, but given the company’s recent gaming ambitions and its promise to continue Warner Bros. operations. as usual, it is likely that these titles will continue in some capacity.
Netflix will also release DC Comics
In addition to suddenly jumping into big-budget AAA games, the acquisition of Warner Bros. by Netflix also means it takes control of DC Comics’ print business alongside its film and television businesses, as the publisher is fully owned by Warner Bros. It’s another big step for the company, although given that DC’s print business largely serves as the basis for lucrative intellectual properties like Superman and Batman, it’s likely that Netflix will do its best to keep operations there as smooth as possible. However, readers can expect some synergy between Netflix and DC, such as when Marvel began publishing new Star Wars comics shortly after Disney acquired Lucasfilm. Batman visiting the Upside-Down Stranger Things it might be more likely than you think.
Don’t expect Warner Bros. films to are directly streamed
Finally, while Netflix’s past film releases often relied on direct streaming drops supplemented with just enough theatrical presence to qualify for awards, Netflix said in its release that it plans to continue distributing Warner Bros.-produced films. as usual, “including theatrical releases for films”, but that the exclusive theatrical window could decrease. In other words, The Batman 2 I probably won’t get the At loggerheads Or Demon Hunters KPop treatment.
