Netflix just bought Warner Bros. Discovery for more than $80 billion — but how will that acquisition change streaming for consumers?
The two streaming services announced on Friday, December 5, that Netflix is gaining Warner Bros. with an equity value of $72 billion and enterprise value of $82.7 billion.
“This acquisition brings together two pioneering entertainment businesses, combining Netflix’s innovation, global reach and best-in-class streaming service with Warner Bros.’ century-long legacy of world-class storytelling,” Netflix said in a press release. “Beloved franchises, 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 extensive portfolio including Wednesday, Money Heist, Bridgerton, Adolescence and Extraction, creating an extraordinary entertainment offering for audiences worldwide.”
While the deal comes amid ongoing streaming wars, Netflix and Warner Bros. have plans to combine content moving forward.
2025 is a big year for TV — but which shows do we definitely know are coming back for more seasons? Apple TV+ surprised viewers by renewing Bad Monkey after the ending left the show’s future unclear. Based on the novel of the same name by Carl Hiaasen, Bad Monkey follows former police detective Andrew […]
“Our mission has always been to entertain the world,” Netflix co-CEO Ted Sarandos said in a statement. “By combining Warner Bros.’ incredible library of shows and movies — from timeless classics like Casablanca and Citizen Kane to modern favorites like Harry Potter and Friends — with our culture-defining titles like Stranger Things, KPop Demon Hunters and Squid Game, we’ll be able to do that even better. Together, we can give audiences more of what they love and help define the next century of storytelling.”
Keep scrolling for an explainer of what this merger means for TV fans:
Is HBO Max Coming to an End?
Currently, Disney+ and HBO content (both network shows and streaming projects) has been available on HBO Max. Netflix has yet to address the future of HBO Max, but it isn’t likely that it will continue to exist as a separate entity.
Will Available Content on Netflix Change?
“Today’s announcement combines two of the greatest storytelling companies in the world to bring to even more people the entertainment they love to watch the most,” president and CEO of Warner Bros. Discovery, David Zaslav, shared in a press release.
The press release stated that “beloved franchises, shows and movies” from HBO and Warner Bros. “will join” Netflix’s portfolio, which hints at content options changing in time.
What Does This Mean for Netflix Prices?
Professor of information technology and policy at Carnegie Mellon University Michael D. Smith spoke with Today about whether Netflix acquiring HBO’s film and TV catalog affects how much consumers would pay once they merge.
“They keep raising their prices, and what that tells me is they’re able to see when we raise our prices, how many subscribers do we lose?” he said. “And so the fact that they keep raising their prices says to me we’re not losing a whole lot of subscribers.”
Smith made an argument for the shift.
“For me, what it’s going to mean is I can cancel my HBO Max subscription and I’ll pay a little bit more for Netflix,” he continued. “So, for me, as someone who subscribes to both, it’s going to be a great deal.”
Smith concluded: “For people who didn’t subscribe to HBO Max, I think Netflix is going to have to say, ‘Hey, you want to watch Harry Potter? You want to watch Friends? You want to watch some of these other shows we got and now for $5 more, whatever the price is going to be, you can watch it.’ So, I think you make this a pretty compelling consumer proposition to justify any price increase.”