- Netflix has announced an agreement to buy Warner Bros. Discovery
- The deal represents a massive restructuring for streaming, television, film and theaters.
- Experts have predicted price increases, but also simpler transmission options
The streaming world is still reeling from the explosive news that Netflix reached a $72 billion deal to buy Warner Bros. Discovery.
The deal is far from complete: competition authorities could still intervene and thwart the merger. But if the deal goes through, as many experts expect, it will be one of the biggest shakeups to the entertainment industry in decades.
Netflix would get not only the HBO Max streaming service, but also major franchises including harry potter and Game of Thrones. It’s great news not only for streaming, but also for movie theaters and theaters.
So what does all this mean for the average TV and movie fan? We asked the experts for their predictions on the Netflix-Warner Bros. Discovery deal: here are the big questions answered…
Will the deal go through?
First of all, what are the chances of this deal going through? Netflix is certainly confident, as it should be to convince regulators to approve the massive merger.
“We have a lot of confidence in the regulatory process,” Netflix co-CEO Ted Sarandos told analysts. Most analysts believe a deal is on the cards, but the consensus is that it is likely to happen after a lengthy process that could involve some concessions.
“It’s very difficult to assess the likelihood of this happening given the regulatory and political issues – given the impact this will potentially have on film, this will stoke a lot of opposition,” Tom Harrington, a TV analyst at Enders Analysis, told TechRadar.
Paolo Pescatore, founder and analyst at PP Foresight, agrees. “In light of the current regulatory environment, this will raise surprise and concern. The combined dominant streaming player will come under intense scrutiny,” he told us. “We should expect this to continue, given Paramount Skydance’s pursuit of WBD [Warner Bros. Discovery]”.
The decision ultimately depends on whether regulators will view the new giant as a streaming monopoly, Peter Ingram (research manager at Ampere Analysis) told us.
“Focusing on the United States, Netflix and HBO Max together account for just over a quarter of total streaming subscriptions. While not an overwhelming share of the market, it would still be the largest player at twice the size of its closest rival,” he said.
Still, EU antitrust experts say the deal is unlikely to be blocked. “The European Commission rarely fights these types of mergers,” Nicolas Petit (professor of competition law at the European University Institute) told Deadline.
What does it mean for Netflix and HBO Max subscribers?
So, assuming the Netflix-Warner Bros. Discovery deal goes through, what does this mean for existing subscribers?
The short answer is that Netflix subscribers will eventually have access to the HBO Max library; What’s less clear is whether HBO Max will continue as a standalone streaming service.
In announcing the deal, Netflix said that “by adding the extensive film and television libraries and programming of HBO and HBO Max, Netflix members will have even more high-quality titles to choose from.”
The elephant in the room is what that means for pricing. Netflix gave us a coded hint by adding that the move allows it to “optimize its plans for consumers, improving viewing options and expanding access to content.” Experts believe this will likely mean further price increases.
“Netflix will become more expensive and the overall increase in subscription revenue will be less than any savings by HBO, meaning increased costs for viewers,” Tom Harrington of Enders Analysis told us.
Peter Ingram of Ampere Analysis agreed. “A merger of services can lead to price adjustments, either through premium tiers or a higher price for the unified offering,” he said.
But it may not be bad news in terms of costs for everyone. According to a Futuresource Living with Digital consumer survey, 70% of HBO Max subscribers in the US already have access to Netflix. So if you subscribe to both services, or have planned to in the future, a bundled deal could work out cheaper than paying for both separately.
When could all this happen? Netflix says the deal is “expected to close in 12 to 18 months,” so don’t expect changes overnight. But that means Netflix subscribers will likely have access to HBO Max content in late 2026 or early 2027, assuming the merger goes through.
Before that, we’ll likely get more clues and details about what exactly will happen with HBO Max. If the Disney+ and Hulu merger is anything to go by, HBO Max subscribers could start receiving samples of Netflix content next year, before the two merge as a single app when the deal closes. However, the regulatory process could still intervene here.
Is this good news or bad news?
Despite the prospect of Netflix price increases, analysts believe the deal could ultimately be good news for consumers but bad news for movie theaters.
“Ultimately, this is great news for consumers as they will be able to get much more from one streamer rather than being forced to sign up with multiple providers. There are too many streamers chasing too few dollars,” said Paolo Pescatore of PP Foresight.
From a simplicity perspective, Peter Ingram of Ampere Analysis agreed. “If the two services are eventually integrated, subscribers could gain access to a broader range of content across Netflix’s expansive catalog combined with Warner Bros.” The studios’ intellectual property and library,” he said. “This would be good for consumers, simplify choice in an increasingly fragmented market and reduce the need for multiple, expensive streaming subscriptions.”
If you’ve been practicing the art of jumping between subscriptions to keep your streaming bills manageable, there may be some truth to the idea that simplicity is a net win for streaming fans. On the other hand, at what cost? Fewer options could also be seen as a bad thing to choose from.
One thing most industry insiders agree on is that the Netflix-Warner Bros. Discovery merger would be a bad thing for theaters.
Calling the merger “an unprecedented threat” to the global film business, Michael O’Leary (chief executive of trade organization Cinema United) told the BBC: “The negative impact of this acquisition will affect cinemas, from the biggest circuits to single-screen independents in small towns in the United States and around the world,” he said.
The European trade body representing film exhibitors went further. Laura Houlgatte (CEO of UNIC) told PakGazette: “This deal represents a double jeopardy. If a studio disappears, that will inevitably mean that theaters will have fewer films to screen for their audiences, leading to reduced revenue, significant theater closures and job losses in the industry.”
“By its words and its actions, Netflix has made it clear time and time again that it does not believe in theaters or its business model. Netflix has released only a handful of titles in theaters, usually for awards, and only for a very short period, denying cinema operators a fair window of exclusivity,” he added.
What did Netflix say? In its statement about the deal, the streaming giant said it “expects to keep Warner Bros.” current operations and leverage its strengths, including theatrical movie releases,” where the word “wait” does a lot of the heavy lifting there.
For now, don’t expect them to change much. “Right now, you have to expect that everything that is planned to come to theaters through Warner Bros. will continue to go to theaters through Warner Brothers,” the Netflix co-CEO told analysts.
But it’s clear that big changes are coming for streaming and theaters, and what exactly those changes will be is something that will become very clear in 2026.
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