In a move that has sent shockwaves through the entertainment industry, Netflix has announced its acquisition of Warner Bros. Discovery (WBD) for a staggering $82.7 billion in cash and stock. This landmark deal encompasses Warner Bros.' film and television studios, the HBO network, and the HBO Max streaming service. While the acquisition is expected to take 12 to 18 months to finalize, the immediate question on everyone's mind is: what does this mean for the future of streaming and the content we love?
What HBO Max Originals Could Move to Netflix?
The acquisition raises the prospect of select HBO Max originals finding a new home on Netflix. While nothing is definitive, several current and former HBO Max series are potential candidates. Popular series such as "House of the Dragon," and other "Game of Thrones" projects, along with DC projects like the upcoming "Lanterns" are possibilities. Other current series that could transfer to Netflix include "Euphoria," "Welcome to Derry" and comedies like "The Chair Company" and "I Love LA".
Furthermore, the deal could potentially revive shows previously removed from HBO Max, offering them a second chance on Netflix. These include titles like "Westworld," "Made for Love," "Generation," "Love Life," "Raised by Wolves," "The Nevers," "Gordita Chronicles," "Mrs. Fletcher," and "The Time Traveler's Wife". Netflix has already acquired the rights to "Love Life" prior to this acquisition.
Will HBO Max Remain a Separate Service?
Netflix has indicated that HBO Max will remain a separate streaming service until the acquisition is complete. Co-CEO Greg Peters acknowledged the power of the HBO brand, suggesting that it could either become a labeled hub within Netflix or be offered as part of a bundled subscription. The current plan is for both services to operate independently for the foreseeable future.
What About Content Licensing to Other Platforms?
In a surprising move, Netflix plans to continue licensing Warner TV shows to rival streaming platforms like Apple TV+. Ted Sarandos, Netflix co-CEO, stated that Netflix wants Warner TV to continue distributing titles to other streamers. This decision puts to rest concerns about intensified exclusivity, as it suggests that Netflix will not make these titles exclusive to its platform or HBO Max. This could mean that shows like "Ted Lasso," produced by Warner Bros. Television Group for Apple TV+, may continue to be licensed.
Will Subscription Prices Increase?
Industry analysts predict that subscription prices are unlikely to decrease and may even rise as a result of the acquisition. The combined value of Netflix and HBO Max could lead to higher prices, especially if bundled. Currently, both platforms are among the most expensive ad-free streaming services, with Netflix priced at $17.99 monthly and HBO Max at $18.49.
What are the Potential Regulatory Hurdles?
The acquisition is subject to approval from U.S. and European regulators. Combining Netflix and HBO Max would give them approximately 30% of the U.S. streaming market. The U.S. Ministry of Justice considers a significant risk to competition if a merged company's market share exceeds 30%. Netflix is expected to argue that free video platforms like YouTube and TikTok should be included in the market calculation. If regulatory approval is denied, Netflix would be required to pay Warner Bros. a $5.8 billion penalty.
The acquisition of Warner Bros. Discovery by Netflix marks a pivotal moment in the streaming landscape. While the long-term effects remain to be seen, consumers can anticipate significant changes in content availability, subscription models, and the overall competitive dynamics of the industry.
