With its planned acquisition of Warner Bros., Netflix is ready to make a significant move into studio ownership. This acquisition may change the global content landscape and bring together two of the most potent entertainment collections in the world under one roof.
According to reports, Netflix has struck a deal to buy Warner Bros. Discovery’s studios and streaming division for around US $72 billion (almost A$110 billion). However, the acquisition is still pending regulatory clearances and a complicated division of WBD’s cable networks.
In addition to Warner Bros. film and television studios, the acquisition would give Netflix access to a century’s worth of Warner Bros. library content and popular franchises like Harry Potter, The DC Universe, Game of Thrones, and The Lord of the Rings.
This agreement is far from complete, even if the figures seem final. Warner Bros. Discovery must split and perhaps sell its conventional television assets, including as CNN and its network of cable channels, which are still outside the purview of the transaction, before it can complete.
With this action, CEO David Zaslav would essentially reverse the merger that united these companies only a few years before.
Even then, approvals may take more than a year, and Netflix is unlikely to acquire control until at least late 2026. The protracted Skydance and Paramount process serves as a reminder that large acquisitions go at a sluggish industry speed rather than on streaming time, if recent experience is any indication.
According to reports, Paramount-Skydance made a strong effort to include Warner Bros. in its expanding empire by making a proposal for the whole company. However, the studio is now farther out of reach when Netflix outbid the competition and entered exclusive talks.
According to reports, the David Ellison-led business is even considering a hostile acquisition with important stakeholders, highlighting how fiercely big firms are now negotiating for scale in a sector where survival is increasingly dependent on size.
The initial effect on viewers will not be as dramatic as the price tag implies. According to industry rumors, Netflix and HBO Max will remain distinct services for the foreseeable future, with bundling appearing as the most probable initial step.
In light of the fact that many users are probably currently paying for both platforms, members may soon get cheaper bundles that include both.
Even if the merger closes, it may not seem like a huge change in Australia. Currently, Netflix and HBO Max are different services in this area, so bundling would be the most probable early adjustment rather than an abrupt redesign of local products or price.
Discovery, TLC, ID, Animal Planet, and Discovery Turbo are among Warner Bros. Discovery’s current pay-TV channels in Australia that are accessible on Foxtel, Binge, and Fetch and are anticipated to be unaffected by the Netflix takeover.
Instead of joining Netflix’s soon-to-be streaming and studios portfolio, these networks, which are still a part of the conventional television ecosystem, are anticipated to join the planned spin-off business.
Because Warner Bros. Television Production Australia is part of a distinct production business that creates shows for all networks rather than just one parent platform, it is also unlikely to see significant disruption locally.
Producing House Hunters Australia and Impractical Jokers for Ten, The Twelve and the upcoming drama Run for Binge, Selling Houses Australia for Foxtel, The Golden Bachelor for Nine, Who Do You Think You Are? for SBS, and the ABC’s new drama URZILA, the studio continues to be a major supplier throughout the industry.
