<\/p>\n
Hollywood is reeling from the news that Warner Bros. Discovery has agreed to sell its movie, TV and streaming operations, including HBO Max, to Netflix, in a deal that if successful would dramatically reshape the entertainment industry.\u00a0<\/p>\n
The $82.7 billion agreement, announced Friday, puts one of the most legendary film studios in the hands of the largest streaming platform holder.<\/p>\n
There are few details about what is included in the deal, but Netflix said the acquisition is expected to close in 12 to 18 months, pending regulatory approvals, consent from Warner Bros. shareholders \u201cand other customary closing conditions,\u201d according to a statement issued by the company.<\/p>\n
Netflix would gain access to Warner Bros.\u2019 stable of classic films along with its biggest contemporary movie and TV franchises, including \u201cHarry Potter,\u201d \u201cGame of Thrones\u201d and DC Comics heroes such as Batman and Superman. Beyond that, there are no guarantees about how the streamer might restructure or consolidate Warner Bros.\u2019 streaming service or even if the historically theater-averse company will remain committed to releasing movies in cinemas.<\/p>\n
Netflix co-CEO Ted Sarandos called the acquisition \u201cpro-consumer, pro-innovation, pro-worker, pro-creator\u201d and \u201cpro-growth\u201d in an investor call on Friday<\/a>. But Laurel Ahnert<\/a>, an assistant teaching professor of communication studies at Northeastern University, isn\u2019t so sure.\u00a0<\/p>\n She said the deal is part of an ongoing \u201cfrenzy of consolidation\u201d that has shaped the media landscape over the last decade, which she said is \u201cbad for workers\u201d and potentially \u201cbad for consumers.\u201d\u00a0<\/p>\n Ahnert said one immediate concern is the shrinking choice available to consumers. While Netflix\u2019s library will \u201cexpand dramatically\u201d in the short term, the streaming platform would become an even more powerful gatekeeper, with the power to decide when and how audiences can access the content they want \u2014 and at what price.\u00a0<\/p>\n \u201cThey get to decide when we get to access the content we want to access, it\u2019s not different streaming services competing with each other,\u201d Ahnert said.\u00a0<\/p>\n As streaming services compete on the size and depth of their libraries, expanding catalogues becomes the key value proposition for retaining subscribers. The acquisition, she said, reinforces \u201can illusion of limitless access,\u201d while centralizing control in fewer hands.<\/p>\n Netflix was already the most dominant force in streaming prior to the acquisition. Over the past couple of years, Netflix has posted consistently strong revenue growth, with full-year earnings rising from about $33.7 billion in 2023 to roughly $39 billion in 2024, according to the company\u2019s revenue and usage statistics<\/a>. The second quarter of 2025 brought more positive news, with revenue rising another roughly 16% year over year.<\/p>\n The acquisition also raises alarm bells for Hollywood creatives, who now have one less major studio to pitch their ideas to in a competitive marketplace that is shrinking by the day.<\/p>\n \u201cI think there\u2019s going to be a rebellion,\u201d Ahnert said. \u201cI think that artists want to make art, you know, and they\u2019re going to find ways to do it. I hope that we might see a renaissance of independent media.\u201d<\/p>\n The Writer\u2019s Guild of America has already come out in opposition to Netflix\u2019s acquisition.\u201cThe outcome would eliminate jobs, push down wages, worsen conditions for all entertainment workers, raise prices for consumers, and reduce the volume and diversity of content for all viewers,\u201d the Writers Guild of America said in a statement<\/a>.<\/p>\n Netflix\u2019s move could push competitors to pursue their own mergers or acquisitions to keep pace, Ahnert said. At the same time, the deal raises questions about whether Netflix will begin to resemble a more traditional media conglomerate, diversifying across multiple entertainment sectors \u2014 or whether it will remain primarily a streaming platform for film and TV.<\/p>\n \u201cSo, is Netflix \u2026 going to turn into a legacy media company? Is it going to start its own record label? I don\u2019t know,\u201d she said.\u00a0<\/p>\n Sarandos said in a statement<\/a> that the acquisition \u201cwill improve our offering and accelerate our business for decades to come,\u201d citing Warner Bros. track record dating back over a century and its \u201cphenomenal creative executives and production capabilities.\u201d<\/p>\n \u201cWith our global reach and proven business model, we can introduce a broader audience to the worlds they create \u2014 giving our members more options, attracting more fans to our best-in-class streaming service, strengthening the entire entertainment industry and creating more value for shareholders,\u201d Sarandos said.\u00a0<\/p>\n Whether that includes theatrical releases for movies is a lingering question. Netflix has historically focused on streaming, not the traditional release model, with the exception of certain limited theatrical releases to qualify for awards season. The company\u2019s success has essentially forced almost the entire industry to follow suit, with legacy studios wading into streaming.<\/p>\n What Netflix chooses to do with its releases, and now Warner Bros.\u2019 content, could mean a lot for theater chains, which are still struggling after the COVID-19 pandemic.\u00a0<\/p>\n During the Friday investors call, Sarandos said Netflix expects to continue releasing Warner Bros. movies in theaters. However, he did push back on longer theatrical windows for movies, which he said are not \u201cconsumer-friendly.\u201d<\/p>\n Ahnert said it\u2019s an extension of Netflix\u2019s overall strategy to make \u201cour first access point and presumed access point\u201d the streaming platform, with specialized theatrical releases reserved for the fifth and final season of \u2018Stranger Things.\u2019<\/a><\/p>\n \u201cBut this isn\u2019t the death of the industry,\u201d Ahnert said. \u201cI think people will continue to consume media and make media. It just means that we\u2019re in this very uncertain, transformative time and nobody can really predict what happens next.\u201d<\/p>\n