Netflix simply purchased Warner Bros. Discovery for greater than $80 billion — however how will that acquisition change streaming for shoppers?
The 2 streaming providers introduced on Friday, December 5, that Netflix is gaining Warner Bros. with an fairness worth of $72 billion and enterprise worth of $82.7 billion.
“This acquisition brings collectively two pioneering leisure companies, combining Netflix’s innovation, world attain and best-in-class streaming service with Warner Bros.’ century-long legacy of world-class storytelling,” Netflix mentioned in a press launch. “Beloved franchises, exhibits and films reminiscent of The Massive Bang Idea, The Sopranos, Sport of Thrones, The Wizard of Oz and the DC Universe will be a part of Netflix’s in depth portfolio together with Wednesday, Cash Heist, Bridgerton, Adolescence and Extraction, creating a unprecedented leisure providing for audiences worldwide.”
Whereas the deal comes amid ongoing streaming wars, Netflix and Warner Bros. have plans to mix content material transferring ahead.
“Our mission has all the time been to entertain the world,” Netflix co-CEO Ted Sarandos mentioned in a press release. “By combining Warner Bros.’ unbelievable library of exhibits and films — from timeless classics like Casablanca and Citizen Kane to fashionable favorites like Harry Potter and Mates — with our culture-defining titles like Stranger Issues, KPop Demon Hunters and Squid Sport, we’ll be capable to do this even higher. Collectively, we may give audiences extra of what they love and assist outline the subsequent century of storytelling.”
Hold scrolling for an explainer of what this merger means for TV followers:
Is HBO Max Coming to an Finish?
At the moment, Disney+ and HBO content material (each community exhibits and streaming initiatives) has been accessible on HBO Max. Netflix has but to handle the way forward for HBO Max, however it isn’t doubtless that it’s going to live on as a separate entity.
Will Out there Content material on Netflix Change?
“As we speak’s announcement combines two of the best storytelling corporations on the planet to deliver to much more folks the leisure they love to look at probably the most,” president and CEO of Warner Bros. Discovery, David Zaslav, shared in a press launch.
The press launch acknowledged that “beloved franchises, exhibits and films” from HBO and Warner Bros. “will be a part of” Netflix’s portfolio, which hints at content material choices altering in time.
What Does This Imply for Netflix Costs?
Professor of data expertise and coverage at Carnegie Mellon College Michael D. Smith spoke with As we speak about whether or not Netflix buying HBO’s movie and TV catalog impacts how a lot shoppers would pay as soon as they merge.
“They preserve elevating their costs, and what that tells me is that they’re capable of see after we increase our costs, what number of subscribers will we lose?” he mentioned. “And so the truth that they preserve elevating their costs says to me we’re not shedding an entire lot of subscribers.”
Smith made an argument for the shift.
“For me, what it’s going to imply is I can cancel my HBO Max subscription and I’ll pay a bit bit extra for Netflix,” he continued. “So, for me, as somebody who subscribes to each, it’s going to be an awesome deal.”
Smith concluded: “For individuals who didn’t subscribe to HBO Max, I feel Netflix goes to must say, ‘Hey, you wish to watch Harry Potter? You wish to watch Mates? You wish to watch a few of these different exhibits we bought and now for $5 extra, regardless of the worth goes to be, you’ll be able to watch it.’ So, I feel you make this a reasonably compelling client proposition to justify any worth enhance.”
