- Netflix has announced a deal to buy Warner Bros. Discovery
- The deal is a massive shake-up for streaming, TV, movies and cinemas
- Experts have predicted price increases, but also simpler streaming options
The streaming world is still reeling from the bombshell news that Netflix has struck a $72 billion deal to buy Warner Bros. Discovery.
The deal is far from complete – the competition authorities can still intervene and abolish the merger. But if the deal goes through, as many experts expect, it will be one of the biggest shakeups in the entertainment industry in decades.
Netflix would not only get the HBO Max streaming service, but also major franchises, including Harry Potter and Game of Thrones. This is massive news, not only for streaming, but also for theaters and cinemas.
So what does all this mean for the average TV and movie fan? We asked experts for their predictions about the Netflix-Warner Bros. The Discovery Agreement – here are the big questions answered…
Will the deal go through?
First, how likely is this deal to go through? Netflix is certainly confident, as it needs to be to convince regulators to greenlight the massive merger.
“We are very confident in the regulatory process,” Netflix co-CEO Ted Sarandos told analysts. Most analysts believe the deal is in the balance, but the consensus is that it is likely to go through after a lengthy process that may involve a few concessions.
“It’s very difficult to assess the likelihood of it going through given both the regulatory and political issues: given the impact this will potentially have on the cinema, this will raise a lot of opposition,” Tom Harrington, a TV analyst at Enders Analysis, told TechRadar.
Paolo Pescatore, founder and analyst at PP Foresight, agreed. “Given the current regulatory environment, this will raise eyebrows and concerns. The combined dominant streaming player will be closely scrutinized,” he told us. “We should expect this to be contentious given the Paramount Skydance pursuit of WBD [Warner Bros. Discovery]”.
The decision ultimately depends on whether regulators will see the new giant as a streaming monopoly, Peter Ingram (Research Manager at Ampere Analysis) told.
“Focusing on the US, 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 remain the largest single player at twice the size of its nearest rival,” he said.
Still, EU antitrust experts say the deal is unlikely to be blocked. “The European Commission rarely fights these kinds of mergers,” Nicolas Petit (Professor of Competition Law at the European University Institute) told Deadline.
What does this mean for Netflix and HBO Max subscribers?
So if we assume that Netflix-Warner Bros. Discovery deal goes through, so what does that mean for existing subscribers?
The short answer is that Netflix subscribers will eventually gain access to the HBO Max library — what’s less clear is whether HBO Max will continue as a separate streaming service.
In Netflix’s announcement of the deal, it said, “by adding the deep movie and TV libraries and HBO and HBO Max programming, Netflix members will have even more high-quality titles to choose from.”
The elephant in the room is what this means for prices. Netflix gave us a codified hint by adding that the move lets it “optimize its plans for consumers, improve viewing options and expand access to content”. Experts believe this likely means more price increases.
“Netflix will become more expensive and the overall increase in subscription revenue will be less than any savings on the HBO side, meaning an increase in costs for viewers,” Tom Harrington of Enders Analysis told me.
Peter Ingram of Ampere Analysis agreed. “A consolidation of services may result in price adjustments, either through premium tiers or a higher price point for the overall offering,” he said.
But it may not be bad news on the cost front 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 had planned to in the future, a combined offer may ultimately prove cheaper than paying for both separately.
When can it all happen? Netflix says the deal is “expected to close in 12-18 months,” so don’t expect changes overnight. But that means Netflix subscribers will likely get access to HBO Max content in late 2026 or early 2027, assuming the merger goes through.
Before then, we’ll likely get more hints 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 getting samples of Netflix content next year — before the two merge as a single app when the deal closes. However, the regulatory process can still intervene here.
Is it good or bad news?
Despite the prospect of Netflix price hikes, analysts say the deal could all be good for consumers — but bad news for movie theaters.
“Ultimately this is good news for consumers as they will be able to get far more from one streamer instead of 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 ultimately integrated, subscribers can access a wider variety of content across Netflix’s expansive catalog combined with Warner Bros. Studios’ IP and library,” he said. “This would be good for consumers, simplifying choice in an increasingly fragmented market and reducing the need for more expensive streaming subscriptions.”
If you’ve practiced the art of jumping into subscriptions to keep your streaming bills manageable, there may be some truth to the idea that simplicity is a net win for streaming fans. Then again, at what cost? Fewer options can also be seen as a bad thing to choose from.
One thing most industry insiders agree on is that the Netflix-Warner Bros. The Discovery merger would be a bad thing for theaters and cinemas.
Michael O’Leary (chief executive of trade organization Cinema United) called the merger “an unprecedented threat” to the global cinema business, and told the BBC: “The negative impact of this acquisition will affect theaters from the largest circuits to single-screen independents in small towns in the US and around the world,” he said.
The European trade body representing cinema exhibitors went further. Laura Houlgatte (CEO of UNIC) told Pakinomist: “This deal represents a double risk. If a studio disappears, it will inevitably mean that cinemas will have fewer films to show their audiences, leading to reduced income, significant cinema closures and job losses in the industry”.
“In both its words and actions, Netflix has made it clear time and time again that it does not believe in theaters and their business model. Netflix has only released a handful of titles in theaters, usually to chase awards, and only for a very short period of time, denying theater operators a reasonable window of exclusivity,” she added.
What has Netflix said? In its statement about the deal, the streaming giant said it “expects to maintain Warner Bros. current operations and build on its strengths, including theatrical releases for movies,” with the word “expecting” doing a lot of heavy lifting there.
Don’t expect much to change. “Right now, you should expect that anything scheduled to go to theaters through Warner Bros. will continue to go to theaters through Warner Brothers,” Netflix’s co-CEO told analysts.
But it’s clear that big changes are coming for streaming and theaters – and exactly what those changes will be is something that will become very clear in 2026.
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