What Does Netflix's Warner Bros. Acquisition Truly Mean For Subscribers?

Netflix will reportedly acquire Warner Bros. Discovery later this year for an all-cash transaction of $83 billion. Despite hostile bids from rival studio Paramount Pictures, the deal will supposedly go ahead once it's passed through the appropriate regulatory channels.

This is a huge moment for the future of streaming on a business level, but it's less clear what it actually means for consumers. Will Netflix become more expensive when WBD titles are added to the catalogue? Will you still have to pay for HBO Max, which is a subsidiary of Warner Bros? The answers aren't quite clear.

Netflix Assures That Subscribers Will Get Access To More Content

Speaking at a senate hearing about the proposed agreement last week, Netflix CEO Ted Sarandos assured that viewers would get "more content for less [money]". He didn't clarify exactly what this meant, but he did note that 80% of Netflix subscribers also pay for HBO Max, implying that both subscriptions would not be necessary if the merger goes ahead. (via Variety)

This seems to indicate that HBO Max's original content will either make its way to Netflix at no extra cost, or subscribers will be able to purchase a combined plan that gives them access to both streaming services at a discounted price.

Perhaps the biggest opposition to Netflix's acquisition of Warner Bros. Discovery is the possibility of Netflix becoming "the one platform to rule them all", according to Senator Mike Lee of Utah. Sarandos denied this, claiming that Netflix and WBD are natural partners whose partnership will "strengthen the American entertainment industry."

Netflix Original Content Will (In Theory) Get Better

Another major consequence of the WBD acquisiton is that Netflix's budget for original content will increase. Instead of both companies exhausting their budgets on content that fans don't necessarily love, their combined capital will go into making high-quality, large-budget projects that represent the combined strength of both companies.

This should theorhtetically see an uptick in original content from Netflix, and prevent the streaming service from having to cancel so many shows to maintain a profit.

Netflix is reportedly planning to spend upwards of $20 billion on original and licensed content in 2026, which marks a 10% increase from last year's spending. Sarandos referred to WBD as a "supplier" in this process, suggesting that the company's existing budget will allow Netflix to lean heavier into new content once the deal goes through.