New York: Netflix’s proposed acquisition of Warner Bros Discovery’s studios and streaming unit, including HBO Max, is expected to reduce streaming costs for consumers by offering a bundled service, according to sources familiar with the confidential discussions.
Netflix has told Warner Bros Discovery that combining its streaming service with HBO Max would allow consumers to pay less for a bundled offering, the sources said, speaking on condition of anonymity. The approach also seeks to address potential regulatory concerns that merging two major streaming platforms could limit consumer choice or drive up prices, as neither service currently offers a bundle.
Warner Bros Discovery has been exploring the sale of all or part of its business, which includes film and television studios, cable networks such as HBO and CNN, and the HBO Max streaming platform. By emphasizing consumer benefits, Netflix aims to argue that the deal should withstand potential regulatory scrutiny.
Netflix had reportedly submitted a mostly cash offer for the Warner Bros Discovery unit. Other bidders, including Paramount Skydance and Comcast, are also looking at leveraging HBO Max and Warner Bros’ film and television library to bolster their own streaming platforms.
HBO Max and Warner Bros
If successful, the deal would give Netflix control over Warner Bros’ vast content library, including the entire HBO catalog, Warner Bros’ film archive, and DC Comics properties. However, sources noted that combining the services is unlikely to significantly expand Netflix’s market share, as most HBO Max subscribers already have Netflix accounts.
Analysts, including Bank of America media analyst Jessica Reif Ehrlich, have highlighted that a potential combination of HBO Max and Paramount+ could create a top-tier US streaming service capable of challenging Netflix and Disney+ in terms of content volume and variety.
Meanwhile, NBCUniversal’s Peacock, owned by Comcast, could struggle to compete if rival platforms scale up, potentially limiting its reach and weakening NBC’s global media position. While Netflix leads in subscriber numbers, it still lags behind other media companies in terms of intellectual property libraries, which can be leveraged for theme parks, experiences, Broadway shows, gaming, and merchandising.
Netflix also faces political scrutiny, from Pentagon criticism of its content to warnings from Republican lawmakers that acquiring Warner Bros Discovery could consolidate too much control and reduce consumer choice. Despite these challenges, Alphabet’s YouTube remains the largest streaming platform in the US by viewership, keeping Netflix and other competitors on alert in the evolving streaming market.
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