The proposed merger between Netflix and Warner Bros. is monumental, encompassing iconic franchises such as Game of Thrones and Harry Potter, alongside classics like Superman and Citizen Kane.
This transaction also encompasses the streaming platform HBO Max, which has undergone significant transformations over the past year, culminating in one of the most disruptive events in the streaming sector.
Currently, Netflix's commitment to acquire Warner Bros. for $82.7 billion remains tentative, pending standard regulatory clearances, potential influences from President Trump, and the completion of Warner Bros.' separation from Discovery and its associated television assets.
Should the acquisition proceed, it would profoundly impact conventional film production companies and the digital streaming landscape. While past examples exist, such as Amazon's purchase of MGM—including the James Bond series—about four years prior, this transaction stands out for its unprecedented magnitude.
Numerous uncertainties arise from this development, particularly concerning the fate of HBO Max.
Details remain unclear at present. Reports from Variety indicate that Netflix intends to maintain HBO Max as a separate offering, yet the official announcement highlights plans to integrate the extensive movie and television archives from Warner Bros., HBO, and HBO Max into Netflix's own collection.
Regardless of initial statements from Netflix, strategies may evolve over time. A comparable situation is unfolding with Disney+ and Hulu, where integration efforts suggest a gradual absorption of one platform by the other. Disney has yet to confirm the discontinuation of independent Hulu access, though indications point toward that outcome.
Consequently, Netflix might develop an HBO Max-branded area within its service to house titles like Game of Thrones and Sex and the City, along with other HBO content. While HBO Max could persist independently for some period, it may eventually diminish in the same manner as standalone Hulu.
Such a consolidation would result in an expansive Netflix ecosystem, removing HBO Max as a rival and potentially driving up subscription costs. Envisioning Netflix fees reaching $30 or even $40 monthly evokes parallels to traditional cable television pricing.
It bears repeating that the transaction is far from finalized. Netflix encounters substantial obstacles in securing Warner Bros., especially regarding Donald Trump, who reportedly supports the competing offer from David Ellison's Skydance at Paramount.
Additionally, the entertainment industry, concerned that Netflix might abandon cinema releases for Warner Bros.' forthcoming films, is poised to advocate strongly with lawmakers to block the deal. Netflix has assured that Warner Bros. productions will continue receiving theatrical distribution.
Based on current insights, the likelihood of the Netflix-Warner Bros. merger succeeding appears strong.
Regarding HBO Max, an eventual phased integration seems probable.
Ben has covered technology and consumer electronics topics for over two decades. Since joining as a PCWorld contributor in 2014, he transitioned to TechHive in 2019, addressing areas like smart speakers, sound systems, intelligent lighting, and home security devices. His work has featured in outlets including PC Magazine, TIME, Wired, CNET, Men's Fitness, and Mobile Magazine. Ben earned a master's in English literature.