What the Netflix-Warner Bros. Discovery deal means for India and beyond

Netflix is set to buy Warner Bros. Discovery (WBD) in an $82.7 billion deal, a landmark move that would bring one of Hollywood’s most storied studios and the powerhouse brands HBO and HBO Max under the world’s largest streaming platform.

The merger has far-reaching implications for India, global streaming rivals, creators, and audiences.

What it means for Indian OTTs

Industry analysts see the acquisition as a significant boost for Netflix in India, one that could hinder competing platforms.

Karan Taurani, EVP at Elara Securities, says the deal strengthens Netflix’s recall across movies, originals, and global TV content, giving it a category of its own.

“With JioStar holding a monopoly in sports, this acquisition will position Netflix as the platform with the strongest recall for movies, originals and global TV content, significantly deepening its catalogue beyond any other competitor,” he notes.

He adds that Netflix’s potential entry into advertising could put additional pressure on India’s AVOD ecosystem. “Netflix’s broader and stronger content catalogue may now have a more adverse impact on a large-scale AVOD player like JioStar.”

The consolidation, he warns, will also challenge the expansion prospects of broadcaster-led OTTs. Zee and Sun TV derive only around 15% and 10% of their revenues from digital, respectively. A stronger Netflix, he says, “may further delay profitability plans for Zee5”.

What it means for viewers

For audiences, the merger fuses two of entertainment’s most influential forces. Netflix's global streaming machine meets Warner Bros.'s century-long legacy of filmmaking, creating a catalogue that spans beloved franchises, iconic sitcoms, prestige dramas, and global streaming hits.

Under the combined slate, titles such as The Big Bang Theory, The Sopranos, Game of Thrones, The Wizard of Oz and the DC Universe will sit alongside Netflix originals like Wednesday, Money Heist, Bridgerton, Adolescence and Extraction.

Netflix also gains access to Friends, the Harry Potter franchise, and film legends such as Casablanca and Citizen Kane.

“Warner Bros. has helped define the last century of entertainment, and together, we can help define the next one,” Netflix co-CEO Ted Sarandos said following the announcement. Pairing classics with Netflix hits such as Stranger Things, KPop Demon Hunters and Squid Game, he added, will help the company “entertain the world even better”.

The companies have argued that a combined Netflix–HBO Max offering could lower costs for consumers. But some analysts warn that consolidation of this size could also give Netflix room to raise prices.

What it means for Netflix

For Netflix, the acquisition represents uncharted territory. It is the largest in its history and one of the biggest ever in entertainment. “I know some of you are surprised,” Sarandos said, noting that Netflix has “been known to be builders, not buyers.”

The deal fills a long-standing gap: Netflix’s lack of a deep, legacy IP vault. With Warner Bros., it inherits decades’ worth of premium franchises, an advantage Disney and other legacy studios have long enjoyed.

Netflix expects $2–3 billion in annual cost savings by year three and earnings accretion by year two. It also plans to layer Warner Bros.’ content spending on top of the roughly $16 billion it already invests annually in films and series.

CFO Spence Neumann said some “content efficiency” will likely emerge over time.

In India, Taurani believes the strengthened slate could help Netflix push ARPUs higher in an otherwise price-sensitive market.

What it means for the global streaming industry

The news sent shockwaves through Hollywood. Only six weeks earlier, Sarandos and co-CEO Greg Peters had indicated Netflix was not seeking a major deal. “We’re predominantly focused on growing organically,” Sarandos had said on the Q3 earnings call.

Analysts had long argued that Netflix, already the largest paid service globally in terms of subscribers and engagement, did not need HBO Max to maintain its lead. 

Netflix ultimately outbid Paramount and Comcast; the valuation is nearly double what the Warner Bros.–Discovery merger commanded in 2022. 

Paramount, the first bidder, was the only company willing to acquire all of WBD. Comcast also explored its own combination.

But should the deal clear regulatory hurdles, Netflix will absorb HBO Max’s sizeable subscriber base, potentially widening the gap between Netflix and mid-tier rivals such as Paramount+ and Peacock.

The takeover also fits a broader pattern: the entertainment industry’s rush toward scale. Amazon bought MGM; Disney bought 20th Century Fox; and Skydance acquired Paramount. WBD itself is the product of a mega-merger from 2022.

What it means for WBD

For Warner Bros. Discovery, the deal is another chapter in a turbulent corporate history. In June, WBD announced plans to spin off its network business into a separate company, marking the third time in less than 20 years that a major Warner Bros. merger has been unwound.

Its unions with AOL (2009) and AT&T (2021) both collapsed; Discovery inherited the studio after the latter breakup.

Now, ahead of the Netflix acquisition, WBD prepares for another major structural split. Meanwhile, questions remain about how HBO will ultimately be integrated. Peters told analysts it was too early for specifics but noted a “high overlap of subscribers”, adding that the right bundling strategy could improve retention and engagement.

What’s next?

The acquisition cannot move forward until WBD completes the spin-off of its Global Networks division into a separate publicly traded company, Discovery Global, which houses CNN, TNT Sports, Discovery’s European channels, and digital brands such as Discovery+ and Bleacher Report. The separation, part of WBD’s 2025 restructuring plan, is expected to finish in Q3 2026.

Once the spin-off is complete, the deal faces regulatory scrutiny across multiple jurisdictions, including the US, EU and Asia. American lawmakers have already labelled the merger anti-competitive.

Movie exhibitors are also alarmed. Several operators told CNBC they fear the acquisition could shrink the annual number of theatrical releases and shorten windows for major titles.

In India, the Multiplex Association of India (MAI) has raised significant concerns that the mega consolidation could pose a substantial threat to India’s theatrical ecosystem, consumer choice, and the overall film economy.

Netflix is attempting to reassure them. Sarandos emphasised that Warner Bros.’ theatrical pipeline will remain intact: “Everything that is planned on going to the theatre through Warner Bros. will continue to go to the theatres.”

Netflix will maintain its own model of giving select titles limited theatrical runs. “We’ve released about 30 films into theatres this year,” he said, adding that long exclusive windows are “not consumer friendly.”

Still, the deal is far from guaranteed. Large media mergers face intense scrutiny, and Netflix has agreed to pay a $5.8 billion termination fee if the acquisition is blocked.