Key takeaways of Netflix's Warner Brothers acquisition

Netflix's intention to acquire Warner Bros. Discovery's movie studio and HBO streaming networks has garnered immense traction and caused a shake-up in the entertainment industry. 

Netflix dominance to skyrocket

Set to reshape the streaming landscape, this deal is the largest in the industry in years and will improve Netflix's already dominant position by adding a catalogue of nearly a century's worth of content. It would also expand its subscriber base by incorporating HBO's 128 million subscribers into its existing 300 million.

Merging biggest franchises

The merger will unite some of the most iconic franchises such as Looney Tunes, Harry Potter, and HBO hits like Game of Thrones with Netflix's original series, including Stranger Things, not to mention the inclusion of TNT Sports outside the US.

Subscription prices to rise

While Netflix is looking to complete the deal within 12 to 18 months, the impact on subscription prices is uncertain. Netflix's co-CEO, Greg Peters, acknowledged the strength of the HBO brand but did not specify how it would be integrated into the existing service.

That said, new bundling options are also on the horizon alongside notable price adjustments, depending on how consumers will perceive the service following merger .

Increased streaming and decline of traditional cinema

The acquisition also hints at the shift towards streaming, with traditional cinema declining. Regardless of the promises to continuous release of films in theatres, concerns about the future of movie-going persist, especially given Netflix's previous statements about it.

Regulatory scrutiny and approval challenges

The deal's completion is not guaranteed, as ahead of its acquisition by Netflix, Warner Brothers must first separate parts of its business not included in the sale, and competition regulators in the US and Europe will scrutinise the merger. Concerns have also been raised about narrowed consumer choice and potential price hikes.

Political influences on the Netflix-Warner Bros. merger 

The question that's still hovering over is whether political influence will impact the approval process. With regulators and lawmakers closely monitoring the process, the outcome of this merger could shape the future of the streaming industry.