Unpacking Netflix and Warner Bros. Discovery Merger
By Fiona McHugh
Netflix and Warner Bros. Discovery recently announced an 83 billion dollar merger deal to acquire Warner Bros. and its sibling company, HBO Max. It’s one of the most recent consolidation deals in the entertainment industry. The merger unites two industry powerhouses that both account for approximately 9 percent of industry spending, raising questions about antitrust suits. Netflix is the number one premium streaming service and, with its acquisition of Warner Bros. Discovery can potentially add 130 million HBO Max subscribers to its 300 million.
Announcements of the merger have been met with severe controversy and backlash from members of the entertainment sector. Six years removed from the COVID-19 pandemic, Hollywood is still reeling from mass layoffs, coupled with several workers’ strikes, and now artificial intelligence that threatens job prospects. Consolidation and mergers are an additional threat, and to many, Netflix’s can only be an indication of this. In October 2025, Paramount Skydance began to lay off over 2,000 workers to cut 3 billion in costs as a result of consolidation. Consolidation threatens the overall demand for skills for creatives everywhere.
The merger also threatens theaters. Netflix’s co-chief executive, Ted Sarandos, has stated that Warner Bros. movies will continue to be released in theaters. However, Sarandos has formerly made public comments about the modern consumer preferring to watch TV in their homes and stating that theaters are an “outdated idea” for many people. Given that Netflix has a longstanding tradition of “token” releases in theaters – a limited run for a film that is often only long enough to meet awards eligibility or contractual fulfillment – many believe that this merger may signal the very beginning of the end for theaters. Warner Bros. Discovery owns famous franchises such as Harry Potter, Superman, Batman, and Wonder Woman, which may greatly affect any additions to these franchises over the next few years and how they are filmed, released, and streamed.
However, the most pressing concerns for much of Hollywood focus on the consolidation of content. Actress Jane Fonda wrote that the merger is “catastrophic for an industry built on free expression” and highlighted concerns that media consolidation enables political censorship over media companies. The Writers’ Guild of America expressed strong antitrust beliefs. Media professionals and entertainment workers everywhere have flocked to social media in response to the merger, lamenting the loss of Warner Bros. and traditional media. Consolidation of two companies as large as Netflix and Warner Bros. means more filtering of narratives and likely fewer stories getting released and approved that push the boundaries of modern filmmaking and cultural norms. Warner Bros. and HBO are the platforms that brought forth shows like The White Lotus and The Sopranos, and movies like Casablanca, Joker, Barbie, and Blade Runner. Movies that have long shaped the media landscape and cultural narratives risk never being produced. They risk being put through the same filters, decided on by the same people, and diversity is lowered by a huge amount. To many, the once-varied, creative media landscape is threatened, and media will look very different.
