Exclusive: Netflix, Warner Bros Discovery combo seen lowering costs for consumers, sources say |
Netflix may soon make streaming cheaper for millions of viewers. According to insiders, the company’s proposed acquisition of Warner Bros Discovery’s studios and HBO Max could lead to a bundled plan that costs less than paying for each service separately.
People familiar with the confidential discussions say Netflix has told Warner Bros Discovery that combining Netflix and HBO Max into a single bundle would directly benefit consumers. The idea: more content at a lower price, instead of two separate subscriptions.
This argument is important because regulators usually fear that big mergers reduce competition and raise prices. Netflix, however, is positioning this deal as pro-consumer, hoping to ease concerns from U.S. authorities.
Warner Bros Discovery has been exploring the sale of parts—or even all—of its business, which includes HBO, CNN, major film and TV studios, and the HBO Max streaming platform. Reuters previously reported that Netflix submitted a mostly cash offer for the studio and streaming division.
If the deal goes through, Netflix would gain access to a massive entertainment library—from the entire HBO catalog to Warner Bros classics and DC Comics properties. Analysts say this would significantly strengthen Netflix’s content portfolio, even though it may not drastically increase its market share. Why? Because most HBO Max subscribers already have Netflix.
Netflix isn’t the only bidder. Paramount Skydance and Comcast are also interested, each hoping to use HBO Max and the Warner Bros library to boost their own streaming platforms. An HBO Max + Paramount+ combo could challenge both Netflix and Disney+ in size and content variety. Meanwhile, adding HBO Max’s library to Comcast’s Peacock could help the service finally gain momentum.
Still, the proposed acquisition faces political pushback. Some Republican lawmakers worry the deal would give Netflix too much influence over the entertainment industry. The Pentagon has also criticized some Netflix content in the past. And despite Netflix’s massive subscriber base, YouTube remains the most-watched streaming platform in the U.S.
For now, both Netflix and Warner Bros Discovery have declined to comment publicly. But if the deal succeeds, the future of streaming could look very different—and potentially more affordable.
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