Netflix Acquires Warner Bros: What It Means For Subscribers And Prices

by

Big news! Netflix is buying Warner Bros. Discovery, including popular streaming services HBO and HBO Max, and all the shows and movies that come with them. It’s a surprising move, similar to if McDonald’s bought Wendy’s. It raises a lot of questions – like what this means for fans of both companies and whether our favorite shows will still be available.

Okay, so it’s not exactly a surprise, but Disney buying out most of Fox for $82.7 billion is a huge deal, and it’s going to take over a year to fully happen. Everyone’s already wondering what it all means. A lot of movie fans are worried about what this means for actual movie theaters, and honestly, I’m starting to think my Netflix bill is about to go up – which is a bummer!

Netflix’s Library Will Expand Massively If The Acquisition Goes Through

The Netflix acquisition is expected to be finalized, though a year to a year and a half is a long time, and unforeseen issues could always arise. Both companies, Netflix and Warner Bros. Discovery, appear pleased with the agreement, and Netflix would face a hefty $5.8 billion penalty if they were to back out (according to The Hollywood Reporter). For now, it’s safe to assume the deal will go through.

If the deal goes through, Netflix will have a much larger selection of shows and movies. It will likely become the streaming service with the biggest library, making it hard for competitors to keep up. It’s unclear what will happen to HBO shows and other content, or if HBO Max will still be around after the change.

Netflix Has Been Continuously Raising Subscription Prices

Credit: MovieStillsDB

This decision comes at a significant cost, but Netflix’s co-CEOs, Ted Sarandos and Greg Peters, are confident it will ultimately be profitable, estimating annual savings of $2 to $3 billion. However, they haven’t explained how they intend to achieve those savings. It’s unclear whether this will come from attracting new subscribers or from changes affecting current ones.

Netflix increased subscription prices just last January in 2025, and they might do so again soon, especially if their current deal goes through. In a recent statement, Netflix explained that they aim to boost value for shareholders by bringing in more revenue and profit.

Price increases for existing subscribers could be a major source of future revenue. With HBO Max no longer available, people who aren’t willing to pay Netflix’s prices have fewer streaming options.

It’s Too Soon To Say How The Warner Bros. Buyout Will Affect Netflix Prices

Netflix hasn’t announced any price increases yet, so current discussions are just speculation. According to Michael D. Smith, a professor at Carnegie Mellon University (as reported by Today),

Their repeated price increases suggest we aren’t losing many subscribers when we raise our prices. They’re clearly monitoring our price changes and subscriber numbers, and they’re still increasing their own prices, which indicates we’re holding onto most of our customers.

He goes on to say,

I doubt Netflix prices will go up significantly, but an increase is likely. They probably won’t lose many subscribers either, because people will be happy to have access to shows like ‘Friends’ and ‘Harry Potter’ and will be willing to pay for it.

It’s likely prices will go up soon. However, if you already subscribe to both Netflix and HBO Max, you might actually end up paying less, since you won’t be paying for both services separately. Those who only subscribe to one of the services may see an increase in their bill.

Read More

2025-12-06 01:28