Netflix acquires Warner Bros. Discovery studios for $72 billion
Netflix has secured a $72 billion deal to acquire Warner Bros. Discovery, giving it control of iconic series such as “Game of Thrones” and “Harry Potter.”
Netflix announced it would acquire Warner Bros. Discovery for $72 billion, in one of the most massive deals in recent Hollywood history. The deal gives the streaming giant control of rival HBO Max and the storied movie studio.
This deal is sure to change the streaming landscape significantly. Here’s the latest on the industry, past consolidation, and the ongoing battle between streaming and cable.
Who streams? Does anyone still watch cable?
Streaming is king. According to a 2025 study by Pew Research Center, the majority of American consumers (83%) use streaming services. Only 36% still subscribe to cable or satellite TV.
Age is important. Streaming is nearly universal among consumers under 50. In contrast, only 65% of older adults use streaming services, Pew Research found.
According to Deloitte research, the typical streaming customer subscribes to four services and pays $69 per month.
Gen Z and Millennials are more active streamers. They subscribe to an average of five services. Half of young streamers say they have canceled their streaming subscription within the past six months. This is a habit called churn.
If the cord cutters’ purpose was to save money, they succeeded. According to Deloitte, cable and satellite customers pay $125 a month.
Netflix is king among streaming services
Netflix is the number one streaming service. According to Pew Research, the top streaming services are:
- Netflix (72% of adults watch shows on this service)
- Amazon Prime Video (67%)
- Hulu (52%)
- Disney+ (48%)
- Paramount+ (44%)
- Peacock (41%)
- HBO Max (41%)
- Apple TV+ (25%)
Analysts say the expected merger between Netflix and Warner Bros. Discovery moves Netflix ever closer to winning the streaming wars.
“The global media industry is on the precipice of historic change, and[Warner Bros. Discovery]is at its epicenter,” Bank of America analyst Jessica Lief Ehrlich said in a recent report, according to The Hollywood Reporter.
Why are streaming services integrated?
Streaming services have struggled to turn a profit because they need to attract millions of paying customers to cover the costs of producing programming.
The struggle for profitability led to consolidation. Disney acquired Hulu in 2019. WarnerMedia and Discovery will merge in 2022, bringing together HBO Max and Discovery+. Paramount and Skydance Media announced a merger earlier this year.
Streaming service mergers have entered the zeitgeist. In the 2025 Apple TV series “The Studio,” the season finale centered on the suspense surrounding Amazon’s potential acquisition of the fictional Continental Studios.
Some critics worry that the Netflix-Warner deal will make Netflix too big. Rep. Darrell Issa, R-Calif., said in a Nov. 17 letter to the Justice Department that the merger could give the combined businesses a share of more than 30% of the streaming market, “a standard that has traditionally been considered potentially problematic under antitrust law.”
