Trump involved in Netflix and Warner Bros. Discovery deal
President Donald Trump says he will review the proposed $72 billion Netflix-Warner Bros. Discovery deal amid antitrust concerns.
Netflix announced it would acquire Warner Bros. Discovery for $72 billion, one of the most expensive mergers in recent Hollywood history.
This deal is sure to change the streaming landscape significantly. This would give the streaming giant control over rival HBO Max and storied movie studios.
Here’s what industry experts are saying about how this acquisition could reshape Netflix and the streaming world.
What does this mean for Netflix subscribers?
Netflix’s deal with Warner Bros. gives the largest streaming service access to Warner Bros.’ “huge library” of movies, said Kathryn Harrigan, the Henry R. Kravis Professor of Business Leadership at Columbia Business School. “It’s going to be a bigger library than most.”
Netflix could make its catalog, which includes the Harry Potter movies, “Barbie” and some iconic Batman movies, available to subscribers. But the streaming giant may also decide to withhold most of its content, or make it available only to users who pay extra for an extended subscription (a type of Netflix+).
Harrigan said the merger “will probably give our subscribers better options on a month-to-month basis.” “But that doesn’t mean you can get everything you can find at the grocery store.”
Netflix could also choose to charge subscribers extra to watch Warner Bros.’ popular movies. Harrigan points out that Amazon Prime has been using that strategy for years. “You can watch any movie for a small fee,” she says.
If there’s one obvious downside to the Netflix-Warner deal, it could be the higher license fees. Netflix is already raising prices in early 2025.
“Consumers are tired of price increases,” said Courtney Jackson, CNET’s senior streaming and home entertainment editor. But the deal with Warner Bros. could give Netflix an excuse for another deal.
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.
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.”
Who has the biggest 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 prospect of a merger between Netflix and Warner Bros. Discovery puts Netflix even closer to winning the streaming wars.
“The global media industry stands 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 note, according to The Hollywood Reporter.
Will this partnership make Netflix too dominant?
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.”
The deal has already faced political backlash, with prices falling almost across the board.
President Donald Trump said on Dec. 7 that he would consider the deal and be involved in a review, and that the combined company’s market share “could be an issue.”
Sen. Elizabeth Warren (D-Mass.) called the merger an “antitrust nightmare,” arguing that Netflix and Warner Bros. would control nearly half of the streaming market, raising prices for consumers, limiting content choice and putting workers at risk.
Congressional Republicans have also warned that a Netflix acquisition would reduce consumer choice and give the company an unacceptably high share of the streaming market.
Republican Sen. Mike Lee of Utah said on Dec. 3 that Netflix’s acquisition of Warner Bros. Discovery’s streaming assets “should set off alarm bells for antitrust enforcement officials around the world.”
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 a streaming subscription in the past six months, a habit known as churn.
If the cord cutters’ purpose was to save money, they succeeded. According to Deloitte, cable and satellite customers pay $125 a month.
Contributor: Thao Nguyen;Jody Godoy, Reuters
