Netflix’s big acquisition
New Delhi: OTT platform Netflix has announced the purchase of Warner Bros. Studio for $72 billion (approximately Rs 6.47 lakh crore). After this deal, 42 crore global subscribers will be on a single streaming platform. The announcement was made after the company’s board meeting, which has created a stir in the entertainment industry.
Netflix’s lead in the streaming war
Under this deal, Netflix will add Warner Bros. Discovery’s film and TV studios and streaming platforms (HBO Max and HBO). Netflix CEO Ted Sarandos said that the deal will help them move forward in the streaming war. Experts believe that more than 10,000 of Warner’s movies and shows will be available on Netflix, which will be helpful in retaining users on the platform. Warner Bros. owns famous franchises like ‘Harry Potter’, ‘DC Universe’, ‘Batman’, ‘The Big Bang Theory’, ‘Game of Thrones’, and ‘The Sopranos’.
Anti-trust concerns
While the deal will make the platform’s content library the largest ever, it could also give rise to anti-trust concerns as its market share could go above 40%. Warner Bros., which was founded in 1923 and has faced many changes and competition in recent years, now views the Netflix acquisition as a strong anchor.
future plans
Netflix plans to launch 50 new original shows using Warner’s IP by 2026. The company plans to expand in India and Asia, where it already has more than 50 million users. Experts believe that this agreement will bring streaming into the mainstream, but will need to focus on privacy and content regulation. Netflix will now also work on personalized recommendations using AI tools. Ted Sarandos said, ‘This deal will take our growth to new heights.’
Disney and Amazon competition
Netflix will pay for this deal through both cash and shares. It is noteworthy that Disney and Amazon were also contenders for this deal, but Netflix had the highest bid. If regulatory approval is received, the deal is likely to be completed in the first quarter of next year. The coming together of the two companies will bring approximately 420 million global subscribers into a single streaming ecosystem.
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