Netflix has pulled off one of the biggest coups in entertainment history. In a blockbuster $83 billion deal, the streaming giant has outbid Paramount and Comcast to acquire Warner Bros Discovery’s premium content engine—home to HBO, Warner Bros Studios, and DC Entertainment. The transaction, expected to close within 12–18 months pending regulatory approvals in the US and EU, instantly gives Netflix a super-premium content bundle and positions it as the most formidable player in global streaming.
With HBO’s acclaimed catalogue—think Game of Thrones, Harry Potter, and DC’s superhero universe—Netflix is set to command nearly 33 percent of US streaming hours, according to Nielsen estimates. That’s 50 percent bigger than Amazon Prime’s 21 percent share and enough to surpass YouTube in total TV watch time. The combined entity will hold around 14 percent of overall TV share in the US, making Netflix the largest entertainer in the market.
This consolidation forces rivals like Disney+, Amazon Prime, and Apple TV to rethink their content spend, M&A strategies, and library depth. For Hollywood, the implications are seismic: mega-budget scripts could increasingly bypass theatres for OTT-first launches, threatening exhibitors worldwide.
In India, the deal strengthens Netflix’s position in the subscription video-on-demand (SVOD) segment, where it already leads with around 25 percent share. The expanded catalogue—premium franchises, global originals, and blockbuster films—could unlock average revenue per user (ARPU) upside in a notoriously price-sensitive market.
Netflix’s strategy is clear: consolidate entertainment while JioStar dominates sports. Together, these two giants could reshape India’s media and entertainment landscape. Smaller OTT platforms and linear broadcasters like Zee Entertainment and Sun TV, with limited digital contributions (10–15 percent of revenue), face rising competition and shrinking scale.
Hollywood accounts for 15–20 percent of PVR-INOX’s gross box office collection (GBOC), with Warner Bros Discovery contributing around 4 percent. While small in volume, English films deliver higher F&B and advertising yields, making them strategically important for exhibitors. For instance, Superman 2025 grossed $395 million globally but only $10 million in India—just 2 percent of global revenue.
This imbalance gives Netflix room to experiment. Shortening theatrical windows or testing direct-to-OTT launches for WBD’s big franchises could materially impact exhibitors, especially in a post-COVID era where dependency on big-budget Hollywood titles has grown. In a worst-case scenario, a 4 percent revenue hit could drag PVR-INOX’s EBITDA by 6 percent by FY28E.
Netflix’s acquisition is not just about content—it’s about vertical integration and global scale. Key advantages include:
As Netflix cements its “must-have” status globally, India becomes a critical battleground. With JioStar defending its AVOD turf and IPL rights post-2028, and Netflix doubling down on SVOD dominance, Amazon Prime and smaller OTT players may need alliances to survive. For exhibitors, the risk of OTT-first releases looms large, signalling a structural shift in how Indians consume Hollywood.
The next 12–18 months will determine whether this deal simply reshapes streaming—or rewrites the rules of entertainment altogether.
The author is the executive vice president at Elara Capital. He covers retail, internet, consumer discretionary, and media.
First Published: Dec 08, 2025, 12:34
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