
The year was 2010. Netflix had grown into a massive media company off of their business model of through the mail movie rentals. Their success over the years even eliminated their prime competition, Blockbuster Video, who were unable to adapt to the shifting market. But, Netflix wasn’t done disrupting the media market just yet. They saw the growing potential in streaming after watching the rapid growth of YouTube. If there was an appetite for watching short videos over the internet, what was keeping the industry from producing long form content as well. Netflix began their initial dip into streaming in 2007, with low quality video of films and shows that were also available to rent on disc. In 2010, they were ready to provide a full, high definition streaming platform for a separate fee to their subscribers. Eventually, the disc based service would be eclipsed by the more robust on demand digital service. But, a lot of people in the entertainment business were unconvinced by this newer model, especially when Netflix announced that they were going to begin making original programing exclusive for their platform. Netflix was still green to the whole production side of filmmaking, and they were going up against the big entrenched studio system that had run Hollywood for over a century. Most notably, the then Time Warner CEO Jeff Bewkes, who was in control of Warner Brothers, notoriously dismissed Netflix’s potential to be a threat to Hollywood, saying “Is the Albanian army going to take over the world?” Well, not long after Bewkes made his statement, Netflix premiered the show House of Cards, a buzzworthy drama that Time Warner passed on for their HBO channel, and it not only gave Netflix the industry cred it needed to prove itself, but it even set off a chain reaction that will possibly be the end of Old Hollywood as we know it.
15 years after Jeff Bewkes made his dismissive insult Netflix is now on the cusp of taking ownership of his old studio. In September 2025, David Ellison, the CEO of the newly formed Paramount Skydance, made the first initial offer to buy Warner Brothers Discovery. Coming so quickly off their own mega merger, Paramount Skydance was ready to expand even further, making a play to develop a mega studio that would be more competitive with the likes of Disney/Fox and Netflix; the two current leaders in the streaming market. With backing from other investors, including Saudi royals, Ellison made the first pitch of $78 billion. Of course, Warner Brothers had to declare their intentions to sell in accordance with the law, but they weren’t ready to strike a deal just yet with Paramount Skydance. They believed that they could sweeten the pot for their shareholders by holding out for a better bid from other interested parties. And they were right. Soon after, Netflix and Comcast (the parent company of NBC Universal) began their own campaigns to bid for Warner Brothers. No matter who was going to come out on top, the truth is that Warner Brothers worth is certainly of high value. The victor would be gaining a century old library of some of the most important and celebrated movies and shows that have ever come out of Hollywood; not to mention some very valuable present day brands like Harry Potter and DC Comics. A lot of people believed that Paramount would still come out on top, but surprisingly it now looks like Warner Brothers has favored someone else. On December 5, 2025 it was revealed that Warner Brothers has accepted a $82 billion dollar deal from Netflix, which in turn has gotten much of Hollywood buzzing, as well as worrying.
The streaming wars of the last several years was born out of the Hollywood studios seeing Netflix as a threat to their decades old business models of distribution, and they were desperate to adapt to this new normal. Even Warner Brothers got in on it by establishing their own streaming platform, which went from being called HBO Max to just MAX and then back to being HBO Max. Despite the brand name confusion, Warner Brothers did manage to rise up to third place in the streaming market, falling just behind Disney+ and far behind Netflix. But, with Netflix now on the cusp of owning Warner Brothers, they now have essentially become the undisputed victor of the streaming wars. Even if Disney and Hulu combined continued to steadily grow into one platform, they still won’t have the combined subscriber reach that Netflix and HBO Max now will pull together. And this is what worries a lot of people in Hollywood. Netflix is essentially removing a huge competitor from the marketplace, and it is giving them a huge chunk of the market share, which will give them more of a monopoly over streaming in general. In a studio system that has increasingly become more homogenized through mergers and acquisitions, many believe that this move will only make it harder for new inventive ideas to emerge in the entertainment industry. We’ll have one less place to pitch a screenplay or show idea to and not only that, but two powerhouse production companies coming together means that many people are going to lose jobs out of redundancies. It’s a scenario that we already saw play out when Disney bought Fox, which resulted in the latter essentially being hollowed out and turned into just a production label called 20th Century Studios, minus the Fox. A lot of people on the Warner Brothers lot are probably worrying about their future in the months ahead.
This deal has only happened in the last couple days as of this writing, so a lot of the details haven’t been fully revealed just yet. We don’t quite know what Netflix studio head Ted Sarandos and Warner Brothers Discovery CEO David Zaslav agreed to that made the deal happen, and what that means for the future of both companies. One theory is that Warner Brothers Discovery still intends to go through with their plan to divide into two separate companies, and that Netflix’s bid is just for the half that includes the famed studio. David Ellison’s bid of $72 billion was for the whole pot, studio and networks, but Netflix put up an even bigger bid for just the half that they want, which means that Ellison would have to double his bid in order to buy everything. All of this is probably why Warner Brothers is confident in Netflix’s bid, because they are better able to back it up and help bring extra value to the Discovery Networks side, once they decide to put that half up for sale. But, this is just a theory. One thing for sure is that David Ellison is not happy and plans to take legal action against Netflix if they follow through with it. The deal still has to go through a year’s worth of federal review before it can be finalized. Now, the current administration has been less restrictive towards mergers and acquisitions, but that’s largely due to gaining special favors from the parties involved in a rather corrupt quid pro quo way. This is what happened to finalize the Paramount Skydance merger, where the Paramount owned CBS Network cleared a big chunk of their newsroom of journalists who were critical of President Trump, especially on the program 60 Minutes, hired on a new news team that was more politically aligned with the administration, and even prematurely cancelled the the long running show of vocal Trump critic Stephen Colbert. All of this spotlights a pretty clear reason why it’s a good thing Paramount Skydance isn’t getting a hold of Warner Brothers, which among other things is the parent company of CNN and other crucial news outlets. But, there is the worry that in order to ease the review of their own acquisition, they’ll concede a lot of favors to the administration like the Ellison family did that will involve among other things censorship of critical voices.
That’s the sad state of our media landscape, and sadly there really is no good option out there. If not Netflix, Warner Brothers would be absorbed into another studio if it were to join Paramount Skydance or Comcast, where it would destroy both itself and Universal together. As of right now, the most vocal critics in the industry are the Guilds and Unions. The WGA already put out a statement condemning the move, and they were quickly joined by the Teamsters, both of which are rightfully worried about the loss in competition this will bring to the industry. One less player in the market means fewer job openings for film sets and writers rooms. For an industry that’s already reeling from a pandemic and a lengthy strike, this will be yet another blow against recovery. This move is not likely to strengthen the job market in Hollywood. If anything it’s going to put more people out of work with the layoffs due to redundancy. The one silver lining with Netflix is that they are a competitor to Warner Brothers solely through the streaming market. What Netflix has been lacking that all the other studios have had is a distribution division that brings their movies to national theaters. Instead of growing their own organically, Netflix has instead been trying to bend the industry to their video on demand model. They’ll be inheriting Warner Brothers’ long standing distribution organization that has been working with theater chains around the world. The only question is, is Netflix willing to keep it or is that going to be the first thing to go as Warner Brothers is forced to conform to Netflix’s business model? It would be a very expensive department to just buy up to destroy, but perhaps that’s part of Netflix’s way of forcing more conformity in Hollywood to their model. One would hope that more of Warner Brothers’ way of doing business rubs off on Netflix and remains in tact.
That’s what has a lot of other people worried about this potential merger; the downstream effects it will have on other industries. Movie theaters have been desperately trying to hold onto their deals with the movie studios to release new films on their screens. Thus far, they’ve been managing to scrape by, but streaming has been drying up the products available to present on the big screen. Netflix has especially made it difficult with their business model, which they proclaim is the better option to guarantee filmmakers that their films will get seen by a bigger audience. It would be devastating to the movie theater industry as a whole if one of the biggest studios suddenly stopped showing their movies in theaters. And Warner Brothers has had a good year at the box office in 2025, with movies like Sinners (2025) and Weapons (2025) being especially profitable. Imagine if movie theaters this year didn’t see any of that revenue. It’s not just that, but physical media collectors are also worried that Netflix would also be abandoning physical releases of Warner Brothers movies, dealing a death blow to an already diminished marketplace. For a lot of different industries, this would feel like Netflix is kicking them while they are already down. Is it all but certain that such a deal would kill off these beleaguered industries for good. It all depends on what was involved in the deal that was struck. It would be difficult to end theatrical distribution as a whole at Warner Brothers, given that it involves so many longstanding contracts that will take years to finalize. Netflix has been dipping their toes a bit more with theatrical in recent years, with KPOP Demon Hunters winning them their first box office weekend title, and their plan to put the Stranger Things series finale on the big screen this New Year’s Eve. But, would acquiring Warner Brothers finally give them the reason to go all in, or will we be seeing Netflix forcing Warner Brothers to comply.
One thing that could be a big factor in determining the future for both Netflix and Warner Brothers is what the creatives in the industry have to say. Netflix has managed to get some filmmakers to consent to having their movies premiere through the direct to streaming method, such as David Fincher and Richard Linklater. But, if Warner Brothers were to follow Netflix’s lead and stop releasing their movies in theaters, there would be significant pushback to that. Some filmmakers, such as Quentin Tarantino and Christopher Nolan would never sign on to a deal that excluded a theatrical premiere. In fact, Christopher Nolan ended his long time partnership with Warner Brothers over this very issue, after they planned to go against his wishes and release Tenet (2020) straight to streaming without a theatrical window. He wanted them to wait until movie theaters were re-opened after the pandemic shutdown so that the movie would get a proper theatrical release, but Warner Brothers weren’t willing to sit on this film for another year, so what ended up happening was Tenet got a small theatrical release in whatever theaters were open during the pandemic (which excluded big markets) and it still was quickly rushed onto streaming soon after, just so Warner Brothers could fulfill the minimal requirements of the contract. That’s why Nolan today is set up now at Universal, which benefitted in getting his Oscar winning Oppenheimer (2023) and next year’s The Odyssey (2026). Nolan and many others would likely have it written in their contracts that their movies must have theatrical releases, and if Netflix doesn’t accept that, then they would be loosing out on many coveted projects from many established and up-and-coming filmmakers. Recently, such a situation happened when Weapon’s director Zach Cregger walked away from developing a new film at Netflix because they couldn’t guarantee a theatrical release. Greta Gerwig, whose developing a new adaptation of C.S. Lewis’ Narnia book series with the streamer, even went behind Netflix’s back to secure a theatrical window for the film with the IMAX corporation. If Netflix were to force Warner Brothers to conform to their streaming first model, they would be alienating themselves even further from some of Hollywood’s most creative people, and it would make them lose out on what could ultimately be the next billion dollar idea.
We’ll have a clearer idea what this deal will entail over the next year as this acquisition goes through review. What we know as of right now is that this deal is being met with a great amount of skepticism. People are worried, rightfully so, about what it could mean for the future of Hollywood. Warner Brothers has been an enduring fixture in the history of Hollywood. It was one of the bedrocks of the studio system, and is undeniably one of the most valuable libraries of movies and television shows in the entire industry. By buying Warner Brothers, you have access to characters as varied as Bugs Bunny to Batman. But, there’s one thing that is undeniable about Warner Brothers and that is they go big. Their movies deserve to be seen in the biggest way possible, so it would be a shame if the only place you could watch them is from a small screen at home. Warner Brothers’ history shouldn’t be reduced down to a thumbnail on a streaming app. If that Warner Brothers golden badge doesn’t grace the silver screen again, it would be a great loss. One hopes that part of Zaslav’s negortiations with Netflix to broker this deal was to keep that legacy in tact and secure Warner Brothers ability to continue screening movies on a big screen. Say what you will about Zaslav’s tenure as CEO of Warner Brothers; he didn’t abandon the movie theater industry, and in fact he doubled down on it over the last couple years. We’ll see if Netflix eases up on their insistence on straight to streaming. So many of their own movies should have been given more robust theatrical releases over the years; maybe now they’ll be convinced to give it a chance. One thing is for sure; Hollywood will never be the same again if this deal goes through. Warner Brothers thought it could dismiss the threat of Netflix before, and now they are about to become a part of them. The Albanian Army is indeed about to conquer the world, and it shows you should never believe yourself to be untouchable in this business. One hopes that Netflix will be a good steward to the legacy of Warner Brothers, but there is a lot of justifiable skepticism that is surrounding this deal and people should worry. At a time when the movie industry should be getting bolder and bigger, we are instead unfortunately seeing it shrink even more.








