Netflix–Warner Bros Discovery tie-up could cut costs for viewers: Report

A potential merger between Netflix and Warner Bros. Discovery could lower streaming costs for consumers, Reuters reported, as the companies explore a tie-up that would reshape the global entertainment landscape.

In discussions with Warner Bros. Discovery, Netflix has argued that combining its platform with WBD’s HBO Max service would result in a more affordable bundled offering, according to the report. The company is seeking to counter regulatory concerns that a merger between two of the world’s largest streaming players would limit consumer choice and drive up prices.

Currently, neither Netflix nor HBO Max is offered as part of any bundle.

For Netflix, acquiring WBD’s studio and streaming operations would unlock access to an expansive content library and major franchises, including Harry Potter and The Lord of the Rings. Earlier this year, Warner Bros. Discovery announced plans to separate its studios and streaming businesses from its cable networks, creating two publicly traded entities—an overhaul that has set the stage for a sale.

Netflix is competing against Comcast and Paramount–Skydance, the other bidders in what has become one of the most high-stakes battles in modern media. The outcome could redefine the future of HBO, Warner Bros.’ film catalog, and the DC Comics universe.

Paramount has reportedly bid for the entire WBD portfolio, including its cable networks, while Comcast—parent company of NBCUniversal—is primarily interested in WBD’s studio and television assets, along with HBO.

Warner Bros. Discovery has so far received two rounds of offers, including a mostly cash bid from Netflix. Last week, the company asked all bidders to submit improved proposals by December 1. According to Reuters, WBD’s board rejected Paramount’s mostly cash offer of nearly $24 per share, valuing the company at about $60 billion.