Close your eyes, think for a minute, and tell me: What is a Netflix Movie? OK, try again: What is a Netflix Show?
Sure, it’s easy to rattle off some killer titles—KPop Demon Hunters, Stranger Things—but Netflix has never really had a brand identity. It’s not, like Disney, the home of Star Wars and Mickey Mouse. As streaming services go, it’s made its name by being a jack of all trades and a master of none. Now, it’s made its smartest move yet, dropping $83 billion to buy itself a whole new personality.
On Friday, the streaming giant announced it will be acquiring Warner Bros. in a deal that gives Netflix the studio’s film and television operations as well as HBO and HBO Max. For those who can’t keep up with who owns what these days—no one can—that means that once the deal closes, Netflix will own everything from Batman to The Big Bang Theory, The Wizard of Oz to Westeros. Also, Lord of the Rings, Harry Potter, and prestige TV shows like The Sopranos.
According to Paul Erickson, a media and entertainment analyst at Omdia, acquiring content with that kind of name recognition will allow Netflix to attract and retain subscribers. “It will also increase Netflix’s standing within the industry from talent, recruitment, and salary negotiation perspectives,” he added.
The deal, which is expected to close next fall after Warner Bros. Discovery spins off its cable business (CNN, HGTV, Discovery, and others), surprised the hell out of Hollywood when Netflix announced it Friday morning. Warner Bros. Discovery’s future had been hanging in the balance for weeks, with a series of potential buyers putting in offers. NBCUniversal parent company Comcast made a bid. So did Paramount Skydance—which worried some, given that the merger of Paramount and Skydance, headed up by Oracle founder Larry Ellison’s son David Ellison, became a political football involving everything from South Park to The Late Show With Stephen Colbert, which got put on ice this summer.
Ultimately, Netflix won, making itself the place where viewers will go for Game of Thrones rewatches and whatever new thing James Gunn does with the DC Extended Universe. In effect, it gives the streaming giant an identity it didn’t have before and a back catalog that will rival that of Disney+. It could also transform the streaming giant into something far more akin to a traditional movie and TV studio—if that’s what it wants to be.
That’s the big question. As soon as the acquisition was announced, industry observers began to speculate whether or not Netflix would, say, continue Warner Bros’ commitment to theatrical releases, something that’s important to its auteur directors like Dune filmmaker Denis Villeneuve. Some also wondered, given Netflix co-CEO Ted Sarandos’ recent comments about embracing generative artificial intelligence, if it would lead to more AI content generated thanks to Warner Bros. massive library. All scenarios seem possible, but also at odds with each other. Today’s deal means Netflix has a decision to make: use the Warner Bros. legacy it has acquired to carry on as a major Hollywood studio, or use it to make reams of content but far less art.
