Netflix on Tuesday converted its nearly $83 billion offer for most of Warner Bros to an all-cash deal, aiming to edge out Paramount in the competition for the coveted studio and content library. If successful, the merger could bring HBO Max under the same umbrella as Netflix, potentially creating a massive streaming powerhouse.
Industry observers and consumers are curious whether the tie-up would reduce subscription costs. LaFleur, a tech communications professional, suggested that while streaming prices have consistently risen, the merger could offer opportunities for discounts rather than simply adding HBO Max’s fees to Netflix subscriptions. Currently, Americans pay for an average of 2.9 streaming services, totaling $552 a year, according to a Forbes survey.
Data shows heavy overlap between platforms: 94% of HBO Max subscribers also have Netflix, and 38% of Netflix users subscribe to HBO Max. A merger could revive the “everything under one roof” promise of streaming before studios pulled content for competing services. However, experts caution that the deal may reduce competition and risk diminishing HBO’s prestige programming, which currently exceeds Netflix in quality.
Consumers have felt overwhelmed by the growing number of streaming options. About 72% of U.S. viewers said bundles offer better value, while 63% reported feeling overloaded by choices, according to a Mintel survey. Managing multiple subscriptions has become cumbersome, prompting some users to track or cancel services due to costs. Discounted bundles like Disney+, Hulu, and HBO Max have proven stickier than standalone platforms, retaining 80% of subscribers after three months.
Netflix, the global streaming leader with 325 million subscribers, often forms the core of users’ viewing packages. A Forrester survey found 78% of respondents would include Netflix when creating custom bundles, placing it ahead of Disney+, Paramount+, and HBO Max. Part of Netflix’s argument in pursuing Warner Bros is that consolidation could lower costs for consumers and address regulatory concerns.
Currently, Netflix’s standard plan is $17.99 per month, HBO Max costs $18.49, and Paramount+ ad-free Premium is $13.99. Netflix eliminated its cheapest ad-free plan in 2023, leaving higher-priced premium and standard options. The premium plan now costs $24.99, up from $19.99 in 2022. Critics warn that a Netflix-Warner Bros merger could give the combined entity increased bargaining power, potentially leading to higher rates, fewer quality shows, or reduced investment in content creation.
Bill Baer, a former U.S. antitrust official, noted that the winning bidder, whether Netflix or Paramount, might pay less for content, lowering both the quantity and quality of programming and discouraging creative investment.
Also read: India Restricts Access to Pakistani Dramas on Netflix
