netflix

under-a-paramount-wbd-merger,-two-struggling-media-giants-would-unite

Under a Paramount-WBD merger, two struggling media giants would unite

A successful Paramount-WBD merger would be the largest streaming merger ever and would lead to further consolidation in the industry.

“What started as a fragmented but flexible streaming ecosystem is increasingly trending toward rebundling—fewer, larger super-platforms offering broader catalogues at higher price points,” Mathur said.

Paramount holds on to cable

Paramount’s WBD bid is unique in its aggressive push for cable channels, which are struggling with viewership and advertising revenue. Under a WBD merger, Paramount would add networks like HGTV, Cartoon Network, TLC, and CNN to its linear TV lineup, which currently includes Comedy Central, Nickelodeon, and CBS.

Although Paramount and WBD’s cable businesses are both in decline, they are both profitable. Paramount’s TV/media business, which includes its cable channels and production studios, reported $1.1 billion in adjusted OIBDA in Q4 2025. WBD’s cable business posted adjusted EBITDA of $1.41 billion that quarter.

Ultimately, a Paramount-WBD merger would put diversity of viewpoints at risk. Under Ellison’s ownership, CBS News has adjusted its approach with new editor-in-chief Bari Weiss. There have also been concerns about censoring CBS under Ellison’s Paramount, including from Stephen Colbert, who said this month that CBS forbade him from interviewing Texas Democratic Senate candidate James Talarico; CBS denied Colbert’s claim. Further, Paramount could have a lasting impact on CNN, including costs, layoffs, and coverage.

More to come

Regulatory scrutiny will be at the center of Paramount and WBD’s merger over the upcoming months. Federal approval is likely, but the merger also faces European regulation and potential state lawsuits. The theater industry is also lobbying against Paramount’s WBD merger.

Should a Paramount-WBD merger ultimately be greenlit, two declining businesses will be challenged to form a profitable one. Even with regulatory approval, Paramount-Skydance-Warner-Bros.-Discovery faces an uphill climb.

Although the bidding war may be settled, the fight for WBD is only beginning.

Under a Paramount-WBD merger, two struggling media giants would unite Read More »

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Netflix cedes Warner Bros. Discovery to Paramount: “No longer financially attractive”

On Thursday, WBD’s board deemed Paramount’s revamped offer “superior,” giving Netflix four business days to match it. But that same day, Netflix, which had recently emphasized its willingness to walk away from mergers it deems overly expensive, said it would no longer pursue the acquisition.

A statement from Netflix co-CEOs Ted Sarandos and Greg Peters issued last night said:

The transaction we negotiated would have created shareholder value with a clear path to regulatory approval. However, we’ve always been disciplined, and at the price required to match Paramount Skydance’s latest offer, the deal is no longer financially attractive, so we are declining to match the Paramount Skydance bid.

The CEOs added that the WBD merger “was always a ‘nice to have’ at the right price, not a ‘must have’ at any price.”

Netflix and Paramount’s stock have continuously declined since Netflix announced its planned merger. Following yesterday’s announcement, Netflix shares rose by more than 10 percent in after-hours trading, and Paramount shares increased by 5 percent.

In a statement quoted by The Hollywood Reporter yesterday, WBD President and CEO David Zaslav said, “Once our board votes to adopt the Paramount merger agreement, it will create tremendous value for our shareholders. We are excited about the potential of a combined Paramount Skydance and Warner Bros. Discovery and can’t wait to get started working together telling the stories that move the world.”

The article was edited to correct ticking fee information. 

Netflix cedes Warner Bros. Discovery to Paramount: “No longer financially attractive” Read More »

wbd-says-paramount’s-new,-higher-offer-could-be-“superior”-to-netflix’s

WBD says Paramount’s new, higher offer could be “superior” to Netflix’s

Paramount Skydance increased its bid for Warner Bros. Discovery (WBD) from $30 per share to $31 per share, WBD said today. Amid a competing offer from Netflix for WBD’s movie studios and streaming businesses, WBD said that Paramount’s new bid “could reasonably be expected to lead to a ‘Company Superior Proposal.’”

Under its revamped offer, Paramount would also pay the $7 billion regulatory termination fee that would arise should a Paramount-WBD merger fail to close due to antitrust regulation.

The company owned by David Ellison also said it would pay $0.25 per share for every day the deal doesn’t close, starting on September 30, rather than the previous start date of December 31.

Paramount previously agreed to pay the $2.8 billion termination fee that WBD would be subject to if it canceled its merger deal with Netflix.

Netflix has offered $27.75 per share for a smaller part of WBD’s overall business. Netflix is looking to pay all-cash for WBD’s film studios, intellectual property, HBO, and streaming services, including HBO Max, but not any of WBD’s other cable channels.

WBD’s board has not decided if Paramount’s revamped offer is better than what Netflix has offered. If the board makes that determination, Netflix will have four days to present a better offer.

It’s unclear if Netflix would be willing to pay more for WBD’s streaming and movie businesses than what it’s already offered. The streaming giant hasn’t commented on Paramount’s new offer yet, but on Friday, co-CEO Ted Sarandos told Variety that the people in charge of Netflix are “super-disciplined buyers.”

“We have a reputation for such so that I’m willing to walk away and let someone else overpay for things. We have a rich history of that,” he added.

Regardless of the ultimate buyer, any WBD merger is expected to face intense regulatory scrutiny, lead to higher subscription prices, and have a lasting impact on Hollywood.

WBD says Paramount’s new, higher offer could be “superior” to Netflix’s Read More »

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Warner Bros. rejects Paramount again but asks for “best and final offer”

Warner Bros. seeks higher offer, new terms

Paramount is offering $31 per share, but it wants to buy the entire Warner Bros. Discovery company, while Netflix’s deal is for just the streaming and movie studios divisions. The Warner Bros. letter to Paramount said, “On February 11th, a senior representative of your financial advisor communicated orally to a member of our Board that PSKY would agree to pay $31 per WBD share if we engage with you, and that $31 is not PSKY’s best and final proposal.”

The letter asked Paramount to increase its offer. “We are writing to inform you that Netflix has agreed to provide WBD a waiver of certain terms of the Netflix merger agreement to permit us, through February 23, to engage with PSKY to clarify your proposal, which we understand will include a WBD per share price higher than $31,” Warner Bros. wrote.

Warner Bros. also asked Paramount to accept the same terms that Netflix agreed to. Warner Bros. said terms proposed by Paramount give Paramount the right to terminate or amend the deal, whereas “the Netflix Merger Agreement is binding on Netflix, provides WBD stockholders the opportunity to vote on a specific and binding transaction, and cannot be amended without WBD’s consent.” Warner Bros. also said Paramount’s proposed terms restrict Warner Bros.’ ability to manage its business while the transaction is pending.

Warner Bros. has also repeatedly pointed to Netflix’s superior finances as a reason for preferring its offer. The Warner Bros. board previously called the Paramount bid “illusory” because it requires an “extraordinary amount of debt financing, and described Paramount as “a $14B market cap company with a ‘junk’ credit rating, negative free cash flows, significant fixed financial obligations, and a high degree of dependency on its linear business.”

The Netflix/Warner Bros. deal is facing scrutiny over how it would affect streaming consumers. Netflix co-CEO Ted Sarandos told a Senate committee that the Netflix and HBO Max streaming services are “complementary” and claimed that the combined company will give users more content for less money.

“We are a one-click cancel, so if the consumer says, ‘That’s too much for what I’m getting,’ they can cancel with one click,” Sarandos said.

Warner Bros. rejects Paramount again but asks for “best and final offer” Read More »

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Netflix says users can cancel service if HBO Max merger makes it too expensive 

There is concern that subscribers might be negatively affected if Netflix acquires Warner Bros. Discovery’s (WBD’s) streaming and movie studios businesses. One of the biggest fears is that the merger would lead to higher prices due to Netflix having less competition. During a Senate hearing today, Netflix co-CEO Ted Sarandos suggested that the merger would have an opposite effect.

Sarandos was speaking at a hearing held by the US Senate Judiciary Committee’s Subcommittee on Antitrust, Competition Policy, and Consumer Rights, “Examining the Competitive Impact of the Proposed Netflix-Warner Brothers Transaction.”

Sarandos aimed to convince the subcommittee that Netflix wouldn’t become a monopoly in streaming or in movie and TV production if regulators allowed its acquisition to close. Netflix is the largest subscription video-on-demand (SVOD) provider by subscribers (301.63 million as of January 2025), and WBD is the third (128 million streaming subscribers, including users of HBO Max and, to a smaller degree, Discovery+).

Speaking at today’s hearing, Sarandos said:

Netflix and Warner Bros. both have streaming services, but they are very complementary. In fact, 80 percent of HBO Max subscribers also subscribe to Netflix. We will give consumers more content for less.

During the hearing, Sen. Amy Klobuchar (D-Minnesota) asked Sarandos how Netflix can ensure that streaming remains “affordable” after a merger, especially after Netflix issued a price hike in January 2025 despite it adding more subscribers.

Sarandos said the streaming industry is still competitive. The executive claimed that previous Netflix price hikes have come with “a lot more value” for subscribers.

“We are a one-click cancel, so if the consumer says, ‘That’s too much for what I’m getting,’ they can cancel with one click,” Sarandos said.

When pressed further on pricing, the executive argued that the merger doesn’t pose “any concentration risk” and that Netflix is working with the US Department of Justice on potential guardrails against more price hikes.

Netflix says users can cancel service if HBO Max merger makes it too expensive  Read More »

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Netflix to pay all cash for Warner Bros. to fend off Paramount hostile takeover

“By transitioning to all-cash consideration, we can now deliver the incredible value of our combination with Netflix at even greater levels of certainty, while providing our stockholders the opportunity to participate in management’s strategic plans to realize the value of Discovery Global’s iconic brands and global reach,” Warner Bros. Discovery board Chairman Samuel Di Piazza Jr. said in today’s press release.

Netflix is more likely to complete the deal, firms argue

Paramount also made an all-cash offer, but the Warner Bros. board called the Paramount bid “illusory” because it requires an “extraordinary amount of debt financing” and other terms that allegedly make it less likely to be completed than a Netflix merger.

Paramount “is a $14B market cap company with a ‘junk’ credit rating, negative free cash flows, significant fixed financial obligations, and a high degree of dependency on its linear business,” while Netflix has “market capitalization of approximately $400 billion, an investment grade balance sheet, an A/A3 credit rating and estimated free cash flow of more than $12 billion for 2026,” Warner Bros. told shareholders.

Warner Bros. and Netflix today continued to tout Netflix’s strong financial position and its ability to close the deal. “Netflix’s strong cash flow generation supports the revised all-cash transaction structure while preserving a healthy balance sheet and flexibility to capitalize on future strategic priorities,” the joint press release said.

The Wall Street Journal explained that the new “deal structure does away with a so-called collar, a mechanism meant to protect shareholders from large swings in an acquirer’s share price between the time when a deal is announced and when it closes. If Netflix shares dipped below $97.91, Warner shareholders were to get a larger portion of Netflix shares as part of the deal. If they rose above $119.67, shareholders would have received a smaller portion.”

Netflix to pay all cash for Warner Bros. to fend off Paramount hostile takeover Read More »

paramount-sues-wbd-over-netflix-deal-wbd-says-paramount’s-price-is-still-inadequate.

Paramount sues WBD over Netflix deal. WBD says Paramount’s price is still inadequate.

Paramount Skydance escalated its hostile takeover bid of Warner Bros. Discovery (WBD) today by filing a lawsuit in Delaware Chancery Court against WBD, declaring its intention to fight Netflix’s acquisition.

In December, WBD agreed to sell its streaming and movie businesses to Netflix for $82.7 billion. The deal would see WBD’s Global Networks division, comprised of WBD’s legacy cable networks, spun out into a separate company called Discovery Global. But in December, Paramount submitted a hostile takeover bid and amended its bid for WBD. Subsequently, the company has aggressively tried to convince WBD’s shareholders that its $108.4 billion offer for all of WBD is superior to the Netflix deal.

Today, Paramount CEO David Ellison wrote a letter to WBD shareholders informing them of Paramount’s lawsuit. The lawsuit requests the court to force WBD to disclose “how it valued the Global Networks stub equity, how it valued the overall Netflix transaction, how the purchase price reduction for debt works in the Netflix transaction, or even what the basis is for its ‘risk adjustment’” of Paramount’s $30 per share all-cash offer. Netflix’s offer equates to $27.72 per share, including $23.25 in cash and shares of Netflix common stock. Paramount hopes the information will encourage more WBD shareholders to tender their shares under Paramount’s offer by the January 21 deadline.

Before WBD announced the Netflix deal, Paramount publicly questioned the fairness of WBD’s bidding process. Paramount has since argued that its bid wasn’t given fair consideration or negotiation.

In his letter today, Ellison wrote:

We remain perplexed that WBD never responded to our December 4th offer, never attempted to clarify or negotiate any of the terms in that proposal, nor traded markups of contracts with us. Even as we read WBD’s own narrative of its process, we are struck that there were few actual board meetings in the period leading up to the decision to accept an inferior transaction with Netflix. And we are surprised by the lack of transparency on WBD’s part regarding basic financial matters. It just doesn’t add up – much like the math on how WBD continues to favor taking less than our $30 per share all-cash offer for its shareholders.

Additionally, Paramount plans to nominate board directors for election at WBD’s annual shareholder meeting who will fight against the Netflix deal’s approval. The window for nominations opens in three weeks, Ellison’s letter noted.

Paramount sues WBD over Netflix deal. WBD says Paramount’s price is still inadequate. Read More »

warner-bros.-sticks-with-netflix-merger,-calls-paramount’s-$108b-bid-“illusory”

Warner Bros. sticks with Netflix merger, calls Paramount’s $108B bid “illusory”


Larry Ellison pledged $40B, but “he didn’t raise the price,” Warner chair says.

Credit: Getty Images | Kenneth Cheung

The Warner Bros. Discovery board has unanimously voted to rebuff Paramount’s $108.4 billion offer and urged shareholders to reject the hostile takeover bid. The board is continuing to support Netflix’s pending $82.7 billion purchase of its streaming and movie studios businesses along with a separate spinoff of the Warner Bros. cable TV division.

Warner Bros. called the Paramount bid “illusory” in a presentation for shareholders today, saying the offer requires an “extraordinary amount of debt financing” and other terms that make it less likely to be completed than a Netflix merger. It would be the largest leveraged buyout ever, “with $87B of total pro forma gross debt,” and is “effectively a one-sided option for PSKY [Paramount Skydance] as the offer can be terminated or amended by PSKY at any time,” Warner Bros. said.

The Warner Bros. presentation touted Netflix’s financial strength while saying that Paramount “is a $14B market cap company with a ‘junk’ credit rating, negative free cash flows, significant fixed financial obligations, and a high degree of dependency on its linear business.” The Paramount “offer is illusory as it cannot be completed before it is currently scheduled to expire,” Warner Bros. said.

Warner Bros. said in a letter to shareholders today that it prefers Netflix with its “market capitalization of approximately $400 billion, an investment grade balance sheet, an A/A3 credit rating and estimated free cash flow of more than $12 billion for 2026.” Moreover, the deal with Netflix provides Warner Bros. with “more flexibility to operate in a normal course until closing,” the letter said.

Even if Paramount is able to complete a deal, “WBD stockholders will not receive cash for 12-18 months and you cannot trade your shares while shares are tendered,” the board told investors. Despite the seemingly firm position, Warner Bros. Discovery board Chairman Samuel Di Piazza Jr. seemed to suggest in an appearance on CNBC’s Squawk Box today that the board could be swayed by a higher offer.

Larry Ellison “didn’t raise the price”

On December 5, after a bidding war that also involved Paramount and Comcast, Warner Bros. struck a deal to sell Netflix its streaming and movie studios businesses. Netflix, already the world’s largest streaming service, would become an even bigger juggernaut if it completes the takeover including rival HBO Max, WB Studios, and other assets.

While the Paramount bid is higher, it would involve the purchase of more Warner Bros. assets than the deal with Netflix. “Unlike Netflix, Paramount is seeking to buy the company’s legacy television and cable assets such as CNN, TNT, and Discovery Channel,” the Financial Times wrote. “Netflix plans to acquire WBD after it spins off its cable TV business, which is scheduled to happen this year.”

Paramount, which recently completed an $8 billion merger with Skydance, submitted its bid for a hostile takeover days after the Netflix/Warner Bros. deal was announced. Warner Bros. resisted, and Paramount amended its offer on December 22 to address objections.

“Larry Ellison has agreed to provide an irrevocable personal guarantee of $40.4 billion of the equity financing for the offer and any damages claims against Paramount,” Paramount said. It also said it offered “improved flexibility to WBD on debt refinancing transactions, representations and interim operating covenants.”

Larry Ellison’s son, David Ellison, is the chairman and CEO of Paramount Skydance. In his CNBC appearance, Di Piazza acknowledged that “Larry Ellison stepped up to the table and the board recognizes what he did.” But “ultimately, he didn’t raise the price. So, in our perspective, Netflix continues to be the superior offer, a clear path to closing.”

Warner Bros. shareholders currently have a January 21 deadline for tendering shares under the Paramount offer, but that could change, as Paramount has indicated it could sweeten the deal further.

Breakup fees a sticking point

Warner Bros. said in the letter to shareholders today that the latest offer still isn’t good enough. Paramount is “attempting an acquisition requiring $94.65 billion of debt and equity financing, nearly seven times its total market capitalization,” requiring it “to incur an extraordinary amount of incremental debt—more than $50 billion—through arrangements with multiple financing partners,” the letter said.

Warner Bros. said that breaking the deal with Netflix would require it to pay Netflix a $2.8 billion termination fee. Either Paramount or Netflix would have to pay Warner Bros. a $5.8 billion termination fee if the buyer can’t get regulatory approval for a merger. But if a Paramount deal failed, there would also be $4.7 billion in unreimbursed costs for shareholders, reducing the effective termination fee to $1.1 billion, according to Warner Bros.

“In the large majority of cases, when an overbidder comes in, they take that break[up] fee and pay it,” Di Piazza said on CNBC.

Warner Bros. Discovery also said the Paramount offer would prohibit it from completing its planned separation of Discovery Global and Warner Bros., which it argues will bring substantial benefits to shareholders by letting each of the separated entities “focus on its own strategic plan.” This separation can be completed even if Netflix is unable to complete the merger for regulatory reasons, it said.

We contacted Paramount and will update this article if it provides any response.

Warner Bros. investor wants more negotiations

Warner Bros. is facing pressure from one of its top shareholders to negotiate further with Paramount. “Pentwater Capital Management, a hedge-fund manager that is among Warner’s top shareholders, told the board in a letter Wednesday that it is failing in its fiduciary duty to shareholders by not engaging in discussions with Paramount,” according to The Wall Street Journal.

The hedge-fund manager said the board should at least ask Paramount what improvements it is willing to make to its offer. “Pentwater vowed to vote against the merger and not support the renomination of directors in the future if Paramount raises its offer and Warner’s board doesn’t have further discussions with the company,” the Journal wrote.

The Warner Bros. board argued in its letter that “PSKY has continued to submit offers that still include many of the deficiencies we previously repeatedly identified to PSKY, none of which are present in the Netflix merger agreement, all while asserting that its offers do not represent its ‘best and final’ proposal.”

However, Di Piazza suggested on CNBC that Paramount could still put a superior offer on the table. “They had that opportunity in the seventh proposal, the eighth proposal, and they haven’t done it,” he said. “And so from our perspective, they’ve got to put something on the table that is compelling and is superior.”

Netflix issued a statement today saying it “is engaging with competition authorities, including the US Department of Justice and European Commission,” to move the deal forward. “As previously disclosed, the transaction is expected to close in 12-18 months from the date that Netflix and WBD originally entered into their merger agreement,” Netflix said.

Photo of Jon Brodkin

Jon is a Senior IT Reporter for Ars Technica. He covers the telecom industry, Federal Communications Commission rulemakings, broadband consumer affairs, court cases, and government regulation of the tech industry.

Warner Bros. sticks with Netflix merger, calls Paramount’s $108B bid “illusory” Read More »

“streaming-stops-feeling-infinite”:-what-subscribers-can-expect-in-2026

“Streaming stops feeling infinite”: What subscribers can expect in 2026


Spoiler: expect higher prices

Streaming may get a little worse before it gets better.

We’re far from streaming’s original promise: instant access to beloved and undiscovered titles without the burden of ads, bundled services, or price gouging that have long been associated with cable.

Still, every year we get more dependent on streaming for entertainment. Despite streaming services’ flaws, many of us are bound to keep subscribing to at least one service next year. Here’s what we can expect in 2026 and beyond.

Subscription prices keep rising, but perhaps not as expected

There’s virtually no hope of streaming subscription prices plateauing in 2026. Streaming companies continue to face challenges as content production and licensing costs rise, and it’s often easier to get current customers to pay slightly more than to acquire new subscribers. Meanwhile, many streaming companies are still struggling with profitability and revenue after spending years focusing on winning subscribers with content.

“We see many services are only now aligning content spend with realistic lifetime value per subscriber,” Christofer Hamilton, industry insights manager at streaming analyst Parrot Analytics, told Ars.

Companies may get more creative with how they frame higher costs to subscribers, however. People who pay extra to stream without ads are the most likely to see price bumps as streaming companies continue pushing customers toward ad-based tiers.

Charging more for “premium” features—such as 4K streaming, simultaneous streams, or offline downloads—offers another way for streaming companies to boost revenue without implementing broad price hikes that risk provoking customer outrage. Subscribers can expect streaming prices to get “more menu-like next year,” said Michael Goodman, director of entertainment research at Parks Associates, a research firm focusing on IoT, consumer electronics, and entertainment.

When will the price hikes stop?

If streaming prices won’t stop rising next year, when will they?

Ultimately, it may be up to subscribers to vote with their dollars by canceling subscriptions or opting for cheaper or free alternatives, such as FAST (free ad-supported streaming television) channels with linear programming.

As Goodman put it, “Until we see net adds stall or decline as a result of price hikes, services have no incentive to stop raising prices.”

Some experts doubt that streaming services will ever willingly stop increasing prices. Bill Yousman, professor and director of the Media Literacy and Digital Culture graduate program at Sacred Heart University, sees precedent for this in cable companies.

“If the big streaming companies had their way, there would be no limit to their price hikes. We have already seen this with the cable monopolies and their disregard for consumer dissatisfaction,” he said.

Yousman believes that prices will only “be brought under control if there is some type of government regulation,” but he noted that’s unlikely under the Trump administration.

To date, US lawmakers haven’t shown interest in halting the steady rise of streaming prices. Most lawmakers who have sought to regulate the industry have focused on industry consolidation. There has been some effort from lawmakers to rein in streaming price hikes, though, especially through proposed federal legislation dubbed the Price Gouging Prevention Act.

Streaming services lean deeper into cable-like bundles

Companies will look to leverage subscribers’ frustration with pricing by being more aggressive about bundling third-party services like traditional pay TV, Internet, and cell phone service with streaming subscriptions. The idea is that people are less likely to cancel a streaming subscription if it’s tied to a different subscription (including another streaming subscription). The strategy echoes the days of cable, when some people kept unused landlines just to save money on cable channels or Internet service.

“For subscribers, 2026 is the year streaming stops feeling infinite and starts feeling more like premium cable used to: fewer apps, clearer bundles, and higher expectations for each service they pay for,” Parrot’s Hamilton said.

Thanks to traditional pay TV providers, bundles have a bad connotation among people looking to save money and simplify their subscriptions. But bundling doesn’t always have to be a bad thing, as Yousman explains:

If the companies wanted to really be responsive to consumers, they would let them design their own packages rather than having to choose options that may or may not include all the services they want. What works against this, of course, is the demand for ever-increasing profits at all times.

Should a sale of Warner Bros. Discovery’s (WBD’s) HBO Max be completed (late) next year, subscribers will face more pressure to bundle their streaming subscriptions.

“When dominant platforms like Netflix or Paramount absorb major content players, it accelerates the erosion of streaming’s original promise: freedom from monopolistic bundles,” Vikrant Mathur, co-founder of streaming technology provider Future Today, said.

Netflix and Paramount duke it out over Warner Bros.

WBD announced plans this month to sell its streaming and movie studios business to Netflix for an equity value of $72 billion, or an approximate total enterprise value of $82.7 billion. Paramount Skydance, however, quickly swooped in with a hostile takeover bid for all of WBD, including its cable channels, for $108.4 billion. A WBD shareholder vote will occur in spring or early summer, chairman Samuel Di Piazza told CNBC. By the end of 2026, we should have a clearer understanding of the future of HBO Max, as well as Netflix and Paramount+.

Any acquisition will be subject to regulatory scrutiny, causing more uncertainty for subscribers. If Netflix buys HBO Max, users of both services can expect higher prices due to reduced competition and the extensive amount of content and number of big-budget franchises (including Harry Potter and DC Comics) expected to unite under one platform.

“If Netflix gets [HBO Max] and the WB studios, HBO Max subscribers are more likely to see a smoother transition, strong ongoing investment in premium content, and simpler app/billing integration,” Parks Associates’ Goodman said.

But while the potential merger is worth watching, subscribers are unlikely to truly feel the impact of HBO Max potentially changing ownership until after 2026.

“Producing a show is a yearslong process, so the content that was already slated to air isn’t going to disappear, and the new content acquired through the WB library won’t be available until the merger is approved and closes,” Tre Lovell, attorney and owner of Los Angeles entertainment law firm The Lovell Firm, explained.

Content starts getting less bold

Looking beyond 2026, a sale of part or all of WBD would likely open the door for more streaming acquisitions. That could eventually benefit customers by making it easier to find content to watch with fewer subscriptions. But merged companies are also less likely to take risks on unique and diverse content.

Analysts I spoke with pointed to fewer niche and mid-tier original shows and movies and more show cancellations if either Netflix or Paramount buys HBO Max. Either buyer would probably focus more on the already-successful franchises that WB owns, such as Game of Thrones, Batman, and Superman.

“Big combined libraries push companies to double down on proven IP because it travels, merchandises, and reduces marketing risk,” said Robert Rosenberg, a partner at the New York law firm Moses Singer focusing on intellectual property, entertainment, technology, and data law.

Rosenberg also expects to see a “tilt toward” live events, sports, and unscripted content “for retention” if HBO Max sells.

In the shorter term, Rory Gooderick, research manager at analyst firm Ampere Analysis, predicted that WBD will be “cautious when greenlighting new large-scale projects until” the acquisition is finalized.

Beyond the potential HBO Max sale, more merger activity could lead to streaming services straying from their original selling point of offering bolder, quirkier content.

As the industry consolidates, “sticky content,” like procedurals, reality shows, and “comfort TV that drives long viewing sessions,” will take priority among mainstream, subscription-based streaming services, especially as they put more emphasis on ad-tier subscriptions, Goodman predicted.

A more stable future?

The new year will be formative for streaming and yield lasting impacts for subscribers. We’ve discussed numerous negative implications, but there could be a silver lining. While we may see more turbulence, hopefully, we’ll also start to see a road toward more stable streaming options.

Streaming subscribers can’t directly stop mergers or price hikes or control streaming libraries. But with services like Netflix and Disney+ focusing on becoming one-stop shops with massive libraries, there’s an opportunity for other services to hone their specialties and stand out by providing offbeat, unexpected, and rare content at more affordable prices.

As the landscape settles, streamers should be mindful of the importance of variety to subscribers. According to Bill Michels, chief product officer at Gracenote, Nielsen’s content data business unit:

There will be some consolidation. But the [connected TV] landscape, inclusive of FAST and [direct-to-consumer] channels, provides more than ample video variety for viewers, so the biggest challenge will be connecting content with the right audience. Audience engagement depends on good content. Audience retention depends on making sure audiences are never without something to watch.

Photo of Scharon Harding

Scharon is a Senior Technology Reporter at Ars Technica writing news, reviews, and analysis on consumer gadgets and services. She’s been reporting on technology for over 10 years, with bylines at Tom’s Hardware, Channelnomics, and CRN UK.

“Streaming stops feeling infinite”: What subscribers can expect in 2026 Read More »

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Stranger Things series finale trailer is here

Stranger Things fans are hyped for the premiere of the hotly anticipated series finale on New Year’s Eve: they’ll either be glued to their TVs or heading out to watch it in a bona fide theater. Netflix has dropped one last trailer for the finale—not that it really needs to do anything more to boost anticipation.

(Some spoilers for Vols. 1 and 2 below but no major Vol. 2 reveals.)

As previously reported, in Vol. 1, we found Hawkins under military occupation and Vecna targeting a new group of young children in his human form under the pseudonym “Mr. Whatsit” (a nod to A Wrinkle in Time). He kidnapped Holly Wheeler and took her to the Upside Down, where she found an ally in Max, still in a coma, but with her consciousness hiding in one of Vecna’s old memories. Dustin was struggling to process his grief over losing Eddie Munson in S4, causing a rift with Steve. The rest of the gang was devoted to stockpiling supplies and helping Eleven and Hopper track down Vecna in the Upside Down. They found Kali/Eight, Eleven’s psychic “sister” instead, being held captive in a military laboratory.

Things came to a head at the military base when Vecna’s demagorgons attacked to take 11 more children, wiping out most of the soldiers in record time. The big reveal was that, as a result of being kidnapped by Vecna in S1, Will has his own supernatural powers because of his ties to Vecna. He can tap into Vecna’s hive mind and manipulate those powers for his own purposes. He used those newfound powers to save his friends from the demagorgons.

Stranger Things series finale trailer is here Read More »

stranger-things-s5-trailer-teases-vol.-2

Stranger Things S5 trailer teases Vol. 2

We’re 10 days away from the next installment of the fifth and final season of Stranger Things, and Netflix has released a new trailer for what it’s calling Volume 2. This will cover episodes five through seven, with the final episode comprising Vol. 3.

(Spoilers for Season 5, Vol. 1 below.)

Season 4 ended with Vecna—the Big Bad behind it all—opening the gate that allowed the Upside Down to leak into Hawkins. We got a time jump for S5, Vol. 1, but in a way, we came full circle, since those events coincided with the third anniversary of Will’s original disappearance in S1.

In Vol. 1, we found Hawkins under military occupation and Vecna targeting a new group of young children in his human form under the pseudonym “Mr. Whatsit” (a nod to A Wrinkle in Time). He kidnapped Holly Wheeler and took her to the Upside Down, where she found an ally in Max, still in a coma, but her consciousness is hiding in one of Vecna’s old memories. Dustin was struggling to process his grief over losing Eddie Munson in S4, causing a rift with Steve. The rest of the gang was devoted to stockpiling supplies and helping Eleven and Hopper track down Vecna in the Upside Down. They found  Kali/Eight, Eleven’s psychic “sister” instead, being held captive in a military laboratory.

Things came to a head at the military base when Vecna’s demagorgons attacked to take 11 more children, wiping out most of the soldiers in record time. The big reveal was that, as a result of being kidnapped by Vecna in S1, Will has his own supernatural powers. He can tap into Vecna’s hive mind and manipulate those powers for his own purposes. He used his newfound powers to save his friends from the demagorgons.

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a-study-in-contrasts:-the-cinematography-of-wake-up-dead-man

A study in contrasts: The cinematography of Wake Up Dead Man

Rian Johnson has another Benoit Blanc hit on his hands with Wake Up Dead Man, in which Blanc tackles the strange death of a fire-and-brimstone parish priest, Monseigneur Jefferson Wicks (Josh Brolin). It’s a classic locked-room mystery in a spookily Gothic small-town setting, and Johnson turned to cinematographer Steve Yedlin (Looper, The Last Jedi) to help realize his artistic vision.

(Minor spoilers below but no major reveals.)

Yedlin worked on the previous two Knives Out installments. He’s known Johnson since the two were in their teens, and that longstanding friendship ensures that they are on the same page, aesthetically, from the start when they work on projects.

“We don’t have to test each other,” Yedlin told Ars. “There isn’t that figuring out period. We get to use the prep time in a way that’s really efficient and makes the movie better because we’re [in agreement] from the very first moment of whatever time we have crafting and honing and sculpting this movie. We don’t waste time talking abstractions or making sure we have the same taste. We can just dive right into the details of each individual scene and shot.”

This time, given the distinctive Gothic sensibility of Wake Up Dead Man, Yedlin played up the interplay between light and dark. For instance, Johnson’s script called for the occasional dramatic lighting changes, sometimes within the same scene. Case in point: the dramatic light changes in an exchange between the young priest (and prime suspect) Jud Duplenticy (Josh O-Connor) and Blanc. As Blanc starts speaking the clouds cover the sun; the sun re-emerges as Duplenticy’s speech swells. Blanc gets a second moment in the sun, so to speak, with his “road to Damascus” moment just before the final reveal.

“In the church, we have day, night, dawn, dusk,” said Yedlin. “We have early morning rays slashing in. As Wick’s speech swells up, the sun bursts out from behind the clouds and flares the lens. We had custom light control software so they can both control and tweak all the nuances of the lighting and also do the cues themselves where it’s changing during the shot, where it’s very flexible and we can be creative in the moment. It’s very repeatable and dependable and you can just push a button and it happens on the same line over the same length of time, every time.”

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