The biggest shakeup in streaming is now official. On December 5, 2025, Netflix announced it will buy Warner Bros., including its legendary film and TV studios and the HBO Max streaming service, in a deal valued at $82.7 billion. This creates a new entertainment giant that combines Netflix’s global streaming platform with a century’s worth of Hollywood’s most famous stories. For millions of viewers, the biggest question is simple: what will this mean for my monthly bill? Netflix’s leadership has started to give answers.
Netflix co-CEO Greg Peters stated the deal will “improve our offering and accelerate our business for decades to come”. He explained that bringing Warner Bros. content onto Netflix provides “a lot of levers to think about in terms of packaging”. While exact details are still being planned, Peters indicated that the company sees opportunities to add value for subscribers, particularly for the many Netflix users around the world who do not currently subscribe to HBO Max.
The New Streaming Giant: What You Get
This merger unites two massive libraries of entertainment. Netflix subscribers will eventually get access to iconic Warner Bros. and HBO titles.
The Warner Bros. collection includes modern hits and timeless classics like “Harry Potter,” “Game of Thrones,” “The Sopranos,” “Friends,” and the entire DC Universe with Batman and Superman. It also adds legendary films such as “Casablanca,” “The Wizard of Oz,” and “Citizen Kane”. This vast library will join Netflix’s own popular originals like “Stranger Things,” “Wednesday,” “Bridgerton,” and “Squid Game”.
The combined company will have enormous scale, with a projected 430 million subscribers worldwide. This move marks a major shift for Netflix, which has historically grown by creating its own content rather than making huge purchases.
“Our mission has always been to entertain the world,” said Ted Sarandos, co-CEO of Netflix. “By combining Warner Bros.’ incredible library… we’ll be able to do that even better.”
Will Netflix Subscription Prices Go Up?
The potential for a price increase is the most immediate concern for subscribers. Industry experts and the company’s own statements suggest changes are likely, though the form they will take is still unclear.
Michael D. Smith, a professor at Carnegie Mellon University, analyzed the situation plainly. He notes that Netflix has raised prices before without losing many subscribers, suggesting customers have been willing to accept moderate increases. The key question is how much more Netflix might charge for the vastly expanded library.
Smith believes that for subscribers who already pay for both Netflix and HBO Max, the merger could be a good deal if it means one combined bill, even at a slightly higher price than a standalone Netflix subscription. For those who only have Netflix, the company will have to convince them that the new content is worth paying more for.
On a recent analyst call, Greg Peters did not announce specific pricing but focused on “unlocking value.” He pointed out that a large number of Netflix’s global subscribers do not currently have access to HBO Max. Bringing that content to them in the right way, through different plans or tiers, is a major opportunity for the company. Analysts interpreting these statements believe the merger gives Netflix clear “pricing power,” with the ability to raise subscription rates globally without fearing a mass cancellation of accounts.
What Happens to HBO Max?
A major practical question is what will happen to the HBO Max service itself. The evidence strongly points toward it being absorbed into Netflix, rather than continuing as a separate platform.
Professor Michael D. Smith stated directly, “I can’t imagine a world where they keep HBO Max as a separate platform”. This view is supported by Netflix’s history and its current strategy. Unlike Disney, which offers bundles of its services, Netflix has typically resisted creating first-party bundles with other companies.
The plan appears to be integrating Warner Bros. content directly into the main Netflix service. Greg Peters described Netflix as having “the best tool for connecting incredible stories with people,” suggesting that tool is the Netflix app itself. While the prestigious HBO brand will remain valued, its shows and movies are expected to become a premium layer within Netflix.
The Biggest Hurdle: Government Approval
Before any new plans or prices can take effect, this deal must pass a formidable challenge: approval from government regulators in the United States and other countries. This is not guaranteed, and it is the reason the companies say the transaction may not be complete for 12 to 18 months, possibly stretching into 2027.
The core concern for regulators is that the merger would reduce competition. Netflix is already the largest streaming service, and adding Warner Bros.’s content would significantly increase its market share. Some estimates suggest the combined company could control between 30% and 43% of the U.S. streaming market.
“It looks challengeable,” said Herbert Hovenkamp, an antitrust law professor at the University of Pennsylvania. “This is a fairly concentrated market where you get concerned about higher prices.”
Politicians from both major parties have expressed caution. Republican Senators Josh Hawley and Mike Lee stated the merger should “send alarm to antitrust enforcers around the world”. The deal is also expected to face careful review from European regulators.
Adding to the uncertainty are political dynamics. Paramount Global, which lost the bidding war to Netflix, had also sought to buy Warner Bros.. Paramount’s CEO, David Ellison, has a well-known relationship with President Donald Trump, leading to speculation that the current administration may view a Paramount deal more favorably. Reports indicate the Trump administration is viewing the Netflix agreement with “heavy skepticism”.
Also Read:
What It Means for the Movie Industry
The merger also has big implications for how movies are released. Netflix has been known for a “streaming-first” model, often giving films only limited theatrical releases to qualify for awards. In contrast, Warner Bros. has a long tradition of major theatrical runs for its blockbuster films.
In their announcement, Netflix sought to reassure the industry by committing to continue releasing Warner Bros. movies in theaters. However, many in Hollywood remain skeptical, given Netflix’s established business patterns. How this balance is managed will be closely watched by filmmakers, theater chains, and moviegoers.
The combined strength of the libraries also changes the competitive landscape for companies like Disney, Amazon, and Apple. With control over so much prized content, the new Netflix could have greater influence over everything from licensing deals to the terms it sets for writers and producers. The Writers Guild of America has already voiced strong opposition, arguing the deal would “eliminate jobs, push down wages… and reduce the volume and diversity of content”.
The process of combining these two companies will be long and complex, with government reviews shaping the final outcome. For subscribers, the promise of getting all their favorite shows and movies in one place is clear. The final cost of that convenience, however, is still being written.
Also Read: Down Cemetery Road Episode 7: The Larkin Poem That Connects a Murder to the Series Title
Credits: about.netflix.com
