You’ve no doubt heard by now that Netflix is acquiring Warner Bros in a groundbreaking £54 billion deal. Much has been said about the deal and its potential impact on the streaming industry, now that so many different intellectual properties may fall under Netflix’s control. Instead, let’s take a look at the technological assets that Netflix could gain from Warner Bros.
Netflix’s Streaming Dominance
Netflix has always been the most successful of the streaming services, helped by its significant first-mover advantage. During its early years, other IP holders even parked old movies and shows on the platform. The result was a convenience-first viewing model in which viewers select their own entertainment from a wide range of options.
It was inspired by online services that use this model by default, think video-sharing sites like YouTube or casino sites where many different games are on offer. Giving the user a selection of options, whether it’s viewed entertainment or online slots with different themes and mechanics, proved more successful than restricted, scheduled programming that tries to anticipate what consumers want and when. It was ideal for the modern internet age, helping Netflix’s meteoric rise to prominence as it became the way to watch shows in houses with an internet connection.
After hammering out the model, other studios and broadcasters saw the immense profitability in streaming. This led to a lot of those same IP holders pulling their content from Netflix, so they could host it on their own platforms instead. The result was a streaming war that, years later, has left more failures than successes, while Netflix still leads the pack.
Close competitors like Amazon Prime Video found success, but had help from Amazon’s vast constellation of services. Others, like Warner Bros’ HBO Max and Discovery+, have made headlines due to earnings misses and general dissatisfaction among the company’s shareholders. Due to Netflix’s streaming dominance, this unprecedented multi-billion-dollar acquisition is anything but confirmed. In fact, it’s sure to face scrutiny on competition grounds.
Warner Bros. Library is its Own Tech Asset
Now that we’ve set the scene, we can get into the reasons Netflix would want to take on a company like Warner Bros. Discovery. First is the obvious reason – the streaming model thrives off of offering users variety, so hoovering up failed services’ content will strengthen Netflix’s library. This was the case during Netflix’s early days, as we mentioned, but it’s even more potent now that acquiring HBO means getting original IPs like Game of Thrones or everything in the DC Universe.
Max on mobile phone. Credit: Max on mobile phone. Credit: Netflix. Credit – BoliviaInteligente, Unsplash
While grabbing giant IPs is a big boost, we should look closer at what Warner Bros.’s library represents. This is a company that was first founded in 1923, responsible for over a century of movie and TV production, spanning from Casablanca to the Lord of the Rings movies. In short, it’s a giant content vault that, according to more tech-minded analysts, could supercharge Netflix’s launch into AI services and user-generated content.
The speculation isn’t without merit, as Disney’s Bob Iger recently hinted at allowing AI-powered user-generated content in the company’s 2025 earnings conference call. Taking after video-sharing and social media content models, Netflix’s first competitor is considering using AI to push its IPs into the public consciousness, letting them play a bigger part in meme culture. It’s a big change from restrictive IP guarding, but it may prove to be a forward-facing approach that allows Disney to capitalise on its IPs’ cultural relevance.
Assuming Netflix would want to rise to that challenge, the world’s biggest streamer now has a century-old back catalogue of culturally potent IPs to draw from. It remains an assumption until Netflix makes its big move, but with a deal this big, it’s hard to believe that future applications of Warner Bro.’s content didn’t factor in this gigantic acquisition.