Netflix’s proposed $82.7 billion acquisition of Warner Bros. Discovery has sparked the usual debates about media consolidation and regulatory hurdles.
But what does this actually mean for people who just want to watch their shows without juggling five different apps and subscriptions?
The deal now faces a competing hostile bid from Paramount Skydance, which has offered $30-31 per share in all cash for WBD. Netflix has granted WBD a seven-day waiver to explore Paramount’s “best and final” offer, with a shareholder vote scheduled for March 20.
Regardless of which suitor prevails, streaming subscribers find themselves in a paradox. Consolidation promises real improvements – bundled pricing, unified platforms, easier access to content – but it also raises concerns about market control, long-term pricing power, and whether consumers will actually have meaningful choices once the dust settles.
Recent Forrester research shows consumers are split.
Among Netflix and HBO Max subscribers, 45% support the Netflix acquisition while 16% oppose it outright.
After years of explosive growth and new entrants flooding the market, consolidation is here. Whether that’s good or bad for consumers depends on who you ask.
Fragmentation Has Become a Real Problem
Households now juggle an average of 13 different entertainment sources, according to Hub Entertainment Research. That includes streaming services, gaming platforms, social media, and traditional TV.
The core frustration with this current model is managing multiple subscriptions, remembering which content lives where, and navigating different interfaces has become exhausting.
Jason Platt Zolov, Senior Consultant at Hub Entertainment Research, points to bundling and aggregation as the solution:
“Whether it be bundles of diverse content being promoted within a platform (e.g. Disney+ and their integration of family content alongside Hulu adult-focused content) or competitor bundles (e.g. being able to purchase Disney + HBO Max together for a reduced price), the industry is leaning into these value-add bundles that provide a broad range of content that meets the needs of different viewers in a household.”
Consumers who bundle services through aggregators like Amazon Prime Video and The Roku Channel subscribe to nearly three more services on average than people who pay directly.
Their motivation centers on simplicity and ease of access. If a Netflix-Warner Bros. deal delivers on consolidated content libraries, the user experience could improve.
The same would be true if Paramount’s bid succeeds and leads to further consolidation across the industry.
Mike Proulx, VP and Research Director at Forrester, argues that contrary to the prevailing narrative, streaming consolidation would actually benefit consumers.
His analysis points to three key wins:
- Combined cost savings through bundling
- Easier content access via a unified interface
- Shorter theatrical windows that align with viewer preferences
The numbers support this view. According to Forrester’s research, 73% of subscribers agree that adding Warner Bros. film and TV libraries along with HBO and HBO Max programming would give Netflix users more high-quality titles to choose from.
Meanwhile, 39% believe consolidation will benefit consumers overall, compared to just 23% who disagree.
Four Subscriber Segments, Four Different Reactions
Forrester conducted a pulse check poll in its ConsumerVoices Market Research Online Community, surveying about 500 people across the US, UK, and Canada. The responses reveal how different subscriber groups view potential consolidation.
Dual subscribers – those paying for both Netflix and HBO Max – are split down the middle. 18% of respondents are optimistic about cost savings and convenience, while others worry about price hikes and monopolistic consolidation.
Excitement about a combined app gets tempered by anxiety over long-term costs and diminished competition.
HBO Max-only subscribers (just 4% of respondents) are mostly apprehensive. This group worries consolidation will reduce competition, raise prices, and potentially degrade HBO Max’s quality.
While a few hope for more content, most are uneasy about what happens to their preferred service.
Netflix-only subscribers represent the largest segment at 39% and lean cautiously optimistic. Some welcome more content and convenience, but many fear price increases and reduced choice.
Non-subscribers (38% of respondents) are primarily indifferent. Their concerns center on monopolistic power, reduced competition, and higher prices.
Some fear negative impacts on theaters and film quality, though a few see potential for more content or lower costs.
Market Concentration Raises Questions
Adrian Swinscoe, CX consultant, estimates that a combined Netflix and HBO would control around 36% of the US streaming market.
That level of concentration raises legitimate questions about pricing, content diversity, and consumer choice – concerns that apply regardless of whether Netflix or Paramount ultimately acquires WBD’s assets.
The pricing question is particularly unclear. While reduced competition often leads to price increases, Swinscoe notes that merger efficiencies could stabilize or even decrease prices.
Research on past acquisitions shows mixed outcomes, so subscriber caution makes sense.
Zolov suggests Netflix will manage this through tiered pricing.
“Netflix has plenty of experience with subscribers who churn based on price increases, and they’ve done a good job of moving those more price-sensitive subscribers to the cheaper, ad-supported tier,” he says.
“I would imagine they will continue to manage that forward if the merger with WBD goes through, targeting the heaviest viewers with higher-priced versions that offer premium, ‘super-size’ viewing experiences (and potentially exclusive content) while they will continue to offer cheaper ad-supported tiers to keep people in the fold.”
That approach addresses price sensitivity but doesn’t eliminate concerns about long-term pricing power once competition diminishes.
The dual subscriber segment’s split reaction captures this tension.
Discovery Could Make or Break the Experience
If Netflix absorbs Warner Bros. content into a single platform, the user experience will hinge on whether the company can actually help people find what they want to watch.
Proulx believes a single user interface would make content more accessible, pointing to Disney’s planned ‘one app’ experience as a model.
Since Netflix is known for its ease of use and recommendation engine, subscribers to either or both services would benefit.
Only about half of viewers say the recommendations they get from streaming services are actually on the mark, according to Zolov.
“The other half find those recommendations as simply promoting new shows, regardless of their personal viewing preferences,” he notes.
“As the consolidation of services continues, the streamers that succeed will be the ones that can best solve for both curated and algorithmic viewing suggestions that actually work for viewers.”
Disney’s single-app experience launches in 2026. Netflix would presumably take a similar approach with Warner Bros. content. But there’s a real risk of overwhelming users with too much content if discovery mechanisms don’t evolve alongside expanded libraries.
The Theatrical Window Debate
Netflix has historically favored shorter windows between theatrical and streaming releases, proposing around 17 days for Warner Bros. Films.
Proulx sees this as welcomed, noting that according to Forrester’s upcoming State of Streaming 2025 report, most online adults say that when a movie they’re excited about premieres only in theaters, they’ll wait to watch it until its streaming release.
That consumer preference is clear. But Swinscoe raises an important question about what market concentration means for the types of films that get made and financed.
If streaming platforms control an increasingly large share of distribution, will that negatively impact content diversity?
Netflix says it plans to maintain Warner Bros.’ theatrical releases, but pressure to favor shorter streaming windows could reshape the entire theatrical landscape.
Zolov offers a more nuanced view, suggesting that “for the right kinds of movies, consumers will continue to embrace theatrical, but that will likely be for bigger ‘event’ movies, with key differences between older and younger viewers.”
Older viewers aged 35 and up remain heavier consumers of movies and TV, while younger viewers compete their entertainment time with social video and gaming.
However, theaters still hold social value even for younger demographics.
Hub’s research shows that about a quarter of viewers choose movies in theaters specifically when looking to do something with friends, and that holds pretty strong at about a fifth of viewers aged 16-24.
“The upside of moviegoing still delivers value, even for TikTok-centric younger viewers,” Zolov notes.
Balancing subscriber expectations for quick streaming access against maintaining enough theatrical exclusivity to preserve the cinema experience won’t be easy.
Forrester’s data shows 39% of subscribers would prefer Netflix to release Warner Bros. films straight to streaming, compared to 26% who disagree. There’s no easy consensus.
What Happens Next
The bidding war between Netflix and Paramount adds another layer of complexity.
Paramount argues its all-cash offer provides a clearer path to regulatory approval, while Netflix maintains its deal represents a “largely vertical merger of complementary assets” with fewer antitrust concerns.
Warner Bros. Discovery’s board continues to unanimously recommend the Netflix deal, but has reopened talks with Paramount to explore whether a superior offer materializes.
For consumers watching from the sidelines, the regulatory and financial maneuvering matters less than what ultimately happens to their viewing experience.
Proulx notes that like every other emerging media market before it, streaming follows a familiar pattern: startups enter, players compete, legacy companies jump in, and eventually there’s consolidation.
As the market matures, expect more deals to come regardless of whether this particular transaction closes.
He cautions against declaring consolidation automatically bad for consumers. The benefits are real: lower combined costs for bundled services, easier content access through unified platforms, and shorter theatrical windows that align with how most people actually want to consume content.
Yet, the concerns are just as real. Swinscoe’s questions about market share, pricing power, and content diversity highlight why maintaining competition matters even as the market consolidates.
Forrester’s data showing wildly different reactions across subscriber segments reflects these competing realities.
Zolov emphasizes that winning streamers will be those that solve discovery through both curated and algorithmic suggestions that actually work for viewers.
Proulx’s confidence that Netflix’s recommendation engine will benefit subscribers assumes the company can scale those capabilities to handle a dramatically expanded content library.
Warner Bros. Discovery shareholders vote March 20 on whether to approve the Netflix deal.
Forrester’s data suggests that while streaming consumers generally support consolidation – particularly Gen Z subscribers – significant portions remain skeptical.
The customer experience will depend on whether consolidated platforms use their scale to improve service or extract more value from captive audiences.
