Netflix to purchase Warner Bros Discovery
Netflix will buy WBD television and film studios, including HBO Max and HBO, valued at $82 billion. The deal is expected to be finalized by Q3 2026, pending approval from federal regulators. The deal with Netflix followed a bidding war with Comcast and Paramount, with Netflix the winning bidder. Netflix has agreed to continue theatrical releases for WBD movies, which is a change from their existing model of in-home viewing. WBD’s rich catalog includes Casablanca, The Wizard of Oz, and Gone with the Wind as well as franchises like The Big Bang Theory, The Sopranos, and Game of Thrones. This complements and deepens Netflix’s catalog which includes Stranger Things, Wednesday, and Bridgerton. Netflix is the largest paid streaming service, with over 300 million subscribers, and this deal further bulks up their content offering, solidifying the top spot.
The Circana Take:
- This deal is far from solidified with Skydance still aggressively pursuing a take-over and global regulatory approvals openly being cited as extremely challenging.
- If the Netflix deal closes, or Skydance pulls out a Hail Mary play, this represents significant industry consolidation and places competitive pressure on smaller players.
Comcast’s StreamSaver bundle price hike
Comcast alerted customers that the price of its Xfinity StreamSaver bundle will increase from $15/month to $18/month starting December 22. It is the first increase since the bundle’s launch in May 2024. The bundle consists of Netflix Standard with ads, Peacock Premium with ads and Apple TV+. All three services have seen price hikes this year starting with Netflix by $1 to $7.99/month, Peacock up $3 to $10.99/month and Apple TV also up $3 to $12.99/month.
The Circana Take:
- Price increases continue across streaming, and bundles are no exception. With no end in sight for rising prices, value for the money becomes increasingly more important to avoid churn. While this bundle is getting more expensive, it continues to represent significantly savings over the stand-alone offerings.
NBC News launching streaming service
NBC News will soon be introducing its first DTC subscription product offering customers access to all digital content ad-free in a single app. The new service includes linear shows, podcasts, new exclusive reports and live channels from Telemundo, Sky, and NBC Sports. Also included is NBC News Now, a live-streamed news service that gives readers in depth news on the latest newsworthy stories. The service targets those who mainly use social media or other digital platforms to learn about breaking news. The product’s name and pricing have not yet been disclosed.
The Circana Take:
- While this offering is being positioned as an on-the-go vertical format for a younger audience it’s notable that it is not a component of Peacock. In this era of consolidation and scale it remains to be seen if new targeted offerings such as this and the CNN app can sustain profitable subscriber bases. As such, wait for the Peacock bundle or integration.