Netflix’s Merger with Warner Bros. Forces Competing Streamers to Adapt
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**How it started**
Between 2019 and 2021, we witnessed a streaming revolution. Platforms like Paramount Plus, Disney Plus, Apple TV, Peacock, and HBO Max launched, shaking up the long-standing reign of Netflix and other established players like Hulu and Amazon Prime Video. This era also saw the rise of niche services, such as the Criterion Channel, catering to film enthusiasts.
Subscription prices were still quite affordable back then. For instance, Disney Plus debuted at just $6.99 for its ad-free tier (now it’s $11.99 with ads and $18.99 without). The fierce competition led to a wave of original content, with hits like Ted Lasso, The Mandalorian, and Star Trek: Strange New Worlds making other platforms appealing beyond Netflix.
However, the landscape shifted around 2022. As a flood of new services entered the market, the surge in signups driven by the pandemic began to taper off, leaving many Netflix rivals struggling to turn a profit. Studios cut back on adult scripted series and canceled several others. Even Netflix, which reported its first subscriber loss in over a decade in April 2022, felt the heat. In response, Netflix, Disney Plus, HBO Max, and Amazon Prime Video, which had previously been ad-free, began incorporating commercials and raising subscription prices while tightening restrictions on password sharing.
**How it’s going**
Fast forward to 2025, and Netflix has gained an additional 25 million subscribers, bringing its total to 325 million globally. Meanwhile, growth for other services has started to plateau. Peacock recently announced an addition of three million subscribers in the last few months of 2025, while Paramount Plus saw a rise of 1.4 million in its third quarter. Disney Plus reported an increase of 1.5 million subscribers in the US and Canada in the three months leading up to November 2025, but like Netflix, it has ceased quarterly updates on these figures.
Attracting new subscribers is becoming increasingly challenging for Netflix’s competitors, prompting many to offer exclusive sports events to entice signups. For instance, Paramount Plus is now the exclusive home for UFC events, while NBA fans can catch Monday night games only on Peacock through the 2025-2026 season. Apple TV has also secured exclusive streaming rights for Major League Soccer games, and it will take on Formula 1 races starting in March 2026.
Advertising has become a crucial revenue stream for streaming services, with companies finding new and often intrusive ways to deliver ads. Research from Antenna shows that 46 percent of US subscribers to Disney Plus, Hulu, HBO Max, Netflix, Paramount Plus, Peacock, and Discovery Plus are on ad-supported plans.
**What happens next**
Netflix’s $82.7 billion acquisition of Warner Bros. is set to significantly reshape the streaming landscape. This deal gives Netflix control over the content available to its 325 million subscribers and the 128 million on HBO Max. However, there’s likely considerable overlap, as Netflix co-CEO Ted Sarandos noted that 80 percent of HBO Max subscribers also have Netflix.
Instead of competing against Netflix individually, rivals may need to band together, possibly through new bundles or mergers. Bundling has gained traction in recent years, attracting subscribers with more affordable options and reducing churn, as users are less likely to cancel a bundle that provides access to multiple services. Antenna’s data indicates that 80 percent of the 1.6 million people who subscribed to the Disney Plus, Hulu, and HBO Max bundle launched in 2024 remained subscribed three months later.
Further consolidation is on the horizon as well. Disney is expected to fully integrate Hulu into the Disney Plus app by the end of this year. Paramount, which has been vying to acquire Warner Bros. from Netflix, is rumored to be merging its Paramount Plus service with Peacock.
While it appears Netflix may be emerging as the frontrunner in the streaming race, its merger with Warner Bros. still faces regulatory scrutiny. Recently, the Senate Judiciary antitrust subcommittee expressed concerns that the acquisition could lead to higher prices for consumers, negatively impact the theater industry, or reduce entertainment jobs. Additionally, Sen. Eric Schmitt (R-MO) criticized Netflix for hosting what he termed the “wokest content in the history of the world.”
Netflix is currently vying for viewer attention against platforms like YouTube, TikTok, and even games such as Fortnite. Despite its efforts to compete by launching podcasts, experimenting with short-form video feeds, revamping its mobile interface, and focusing on cloud gaming, it faces a tough challenge against free platforms.
**By the way**
* YouTube may not fit the traditional streaming mold, but it has once again been named the most-watched service for the third consecutive year, according to Nielsen data. Sarandos mentioned during an earnings call that Netflix competes with YouTube “in every dimension for talent, for ad dollars, for subscription dollars, and for all forms of content.”
* Disney is also making significant moves, including introducing a feed of AI-generated videos to the Disney Plus app. Theme parks head Josh D’Amaro is set to take over as CEO of the company in March.
* Netflix’s latest strategy to attract more viewers involves podcasts. In addition to licensing shows from various media outlets, Netflix has launched original video podcasts featuring personalities like comedian Pete Davidson and former NFL star Michael Irvin.
