Streaming giant Netflix made the announcement as part of its deal to acquire Warner Bros. (WB) studios and streaming division (via Deadline). The deal values WBD’s studio and streaming assets at $82.7 billion.
Netflix’s commitment contrasts with general expectations that the platform might hoard all of WBD’s content to prevent it from airing on rival platforms, leading to exclusivity. Instead, the current promise points to a more open and less monopolistic content strategy.
This could also alleviate one of the biggest criticisms of the Netflix and WB acquisition, which is that the former would corner the market after acquiring rights to some of the world’s most popular shows and franchises. However, this could also be an attempt to satisfy regulators and competitors and their anti-competitive concerns.
In addition to streaming via its own app and website, Netflix’s licensing of shows on other platforms is intended to help the streaming ecosystem (which thrives on content) remain more diverse. Be that as it may, Netflix’s promise implies that WB Studios could continue with its existing licensing and revenue models rather than restructuring into a Netflix-only territory.
As for streaming consumers in the United States, they should expect Warner shows to continue streaming on platforms like Apple TV and Hulu and not be tied to Netflix. This means they don’t have to cancel other subscriptions and rely solely on Netflix.
While the acquisition will take some time to complete, the commitment to non-exclusivity means greater content availability, at least in the near future. However, the big question remains whether Netflix will actually deliver on its promise in the long term.
We’ll have more clarity on this once the company completes the acquisition and how many shows will be licensed (and how many will remain exclusive). Additionally, Netflix’s promise doesn’t really clarify the future of WBD’s streaming service HBO Max. Will it remain standalone or will Netflix bundle it with its subscription? Over time we will get answers to these questions.
