Netflix’s move to acquire Warner Bros Discovery shouldn’t be a surprise to the media and entertainment industry, so says Futuresource Consulting.
According to the analysts, the streamer’s plan to step into both theatrical and digital transactional sectors that could help generate additional revenues to complement its streaming income has been “talked about for years”.
“With global consumer spend based on Futuresource Video Insight tracking of over $36 billion across exhibition and $8 billion from digitally purchased and rented movies and TV shows, Netflix won’t want to turn away from taking a share of this,” they added.
Should the deal pass regulatory approval, Netflix will gain control of valuable IP assets such as Harry Potter, which would also provide it with wider revenue streams across merchandise, the gaming sector and theme parks, “allowing it to become much more than just a streaming service”.
“It’s no understatement to say that this deal will bring a seismic shift to the global media and entertainment landscape as a result of both the depth and type of content the deal would give Netflix,” said Futuresource.
