"The ink is barely dry on the $82.7 billion contract between Netflix and Warner Bros. Discovery, and the hot takes are flying. Most analysts are obsessing over the subscriber numbers, debating whether a combined user base of 300 million is enough to hold off Disney+. But if you focus solely on the streaming numbers, you are missing the real story here."
"For the last decade, Netflix has operated with a terrifyingly simple business model: subscriptions or bust. If subscriber growth slowed, the stock tanked. They had no backup plan. Compare that to the traditional Hollywood giants, who have spent a century mastering the art of squeezing revenue from every single asset. Warner Bros. doesn't just make movies; they build ecosystems. They license their intellectual property (IP) for everything imaginable, from theme parks and clothing lines to branded video games and online slots."
The $82.7 billion acquisition of Warner Bros. gives Netflix access to one of the world's most profitable licensing machines. Netflix historically relied on a subscription-only model that left it vulnerable when subscriber growth slowed. Warner Bros. brings a century of expertise in extracting revenue from intellectual property through theme parks, clothing lines, branded video games, and online slots. The deal provides Netflix with a blueprint to monetize fan engagement beyond streaming and to diversify revenue streams. Global markets with expanding digital entertainment consumption mirror the mixed-media convergence Netflix aims to capture. The acquisition shifts Netflix toward long-term survival through diversification.
Read at Business Matters
Unable to calculate read time
Collection
[
|
...
]