Netflix’s Warner Bros. merger puts rival streamers in survival mode

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From 2019 to around 2021, we were in the midst of a streaming renaissance. Paramount Plus, Disney Plus, Apple TV, Peacock, and HBO Max all made their debuts, challenging the dominance of Netflix and other legacy streamers like Hulu and Amazon Prime Video. New indie streaming services, like the cinephile-focused Criterion Channel, emerged during this time.

Subscription prices were still relatively low. Heck, Disney Plus cost just $6.99 without ads at launch (it costs $11.99 with ads now and $18.99 without). Fierce competition in the industry also brought about a slew of original series, like Ted Lasso, The Mandalorian, and Star Trek: Strange New Worlds, that made services other than Netflix actually worth subscribing to.

But things changed around 2022. As an influx of new services flooded the market, the covid streaming signup boom wound down and many Netflix competitors struggled to reach profitability. Studios slashed orders for adult scripted series, while canceling others. Even Netflix, which reported losing subscribers for the first time in over a decade in April 2022, was feeling the pressure. The previously ad-free Netflix, Disney Plus, HBO Max, and Amazon Prime Video responded to the crunch by sticking commercials into their streams, as services began hiking prices for subscribers and clamping down on password sharing.

While Netflix has added 25 million more subscribers in 2025 — bringing its global total to 325 million — signups to other services have begun to plateau. Peacock most recently reported adding three million subscribers over the last few months of 2025, while Paramount grew by 1.4 million subs during its third quarter. Disney last said Disney Plus added 1.5 million subscribers in the US and Canada in the three months leading up to November 2025 — but, like Netflix, it has stopped reporting these numbers each quarter.

It’s getting more difficult for Netflix competitors to scrape up new subscribers, and many are offering exclusive sporting events to draw more signups. Paramount Plus, for example, is now the exclusive home to the UFC, while NBA fans can only watch Monday night games on Peacock through the 2025 to 2026 season. Apple TV also exclusively streams Major League Soccer games, and the same will go for Formula 1 races when the 2026 season kicks off in March.

Advertising has also become an even bigger source of revenue for streamers, as companies discover new and annoying ways to bombard you with ads. Data from the market research firm Antenna revealed that 46 percent of people in the US subscribed to Disney Plus, Hulu, HBO Max, Netflix, Paramount Plus, Peacock, and Discovery Plus have ad-supported plans.

Netflix’s $82.7 billion Warner Bros. acquisition is going to have a monumental impact on the streaming landscape. With the deal, Netflix will be in control of the content served to the 325 million and 128 million people signed up to its own streaming service and HBO Max, respectively. There may be substantial overlap there, though, as Netflix co-CEO Ted Sarandos said during a February 3rd antitrust hearing that 80 percent of HBO Max subscribers are also signed up to Netflix.

Now, instead of fighting Netflix alone, competitors will likely have to do it together, whether through new bundles or consolidation. We’ve already seen bundling take off in recent years, which not only attracts subscribers by serving as a cheaper alternative to individual subscriptions, but is also shown to reduce churn, as subscribers considering cancelling a bundle might not want to cut off access to multiple services at once. Data from Antenna revealed that 80 percent of the 1.6 million people who signed up for the Disney Plus, Hulu, and HBO Max bundle that launched in 2024 remained subscribed three months later.

Further consolidation is in the future, too. Disney is on track to fully merge Hulu within the Disney Plus app by the end of this year. Paramount, which has been fighting for months to wrestle Warner Bros. away from Netflix, is also rumored to merge its Paramount Plus streaming service with Peacock.

Though it’s starting to look like Netflix is going to emerge as the winner of the streaming race, its Warner Bros. merger still faces regulatory hurdles. Earlier this week, the Senate Judiciary antitrust subcommittee raised concerns that the acquisition could result in higher prices for customers, harm the theater business, or reduce entertainment jobs. Meanwhile, Sen. Eric Schmitt (R-MO) accused Netflix of hosting the “wokest content in the history of the world.”

Netflix is currently locked in a battle for viewer attention with YouTube, TikTok, and even games like Fortnite. As much as Netflix might try to challenge them by launching podcasts, trying out short-form video feeds, revamping its user interface on mobile, and focusing on cloud gaming, it’s going to be difficult to compete with platforms that are free.