Streaming Wars The Sequel: Netflix Just Nuked the Box Office
- On December 5, 2025, Netflix announced a deal to acquire Warner Bros. Discovery’s studios and streaming assets for $82.7 billion. The following Monday, Paramount launched a hostile counteroffer for Warner Bros. Discovery, directly challenging Netflix’s bid. Recently, we noted that Netflix’s engagement growth has been lagging the broader streaming market—raising questions about its long-term trajectory. Those questions now take on new urgency in light of this proposed acquisition.
- Occam’s consumer-behavior data across age cohorts shows a clear shift in viewing and entertainment preferences, especially among Gen Z. In recent quarters, fewer Gen Z consumers are going to the movies, and overall movie-theater participation continues to decline. Netflix’s push to acquire Warner Bros. Discovery’s movie studios—a strategic gap in Netflix’s content portfolio—signals that even more high-quality theatrical content could soon skip cinemas altogether and head straight to the living room, if the streaming giant wins the bidding war.
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