Key Highlights
- MPA, which analyzes Asian media and entertainment companies, noted that Netflix’s local activity is simply in subscription streaming, while HBO Max owner WBD’s assets “function as a regional arms dealer and theatrical powerhouse.” WBD’s streaming capabilities in Asia are “still nascent” outside Australia, MPA added.
- Related Stories Politics Donald Trump Praises Ted Sarandos, Confirms Meeting But Says Netflix-WB Would Have "Very Big Market Share" That "Could Be A Problem" Documentary 'The Perfect Neighbor' Puts Netflix Back In The Documentary Oscar Race, But The Competition Remains Strong The report note pointed to a major strategic choice the merged business will have to take – namely whether to renew SVOD deals WBD has in India, Japan, Korea and other markets, or to “repatriate this content to bolster its own platforms.” These deals are secure until 2027.
- Watch on Deadline Some local APAC players may look to “may aggressively pivot towards NBCUniversal, Sony, and Disney for deeper licensing partnerships” in response, MPA added, with Disney+ bundling another potential play.
- MPA said Netflix’s $82.7B takeover of WBD, which was confirmed on Friday following a heated auction, “fundamentally rewrites the rules of the entertainment industry” – though it faces numerous obstacles to close, with President Donald Trump telling Deadline’s Ted Johnson that the combined biz would have a “very big market share” that “could be a problem.” MPA noted that while Netflix and WBD execs have pointed to a 12-18 month timeline for the deal to close, the merger agreement reveals that the end date has been set for March 4, 2027, and would be automatically pushed to September 4, 2027 if regulatory approvals remain outstanding.
- Netflix has agreed to a $5.8B breakup fee if regulators block the deal, meaning the streamer will likely “accept behavioral remedies to clear antitrust hurdles,” according to the MPA.
