Personally, I think part of the acquisition is to compete with Disney, so they can reduce their high production costs and own more classic films/movies.
If you compare to Disney, their production costs are much lower as they own a huge catalogue of classics and yet their subscription count is still high.
For Netflix, that reduces the need to constantly pump out endless shows just to keep subscribers and engagement high.
Having evergreen content should hopefully increase the quality of their output.
Netflix is officially buying Warner Bros. and HBO Max in an $82.7 billion deal.
“Our mission has always been to entertain the world,” said Netflix co-CEO Ted Sarandos. “By combining Warner Bros.’ incredible library of shows and movies—from timeless classics like 'Casablanca' and 'Citizen Kane' to modern favorites like 'Harry Potter' and 'Friends'—with our culture-defining titles like 'Stranger Things,' 'KPop Demon Hunters' and' Squid Game,' we’ll be able to do that even better. Together, we can give audiences more of what they love and help define the next century of storytelling.”
“Today’s announcement combines two of the greatest storytelling companies in the world to bring to even more people the entertainment they love to watch the most,” said WBD CEO David Zaslav. “For more than a century, Warner Bros. has thrilled audiences, captured the world’s attention, and shaped our culture. By coming together with Netflix, we will ensure people everywhere will continue to enjoy the world’s most resonant stories for generations to come.”
Read more here: https://t.co/7LX0GD3DPX