Netflix or Paramount? Why the Warner Bros deal could change cinema forever

Two big Hollywood companies — Netflix and Paramount— are competing to acquire Warner Bros Discovery (WBD), which owns the intellectual property (IP) rights to a rich and diverse catalogue of films. Some of the biggest hits under Warner Bros Discovery include the ‘Harry Potter’ franchise, DC Comics, ‘Game of Thrones’ and classics like ‘Casablanca.’

Paramount and Warner Bros are both legacy companies with formidable catalogues. And because Paramount is a theatre-first company, it is likely to receive more support. But whether it is Paramount or Netflix, the concerns remain the same.

Reduced competition

Netflix is more of a technology company than a storytelling company, and it now seeks to merge Hollywood’s traditional narratives with advanced tech. There is significant fear around Netflix becoming a behemoth controlling 40 to 50% of the world’s subscription base. Such dominance could lead to market monopolisation and limit creativity by relying heavily on algorithm-driven content — a stark contrast to the way traditional studios like Warner Bros nurtured stories.

Another concern is that the deal includes HBO Max and WBD’s gaming divisions. Netflix already dominates global streaming hours. With gaming being one of its biggest competitors, acquiring major gaming IPs — such as ‘Hogwarts Legacy’ — would make Netflix the most powerful “super streamer” in the world.

Hollywood once prioritised long-lasting stories. Now, the emphasis will shift toward AI-optimised streaming technology, reduced workforce and marketing costs, and the creation of global hybrid IPs.

Entertainment is rapidly moving towards an AI-layered, highly interactive ecosystem. There will be more immersive and gamified storytelling. Although Netflix insists it will maintain theatrical releases, trust questions remain. Even if it does release films at the cinemas, the theatrical-to-streaming window could shrink to just one or two weeks — far from the ideal three-month window that preserves the community experience of cinema.

Netflix, in a way, is also dividing the family. Each member watches content separately on individual devices, leaving little time to reconnect after long workdays. While cinema brings communities together, Netflix divides.

Another issue is identity. Warner Bros and Paramount have decades-old identities — DC Comics, iconic films, and franchises like ‘Game of Thrones’. Netflix, despite its resources, has few titles that evoke a universal “wow, what a show”. They have enough money and technology support but what they don’t have is an identity as a production house that produces great shows. 

Creators in crisis

With fewer major platforms to pitch to, creators will face a much more challenging landscape. The reduction in options will bring down plurality, leaving writers and producers with only one or two viable outlets as opposed to the wider range they once had. For example, in India, when Colors, Star, Disney, and Jio merged in 2024, creators were left with only one major platform instead of four.

Creators will also lose independence and the freedom to follow their intuition. If a ‘Squid Game’ or a ‘Stranger Things’ succeeds, creators may be pressured to replicate them as formulas. Algorithms, increasingly powered by AI, will dictate what kinds of stories get greenlit.

We are living through uncertain times. Many are still processing the Disney-Star merger from two years ago. Large corporations aspire to become stronger and more dominant, much like the superheroes they created — invincible.

Indian market

However, as the number of players shrinks in Hollywood, it will open up newer opportunities in India because of the diverse nature of Indian cinema. We can expect more content set in India, more Indian cast and crew, and more projects built on or adjacent to the Warner Bros IP — particularly in horror, young adult, and animation. There will be bigger bets on Hindi and regional originals that justify global distribution. 

Mid-budget cinema may get squeezed as merged entities experiment with shorter theatrical windows or OTT-first releases. Writers may be pushed towards high-concept, franchise-ready narratives over standalone films. Unscripted and docu-series content could also grow to create global-local hybrids, especially around Indian crime and pop culture, with characters recognised by non-Indian audiences.

This shift may also encourage more independent platforms to build strong identities. Contract negotiations with large corporations will increasingly focus on retaining IP. Indian creators will need to think beyond convention — building diverse, multilingual transmedia properties and robust IPs that can travel globally. This Indian creation will be at the intersection of society, science, culture and technology.

From a perception standpoint, Paramount will enjoy support from those who still value the theatre-first model and the community experience of cinema. Paramount also has great experience in the monetisation value chain of IPs. While Paramount may score some extra points in perception, Netflix remains a powerful contender. Ultimately, it is a choice between the devil and the deep sea.

As told to Pranati A S

(The author is a producer and creative entrepreneur)