Strategy Simplified S21E19: Netflix’s $72B Warner Bros Gamble
Dec 8, 2025
Netflix's bold $72B bid for Warner Bros reshapes Hollywood's landscape. The hosts dissect why Netflix chose to buy instead of build, focusing on HBO and gaming as strategic assets. They dive into the potential pricing strategies, discussing super-bundles versus tiered access. With an ad-supported model on the horizon, they explore how this impacts competition with players like Disney and YouTube. Regulatory concerns and the deal's long-term viability are analyzed, offering insights into the future of streaming.
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Netflix's Strategic Shift
- Netflix's acquisition of Warner Brothers signals a fundamental rethinking of its build-vs-buy strategy.
- The move surprised hosts who expected Netflix to keep building original content rather than paying to acquire a studio.
Co-Founder Post Sparks Reflection
- Jenny Rae learned about the deal from a Mark Randolph LinkedIn post and reflects on his early $50K domain choice.
- The story highlights how big-dollar decisions can reshape a company's trajectory over decades.
Redefining The Competitive Set
- Netflix is framing the competitive set broader than traditional streamers, including YouTube.
- The company cares increasingly about total watch minutes, not just subscription market share.