Netflix Video Streaming Business Under The New Deal

The streaming business in Covid-19 (Corona) has been booming. And the pioneer of the streaming world described in Netflix. Netflix Video Streaming Business is ​​no longer on top of the world of video streaming around the world. But Netflix now shares the test molasses with Amazon and Disney. One more message in this whole part. Its name is Warner Media and Discovery. In recent times these two have been experienced to come together.


Netflix Video Streaming Business


AT&T, the owner of Discovery and Warner Media, announced in the middle of last month. AT&T is famous for its telecommunication business. The company was founded in 1877 by Alexander Graham Bell, the father of the telephone. In 2016, the company entered the media business, bought Time Warner. Later it was called Warner Media. Famous Warner courtesy of the Harry Potter and Batman franchise.


Under the new deal, Warner will now merge with Discovery to run the media business. Trade analysts say the new company will be the next largest company in the global media industry after Disney. And this paved the way for the integration of many more small streaming companies in the media business. 


Various research institutes think that this may happen shortly. The question is, what is the cause of Netflix’s concern? Let us know some information. The combination of Warner Media and Discovery does not work. Because Warner has a reputation for making high-quality TV series. And Discovery is skilled at creating information-based content. 

Netflix movie

But when you hear that these two companies spent One thousand and Nine Hundred billion last year on creating content, then you have to move.  Because Netflix or Disney can’t afford to spend that much on content creation. A large portion of American cable viewers is also occupied by Warner and Discovery.


Warner and Discovery combined for about 29 percent, according to research firm  Moffatnathanson. And the merger will save the couple about  3 billion a year. AT&T will own 61% of the merged company. Discovery owns the remaining 29 percent. However, the new company will be managed by David Jaslav, the head of Discovery, even though the ownership is less.

Netflix Video Streaming Business

The video streaming business will be the focus of the merger. Warner already has a streaming platform, named HBO Max. Discovery also has its platform, Discovery Plus. There is a lot of confusion about whether the new company’s streaming platform will be one or more. The new company has not yet commented on the matter. Warner has 64 million video-streaming subscribers worldwide. Discovery Plus has one and a half crore. In addition, through Animal Planet and the Discovery Channel, Discovery has more than 68 million homes in the United States.

In other words, the audience of these two companies is not small. However, the integrated company still lags behind Netflix and Disney as streaming companies. Netflix has 206 million subscribers and Disney Plus has more than 100 million subscribers. With that in mind, Warner and Discovery will take time to overtake Netflix or Disney. However, it is not impossible to show that the amount of investment is enough to understand.

Netflix series

The video streaming business was already competitive. It has intensified in the Covid situation of 2020. According to a survey by analyst firm Media Research, the amount of time spent on entertainment increased by 12 percent in the third and fourth quarters of last year.


As the world begins to return to normal, so does the amount of time it takes. In the first quarter of this year, the amount has decreased to 2 percent. And Warner Media and Discovery are one of those situations.


So it is easy to assume that the competition in the streaming and overall media business will be more intense. Netflix will have to struggle to survive in this competition.


Amazon and Disney on the one hand, Warner-Discovery on the other; It remains to be seen how long Netflix will hold its own.


References: The Economist, BBC, CNBC, and The New York Times


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