LOS ALAMITOS, Calif. — As of mid-October of last year, Warner Bros. Entertainment Inc officially opened its company’s doors to a sale. Founded in 1923, Warner Bros. soared to success by producing films and distributing them to movie theaters, television networks and cable channels. Producing major franchises like “Harry Potter” and “The Dark Knight Trilogy,” Warner Bros. has been especially prominent in the modern film industry. 

In April of 2022, Warner Bros. merged with Discovery to form Warner Bros. Discovery. Though this merger opened new avenues for content exploration, WBD took on over 40 billion dollars in debt. However, because WBD prioritizes distributing content over their rapidly growing streaming sector, they were only able to pay down about ten billion of their debt. After this unfortunate turn of events, WBD decided to split up the business, resulting in the company’s sale. 

Two months after WBD announced its sale, Netflix officially struck a deal with the company on which was disclosed to the public on Dec. 5, 2025. Not long after, Paramount Skydance announced its hostile and competitive bid for Warner Bros. To Paramount’s dismay, WBD publicly rejected their offer on the grounds of additional debt risk and doubt about whether or not Paramount would be able to close the deal. Finally, in mid-January of 2026, the board of WBD unanimously agreed to Netflix’s deal.

So, now what? If Warner Bros. Discovery seals this deal with Netflix, huge influxes of cash will be brought in to remediate their debt. Moreover, Netflix will have acquired WBD studios, Home Box Office and HBO Max; this leaves WBD with just its cable networks. Coming out of this deal, Netflix is predicted to become the most powerful streaming company with its access to HBO’s content and intellectual property of WBD (“Harry Potter,” “Game of Thrones,” etc.). 

While viewers may see Netflix’s acquisition of WBD as a major benefit to the convenience of their streaming, this deal worries many, including the United States Senate. In late January, Senator Mike Lee of Utah, chair of an antitrust subcommittee, wrote to Netflix and WBD expressing his concerns about the impact this deal will have on the streaming market. As a result, the Senate’s antitrust subcommittee has scheduled a hearing on Feb. 3, 2026 to question both executives at Netflix and Warner Bros. Discovery regarding their merger.

“This transaction appears likely to raise serious antitrust issues, including the risk of substantially lessening competition in streaming markets,” said Senator Lee in his letter. 

Netflix first introduced instant streaming in 2007 when its content was small and of low quality, lowering its popularity. However, during the Covid-19 pandemic, many more major streaming services launched, such as Disney +, HBO Max and Peacock. Now, in 2026, streaming services have been integrated into the routine of people’s lives.

“I use streaming services more often than going to the movies or cable TV due to its convenience…my friends, family and I are able to watch the movies we enjoy from the comfort of our own home,” states Yara Saadeh, a senior at Los Alamitos High School.

Despite the comfort streaming platforms offer audiences, it has also resulted in a large decrease in the use of cable TV and movie theaters. Mr. Brown, a film teacher at LAHS has shared his concern on this issue. Mr. Brown has expressed how the film industry is forced to adjust to relying on streaming to generate money. 

“The result has been quantity over quality as the market has become flooded with lower quality films trying to make a quick buck on Netflix rather than a summer blockbuster trying to break the box office record,” said Mr. Brown.

Netflix’s deal with WBD and the Senate’s strong reaction have highlighted the rapidly changing nature of the world’s content consumption. Additionally, it has brought forth the debate of whether the convenience streaming services provide equates to the irreplaceable experience of watching cinema at the theaters.