Netflix Vs Paramount: Why India’s content industry is watching Warner Bros deal closely

The global contest for Warner Bros Discovery (WBD) last week intensified with Netflix’s announcing $82.7 billion (enterprise value) acquisition bid and Paramount’s subsequent $100 billion hostile offer. The outcome will have far-reaching implications for India’s video market—one of the world’s fastest-expanding entertainment economies—across streaming, content costs, theatrical economics, and creative talent flows. At stake for India are some of the world’s most valuable premium titles on leading streamers-Prime Video and JioHotstar. This includes marquee HBO originals—Harry Potter, Friends, Big Bang Theory, Game of Thrones and The Office.

While Netflix intends to acquire WBs film studio and HBO Max streaming service only, Paramount seeks to acquire WBD in entirety including those assets and the company’s TV networks like CNN and TNT Sports. Both WBD and Paramount are under intense pressure as streaming losses widen and ad markets soften—a context that has accelerated consolidation across legacy media.

Also read: Paramount’s $108.4-billion bid reopens battle for Warner Bros

Netflix to acquire Warner Bros.

Intense competition in content industry

Media and entertainment industry experts say the Warner Bros deal with Netflix may push Indian production houses to raise their storytelling ambition and production values, potentially squeezing regional streaming platforms that lack comparable resources.

After all, Netflix has high stakes in the Indian market where it entered over a decade ago and gradually created a space for itself with the help of its originals, acquired and translated content.

“Netflix’s Indian productions created a USD 2 billion economic impact. These projects have generated over 20,000 jobs since 2021. Globally, Indian content saw three billion viewing hours last year,” Netflix co-CEO Ted Sarandos said in May at the World Audio Visual and Entertainment Summit.

“In those productions, we have 150 original films and series that were filmed in 100 different towns and cities in India," he added.

The interplay among global rights, local assets and existing partnerships further complicates the entertainment content landscape. The more interesting question is what it means for Netflix, if their deal goes through. “It will increase the hours of programming on Netflix India and that could help with engagement, but Netflix cannot take the price up with it. Subscription growth mostly lies in local content,” said a producer.

This sentiment is echoed on the business side as well. Divya Dixit, CEO at Recz, says the psychological impact on the industry is unmistakable. “Netflix buying Warner Bros Discovery just flipped the whole streaming world on its head. Overnight, the game went from ‘who has more content’ to ‘who can even afford to compete now.’”

“This deal is about to rewrite how content even gets made. With Netflix owning DC and HBO libraries, they don’t need to license or negotiate—they control the pipeline, the release windows, and the franchises. Talent economics will shift fast too: creators will chase Netflix for platform + IP control and massive global reach, which means budgets and exclusivity deals could explode,” Dixit said.

Her comment captures the sudden shift in competitive stakes—one that puts pressure not only on creators but also on rival platforms struggling to match the scale of a combined Netflix–WBD powerhouse.

Pep Figueiredo, COO – PTPL India and former SonyLIV executive, says, “This deal will impact scalable markets like India for good, under a single distribution engine forcing other studios and streamers to rethink licensing, exclusivity and long-term IP control hence reshaping global content economics. The consolidation with Netflix will intensify competition for high-quality originals and talent while accelerating demand for local stories that can stand alongside global franchises.”

Many content creators are far more apprehensive. They argue that Netflix emerging as the buyer could reshape the creative economy in ways that are neither pluralistic nor creator-friendly. “It’s a slow-motion creative disaster. When one algorithmic super-platform controls this much IP and distribution, artists don’t get more freedom—they get fewer buyers, fewer risks, and more copy-paste storytelling,” filmmaker Vivek Anchalia shares, reflecting a growing fear that consolidation will narrow the market for creative experimentation.

Analysts warn the fallout will extend to platform economics and alliances. Karan Taurani, Executive Vice President at Elara Capital, points to the realignment already underway: “Amazon Prime’s scaling ability may diminish as NFLX and JioStar dominate; smaller and niche OTT may seek partnerships with Amazon to remain viable.” His assessment underscores how a single acquisition could cascade across the ecosystem, compelling mid-tier platforms to collaborate or consolidate simply to retain negotiating leverage.

Filmmaker Yubraaj Bhattacharya says neither users nor content creators are expressing any concern about the development. “With a vast content library, the acquirer would be able to offer premium international content, in English and in the regional language. With Netflix winning, the deal will also intensify competition for good originals,” he notes, arguing that viewers stand to gain from a deeper catalogue and sharper commissioning strategies.

Bhattacharya adds that creators, too, typically welcome platforms that expand their pipelines for high-quality, locally relevant storytelling. In his view, the only stakeholder likely to feel the impact is the distribution layer. Traditional distributors and third-party aggregators who previously monetised HBO content through licensing arrangements may now see reduced negotiating power or shrinking windows, he says, as the new owner consolidates rights and routes more titles directly through its own ecosystem.

The Theatrical Fallout

A major concern is the potential weakening of India’s theatrical pipeline. With both Netflix and WBD historically cautious about cinema-first models, exhibitors could face supply constraints. There is a risk of meaningful reduction in quality content for cinemas and a potential decline of theatrical infrastructure in India, industry experts warn.

The Multiplex Association of India (MAI) has already expressed deep concern over Netflix’s proposed acquisition of Warner Brothers Discovery, portending a possible setback for India if this comes through, but Indian broadcaster-led streaming platforms could also have reason to worry, according to a report. Kamal Gianchandani, President of the MAI told media that the Indian theatrical market “thrives on choice, scale, and cultural diversity,” noting that Warner Bros. has long been an essential content partner for cinema exhibitors.

He warned that if the acquisition moves forward, the implications could be “two-fold”—a significant contraction in the supply of high-quality studio content for theatres, and the possibility of shortened or even eliminated theatrical windows. Such a shift, Gianchandani argued, would depress revenues, narrow consumer choice, and weaken the interlinked ecosystem of film production, distribution, and exhibition in India.

“The Netflix–WBD deal may pose a negative outlook for India’s exhibitors if release tilts toward OTT-first models,” says Karan Taurani, adding, “Hollywood contributes 15–20% of PVR-INOX’s GBOC, with WBD titles making up nearly 4%. Despite the small volume, English films deliver disproportionately high F&B and advertising yield.

India represents only ~2% of global box office for Hollywood tentpoles. This could give Netflix room to experiment with release windows or even direct-to-OTT launches in India—moves that would materially affect exhibitors.

Taurani estimates that a worst-case revenue impact of 4% could reduce PVR-INOX’s EBITDA by 6% by FY28.

However, Netflix is not entirely removed from the movie theater business, as the company owns Los Angeles’ Bay Theater and New York’s Paris Theater. It releases some of its originals in these theatres. Bhattacharya says Netflix dreams of winning an Oscar one day for its original.

Sarandos has never hidden his desire either. “We have these (2022’s “Knives Out” sequel “Glass Onion” and 2024’s “Emilia Pérez) bespoke releases … we have to do some qualification for the Oscars.”

But what bothers the film distributors is Sarando's belief that the movie theater model is ‘outdated’.

In an interview with Time Magazine in April, he had argued that Hollywood should not get “trapped” behind wanting audiences to see movies in theaters. “Consumers would like to watch movies at home. The studios and the theaters are duking it out over trying to preserve this 45-day window that is completely out of step with the consumer experience of just loving a movie,” he argued.