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By Zaheer Kachwala Jan 21 (Reuters) – Netflix's co-CEOs found themselves in an unusual position after the company's latest earnings report: on the backfoot. The streaming pioneer's decision to plunk down nearly $83 billion on Warner Bros' assets marks a significant departure from the company's long-standing mantra: build, don't buy. Investors still aren't buying it. Shares were already under pressure even before Netflix made an offer for Warner Bros Discovery's studio and streaming assets. The stock, which has lost more than 15% since Netflix made its first offer on Dec. 5, was down nearly 4% in early trading on Wednesday as co-CEOs Ted Sarandos and Greg Peters found themselves having to explain their aggressive push that has forced them to suspend share buybacks. Sarandos noted how tech giants such as Alphabet's YouTube had changed what television viewing meant, forcing Netflix to change tack to keep up. The two said they had not expected to make an offer for the Warner assets when they first started the due diligence process.  "When we got into the hood, there were several things we saw that were just really exciting," Peters said. Netflix is trying to stay ahead of Paramount Skydance with its $82.7 billion all-cash offer for Warner Bros' film and television studios, its extensive content library and major entertainment franchises – including "Game of Thrones" and "Harry Potter." "We have often in our Netflix history debated building a theatrical business, but we were busy investing in other areas, and it never became our priority. But now with Warner Bros, they bring a mature, well-run theatrical business with amazing films, and we're super excited about that addition," he said, in a reversal of Netflix's former position that theaters were an outdated model with audiences preferring stay-at-home streaming.  "And then you get to the streaming side of things, HBO. It is an amazing brand. It says prestige TV is better than almost anything. Customers know it. They love it. They know what it means," Peters said, adding that Warner's television studio was also a healthy business and complemented Netflix's own, expanding its production capability. INVESTORS ARE NOT CONVINCED With the expensive deal hanging over its head, Netflix delivered a tepid revenue beat for what is usually one of its strongest quarters, and forecast equally dull prospects for the new year.  While a strong content line-up, including the final season of hit sci-fi series "Stranger Things," helped revenue growth, high costs associated with the Warner Bros acquisition have made people apprehensive about the long-term payoff, analysts said.  Netflix said previously that it had obtained commitments for a $59 billion bridge loan to support the Warner Bros' deal. On Tuesday, it increased the bridge loan commitment by $8.2 billion to support its all-cash $27.75 per share offer. The deal is expected to face considerable scrutiny from lawmakers and competition regulators as high-profile acquisitions threaten to monopolize the market and leave consumers with fewer choices.  But Sarandos on Tuesday moved to ease those concerns by reiterating the deal would be "pro-consumer" and "pro-worker", and that the acquired businesses would require new teams and would allow more opportunities for creatives.  The deal "allows us to gain access to 100 years of Warner Bros deep content and IP for development and distribution in more effective ways that will benefit consumers and the industry as a whole," he said. (Reporting by Zaheer Kachwala in Bengaluru; Editing by Sayantani Ghosh and Anil D'Silva)

(The article has been published through a syndicated feed. Except for the headline, the content has been published verbatim. Liability lies with original publisher.)

LONDON, Jan 21 (Reuters) – Young talent led nominations for the BRIT Awards on Wednesday, with singers Olivia Dean and Lola Young receiving five nods each for Britain's pop music honours. Young, 25, was recognised for artist of the year, breakthrough artist, alt/rock act and pop act, while her chart-topping hit "Messy" is up for song of the year. Dean, 26, is also a contender in that category with two tracks "Man I Need" and "Rein Me In", a collaboration with rocker Sam Fender. She is also nominated for artist of the year, pop act and album of the year for her record "The Art of Loving".  Fender, 31, has three additional nods: artist of the year, alt/rock act and album of the year for "People Watching". Rappers Dave and Jim Legxacy, singer Lily Allen and producer Fred again… have three nominations each.  “It’s fantastic to see British talent doing so well across the board, especially a next generation of brilliant artists who have broken through with such impact on the global stage in the past 12 months led by Olivia Dean, Lola Young, Sam Fender, PinkPantheress, Skye Newman, among others," Jo Twist, chief executive of the BRITs organisers, the British Phonographic Industry, said in a statement. Around 70% of the nominations feature women and non-binary people as solo artists or in mixed groups, organisers said, adding that was "the highest representation of women and non-binary people yet". British band Pulp, who found fame in the mid-1990s Britpop wave, are in the running for group of the year, their first nomination since 1996. The band topped the charts last year with "More", their first album since 2001. Movies were also recognised with actor Cynthia Erivo nominated for song of the year for her rendition of "Wicked" track "Defying Gravity", while "Golden", from Netflix phenomenon "KPop Demon Hunter", is up for international song of the year. This year's BRIT Awards will be held in the northern English city of Manchester on February 28. (Reporting by Marie-Louise Gumuchian, Editing by William Maclean)

(The article has been published through a syndicated feed. Except for the headline, the content has been published verbatim. Liability lies with original publisher.)

By Zaheer Kachwala Jan 21 (Reuters) – Netflix's co-CEOs found themselves in an unusual position after the company's latest earnings report: on the backfoot. The streaming pioneer's decision to plunk down nearly $83 billion on Warner Bros' assets marks a significant departure from the company's long-standing mantra: build, don't buy. Investors still aren't buying it. Shares were already under pressure even before Netflix made an offer for Warner Bros Discovery's studio and streaming assets. The stock, which has lost more than 15% since Netflix made its first offer on Dec. 5, was down nearly 4% in early trading on Wednesday as co-CEOs Ted Sarandos and Greg Peters found themselves having to explain their aggressive push that has forced them to suspend share buybacks. Sarandos noted how tech giants such as Alphabet's YouTube had changed what television viewing meant, forcing Netflix to change tack to keep up. The two said they had not expected to make an offer for the Warner assets when they first started the due diligence process.  "When we got into the hood, there were several things we saw that were just really exciting," Peters said. Netflix is trying to stay ahead of Paramount Skydance with its $82.7 billion all-cash offer for Warner Bros' film and television studios, its extensive content library and major entertainment franchises – including "Game of Thrones" and "Harry Potter." "We have often in our Netflix history debated building a theatrical business, but we were busy investing in other areas, and it never became our priority. But now with Warner Bros, they bring a mature, well-run theatrical business with amazing films, and we're super excited about that addition," he said, in a reversal of Netflix's former position that theaters were an outdated model with audiences preferring stay-at-home streaming.  "And then you get to the streaming side of things, HBO. It is an amazing brand. It says prestige TV is better than almost anything. Customers know it. They love it. They know what it means," Peters said, adding that Warner's television studio was also a healthy business and complemented Netflix's own, expanding its production capability. INVESTORS ARE NOT CONVINCED With the expensive deal hanging over its head, Netflix delivered a tepid revenue beat for what is usually one of its strongest quarters, and forecast equally dull prospects for the new year.  While a strong content line-up, including the final season of hit sci-fi series "Stranger Things," helped revenue growth, high costs associated with the Warner Bros acquisition have made people apprehensive about the long-term payoff, analysts said.  Netflix said previously that it had obtained commitments for a $59 billion bridge loan to support the Warner Bros' deal. On Tuesday, it increased the bridge loan commitment by $8.2 billion to support its all-cash $27.75 per share offer. The deal is expected to face considerable scrutiny from lawmakers and competition regulators as high-profile acquisitions threaten to monopolize the market and leave consumers with fewer choices.  But Sarandos on Tuesday moved to ease those concerns by reiterating the deal would be "pro-consumer" and "pro-worker", and that the acquired businesses would require new teams and would allow more opportunities for creatives.  The deal "allows us to gain access to 100 years of Warner Bros deep content and IP for development and distribution in more effective ways that will benefit consumers and the industry as a whole," he said. (Reporting by Zaheer Kachwala in Bengaluru; Editing by Sayantani Ghosh and Anil D'Silva)

(The article has been published through a syndicated feed. Except for the headline, the content has been published verbatim. Liability lies with original publisher.)

By Zaheer Kachwala Jan 21 (Reuters) – Netflix's co-CEOs found themselves in an unusual position after the company's latest earnings report: on the backfoot. The streaming pioneer's decision to plunk down nearly $83 billion on Warner Bros' assets marks a significant departure from the company's long-standing mantra: build, don't buy. Investors still aren't buying it. Shares were already under pressure even before Netflix made an offer for Warner Bros Discovery's studio and streaming assets. The stock, which has lost more than 15% since Netflix made its first offer on Dec. 5, was down nearly 4% in early trading on Wednesday as co-CEOs Ted Sarandos and Greg Peters found themselves having to explain their aggressive push that has forced them to suspend share buybacks. Sarandos noted how tech giants such as Alphabet's YouTube had changed what television viewing meant, forcing Netflix to change tack to keep up. The two said they had not expected to make an offer for the Warner assets when they first started the due diligence process.  "When we got into the hood, there were several things we saw that were just really exciting," Peters said. Netflix is trying to stay ahead of Paramount Skydance with its $82.7 billion all-cash offer for Warner Bros' film and television studios, its extensive content library and major entertainment franchises – including "Game of Thrones" and "Harry Potter." "We have often in our Netflix history debated building a theatrical business, but we were busy investing in other areas, and it never became our priority. But now with Warner Bros, they bring a mature, well-run theatrical business with amazing films, and we're super excited about that addition," he said, in a reversal of Netflix's former position that theaters were an outdated model with audiences preferring stay-at-home streaming.  "And then you get to the streaming side of things, HBO. It is an amazing brand. It says prestige TV is better than almost anything. Customers know it. They love it. They know what it means," Peters said, adding that Warner's television studio was also a healthy business and complemented Netflix's own, expanding its production capability. INVESTORS ARE NOT CONVINCED With the expensive deal hanging over its head, Netflix delivered a tepid revenue beat for what is usually one of its strongest quarters, and forecast equally dull prospects for the new year.  While a strong content line-up, including the final season of hit sci-fi series "Stranger Things," helped revenue growth, high costs associated with the Warner Bros acquisition have made people apprehensive about the long-term payoff, analysts said.  Netflix said previously that it had obtained commitments for a $59 billion bridge loan to support the Warner Bros' deal. On Tuesday, it increased the bridge loan commitment by $8.2 billion to support its all-cash $27.75 per share offer. The deal is expected to face considerable scrutiny from lawmakers and competition regulators as high-profile acquisitions threaten to monopolize the market and leave consumers with fewer choices.  But Sarandos on Tuesday moved to ease those concerns by reiterating the deal would be "pro-consumer" and "pro-worker", and that the acquired businesses would require new teams and would allow more opportunities for creatives.  The deal "allows us to gain access to 100 years of Warner Bros deep content and IP for development and distribution in more effective ways that will benefit consumers and the industry as a whole," he said. (Reporting by Zaheer Kachwala in Bengaluru; Editing by Sayantani Ghosh and Anil D'Silva)

(The article has been published through a syndicated feed. Except for the headline, the content has been published verbatim. Liability lies with original publisher.)

By Zaheer Kachwala Jan 21 (Reuters) – Netflix's co-CEOs found themselves in an unusual position after the company's latest earnings report: on the backfoot. The streaming pioneer's decision to plunk down nearly $83 billion on Warner Bros' assets marks a significant departure from the company's long-standing mantra: build, don't buy. Investors still aren't buying it. Shares were already under pressure even before Netflix made an offer for Warner Bros Discovery's studio and streaming assets. The stock, which has lost more than 15% since Netflix made its first offer on Dec. 5, was down nearly 4% in early trading on Wednesday as co-CEOs Ted Sarandos and Greg Peters found themselves having to explain their aggressive push that has forced them to suspend share buybacks. Sarandos noted how tech giants such as Alphabet's YouTube had changed what television viewing meant, forcing Netflix to change tack to keep up. The two said they had not expected to make an offer for the Warner assets when they first started the due diligence process.  "When we got into the hood, there were several things we saw that were just really exciting," Peters said. Netflix is trying to stay ahead of Paramount Skydance with its $82.7 billion all-cash offer for Warner Bros' film and television studios, its extensive content library and major entertainment franchises – including "Game of Thrones" and "Harry Potter." "We have often in our Netflix history debated building a theatrical business, but we were busy investing in other areas, and it never became our priority. But now with Warner Bros, they bring a mature, well-run theatrical business with amazing films, and we're super excited about that addition," he said, in a reversal of Netflix's former position that theaters were an outdated model with audiences preferring stay-at-home streaming.  "And then you get to the streaming side of things, HBO. It is an amazing brand. It says prestige TV is better than almost anything. Customers know it. They love it. They know what it means," Peters said, adding that Warner's television studio was also a healthy business and complemented Netflix's own, expanding its production capability. INVESTORS ARE NOT CONVINCED With the expensive deal hanging over its head, Netflix delivered a tepid revenue beat for what is usually one of its strongest quarters, and forecast equally dull prospects for the new year.  While a strong content line-up, including the final season of hit sci-fi series "Stranger Things," helped revenue growth, high costs associated with the Warner Bros acquisition have made people apprehensive about the long-term payoff, analysts said.  Netflix said previously that it had obtained commitments for a $59 billion bridge loan to support the Warner Bros' deal. On Tuesday, it increased the bridge loan commitment by $8.2 billion to support its all-cash $27.75 per share offer. The deal is expected to face considerable scrutiny from lawmakers and competition regulators as high-profile acquisitions threaten to monopolize the market and leave consumers with fewer choices.  But Sarandos on Tuesday moved to ease those concerns by reiterating the deal would be "pro-consumer" and "pro-worker", and that the acquired businesses would require new teams and would allow more opportunities for creatives.  The deal "allows us to gain access to 100 years of Warner Bros deep content and IP for development and distribution in more effective ways that will benefit consumers and the industry as a whole," he said. (Reporting by Zaheer Kachwala in Bengaluru; Editing by Sayantani Ghosh and Anil D'Silva)

(The article has been published through a syndicated feed. Except for the headline, the content has been published verbatim. Liability lies with original publisher.)

By Jaspreet Singh, Anhata Rooprai and Zaheer Kachwala Jan 21 (Reuters) – Nick LaFleur is one of many Americans who think a Netflix-Warner Bros tie-up might provide some relief from "subscription fatigue." The New York City resident has held on to a full poker hand of streaming services – Netflix, Disney+, Apple TV, HBO Max and Paramount+ – even as prices have risen steadily. Netflix on Tuesday switched its nearly $83 billion offer for most of Warner Bros to all-cash to keep Paramount at bay as the two compete for the company's coveted studio and content library. If successful, a Netflix-Warner Bros tie-up could bring the HBO Max streaming service under the same umbrella as Netflix.  LaFleur and others hope that might translate to smaller bills. "The trajectory of streaming prices, whether there is a merger or not, seems to be going up and up," said LaFleur, who works in tech communications. "I would imagine they would not just add the price of HBO Max to Netflix… my expectation is that I could get a discount."  Americans now pay for an average of 2.9 streaming subscriptions despite the rising costs, which now come to $552 a year, according to a Forbes Home survey of 1,000 people published in November. As of June, most HBO Max subscribers had a Netflix subscription – 94%, in fact, according to Bernstein analysts, while 38% of Netflix users had HBO Max. A tie-up could revive streaming's early promise of "everything under one roof" before studios yanked their content to launch rival services.  The downside? The deal could stifle competition and erode HBO's reputation for prestige programming that currently exceeds Netflix's, experts say.  "IT'S A PAIN TO MANAGE SUBSCRIPTIONS" The proliferation of streamers has swamped consumers with content, similar to hundreds of unwatched channels offered by cable TV when the industry was at its peak. About 72% of U.S. consumers said streaming bundles offer better value, while 63% say they feel overwhelmed by the options, according to a Mintel survey of nearly 2,000 people last August. "It's a pain to manage subscriptions," said Orlando-based Frank Weaver, who resorted to buying an app to track them and has canceled some services because of the cost. A report last year from industry tracker Antenna showed the recently introduced discounted bundle of Disney+, Hulu and HBO Max retained 80% of its subscribers after three months, stickier than any of the standalone services. NETFLIX FORMS THE BASIS OF VIEWING PACKAGES For many viewers, Netflix, the global streaming leader with 325 million subscribers, forms the basis of any viewing package.  About 78% of customers chose the service when building a hypothetical custom bundle, placing it ahead of Disney+, Paramount+ and HBO Max, according to a Forrester Research survey of more than 400 adults in the U.S., the UK and Canada published last year. Part of Netflix's argument in its bid for Warner Bros was that the combination may lower costs for consumers and ease regulatory fears, Reuters reported last year. Netflix's standard plan is priced at $17.99 a month, while HBO Max's equivalent tier costs $18.49 and Paramount+'s ad-free Premium plan costs $13.99, according to the companies' websites.  DOING THE OPPOSITE? Netflix scrapped its cheapest ad-free plan, called basic, in 2023, leaving consumers with its more expensive premium and standard plans, as well as the standard plan with ads. The premium plan now costs $24.99 a month, up from $19.99 in 2022, while the standard ad-free plan's price has gone up by more than $2 to $17.99 in the period. Lawmakers have warned that the Netflix-Warner Bros combo could give the combined firm outsized bargaining power. Experts say this could lead to fewer choices, giving Netflix more power to raise its rates, spend less on the kind of quality shows offered by HBO, or both. "Whether the winning bidder is Netflix or Paramount, the worry is whether they will be positioned to pay less for content," said Bill Baer, a visiting fellow at the Brookings Institution and former U.S. assistant attorney general for antitrust under President Barack Obama. "That likely would diminish both the number and the quality of programming and the number of people willing to invest in the creative process." (Reporting by Jaspreet Singh, Zaheer Kachwala, Anhata Rooprai and Harshita Varghese in Bengaluru; Writing by Aditya Soni; Editing by Anil D'Silva)

(The article has been published through a syndicated feed. Except for the headline, the content has been published verbatim. Liability lies with original publisher.)

By Zaheer Kachwala Jan 21 (Reuters) – Netflix's co-CEOs found themselves in an unusual position after the company's latest earnings report: on the backfoot. The streaming pioneer's decision to plunk down nearly $83 billion on Warner Bros' assets marks a significant departure from the company's long-standing mantra: build, don't buy. Investors still aren't buying it. Shares were already under pressure even before Netflix made an offer for Warner Bros Discovery's studio and streaming assets. The stock, which has lost more than 15% since Netflix made its first offer on Dec. 5, was down nearly 8% in premarket action on Wednesday as co-CEOs Ted Sarandos and Greg Peters found themselves having to explain their aggressive push that has forced them to suspend share buybacks. Sarandos noted how tech giants such as Alphabet's YouTube had changed what television viewing meant, forcing Netflix to change tack to keep up. The two said they had not expected to make an offer for the Warner assets when they first started the due diligence process.  "When we got into the hood, there were several things we saw that were just really exciting," Peters said. Netflix is trying to stay ahead of Paramount Skydance with its $82.7 billion all-cash offer for Warner Bros' film and television studios, its extensive content library and major entertainment franchises – including "Game of Thrones" and "Harry Potter." "We have often in our Netflix history debated building a theatrical business, but we were busy investing in other areas, and it never became our priority. But now with Warner Bros, they bring a mature, well-run theatrical business with amazing films, and we're super excited about that addition," he said, in a reversal of Netflix's former position that theaters were an outdated model with audiences preferring stay-at-home streaming.  "And then you get to the streaming side of things, HBO. It is an amazing brand. It says prestige TV is better than almost anything. Customers know it. They love it. They know what it means," Peters said, adding that Warner's television studio was also a healthy business and complemented Netflix's own, expanding its production capability. INVESTORS ARE NOT CONVINCED With the expensive deal hanging over its head, Netflix delivered a tepid revenue beat for what is usually one of its strongest quarters, and forecast equally dull prospects for the new year.  While a strong content line-up, including the final season of hit sci-fi series "Stranger Things," helped revenue growth, high costs associated with the Warner Bros acquisition have made people apprehensive about the long-term payoff, analysts said.  Netflix said previously that it had obtained commitments for a $59 billion bridge loan to support the Warner Bros' deal. On Tuesday, it increased the bridge loan commitment by $8.2 billion to support its all-cash $27.75 per share offer. The deal is expected to face considerable scrutiny from lawmakers and competition regulators as high-profile acquisitions threaten to monopolize the market and leave consumers with fewer choices.  But Sarandos on Tuesday moved to ease those concerns by reiterating the deal would be "pro-consumer" and "pro-worker", and that the acquired businesses would require new teams and would allow more opportunities for creatives.  The deal "allows us to gain access to 100 years of Warner Bros deep content and IP for development and distribution in more effective ways that will benefit consumers and the industry as a whole," he said. (Reporting by Zaheer Kachwala in Bengaluru; Editing by Sayantani Ghosh and Anil D'Silva)

(The article has been published through a syndicated feed. Except for the headline, the content has been published verbatim. Liability lies with original publisher.)

By Jaspreet Singh, Anhata Rooprai and Zaheer Kachwala Jan 21 (Reuters) – Nick LaFleur is one of many Americans who think a Netflix-Warner Bros tie-up might provide some relief from "subscription fatigue." The New York City resident has held on to a full poker hand of streaming services – Netflix, Disney+, Apple TV, HBO Max and Paramount+ – even as prices have risen steadily. Netflix on Tuesday switched its nearly $83 billion offer for most of Warner Bros to all-cash to keep Paramount at bay as the two compete for the company's coveted studio and content library. If successful, a Netflix-Warner Bros tie-up could bring the HBO Max streaming service under the same umbrella as Netflix.  LaFleur and others hope that might translate to smaller bills. "The trajectory of streaming prices, whether there is a merger or not, seems to be going up and up," said LaFleur, who works in tech communications. "I would imagine they would not just add the price of HBO Max to Netflix… my expectation is that I could get a discount."  Americans now pay for an average of 2.9 streaming subscriptions despite the rising costs, which now come to $552 a year, according to a Forbes Home survey of 1,000 people published in November. As of June, most HBO Max subscribers had a Netflix subscription – 94%, in fact, according to Bernstein analysts, while 38% of Netflix users had HBO Max. A tie-up could revive streaming's early promise of "everything under one roof" before studios yanked their content to launch rival services.  The downside? The deal could stifle competition and erode HBO's reputation for prestige programming that currently exceeds Netflix's, experts say.  "IT'S A PAIN TO MANAGE SUBSCRIPTIONS" The proliferation of streamers has swamped consumers with content, similar to hundreds of unwatched channels offered by cable TV when the industry was at its peak. About 72% of U.S. consumers said streaming bundles offer better value, while 63% say they feel overwhelmed by the options, according to a Mintel survey of nearly 2,000 people last August. "It's a pain to manage subscriptions," said Orlando-based Frank Weaver, who resorted to buying an app to track them and has canceled some services because of the cost. A report last year from industry tracker Antenna showed the recently introduced discounted bundle of Disney+, Hulu and HBO Max retained 80% of its subscribers after three months, stickier than any of the standalone services. NETFLIX FORMS THE BASIS OF VIEWING PACKAGES For many viewers, Netflix, the global streaming leader with 325 million subscribers, forms the basis of any viewing package.  About 78% of customers chose the service when building a hypothetical custom bundle, placing it ahead of Disney+, Paramount+ and HBO Max, according to a Forrester Research survey of more than 400 adults in the U.S., the UK and Canada published last year. Part of Netflix's argument in its bid for Warner Bros was that the combination may lower costs for consumers and ease regulatory fears, Reuters reported last year. Netflix's standard plan is priced at $17.99 a month, while HBO Max's equivalent tier costs $18.49 and Paramount+'s ad-free Premium plan costs $13.99, according to the companies' websites.  DOING THE OPPOSITE? Netflix scrapped its cheapest ad-free plan, called basic, in 2023, leaving consumers with its more expensive premium and standard plans, as well as the standard plan with ads. The premium plan now costs $24.99 a month, up from $19.99 in 2022, while the standard ad-free plan's price has gone up by more than $2 to $17.99 in the period. Lawmakers have warned that the Netflix-Warner Bros combo could give the combined firm outsized bargaining power. Experts say this could lead to fewer choices, giving Netflix more power to raise its rates, spend less on the kind of quality shows offered by HBO, or both. "Whether the winning bidder is Netflix or Paramount, the worry is whether they will be positioned to pay less for content," said Bill Baer, a visiting fellow at the Brookings Institution and former U.S. assistant attorney general for antitrust under President Barack Obama. "That likely would diminish both the number and the quality of programming and the number of people willing to invest in the creative process." (Reporting by Jaspreet Singh, Zaheer Kachwala, Anhata Rooprai and Harshita Varghese in Bengaluru; Writing by Aditya Soni; Editing by Anil D'Silva)

(The article has been published through a syndicated feed. Except for the headline, the content has been published verbatim. Liability lies with original publisher.)

By Zaheer Kachwala Jan 21 (Reuters) – Netflix's co-CEOs found themselves in an unusual position after the company's latest earnings report: on the backfoot. The streaming pioneer's decision to plunk down nearly $83 billion on Warner Bros' assets marks a significant departure from the company's long-standing mantra: build, don't buy. Investors still aren't buying it. Shares were already under pressure even before Netflix made an offer for Warner Bros Discovery's studio and streaming assets. The stock, which has lost more than 15% since Netflix made its first offer on Dec. 5, was down nearly 8% in premarket action on Wednesday as co-CEOs Ted Sarandos and Greg Peters found themselves having to explain their aggressive push that has forced them to suspend share buybacks. Sarandos noted how tech giants such as Alphabet's YouTube had changed what television viewing meant, forcing Netflix to change tack to keep up. The two said they had not expected to make an offer for the Warner assets when they first started the due diligence process.  "When we got into the hood, there were several things we saw that were just really exciting," Peters said. Netflix is trying to stay ahead of Paramount Skydance with its $82.7 billion all-cash offer for Warner Bros' film and television studios, its extensive content library and major entertainment franchises – including "Game of Thrones" and "Harry Potter." "We have often in our Netflix history debated building a theatrical business, but we were busy investing in other areas, and it never became our priority. But now with Warner Bros, they bring a mature, well-run theatrical business with amazing films, and we're super excited about that addition," he said, in a reversal of Netflix's former position that theaters were an outdated model with audiences preferring stay-at-home streaming.  "And then you get to the streaming side of things, HBO. It is an amazing brand. It says prestige TV is better than almost anything. Customers know it. They love it. They know what it means," Peters said, adding that Warner's television studio was also a healthy business and complemented Netflix's own, expanding its production capability. INVESTORS ARE NOT CONVINCED With the expensive deal hanging over its head, Netflix delivered a tepid revenue beat for what is usually one of its strongest quarters, and forecast equally dull prospects for the new year.  While a strong content line-up, including the final season of hit sci-fi series "Stranger Things," helped revenue growth, high costs associated with the Warner Bros acquisition have made people apprehensive about the long-term payoff, analysts said.  Netflix said previously that it had obtained commitments for a $59 billion bridge loan to support the Warner Bros' deal. On Tuesday, it increased the bridge loan commitment by $8.2 billion to support its all-cash $27.75 per share offer. The deal is expected to face considerable scrutiny from lawmakers and competition regulators as high-profile acquisitions threaten to monopolize the market and leave consumers with fewer choices.  But Sarandos on Tuesday moved to ease those concerns by reiterating the deal would be "pro-consumer" and "pro-worker", and that the acquired businesses would require new teams and would allow more opportunities for creatives.  The deal "allows us to gain access to 100 years of Warner Bros deep content and IP for development and distribution in more effective ways that will benefit consumers and the industry as a whole," he said. (Reporting by Zaheer Kachwala in Bengaluru; Editing by Sayantani Ghosh and Anil D'Silva)

(The article has been published through a syndicated feed. Except for the headline, the content has been published verbatim. Liability lies with original publisher.)

By Jaspreet Singh, Anhata Rooprai and Zaheer Kachwala Jan 21 (Reuters) – Nick LaFleur is one of many Americans who think a Netflix-Warner Bros tie-up might provide some relief from "subscription fatigue." The New York City resident has held on to a full poker hand of streaming services – Netflix, Disney+, Apple TV, HBO Max and Paramount+ – even as prices have risen steadily. Netflix on Tuesday switched its nearly $83 billion offer for most of Warner Bros to all-cash to keep Paramount at bay as the two compete for the company's coveted studio and content library. If successful, a Netflix-Warner Bros tie-up could bring the HBO Max streaming service under the same umbrella as Netflix.  LaFleur and others hope that might translate to smaller bills. "The trajectory of streaming prices, whether there is a merger or not, seems to be going up and up," said LaFleur, who works in tech communications. "I would imagine they would not just add the price of HBO Max to Netflix… my expectation is that I could get a discount."  Americans now pay for an average of 2.9 streaming subscriptions despite the rising costs, which now come to $552 a year, according to a Forbes Home survey of 1,000 people published in November. As of June, most HBO Max subscribers had a Netflix subscription – 94%, in fact, according to Bernstein analysts, while 38% of Netflix users had HBO Max. A tie-up could revive streaming's early promise of "everything under one roof" before studios yanked their content to launch rival services.  The downside? The deal could stifle competition and erode HBO's reputation for prestige programming that currently exceeds Netflix's, experts say.  "IT'S A PAIN TO MANAGE SUBSCRIPTIONS" The proliferation of streamers has swamped consumers with content, similar to hundreds of unwatched channels offered by cable TV when the industry was at its peak. About 72% of U.S. consumers said streaming bundles offer better value, while 63% say they feel overwhelmed by the options, according to a Mintel survey of nearly 2,000 people last August. "It's a pain to manage subscriptions," said Orlando-based Frank Weaver, who resorted to buying an app to track them and has canceled some services because of the cost. A report last year from industry tracker Antenna showed the recently introduced discounted bundle of Disney+, Hulu and HBO Max retained 80% of its subscribers after three months, stickier than any of the standalone services. NETFLIX FORMS THE BASIS OF VIEWING PACKAGES For many viewers, Netflix, the global streaming leader with 325 million subscribers, forms the basis of any viewing package.  About 78% of customers chose the service when building a hypothetical custom bundle, placing it ahead of Disney+, Paramount+ and HBO Max, according to a Forrester Research survey of more than 400 adults in the U.S., the UK and Canada published last year. Part of Netflix's argument in its bid for Warner Bros was that the combination may lower costs for consumers and ease regulatory fears, Reuters reported last year. Netflix's standard plan is priced at $17.99 a month, while HBO Max's equivalent tier costs $18.49 and Paramount+'s ad-free Premium plan costs $13.99, according to the companies' websites.  DOING THE OPPOSITE? Netflix scrapped its cheapest ad-free plan, called basic, in 2023, leaving consumers with its more expensive premium and standard plans, as well as the standard plan with ads. The premium plan now costs $24.99 a month, up from $19.99 in 2022, while the standard ad-free plan's price has gone up by more than $2 to $17.99 in the period. Lawmakers have warned that the Netflix-Warner Bros combo could give the combined firm outsized bargaining power. Experts say this could lead to fewer choices, giving Netflix more power to raise its rates, spend less on the kind of quality shows offered by HBO, or both. "Whether the winning bidder is Netflix or Paramount, the worry is whether they will be positioned to pay less for content," said Bill Baer, a visiting fellow at the Brookings Institution and former U.S. assistant attorney general for antitrust under President Barack Obama. "That likely would diminish both the number and the quality of programming and the number of people willing to invest in the creative process." (Reporting by Jaspreet Singh, Zaheer Kachwala, Anhata Rooprai and Harshita Varghese in Bengaluru; Writing by Aditya Soni; Editing by Anil D'Silva)

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