Netflix "Not Interested" in Acquiring a Rival Studio

Netflix says that the company has no interest in buying linear assets. In their fourth-quarter financial reports, the streaming brand broke down their approach to the possible availability of other networks. Netflix wrote, "We're not interested in acquiring linear assets." That seems like a pretty ironclad assessment. Observers have theorized that Warner Bros. Discovery or Paramount could become candidates for a merger of sorts. However, both companies have refused comment on the matter. Whatever happens, Netflix isn't going to step in and buy a TV network just to get that reach. Check out more of their statement down below!

"As our competitors adjust to these changes, it's logical to expect further consolidation, particularly among companies with large and declining linear networks. We're not interested in acquiring linear assets. Nor do we believe that further M&A among traditional entertainment companies will materially change the competitive environment given all the consolidation that has already happened over the last decade,"

Netflix Focuses On Big Brands

As one of the early adopters and streaming technology, Netflix has a leg up on some of these older competitors. Their company has a larger user base than any of the other streaming companies. In essence, that pronounced advantage has allowed Netflix to capitalize off of massive pop-culture hits. While Max has carved out a niche as a prestige destination and Disney profits off massive franchises like Star Wars and Marvel, the red brand is able to keep pace because of those long-tenured subscribers.

Netflix also mentioned, "But we expect our industry to remain highly competitive given: the franchise strength and programming expertise within traditional entertainment companies; ongoing heavy investment from large tech players like YouTube, Amazon and Apple; and broader competition for people's time, including gaming and social media (TikTok, Instagram etc.). It's why continuing to improve our entertainment offering is so important, and as many of our competitors cut back on their content spend, we continue to invest in our slate."

Netflix Brings Raw To The Service

In fact, as a demonstration of the brand's dominance, look no further than the deal announced today with WWE. Beginning in 2025, Monday night's signature wrestling program will be streamed live on Netflix. This Raw move is a massive step for both companies as people will basically have to pay for a subscription to catch a fan-favorite show. It will be interesting to see how that all plays out. Either way, it's a massive flex for Netflix as they put their flag down in the realm of live entertainment.

"We are excited to have WWE Raw, with its huge and passionate multigenerational fan base, on Netflix," Netflix Chief Content Officer, Bela Bajaria said. "By combining our reach, recommendations, and fandom with WWE, we'll be able to deliver more joy and value for their audiences and our members. Raw is the best of sports entertainment, blending great characters and storytelling with live action 52 weeks a year and we're thrilled to be in this long-term partnership with WWE."

Do you think there will be more mergers? Let us know down in the comments!