Global streaming is entering a consolidation phase driven by subscription fatigue, rising content costs, and a pivot from pure growth to profitability and cash generation.
The headline development is Warner Bros. Discovery’s decision, announced this week, to reject a 108 billion dollar hostile bid from Paramount‑Skydance and instead sell its studios and direct to consumer streaming assets, including Max, to Netflix for 82.7 billion dollars, while spinning off its cable networks into a new Discovery Global entity.[4] This move effectively ends its role as a stand‑alone streaming combatant and signals a broader “great re‑bundling,” where deep partnerships replace all‑out “streaming wars.”[1][4] Regulators in the United States are expected to scrutinize the Netflix WBD deal for potential anti competitive effects, adding uncertainty and timing risk.[4]
Bundling and regional alliances are accelerating. HBO Max has just announced a joint subscription with German streamer RTL Plus ahead of its January 13 launch in Germany, offering a combined package at 11.99 euros per month with ads and 17.99 euros ad free, compared with roughly 18 and 33 dollars if bought separately.[2] Similar bundles are emerging in Italy and the United Kingdom, while Netflix has struck a distribution deal with French broadcaster TF1, and Disney Plus is bundling with Middle East partners MBC Group and Anghami.[2]
Consumer behavior data from Germany underscores the shift. Streaming viewing in 2025 rose 21 percent year on year, while linear TV still anchors major live moments but continues to decline as audiences fragment across streamers, social platforms, and gaming.[7] Investors are also rotating: market screens this week highlight Spotify, Roku, and others as key “streaming” equities to watch, reflecting interest in both content and infrastructure plays.[3]
Pricing pressure and new tiers are emerging. At CES, Roku is pushing its Howdy service, a 2.99 dollar per month ad free library offering positioned between free ad supported television and increasingly expensive major subscriptions, aiming to “reset streaming economics.”[6] Samsung, also at CES, is championing free ad supported streaming TV channels as a value play for cost sensitive viewers and a way for studios and creators to extend franchises without cannibalizing paid products.[5]
Compared with even a year ago, when subscriber counts dominated the narrative, the current landscape is defined by bundling, low price or free ad supported options, and large strategic deals like Netflix WBD that prioritize average revenue per user and free cash flow over raw scale.[1][4][5][6] Industry leaders are responding by partnering rather than fighting, diversifying revenue with advertising and sports, and preparing for tighter regulatory oversight.
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This content was created in partnership and with the help of Artificial Intelligence AI
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Jan 15 20263 mins