By Angela Palumbo

Consumers should be prepared for more changes in the streaming industry as companies combine, raise prices, and simplify access.

Paramount Skydance won the bidding war for Warner Bros. Discovery after Netflix said on Thursday it wouldn't match the CBS owner's latest offer.

On top of its array of cable networks, including Comedy Central and Nickelodeon, Paramount is the owner of streaming platform Paramount+. Meanwhile, Warner Bros. is known for movies such as A Knight of the Seven Kingdoms and Superman. It is also the parent of channels such as CNN and TLC, and streaming platform HBO Max.

Streaming is an incredibly competitive space. Players like Alphabet's Youtube, Netflix, and Walt Disney's Disney+ dominate monthly TV viewing time, according to data from research firm Nielsen. Meanwhile, both Paramount+ and HBO Max have been fighting for that same level of viewership each month. Merging those two services could help the streamers get a much needed boost to compete with the largest players.

Paramount and Warner Bros. officially announced their merger agreement on Friday night. The companies said the "combination of Paramount+, HBO Max and Pluto creates a highly competitive DTC business that expands both consumer choice and opportunities for creative talent and labor."

Still, no one knows for certain yet what a combination of the two streaming platforms will look like when finalized, or what it will do to pricing.

Paramount declined to respond to a request for comment on its potential plans. However, the company said in a news release Friday that "by uniting the strengths of Paramount and WBD, we will create a premier direct-to-consumer platform with enhanced reach, engagement, and monetization capabilities."

Alex Holtz, research director of IDC's Worldwide Media & Entertainment Digital Strategies, told Barron's that it is highly likely any combination of these services will result in pricing changes, adding that price increases tend to come with consolidation. For example, Disney announced on its earnings call in August it would be combining Hulu into Disney+. Disney then said in September it was raising streaming prices.

While price hikes are understandably frustrating for consumers, the consolidation of streaming platforms is a benefit to the overall viewing experience, Holtz said. That is important, as customers regularly complain about how expensive and complicated streaming has become.

"While consolidation has a tendency to increase pricing, it decreases churn," he said. Churn refers to a customer leaving a service. "All of a sudden you have this IP library that's more appropriate for the consumer. They don't have to skip from subscription to subscription, drop one when they're finished with one series, add another one. There's a lot of cost involved in that."

It is also likely these services will offer different pricing tiers, which has become an industry standard. Lower price ad-tiers give consumers more choice and help convince them to not totally remove their subscriptions.

Before consumers think about how their Paramount+ and HBO Max subscriptions will change, the potential merger first needs regulatory approval. Critics argue that combining the two companies will hurt those looking for affordable and varied entertainment.

"A Paramount Skydance-Warner Bros. merger is an antitrust disaster threatening higher prices and fewer choices for American families," Sen. Elizabeth Warren (D., Mass.) said Thursday.

Experts believe Paramount will have an easier time than Netflix when it comes to government approval, though. On top of Paramount CEO David Ellison's family having a friendly relationship with President Donald Trump, Paramount is a smaller company than Netflix. Holtz also told Barron's there is a strong competitive environment, including other streamers, and social media platforms such as YouTube and TikTok.

It is likely that as streaming competition heats up, consumers and investors can expect to see more media companies try to merge and partner to stay ahead.

Prices will likely keep rising, but there is hope that getting access to entertainment will be simpler than how it currently stands.

Write to Angela Palumbo at angela.palumbo@dowjones.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

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March 02, 2026 01:00 ET (06:00 GMT)

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