The streaming wars were won by who?

The struggle for supremacy between the massive TV and movie streaming companies appears to be coming to an end

You might be surprised by the winner, according to Simon Wilson.

Share this article by copying the link on Facebook, LinkedIn, Whatsapp, Pinterest, and Flipboard. Join the discussion, follow us, add us to your Google Newsletter, and subscribe to our newsletter.

What has occurred?

Hollywood has produced a drama about the men who create drama and all the other forms of entertainment that vie for viewers' attention. Early in December 2025, word leaked out that streaming behemoth Netflix had reached an agreement to purchase the majority of Warner Bros. Discovery (WBD) for £83 billion in cash and shares. Given that Warner's smaller but well-funded rival Paramount had been courting it for months, the agreement was unexpected. A few days later, Paramount, which had just been purchased by the Ellison family (Larry), became antagonistic and made an alternative offer of £108 billion for the entire company, claiming that the deal would be "superior to Netflixs in every dimension". Jared Kushner, Donald Trump's son-in-law, and other unidentified Saudi investors have contributed to Paramount's all-cash offer. There are likely months left in the saga.

Why does this drama have such a strong hold?

Because the industry views it as a revolutionary moment and it is the largest takeover in Hollywood in years. Warner would help Paramount fight the streaming wars and preserve something akin to the old Hollywood. But according to Nellie Andreeva on Deadline, a victory for Netflix would be a momentous occasion for the industry. Netflix was referred to as "the Albanian army" fifteen years ago by Jeff Bewkes, the CEO of parent Time Warner and former head of HBO. He believed that it was a fad that would soon pass. Three months later, HBO would only commit to a pilot and pick-up option, while Netflix outbid Bewkes and HBO for House of Cards with a daring two-season, 26-episode order. Netflix's arrival as a player in original programming and a "disruptor ready to take down the traditional TV industry" was announced by the spectacular coup.

So Netflix is doing well?

Amazingly good. Netflix's shares plummeted in 2022 as it appeared that its explosive ten-year growth streak was coming to an end. Since then, it has increased prices, cracked down on password sharing, and started advertising on less expensive packages before making a strong comeback. As the company grew and developed, it even raised its operating margins. Content creation is expensive, but adding more users is practically free. "If Netflix acquires Warner Bros., the streaming wars are effectively over," stated a Bank of America report that examined the proposed WBD deal. By acquiring the third-place player, Netflix would "become the undisputed global powerhouse of Hollywood beyond even its currently lofty position." With the acquisition of a third-century-old studio by a new tech company, the acquisition of MGM by Amazon, and the acquisition of Paramount by Oracles Larry Ellison, it would further solidify Silicon Valley's victory over Hollywood.

Will authorities approve the agreement?

WBD's merger with either Paramount or Netflix would likely significantly lessen competition in Hollywood, so both agreements will be closely examined. To make matters more complicated, Paramount has been exaggerating the possibility of European regulators becoming involved, and Donald Trump has made it apparent that he is also taking a close personal interest (he is friendly with Paramount's owners). With a 51 percent revenue share, Netflix dominates the streaming market in Europe even more than it does in the US, with Disney coming in second at just 10 percent. However, while US politicians and media moguls argue over who should own Warner Bros., others are preoccupied with the "real" streaming wars, which means that although Netflix may be the market leader in streaming, it isn't in the larger sense.

What are the actual streaming conflicts?

YouTube versus competitors. In order to compete with the major studios, Paramount, a relatively small studio, wants WBD. Netflix's vast library needs more content. However, according to The Economist, there is a "bigger storyline" in which YouTuberather than Warner or any of its suitorsis the most widely used source of video distraction, at least among Americans. YouTube accounted for 28% of US TV streaming in the most recent quarter, compared to Netflix's 19% (HBO Max made up less than 3%), according to ratings company Nielsen. "Netflix may now be the king of Hollywood," but it sees Warner's intellectual property as a weapon in a larger battle with rivals outside of Hollywood. The streamer is "increasingly contrasting the home-made, algorithmically sorted content on YouTube and other platforms with its professionally produced shows." For that conflict, the Warner acquisition would provide it with an arsenal of high-end weaponry. A "

However, isn't there a difference in quality?

The Economist claims that the gap is closing. In terms of technology, Hollywood films and YouTube videos are being shown on television more and more. As streaming services transition from subscription to advertising, business models are also merging. YouTube's no-advertising plans have over 125 million subscribers, which is comparable to Warner Bros. Simply put, content represents the third area of overlap. The emergence of "micro dramas" and the Amazon Primes series starring Mr. Beast, the biggest star on YouTube, are two examples of how streaming platforms are entering the social media arena. On the other hand, more TV-like content is available on social media platforms, like YouTube's Chicken Shop Date.

So it's over?

According to Jackie Snow on Quartz, "the streaming wars are over." "Without even trying, YouTube prevailed. YouTube "quietly built the world's largest entertainment empire on user-generated videos, cat clips and podcasts, reshaping how we define television itself," while media behemoths spent billions vying for viewers. Giving viewers more options was a promise made during the streaming wars. "The dominance of a platform that gives viewers infinite choice and an algorithm smart enough to help them navigate it" is their culmination.