It’s still too early to tell exactly how Netflix’s acquisition of Warner Bros. Discovery will impact Hollywood. But according to early metrics from JustWatch, a free-to-use streaming guide that lets users easily find movies and shows across streaming, the outcome will be significant.
Before getting into the numbers, it’s important to understand how JustWatch works: Users are able to search for any show or movie using the platform’s search function, and JustWatch will then tell users where they can stream that title. Users can also click on the links JustWatch provides, which will take them directly to the show or movie they searched for on their streamer of choice, a process known in the company as a “clickout.” If a user does click on a JustWatch link, chances are higher they’re actually going to watch that title than if they just searched for it.
Based on insights from JustWatch’s 20 million monthly U.S. users, the biggest market that this merger would impact would be the U.S. streaming video on demand (SVOD) market. Netflix and HBO Max combined account for 33% of the U.S. SVOD market. That combination would put them well above Prime Video, which, at 21%, is the next-closest SVOD platform in terms of size.
As for interest in movies, JustWatch determined that this combined streamer would account for 23% of film streaming demand. Right now, titles produced by Warner Bros. Discovery’s film studios generate 19% of all U.S. movie streaming clickouts on JustWatch, and Netflix only accounts for 4% of clickouts.
Finally, JustWatch determined that Warner Bros. and Netflix combined would account for a 20% share of TV streaming engagement in the U.S. Currently, HBO originals make up 5% of U.S. series clickouts, and Netflix accounts for 15% of clickouts.
Of course, this is an imperfect analysis. JustWatch’s 20 million users only represents a fraction of Americans who watch movies and TV on streaming. Additionally, all of this data reflects Netflix, HBO Max and Discovery’s current place in the entertainment industry. Once Netflix and Warner Bros. clear months of regulatory hurdles and negotiations, who knows where both companies will rank in terms of clickout popularity. But those asterisks aside, these metrics serve as a good barometer for how industry-changing this new deal could be.
After three rounds of bidding between Comcast, Paramount and Netflix, Warner Bros. Discovery and Netflix struck a deal late on Thursday. As part of the streamer’s $82.7 billion offer, which comes in at $27.75 a share, Netflix agreed to purchase WBD’s studio and streaming assets.
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