Business

Netflix Issues Urgent Reassurance After $82.7B Warner Bros. Acquisition Sparks Political and Industry Backlash


Written by Tanisha Cardozo || Team Allycaral Business Desk

Netflix moved swiftly to reassure its more than 300 million subscribers after announcing its stunning $82.7 billion acquisition of Warner Bros., one of the biggest entertainment mergers in modern history. Roughly 24 hours after unveiling the deal, Netflix sent a carefully worded late-night email emphasizing that nothing is changing today and that both platforms will continue to operate separately for the foreseeable future. The company reiterated that the transaction still requires multiple regulatory and shareholder approvals, a process Netflix estimates will take between 12 and 18 months.

The message, echoed in the FAQ section of Netflix’s Help Center, assured users that their membership plans would remain unchanged during this transition and that Warner Bros. content—including major franchises like Harry Potter, Friends, Game of Thrones, and the DC Universe—would not immediately appear on Netflix’s platform. The company stressed patience and promised timely updates as the process advances.

Despite the calm tone of Netflix’s communication, the acquisition has already ignited intense political and industry backlash. Senator Elizabeth Warren condemned the announcement as an “anti-monopoly nightmare,” while Representative Pramila Jayapal warned that the merger could lead to higher prices, more ads, and homogenized content. Republican Senator Mike Lee raised his own alarm, stating the deal should concern antitrust enforcers worldwide. Hollywood guilds, including the Producers Guild of America, SAG-AFTRA, and the Writers Guild, expressed fears of job losses, reduced competition, and diminished creative control within an industry already under strain.

During an investor call, Netflix co-CEO Ted Sarandos defended the acquisition vigorously, portraying it as “pro-consumer, pro-innovation, pro-worker, pro-creator and pro-growth.” Sarandos insisted that combining Netflix’s streaming leadership with Warner Bros.’ vast library and iconic franchises would create a stronger and more dynamic entertainment powerhouse. However, he acknowledged that meaningful integration could not begin until regulators approve the deal, and the earliest possible closing date would be December 2026.

If ultimately approved, the merger would unite some of the most recognizable franchises in entertainment history under one roof—from Stranger Things and Bridgerton to Harry Potter and Game of Thrones—shaping a new era of streaming consolidation. For now, subscribers are being told to sit tight, enjoy the content they already love, and await further updates as Netflix and Warner Bros. embark on one of the most scrutinized entertainment mergers in decades.

Entertainment

Netflix Debuts Generative AI for Visual Effects in El Eternauta


Written by Tanisha Cardozo

Netflix has made a major breakthrough by using generative AI to create visual effects (VFX) in one of its original productions for the first time. Co‑CEO Ted Sarandos announced this during Netflix’s Q2 investor call, describing AI as “an incredible opportunity to help creators make films and series better, not just cheaper.”


The memory-making moment came in the Argentine sci-fi series El Eternauta, where the creative team needed a high-impact scene of a building collapsing in Buenos Aires. Traditional VFX would have been too costly, so Netflix’s in-house Eyeline Studios used AI to generate the sequence—delivering it ten times faster and at a fraction of the cost.

This marks the first time generative AI has been used in final, on-screen footage by Netflix. The move comes amid sensitive debates around AI in Hollywood following the 2023 actors’ and writers’ strikes, where creators voiced concerns about AI replacing human roles. Sarandos and fellow Co‑CEO Greg Peters emphasize that AI’s role is to support—not replace—creatives.


Peters shared that Netflix is exploring additional AI applications, such as voice-activated search capabilities (“Find me a Psychological Thriller from the ’80s”) and AI-driven ad content creation—showing that AI’s role on the platform is poised to grow beyond VFX.


Netflix’s first official use of generative AI on screen signals a shift in how content is produced—balancing cost-efficiency with creative ambition. The studio sees this as an evolution, not a replacement, empowering creators with new storytelling tools as AI becomes a mainstream part of filmmaking.