Indian OTT players may feel the heat as Netflix-Warner Bros deal nears

Netflix's planned acquisition of Warner Bros., including its film and television studios, HBO Max and HBO, could intensify competition for India's broadcaster-led and regional streaming platforms

India’s broadcaster-led streaming platforms such as ZEE5 and Sun NXT, along with regional players, are likely to feel the impact as competition intensifies from Netflix and JioHotstar. Netflix, the US-based streaming giant is set to acquire Warner Bros, including its film and television studios, HBO Max and HBO, following the separation of Discovery Global.

 

Besides limiting the ability of other OTT platforms to scale in India, industry experts noted that the deal may pressure production houses to elevate production values and storytelling quality. As a result, regional streaming platforms will need to further differentiate themselves through niche genres or local-language content. According to Elara Capital, the upcoming deal may also spur new partnerships between smaller or niche OTT players and broadcaster-led services or Amazon, as these platforms seek to sustain relevance amid the rising dominance of Netflix and JioStar.

 

“With JioStar holding a monopoly in sports, this acquisition will position Netflix as the platform with the strongest recall for movies, originals and global TV content, significantly deepening its catalogue beyond any other competitor,” said Karan Taurani, executive vice-president at Elara Capital. “This may help Netflix raise Arpu (average revenue per user) in a price-sensitive market like India over the near term, supported by a wider content slate and deeper catalogue. Overall, this is negative for linear TV broadcasters such as Zee Entertainment Enterprises (ZEEL) and Sun TV,” he added.

 

ZEEL generates about 15 per cent, and Sun TV around 10 per cent, of its revenue from streaming. This consolidation may challenge their medium-term growth prospects; for ZEEL, it could further delay profitability plans for ZEE5, while Sun NXT is already profitable due to its investments in original content, he noted. Suniel Wadhwa, co-founder and director of Karmic Films, said that while the deal is globally significant, its impact on India would be gradual over 12 to 24 months post-closure.

 

This development follows Netflix and Warner Bros Discovery entering a definitive agreement on Friday. The platform known for titles such as Stranger Things, Money Heist, Bridgerton and Adolescence will acquire Warner Bros, including its film and television studios, HBO Max and HBO, for an enterprise value of about $82.7 billion, or $72 billion in equity value. The deal is expected to close after Warner Bros Discovery spins off its global networks division, Discovery Global, into a publicly traded company, a process anticipated to be completed in Q3CY26. Through the acquisition, Netflix will gain access to the DC Universe, Harry Potter, Game of Thrones and The Wizard of Oz franchises, among others. Globally, the companies have not yet outlined how HBO Max content will be integrated into Netflix.

 

Netflix currently leads India’s SVOD (subscription video-on-demand) segment with about 30 per cent market share, while JioStar’s JioHotstar is the second-largest player in the AVOD (advertising video-on-demand) market with roughly 25 per cent share, after YouTube. Taurani added that the development will allow both platforms to expand further in size and scale, leveraging their competitive strengths in entertainment and sports respectively.

 

For Netflix, the deal will bolster its movie and content production capabilities, potentially driving greater film production activity in India for both direct-to-OTT and theatrical releases. Meanwhile, the importance of the Indian Premier League (IPL) will rise further for JioStar. Taurani also noted that India’s largest media conglomerate will need to retain its IPL digital rights in the 2028 auction to preserve its dominance in the country’s streaming market.

 

“Netflix’s potential entry into advertising in India may now have a more adverse impact on large-scale AVOD players like JioStar, given Netflix’s broader and stronger entertainment content catalogue,” said Taurani.

 

The Multiplex Association of India (MAI) said the acquisition of one of the world’s leading studios by a dominant streaming platform that has historically deprioritised theatrical releases poses a direct competitive and economic threat to India’s theatrical sector and wider film economy. “The Indian theatrical market thrives on choice, scale and cultural diversity. Warner Bros has historically been a key partner to Indian cinemas, contributing consistently to our release calendar with successful global and local titles,” said Kamal Gianchandani, president of MAI. He added that Netflix has consistently signalled through its limited and highly restrictive theatrical strategy that it does not subscribe to a cinema-first model.

 

“If this acquisition proceeds, the risk is two-fold: A meaningful reduction in high-quality content for cinemas and the potential for shortened or non-existent theatrical windows. This would inevitably impact revenues, limit consumer choice and weaken the broader ecosystem of film production, distribution and exhibition in India,” he noted.

 

Similarly, Wadhwa said the consolidation could reshape windowing and rights negotiations in India. With Netflix controlling both first-run and library titles, studios and distributors may need to reconsider pay-TV deals, satellite windows and even theatrical licensing for Hollywood content. He emphasised that it may introduce a new pricing benchmark, and over time, India could see a realignment in how international films reach cinemas and broadcast networks.

 

At the same time, the impact on Warner Bros Discovery’s operations in India would be limited due to its smaller presence relative to other markets, said Vivek Menon, managing partner at NV Capital, a media and entertainment fund. Currently, most HBO Max content is available in India via a licensing deal with JioHotstar. Supporting this view, producer Shariq Patel said the deal may have limited people-related impact in India due to minimal overlap. JioHotstar may see a slight dip in time spent on English content, but its subscriber base will remain largely unaffected thanks to its cricket portfolio. Patel also sees Netflix globally beginning to embrace theatrical releases beyond the committed Warner Bros Discovery film slate.