Netflix-Warner Bros deal to weigh on Indian multiplexes, up OTT competition

US President Donald Trump raised potential antitrust concerns around the Netflix-Warner Bros deal, noting that the market share of the combined entity may pose problems

Netflix Inc.'s planned $72 billion acquisition of Warner Bros. Discovery (WBD) could have negative implications for India's film industry and media sectors, analysts said, particularly if the merged entity experiments with shorter theatrical windows or OTT-first releases. 

 

Hollywood accounts for 15-20 per cent of India's gross box office collection (GBOC), with WBD contributing around 4 per cent, according to Elara Capital. While the contribution is small in volume, English films deliver higher food & beverage and advertising yields, making them strategically important for cinema chains.

 

Elara said that in a worst-case scenario, a 4 per cent revenue hit for PVR Inox could translate into a 6 per cent drag on Ebitda by FY28, especially if Netflix begins prioritising streaming releases to boost subscriber growth. 

 

 

Meanwhile, the US President Donald Trump raised potential antitrust concerns around the planned acquisition, noting that the market share of the combined entity may pose problems. 

 

The transaction would make Netflix the top revenue-generating streaming platform, according to Bloomberg. However, it added the Justice Department's antitrust division could argue that the deal is illegal as the combined market share would put Netflix well over a 30 per cent threshold.  ALSO READ | What Netflix's acquisition of Warner Bros means for the future of movies

Netflix-WBD deal to reshape OTT landscape

India represents a minor revenue market for Hollywood studios. For instance, the Superman 2025 film earned only about 2 per cent of its global revenue from India, giving Netflix more flexibility to test direct-to-OTT or shorter exclusivity windows for WBD's franchise titles, the report said. 

 

The brokerage added that the deal could reshape India’s OTT landscape. With JioStar dominating sports and Netflix consolidating entertainment, smaller OTT platforms and linear broadcasters such as Zee Entertainment and Sun TV Network may face increased competition amid limited digital scale. 

 

Amazon Prime Video's growth could also slow as rivals widen their content dominance, pushing niche players to seek partnerships to remain viable, Elara said.   ALSO READ | Hollywood anger mounts as Netflix's Warner Bros takeover sparks job fears 

For Netflix, the acquisition would strengthen its entertainment recall, broaden its film and TV catalogue, and accelerate India-focused movie and franchise development across both OTT-first and theatrical formats, Elara said. The dominance of JioStar in sports makes the IPL's post-2028 digital rights strategically more important, as the platform will need them to protect AVOD leadership against a stronger Netflix.

 

Elara said that while the full impact will unfold over time, the proposed Netflix-WBD merger poses a potentially negative outlook for exhibitors and traditional broadcasters if content tilts more aggressively toward direct-to-OTT distribution in India.