Netflix Ramps Up Franchise Building After Warner Bros Acquisition Bid Fails
Having failed in its ambitious £57 billion ($72 billion) attempt to acquire Warner Bros Discovery's extensive catalogue of characters and stories, Netflix is now intensifying efforts to cultivate its own culture-defining franchises. The streaming giant's Chief Creative Officer, Bela Bajaria, affirmed that Netflix will continue investing in original concepts and collaborating with established studios like MGM and Warner Bros to produce films and series with enduring appeal.
The Warner Bros Setback Exposes Netflix's Vulnerability
The unsuccessful bid for Warner Bros' storied movie studio and HBO exposed a significant vulnerability for the relatively nascent Hollywood player. Netflix's original content library spans only about a dozen years, a stark contrast to the more than a century of stories and characters held by Warner Bros, Walt Disney, and Universal Pictures. The substantial offer, intended to bolster its intellectual property with franchises like Harry Potter and Game of Thrones, underscored the inherent challenges Netflix faces in creating its own long-lasting universes.
Interviews with 16 current and former Netflix executives, industry leaders, and agents paint a picture of a streaming service whose "something for everyone" strategy differs from the focused approach of building dedicated universes that attract pre-existing fanbases. Despite these hurdles, Netflix has demonstrated franchise-building capability through prolific showrunner Shonda Rhimes, who has successfully adapted Julia Quinn's Bridgerton novels into a series now entering its fifth season with spin-offs and touring events.
The Economics of Franchise Building
Franchises represent valuable assets for entertainment companies because they are lower-risk investments that can generate ancillary revenue through merchandise sales and in-person experiences. Recognizable characters and stories also stand out in today's fragmented media landscape, grabbing viewer attention amid myriad distractions. Netflix announced its first major acquisition, comic book publisher Millarworld, in August 2017, just before Disney revealed plans to create Disney+.
Stranger Things has been an unqualified success, producing a spin-off series, stage play, and extensive merchandise. Netflix points to other examples like the action-adventure film Extraction starring Chris Hemsworth, which led to a sequel and third installment, plus a series starring French actor Omar Sy. The long-running dating show Love Is Blind has been remade for multiple global audiences including Brazil, France and Japan.
Expensive Failures and Surprise Successes
There have been pricey flops along the way to building franchises, like the reported $700 million deal to acquire rights to Roald Dahl's catalog, which has yet to produce a major hit in five years. Netflix plans to try again this year with a Willy Wonka-inspired reality show called "Golden Ticket." The Electric State offers another example of expensive failure, with the $320 million film adaptation starring Millie Bobby Brown and Chris Pratt being savaged by critics.
"A lot of people have big movies that also are IP that don't work," said Netflix's Bajaria. "We're in the film and TV business, so a lot of things work, a lot of things don't work." Other gambles have paid off handsomely, like Netflix's decision to greenlight Squid Game, which others had passed on, creating a global juggernaut.
Competitive Pressures and Future Strategy
Producing consistent hits that spawn new series helps attract and retain subscribers, but engagement grew by only 2 percent in the second half of 2025 according to media consultant Owl & Co. Top-line growth has been slowing, with revenue expected to grow 13 percent this year compared to 16 percent in 2025. YouTube and Disney have consistently beaten Netflix in share of television viewing since October 2024 according to Nielsen data.
Complicating matters, Paramount Skydance is acquiring Warner Bros, which could reduce suppliers of original shows. Armed with a $2.8 billion windfall from the failed Warner Bros deal, Netflix Co-CEOs Ted Sarandos and Greg Peters will continue independently. Coming releases include time-tested characters and stories like a live-action Scooby-Doo series and a Narnia movie directed by Greta Gerwig.
Netflix showcased its 2026 lineup in March, including a fourth installment of Bridgerton, a second season of One Piece, an Assassin's Creed adaptation, and a Little House on the Prairie reboot. "We're off to a strong start and feeling confident about the quality and consistency of our slate this year," said Jinny Howe, vice president of original series at Netflix.
