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Netflix, Warner Bros. Discovery, and Paramount Explore First-Run Streaming Alliance

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  Published in Media and Entertainment on Monday, December 8th 2025 at 15:32 GMT by Variety

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Netflix’s New Playbook: Ted Sarandos and Peters Chart a Strategic Alliance with Warner Bros. Discovery and Paramount

In a bold move that could reshape the streaming battleground, Netflix’s co‑chief executive Ted Sarandos and a senior executive from Paramount—identified in the Variety piece as “Peters”—tapped into the studio’s vast libraries in a series of exploratory talks with Warner Bros. Discovery (WBD). According to the report, the three parties are negotiating a multifaceted partnership that would give Netflix first‑run access to a slate of high‑profile titles from both WBD and Paramount while also exploring new ways to distribute existing content across the three platforms.

Why the Deal Matters

The past two years have seen Netflix’s original‑content engine start to slow. After the pandemic‑boosted “Netflix Originals” boom, the platform’s content pipeline has struggled to keep pace with the rapidly expanding universe of premium shows and films produced by Hollywood’s major studios. While Disney+ and HBO Max have secured their own exclusive deals, Netflix’s reliance on older, licensed titles has left it scrambling for fresh, high‑value content that can drive subscriber growth in a crowded market.

Enter Warner Bros. Discovery and Paramount. Together, they own a massive library that spans everything from classic blockbusters and cult‑favorite franchises to contemporary hit series. By forging a partnership that allows Netflix to stream new releases from these studios, the streaming giant can inject fresh, blockbuster‑grade titles into its catalog without waiting for them to be added to the studios’ own platforms.

Key Components of the Negotiation

1. First‑Run Streaming Rights
   Netflix would secure the right to stream selected new releases from both WBD and Paramount within a set window after theatrical launch. The deal is structured to avoid direct competition with the studios’ own streaming services (HBO Max and Paramount+), with Netflix typically getting access after a 30‑ to 90‑day exclusivity period.

2. Co‑Production & Development
   Sarandos and Peters are also discussing joint‑production ventures that could see Netflix and the studios collaborate on new series and films. This arrangement would not only give Netflix a stronger content pipeline but also diversify its original‑content portfolio.

3. Revenue Sharing and Licensing Fees
   While the exact financial terms remain confidential, the Variety article suggests a revenue‑sharing model that would compensate both sides for the value created. Netflix would likely pay licensing fees that are commensurate with the anticipated audience reach.

4. Cross‑Promotion and Marketing
   The deal could include coordinated marketing efforts, allowing Netflix to tap into WBD and Paramount’s promotional machinery and vice versa. This cross‑promotional element is expected to enhance subscriber acquisition and retention for all parties involved.

Industry Reactions

The deal has generated buzz across the entertainment industry. Analysts predict that Netflix could see a 3‑5% boost in subscriber numbers as a direct result of the partnership, especially if blockbuster titles like “Mission: Impossible” or “Fast & Furious” are included in the lineup. Others caution that the cost of licensing such high‑profile content could squeeze Netflix’s already tight profit margins.

The Variety article also references earlier reports of similar agreements—such as the 2024 deal between Amazon Prime Video and Paramount for “Top Gun: Maverick”—highlighting a broader trend of studios looking to diversify revenue streams through streaming partnerships.

Potential Pitfalls

While the deal offers significant upside, it also comes with risks. First, Netflix’s heavy reliance on licensed content could be viewed negatively by investors if the platform’s own original‑content production slows further. Second, the streaming wars are not just about content; they’re also about platform exclusivity and user experience. If Netflix’s subscription model becomes too fragmented due to overlapping rights, users could become frustrated by fragmented viewing experiences.

Looking Ahead

If the talks culminate in a formal agreement, it could signal a new era of collaboration between streaming platforms and major studios. The Variety article notes that the deal is expected to be announced at the upcoming “Streaming Summit” in Los Angeles later this year—a highly anticipated event where industry leaders will debate the future of content distribution.

For Netflix, the partnership could represent a strategic pivot from a content‑centric model to a more diversified ecosystem that blends original productions, licensed blockbuster releases, and co‑productions. For Warner Bros. Discovery and Paramount, the deal offers an additional revenue stream and broader audience reach without diluting their own streaming services.

In a landscape where fresh, high‑quality content is king, this emerging alliance between Netflix, Warner Bros. Discovery, and Paramount could prove pivotal. Whether it delivers the subscriber growth and brand relevance the parties hope for remains to be seen, but the negotiations already demonstrate a willingness to re‑think the traditional studio‑platform dynamics that have dominated Hollywood for decades.