Netflix will start licensing Warner Bros. TV shows to competitors, including Apple TV, marking a pivot for the streaming giant into producing content for rival platforms.
In early December, Netflix won the rights to acquire Warner Bros. Discovery, the parent company behind HBO, HBO Max, and Discovery. The company was acquired for $83 billion.
As a result, Netflix will take over Warner Bros. Discovery's content and operations. That puts Netflix in an interesting position in relation to its competition.
Warner has produced some of Apple TV's most notable shows — including Apple TV's first breakout hit, "Ted Lasso." While Apple TV has the exclusive rights to stream these shows, it doesn't produce them; it merely holds the rights.
And it seems like Netflix plans on continuing the trend. Deadline quotes Netflix co-CEO Ted Sarandos, who spoke at the UBS Global Media and Communications Conference, about its plans for Warner Bros. studios productions.
"The television studio... produces and licenses content to third parties. We were never in that business. We are now. When you we get under the hood, that's a really healthy business," he said. "It's not as big as ours, and that's why we haven't really focused that much on doing it. The growth opportunity on our core business has been greater."
"But now in this transaction, we own that business, and Channing and that group do a phenomenal job, and we want them to continue to do that phenomenal job.
The Channing in question is Channing Dungey, a former Netflix employee who is now the CEO of Warner Bros. Television Group.
At Netflix, she was responsible for shows such as "Brigerton" and "Emily in Paradise." At Warner Bros. Television Group, she helps decide which of its properties are licensed to other streaming services.
In addition to "Ted Lasso," Warner Bros. Television Group has also produced "Shrinking", "Presumed Innocent", and "Bad Monkey".
