Netflix shifts focus to ads, content after failed Warner Bros bid

Investors are expected to watch closely as Netflix moves toward increased content investment and advertising growth when it releases its quarterly earnings on Thursday, April 16, 2026, following its unsuccessful attempt to acquire Warner Bros Discovery.

The proposed acquisition would have given Netflix access to major franchises such as ‘Game of Thrones’ and ‘Friends’, saving the company the time and expense of developing comparable titles internally.

With the deal off the table, Netflix is now bracing for intensified competition, particularly from a potential merger between Warner Bros. and Paramount Skydance, a transaction reportedly valued at $110 billion.

Analysts surveyed by LSEG forecast that Netflix will post a 15.5 per cent rise in first-quarter revenue to $12.18 billion, including approximately $634 million from advertising.

The streaming platform also increased subscription prices in the United States in March, a move analysts say could prompt the company to revise its full-year revenue outlook upward.

The price adjustment may also push more users toward the lower-cost, ad-supported subscription tier, which remains a relatively small but growing revenue stream.

Excessive interest rate hikes could derail economic reforms — Edun

Netflix’s shares have risen 13 per cent in 2026 and gained about 26 per cent since the company abandoned its $72 billion bid for Warner Bros.

Investors now expect Netflix to refocus on sports and other live events as it looks to boost advertising revenue, according to Reuters.

“We’re kind of entering another phase for the ⁠ad business, where they are becoming one of the largest scaled global advertising platforms,” said John Belton, portfolio manager at Gabelli Funds, which owns Netflix shares.

During the quarter, Netflix broadened its live programming lineup, including a concert streamed from Seoul by BTS that attracted 18.4 million viewers worldwide.

The platform also streamed the 2026 World Baseball Classic, which became the most-watched baseball game on streaming globally.