Netflix is eating Hollywood — because it has to

The central question revolves around why Netflix is pursuing the acquisition of Warner Bros. Discovery (WBD), despite its historical mismanagement and the contrasting trend of platforms reducing content costs. Julia Alexander, media correspondent at Puck News, explains that Netflix needs big IP and a vast library to increase engagement and retention as it faces saturation and competition from free, ad-supported services and user-generated content platforms like TikTok. Netflix is simultaneously exploring user-generated content formats and considering a premium, licensed content-heavy offering. The discussion also covers the shift from original content focus to licensed content, the challenges of creating long-running shows in the streaming era, and the potential regulatory hurdles due to Larry Ellison's involvement.