PwC: Streaming Market Shifting to 'Scale and Sustainability'

Netflix's $82.7B WBD Acquisition Signals End of Stand-Alone Platform Era; EA, Lakers Megadeals Drive 61% Surge in H2 2025 M&A... PwC Projects "Most Active M&A Market in Years" for 2026

The global streaming market is undergoing a decisive shift toward 'Scale and Sustainability.' Netflix's proposed $82.7 billion acquisition of Warner Bros. Discovery—the largest streaming M&A deal in history—signals the end of the stand-alone platform era.

Combined with EA's $55 billion private equity buyout and the $10 billion Los Angeles Lakers sale, megadeals are cascading across the media and entertainment landscape, driving a 61% surge in M&A deal value in H2 2025 compared to the same period last year. Global consulting firm PwC affirms that "content is king" remains as relevant as ever, projecting the 2026 M&A market to outpace activity seen in recent years.

For the K-content industry, this global realignment underscores the urgent need to secure economies of scale and strengthen strategic partnerships.

H2 2025: Media & Telecom M&A Surges 61%

According to PwC's 'US Deals 2026 Outlook' report, media and telecommunications M&A activity in the second half of 2025 rose 61% compared to H2 2024. The report attributes this surge to "a marked uptick driven by more favorable financing conditions, strategic portfolio realignments, and a rejuvenated investor appetite for premium intellectual property."

PwC noted that "the past six months have been characterized by headline-grabbing megadeals, increased consolidation within streaming, and a pronounced shift toward profitability and scale—underscoring renewed confidence among both strategic and financial buyers in deploying capital."

📊 Key Metric: 61%

Rise in deal value from H2 2024 to H2 2025, reflecting a surge in megadeals, intensified competition for premium IP, and improving financing conditions that fueled media and telecom M&A momentum. (Excludes Netflix-WBD deal; Source: S&P Capital IQ)

Netflix-WBD $82.7B Acquisition: End of the Stand-Alone Platform Era

The biggest news in streaming is undoubtedly Netflix's announced acquisition of Warner Bros. Discovery. Valued at $82.7 billion in total enterprise value, the transaction represents the largest streaming M&A deal to date and a "defining moment" that will fundamentally reshape the industry landscape.

PwC analysts argue that "after years of expansion, the streaming market is decisively shifting toward scale and sustainability. Netflix's acquisition of Warner Bros. Discovery confirms that the stand-alone platform era is ending, with scale becoming the primary determinant of competitiveness."

The $82.7 billion price tag "sets a fresh high-water mark for streaming valuations" and redefines what "strategic premium" means for content libraries and global distribution footprints. This landmark transaction is expected to spur "a new wave of portfolio rationalization," putting pressure on other players to streamline operations, shed non-core assets, and secure partnerships for content, distribution, and technology.

Adding to the drama, Paramount Skydance's sweetened offer has set the stage for a protracted battle over one of the most storied studios in Hollywood.

💬 PwC Expert Commentary

"We've been expecting streaming consolidation for several years at this point—and now our prediction is finally coming to fruition."— Bart Spiegel, Partner, Media & Entertainment, PwC US

Gaming Solidifies Position as Core Entertainment Pillar

The gaming industry also made headlines with a landmark deal. The $55 billion take-private of Electronic Arts (EA) by PIF (Saudi Arabia's Public Investment Fund), Silver Lake, and Affinity Partners underscored investor confidence in scalable gaming intellectual property and recurring digital revenue streams.

Beyond this transaction, deal activity is broadening across mid-market studios, AI-driven development platforms, and esports ecosystems. PwC observes that "interactive entertainment has risen to stand alongside film, sports, and streaming as a principal force in driving engagement, monetization, and M&A momentum."

Sports IP Valuations Surge: Lakers Sale Sets $10B Benchmark

Capital continues to flow into the sports value chain—from team ownership and stadium assets to media rights and women's leagues—as investors pursue durable, fan-driven returns.

The $10 billion Los Angeles Lakers sale set a new benchmark, reinforcing that "sports intellectual property (IP), live rights, and venue infrastructure now sit at the intersection of media, entertainment, and private capital."

Telecom M&A: Focus on Network Scale and Capital Efficiency

Telecom M&A is gaining momentum around network scale and capital efficiency. Operators are pursuing fiber carve-outs, tower divestitures, and regional consolidation to fund 5G and AI-driven upgrades.

AT&T's $5.75 billion acquisition of Lumen's mass-market fiber business, covering about 1 million existing and 7 million planned locations, exemplifies this trend. Expected to close in early 2026, the deal reflects "the industry's focus on capital recycling, asset monetization, and partnership-driven expansion to meet surging connectivity demand."

Key M&A Trends Summary

PwC's Strategic Recommendations for 2026 Dealmakers

PwC's report outlines key strategic directions for media and telecom companies:

First, Identify Bundling and Cross-Platform Partnership Opportunities

Companies should proactively seek platform collaboration models to strengthen margins and improve subscriber retention.

Second, Realign Asset Portfolios and Redeploy Capital

Divest underperforming linear or regional assets to unlock capital for investments in premium IP or complementary platform extensions such as video games. These moves can help solidify platforms as "must-have" destinations, driving higher ARPU (average revenue per user) and reducing churn.

Third, Leverage Creative Deal Structures

Explore minority stakes, joint ventures, and content-sharing alliances to secure access to essential assets and technologies without overextending balance sheets.

PwC emphasizes that "the adage that 'content is king' continues to assert itself. Whether it's content libraries, video games, or sports assets, capital continues to flow into vehicles that own this IP and can monetize it across the flywheel." Looking ahead, PwC projects "a robust M&A market that should outpace the last several years" given favorable conditions heading into 2026.

Implications for the K-Content Industry

The global media and entertainment industry's realignment around economies of scale carries significant strategic implications for the K-content sector.

First, Strategic Partnerships with Global Major Platforms Are Essential

As the stand-alone platform era wanes, content supply structures will increasingly center on major platforms. Korean content companies must strengthen collaborative relationships with global majors like Netflix and Disney+ while urgently enhancing IP competitiveness to maintain negotiating leverage.

Second, Accelerate Convergence with Interactive Content Including Gaming and Sports

As the EA acquisition demonstrates, gaming has emerged as a core pillar of the entertainment ecosystem. Cross-media strategies that leverage K-drama and K-pop IP for gamification and esports integration could unlock new revenue streams.

Third, Diversify into Ad-Supported Distribution Channels Like FAST and AVOD

As the subscription-centric streaming market undergoes restructuring, Free Ad-Supported Streaming TV (FAST) is emerging as a new opportunity for expanding K-content's global exposure and diversifying revenue streams.

Fourth, Explore Consolidation Among Domestic Media and Content Companies

In an era where scale equals competitiveness in global markets, Korean companies must actively explore various approaches to achieving economies of scale—including M&A, strategic alliances, co-productions, minority investments, and joint venture formation.

The global media realignment triggered by the Netflix-WBD acquisition represents more than just an industry megadeal—it marks an inflection point that will rewrite the rules of the entire content industry. In an era where "content is king," the position K-content secures during this massive transition will be the defining variable for the Korean Wave's future sustainability.

Sources & References

• PwC, "US Deals 2026 Outlook: Media and Telecommunications" (December 16, 2025)

• TV Tech, "PwC: Streaming Market Shifting to 'Scale and Sustainability'" (George Winslow)

URL: https://www.tvtech.com/news/pwc-streaming-market-shifting-to-scale-and-sustainability

• Data Sources: S&P Capital IQ, PwC Analysis