Netflix (NASDAQ: NFLX) remains in focus after rival Paramount Skydance (NASDAQ: PSKY) made an aggressive $108.4 billion bid for Warner Bros. Discovery’s (NASDAQ: WBD) assets.Netflix had previously agreed to pay $83 billion for WBD’s film and streaming assets. But is it going to raise that bar now to compete more fiercely with Paramount? Only time will tell.Amidst the bidding war, however, former MTV president, Michael Wolf, says buying those assets is not optional for NFLX as many believe – it’s actually a “must do” for the streaming behemoth.At the time of writing, Netflix stock is down nearly 30% versus its year-to-date high.Why Netflix must acquire WBD assetsSpeaking with CNBC, Wolf cited the importance of global franchises for his view that Netflix must take over WBD assets to cement its dominance in the streaming space.“For anybody to succeed in streaming, they need global franchises that really work everywhere.”Netflix’s reputation is built on original programming, but compared to legacy studios, it lacks the depth of universally recognized franchises that can travel across markets.WBD brings with it iconic brands and blockbuster franchises that have proven appeal worldwide. These franchises not only attract subscribers but also create cultural moments that reinforce brand loyalty.In short, having recognizable, big-budget franchises will position NFLX to rival short-form video and gaming, and buying WBD assets would mean securing that pipeline of resonant content that strengthens its competitive edge.Netflix is lagging in volume of programmingAccording to Wolf, Netflix needs “large volumes of programming” to remain the dominant force in streaming.NFLX offers just 7,000 titles in total at present compared to 25,000 on Amazon and 70,000 on Fox Tubi. Bringing the 4,000 on HBO Max under its umbrella, therefore, isn’t optional but a necessity for Netflix.It will bolster its catalog and help it keep pace with rivals who’ve been rapidly expanding their offerings. In fact, without WBD, the Nasdaq-listed firm risks being outpaced in terms of the overall breadth of content on its platform.All in all, by absorbing Warner Bros. Discovery’s assets, Netflix Inc. can close the gap and ensure it remains the go-to platform for extended viewing experiences.Why Netflix can’t afford to waitOn “Squawk Box”, Wolf agreed that “Netflix is the default” in streaming for now – but said rivals aren’t standing still either.Amazon and YouTube are investing heavily in live sports, while Peacock and Paramount already have sports rights that Netflix lacks.WBD’s assets won’t solve the sports gap, but they will strengthen Netflix’s position in scripted entertainment.Wolf dismissed the view that Netflix Inc. is merely buying time through regulatory delays, stressing instead that the overlap between Netflix and HBO subscribers is relatively low – around 30% only.This means the acquisition would expand its reach rather than cannibalize its base.In his words, “the company that is quickly becoming the monopoly is YouTube,” not Netflix. For Netflix, securing WBD is about future-proofing its dominance in long-form storytelling, ensuring it remains the elephant in the room even as competitors diversify.The post WBD deal not optional but a 'must do' for Netflix: here's why appeared first on InvezzNetflix (NASDAQ: NFLX) remains in focus after rival Paramount Skydance (NASDAQ: PSKY) made an aggressive $108.4 billion bid for Warner Bros. Discovery’s (NASDAQ: WBD) assets.Netflix had previously agreed to pay $83 billion for WBD’s film and streaming assets. But is it going to raise that bar now to compete more fiercely with Paramount? Only time will tell.Amidst the bidding war, however, former MTV president, Michael Wolf, says buying those assets is not optional for NFLX as many believe – it’s actually a “must do” for the streaming behemoth.At the time of writing, Netflix stock is down nearly 30% versus its year-to-date high.Why Netflix must acquire WBD assetsSpeaking with CNBC, Wolf cited the importance of global franchises for his view that Netflix must take over WBD assets to cement its dominance in the streaming space.“For anybody to succeed in streaming, they need global franchises that really work everywhere.”Netflix’s reputation is built on original programming, but compared to legacy studios, it lacks the depth of universally recognized franchises that can travel across markets.WBD brings with it iconic brands and blockbuster franchises that have proven appeal worldwide. These franchises not only attract subscribers but also create cultural moments that reinforce brand loyalty.In short, having recognizable, big-budget franchises will position NFLX to rival short-form video and gaming, and buying WBD assets would mean securing that pipeline of resonant content that strengthens its competitive edge.Netflix is lagging in volume of programmingAccording to Wolf, Netflix needs “large volumes of programming” to remain the dominant force in streaming.NFLX offers just 7,000 titles in total at present compared to 25,000 on Amazon and 70,000 on Fox Tubi. Bringing the 4,000 on HBO Max under its umbrella, therefore, isn’t optional but a necessity for Netflix.It will bolster its catalog and help it keep pace with rivals who’ve been rapidly expanding their offerings. In fact, without WBD, the Nasdaq-listed firm risks being outpaced in terms of the overall breadth of content on its platform.All in all, by absorbing Warner Bros. Discovery’s assets, Netflix Inc. can close the gap and ensure it remains the go-to platform for extended viewing experiences.Why Netflix can’t afford to waitOn “Squawk Box”, Wolf agreed that “Netflix is the default” in streaming for now – but said rivals aren’t standing still either.Amazon and YouTube are investing heavily in live sports, while Peacock and Paramount already have sports rights that Netflix lacks.WBD’s assets won’t solve the sports gap, but they will strengthen Netflix’s position in scripted entertainment.Wolf dismissed the view that Netflix Inc. is merely buying time through regulatory delays, stressing instead that the overlap between Netflix and HBO subscribers is relatively low – around 30% only.This means the acquisition would expand its reach rather than cannibalize its base.In his words, “the company that is quickly becoming the monopoly is YouTube,” not Netflix. For Netflix, securing WBD is about future-proofing its dominance in long-form storytelling, ensuring it remains the elephant in the room even as competitors diversify.The post WBD deal not optional but a 'must do' for Netflix: here's why appeared first on Invezz