Skydance Emerges as Netflix Rival with Nearly $70 Billion in Revenue and Heavy Debt Load
The newly formed Skydance, a result of the merger between Paramount Global (PARA) and Warner Bros. Discovery (WBD), has nearly $70 billion in annual revenue and over 200 million streaming subscribers across its platforms including Paramount+ and HBO Max. This positions it as larger than Netflix (NFLX) by sales metrics, though Skydance carries a significant debt load of about $82 billion with an interest expense exceeding eight times that of Netflix's. Despite the size advantage in revenue, Skydance is less profitable compared to Netflix. In 2025, Skydance reported a pro forma operating loss while Netflix saw its operating income grow by 28%. Additionally, Skydance plans $6 billion in annual cost savings over three years and faces challenges from high debt servicing costs. Netflix has shown restraint on content spending, with management emphasizing that the failed acquisition of Warner Bros. Discovery was not a necessity at any price. The company is focusing on optimizing its operating margin as it balances growing revenue against rising content amortization expenses.
Topics: Competitive Landscape Media Mergers Streaming Services