Sky TV dented by concerns over Warner Bros Discovery, Netflix tie-up
Monday, 8 December 2025
Shares in Sky Television have taken a knock from jitters over the possible ramifications of Netflix’s proposed acquisition of Warner Bros Discovery’s film and streaming television business.
Netflix on Friday announced its intention to buy WBD for US$72 billion ($124 billion), although US reports speculated that regulatory approval was not a done deal.
WBD’s assets include New York studio HBO, whose programmes form the backbone of Sky’s Neon streaming entertainment offering.
There have previously been concerns that WBD might choose to sell its programming direct to New Zealand customers, rather than through Sky, as it does in many other countries.
But Forsyth Barr analyst Ben Crozier said a takeover by Netflix would increase that concern, given Netflix’s entire business model had so far been to sell content direct to consumers.
Read more:
Sky TV shares slipped 4.3% to $3.36 in mid-afternoon trading as investors absorbed the risk and they are now down 8% from their recent high of $3.66.
Crozier said the fall clearly reflected the Netflix–WBD discussions.
“I don't think people should expect that all the Warner Bros–HBO content immediately pops up on their Netflix account. But I think the risk of it going direct to consumers in New Zealand has probably gone up.”
Sky and WBD last renewed their partnership for an undisclosed period two years ago, and it would be 18 months to two years before Netflix’s takeover of WBD was finalised, even assuming it did get approval, he said.
But Crozier said one nearer-term financial risk for Sky was that it might need to be a bit more aggressive building up its other content.
It had been Sky’s strategy for a while to build out its entertainment proposition, but Neon was still quite reliant on HBO content at the moment, he said.
A Sky spokesperson said in a statement that it had strong partnerships with a broad range of entertainment studios, to “ensure Sky and Neon deliver a diverse and compelling mix of the entertainment programming”.
“For Neon customers, there is no immediate change as Sky has an exclusive agreement to bring HBO content to New Zealanders, and that remains in place.”