Netflix continues its efforts to develop enduring franchises internally after a failed $72 billion bid to acquire Warner Bros. Discovery's vast library of intellectual property, including Harry Potter and Game of Thrones.

Chief Creative Officer Bela Bajaria emphasized that creating culture-defining series and films remains a core priority. The streaming leader plans to invest in original concepts while partnering with studios like MGM and Warner Bros. for long-term hits akin to Stranger Things, Wednesday, and Bridgerton, she told Reuters.

The unsuccessful takeover attempt underscored Netflix's relative youth in Hollywood. With just over a decade of original content, it lags behind century-old giants like Warner Bros., Disney, and Universal in established characters and stories. Netflix had eyed Warner Bros. Discovery to bolster its IP portfolio amid challenges in franchise-building.

Interviews with industry insiders reveal Netflix's broad-appeal strategy differs from focused universes like Taylor Sheridan's Yellowstone spin-offs, which draw built-in audiences. Franchises offer lower-risk revenue through merchandise and experiences, standing out in a crowded media environment.

Netflix has notched wins. Stranger Things spawned a spin-off, stage play, and merchandise. Extraction, starring Chris Hemsworth, secured a sequel and third installment in production, plus an Omar Sy series. Love Is Blind expanded globally to Brazil, France, and Japan. Shonda Rhimes turned Bridgerton into a fifth-season series with a spin-off and live events.

Squid Game became a global phenomenon after Netflix greenlit the dystopian thriller. Unexpectedly, KPop Demon Hunters emerged as the platform's most-watched film ever, now expanding into toys from Mattel and Hasbro, McDonald's meals, a potential tour, and a sequel.

Not all bets paid off. A reported $700 million deal for Roald Dahl's catalog, including Charlie and the Chocolate Factory, yielded no major hits in five years, though a Willy Wonka reality show, Golden Ticket, launches this year. The $320 million Electric State, directed by Russo brothers with stars Millie Bobby Brown and Chris Pratt, drew poor reviews and stalled expansion plans.

Bajaria acknowledged the hit-or-miss nature of the business: "A lot of people have big movies that also are IP that don’t work."

Netflix faces slowing growth. Engagement rose just 2% in late 2025 per Owl & Co., with revenue projected at 13% this year versus 16% prior, per LSEG data. Advertising is only 3% of sales. YouTube and Disney have topped Netflix in TV viewing share since October 2024, Nielsen data shows. A Paramount-Skydance deal for Warner Bros. could limit original content suppliers.

Bolstered by a $2.8 billion windfall from the failed WBD bid, co-CEOs Ted Sarandos and Greg Peters unveiled a 2026 slate including Bridgerton season four, One Piece season two, Assassin's Creed live-action series, Little House on the Prairie reboot, Scooby-Doo live-action, and Greta Gerwig's Narnia film.

Netflix leverages its 222 million global subscribers and algorithm to amplify hits. At $92.97 per share with an Outperform consensus but $91.50 target, the company navigates franchise risks to sustain growth.