How do young audiences feel about WBD x Netflix?
Diving into the general outlook for young consumers in regards to the WBD and Netflix deal.
Hey all! We hope you’re well.
Today we’ll be talking about the WBD and Netflix merger, with a focus on the Gen Z reaction and Gen Z’s relationship with the media industry more generally. If you aren’t very up-to-date on the deal please check out our latest podcast episode (which is also great for hearing these concepts in more depth and out loud):
| Please check out the podcast above! We put a ton of work into making it high-quality and engaging. We advise you try it on 1.5x and potentially make it a part of your weekly routine! |
Quick Note: If you work at Netflix, WBD, or Paramount + another company that leads to you having insider scoop on these issues, please reach out to us at jg@bycig.org and we will discuss. All comments remain confidential!
A reminder: Netflix has made an offer to purchase Warner Bros. Discovery for $27.75 a share. This is a remarkable 165% climb from the Jan 1st share price. Paramount and David Ellison are fighting this and we’ll talk a little about that later (though you have plenty of pundits commenting there). Our main focus is where Gen Z interests are trending and how this will meet or fail to meet them.
So first, what was Netflix offering to buy?
WBD (Warner Brothers Discovery)’s studio, content library, and streaming business. Three main pieces here are 1) the movie production studio, 2) the content library and IP portfolio, and 3) the streaming platform HBO.
A high quality production studio that puts out consistently strong film and television content + a very strong position among creatives in Hollywood.
A wide-ranging and high value content library (hundreds of thousands of hours of television and film—3x the current content library of Netflix) and insanely rare IP. See the following IP properties Netflix will now own: Harry Potter, DC, Game of Thrones, Looney Tunes, Scooby-Doo, The Lego Movie, Godzilla and King Kong, Tom and Jerry, Mortal Kombat, Willy Wonka, Mad Max and more…
A third-ranked streaming platform (with more than a hundred million viewers) and a huge global presence, called HBO (formerly HBO MAX and then MAX and then…whatever, it’s Netflix now).
Ok. That’s all the review we’re doing, please go back and watch the podcast episode if you haven’t, that will cover everything, including the history of WBD.
This newsletter will be broken down into two categories: 1) what content does Gen Z enjoy watching and on what platform? and 2) theaters—does Gen Z care? These may seem like simple or quick questions, but I promise you, they’re not. They’re also going to be the defining questions for a many hundred billion dollar industry in the future. Media is some of the best remaining alpha in the market because no one really knows what to make of its future—we believe in you!
1. What content does Gen Z enjoy watching and on what platform?
This will be structured into statements followed up by some data and opinion.
Gen Z actually likes movies!
53% of Gen Z adolescents said they discuss TV and Movies more often with friends than social media (account for HOLY SHIT I’m So Lame Bias (HSISLB))
Movies are the most often chosen form of entertainment when hanging out with friends among adolescents (over TV and social media).
57% of adolescents say they watch TV and movies more often than older generations think they do.
A high schooler, 18 year old woman, said, “I think because of the very brief length of the content, the short form videos/memes can tire out really quickly and become something annoying/cringey versus something worth talking about with friends.”
People like relatable content!
Relatable and realistic content and stories was a resounding first place among topics requested by Gen Z adolescents in 2025.
35.3% jump in support for relatable stories.
When asked to describe what they like in shows and movies they said, “people with lives like my own.”
Gen Z has an old soul…
59.7% of adolescents aged 14-24 said they want to see “more content where the central relationships are friendships.”
54.7% want to see “different gender characters prioritize their friendships over a romantic relationship.”
60.9% wants to see more couples where the relationship is more about the friendships between the two than sex.
There is a new opportunity for film marketing.
Some films have already picked this up. Think the forthcoming Wuthering Heights with Margot Robbie and Jacob Elordi, Frankenstein, and above all else, Marty Supreme starring Timothee Chalamet.
Guess what this new marketing opportunity is? Surprise! It’s social media.
78.4% of adolescents say they at least sometimes watch TV and movies on YouTube, TikTok, or another social media. This often serves as their discovery tool for films and shows. (More specifically, 71% of adolescents claim to use TikTok to discover shows and movies).
Childhood isn’t very fleeting for Gen Z.
48.5% of Gen Z viewers find to be better than live-action! That’s crazy. (Hello, Disney. Time to lock in—this is huge. If you work at Disney or know someone who does, please reach out to us at jg@bycig.org—we’d love to ask you a few questions about what your crystal ball is telling you).
Another interesting thought—if Gen Z is so into animated, what does this say about the opportunity for AI-generated film? This could be a huge boon for the image generators because animated is by and large the first to get eaten by the AI wave.
2. Does Gen Z like movie theaters?
Yes!
Of the following options, here is how the activities were ranked by Gen Z for what to do on a weekend:
Going to movie theater and seeing a new movie
Play a new video game
Binge a new TV show
Stream a new movie on my own device
Go to a music concert
Attend a live sporting event
That’s fascinating! You should really save that list if you do investing/media/research because this is a gold mine and it is entirely against the status quo assumptions. Below is the original data table in image form from my source (which are all listed at the end):
Here’s some more interesting data about moviegoing among the younger generations.
The following is true for Gen Z and millennial audiences:
80% feel a movie is more culturally impactful if it is first released in theaters.
75% of viewers want to see movies in IMAX or immersive experiences (think, the Sphere).
72% agree that togetherness in theaters has become more important after the pandemic.
The following is true for Generation Alpha:
65% want to see movies in IMAX.
60% want to see movies on opening weekend in a packed theater.
55% view moviegoing as an activity best done with friends.
And WOAH this is unrelated but Dostoevsky is going viral!!! Videos about the Russian genius have amassed 457 million views on TikTok and Instagram in the past year. I did NOT see that coming. Go Fyodor! (More on this return to intellectualism in the age of AI in future posts. Fascinating stuff here.)
Since this post is getting quite long, I’m going to include a paywall here. I’m very sorry to all of you who can’t afford the $5 and I swear nothing special is going on behind this wall…maybe…I guess you have to find out.
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This right here is some fascinating data so let’s spend some time talking about what it means about adolescents. If anyone knows, it’s us (because we’re literally seventeen).
a) Teens want shows and movies about people “with lives like theirs.” This shows one thing—people are feeling lonely and estranged. WE take this to be a sign that people our age are desperate for parasocial relationships with characters who can fill the gap of potentially not having friends IRL (that’s Gen Z for in-real-life). This is an important concept that we will continue to discuss.
b) Partying and drinking + romance and sex are doing very badly right now. We believe this is a sign that our generation is less infatuated with these concepts. The world is so oversaturated with…badness…these days, that it’s nice to have some innocent and intellectually enriching fun.
c) Boys top choice was, “superheroes.” Ok. Come on, guys. We can do better than that. Don’t let the world fool you, it’s perfectly masculine to watch Sentimental Value by Joachim Trier.
This is a list of answers to the question, “What is your favorite show or movie”
Ok. Let’s break this down.
At first place there’s Stranger Things. Great work Netflix—recognizing that teens want to see teens, recognizing that the whole family might get involved if there is a dose of nostalgia and innocent Americana involved, and making it theme-parkable with the monsters and whatnot. Very smart and data-informed. Wednesday is the exact same formula. Spongebob is a classic. Spiderman has always been a teen favorite among the superhero movies. Why? I think it’s a combination of a) people can see themselves in the innocent and somewhat endearing Peter Parker going to Bronx Science in New York City and b) the Miles Morales spin-off has done a great job of engaging audiences that may not have prior been as involved in historically racially homogenous Marvel-verses.
To conclude, here’s the formula for a hit show among Gen Z, and an introduction of our new Halloween costume test (yes, made that up just now):
(Relatable high school characters) +
(a world far enough away from this one so people can avoid thinking about how much ours sucks) +
(something fantastical enough to be put on a T-Shirt, turned into a theme park ride, or serve as a Halloween costume) +
(social media marketing and campaigning)
=
$$$ printing machine.
Thanks for reading today’s longer newsletter. If you enjoyed it, please leave a like and share with your friends and family! Make sure your kids are reading this…
—J&E