By Mark Seavy

As the entertainment industry prepares to turn the corner to 2026, it will be faced with changes across many fronts—including how content is delivered, studio consolidation, and technological advances. With that in mind, we’re reflecting on some of the most significant stories from the past 12 months to prepare for the year ahead.   

Consolidation  

As the entertainment industry races toward the end of the year and looks forward to 2026, many questions remain. One major question is which media company, Netflix or Paramount, will emerge as the new owner of Warner Bros.?   

Netflix announced it entered a definitive agreement to acquire Warner Bros., following the separation of Discovery Global, for a total enterprise value of $82.7 billion (an equity value of $72 billion) with the cash and stock transaction valued at $27.75 per share. Then, Paramount launched a hostile takeover bid with an offer of $30 per share.  

The competition for Warner Bros. Discovery, which would shrink the number of major studios to four from five, will likely play out over the next year and potentially bring change to licensing programs that cover brands like Harry Potter and DC Comics.   

The takeover battle will continue a trend of consolidation that has swept through entertainment IPs. Amazon, for example, bought MGM while Disney acquired 20th Century Fox to go with Lucasfilm, Pixar, and Hulu.  

Tech Investment  

This combining of studios was matched by the race to acquire technologies that could bring a new era to licensing.  

Disney earlier this month made a $1-billion equity investment in developer OpenAI. Under the agreement, Disney will make more than 200 of its characters available for OpenAI’s artificial intelligence (AI) platform. Disney’s investment both gives it access to new technology and works to counter copyright infringement across AI platforms. Disney has sent cease and desist letters to Google and Character.AI and sued image creator Midjourney for copyright infringement.   

“We have been mindful of the significant growth of AI and been impressed with progress OpenAI has made and their agreement to value and respect our content,” Disney CEO Bob Iger told CNBC in noting that he began initial discussions with OpenAI CEO Sam Altman in 2022. “It is a way for us to appreciate even more that it will have a significant long-term impact on our business. We have been aggressive in protecting our IP and this is another example of us doing just that.” 

Spotlight on Licensing   

2025 also saw a number of platforms cultivating content that was ready-made for licensing. YouTube and social media continued to make inroads in the business, for example, as their rapidly growing viewership pushed companies to adopt new strategies and fully embrace the platforms. In fact, YouTube outstripped traditional linear networks in grabbing a 12.5% share of U.S. TV viewership, according to Nielsen data.   

Streaming platforms also evolved their licensing strategies this year. KPop Demon Hunters, for example, was first released on Netflix in June before becoming a prime candidate for consumer products and then getting limited releases in theaters starting in August. There were also significant licensing programs launched for the fifth and final season of Netflix’s Stranger Things as well as the second season of Amazon Prime’s Fallout.   

“Whether it is theatrical or streaming, I don’t care where the content comes from because content is content and stories are stories,” a licensee executive said. “At one time the only way to show content economically was to put it in the theater and later home video. Technology has shifted to where the screen is and the reliance on theatrical releases for licensing is lessening. Theaters aren’t in danger of closing, but the content being shown is no longer the only source for licensing.”  

LBE Expansion  

Amid this changing landscape, studios engaged in a landgrab over recent months as location-based entertainment (including theme parks, family entertainment centers, and pop-ups) became a key strategy for entertainment IP owners. Those efforts were matched by the continued emergence of experiential retailing, or “retail-tainment.” 

Universal Products and Experiences, for example, opened its Epic Universe theme park in Orlando, FL in May, providing the strongest challenge yet to Disney World. Disney, meanwhile, continued to expand its parks operations in signing a licensing deal with Miral that will bring its IP to Abu Dhabi, United Arab Emirates.   

And that was in addition to numerous other proposed or opening attractions, ranging from launches by Hasbro and Mattel to Netflix House locations in Dallas, TX and Philadelphia, PA, as well as Area 15’s John Wick Experience in Las Vegas and others.  

“There is no denying that LBE will ultimately provide a challenge to theaters in providing yet another means for consumers to experience and deepen their connection with IP,” a licensing executive said. “Consumers are quickly moving beyond TVs and movie theaters as a means for ‘living the brand.’”