Box office is booming in 2025 but Netflix’s $82.7 billion surprise raises alarms

The movies returned with a bang in 2025. Sequels, reboots, and franchise revivals drew crowds to theaters. This helped several U.S. studio releases gross over $600 million worldwide and made Disney's "Lilo & Stitch" the year's top American release with $1.04 billion.

Warner Bros. released "A Minecraft Movie," which grossed around $958 million. Universal released "Jurassic World: Rebirth," which grossed $869 million. "Mission: Impossible – The Final Reckoning" brought Paramount back to the top with nearly $600 million worldwide.

It was one of the best years for the box office in a decade, showing that theatrical event films are still important cultural and commercial forces. But the biggest plot twist in Hollywood wasn't on a screen, it was on Dec. 5, when Netflix announced it would buy Warner Bros., including HBO, HBO Max, and Warner's film and TV studios, in a deal worth about $82.7 billion in enterprise value.

The company said that buying the other company was a historic step toward reaching its goals.

Ted Sarandos, co-CEO of Netflix, said,

He then announced the plan to combine Warner's century-old catalog with Netflix's global streaming platform.

The deal changed the meaning of the box office hits of 2025 right away. Netflix, the world's biggest streaming service, is about to buy the famous studio that made "Superman," "Harry Potter," "Game of Thrones," "The Wizard of Oz," and a whole universe of DC superheroes.

While people rushed to theaters to see movies, investors were left wondering what a blockbuster really means in a world where Netflix is buying one of Hollywood's most famous libraries outright.

Franchise IP continues to dominate the top 10 movies of 2025

With almost $2 billion in sales around the world, China's "Ne Zha 2" was the highest-grossing movie of all time. The top ten performers in the world among U.S. studios were:

• “Lilo & Stitch” (Disney), about $1.04 billion
• “A Minecraft Movie” (Warner Bros.), about $956 million
• “Zootopia 2” (Disney), about $918 million
• “Jurassic World: Rebirth” (Universal), about $869 million
• “How to Train Your Dragon” (Universal/DreamWorks), about $636 million
• “F1: The Movie” (Warner Bros.), about $632 million
• “Superman” (Warner Bros.), about $617 million
• “Mission: Impossible – The Final Reckoning” (Paramount), about $599 million
• “The Conjuring: Last Rites” (Warner Bros./New Line), about $494 million
• “Wicked: For Good” (Universal), about $441 million
  Source: Box Office Mojo

Franchise IP was the most important. Most of the top ten were animated shows, superhero shows, game adaptations, and legacy series. Disney, Warner, and Universal owned almost all of the movies.

Box office is a headline; streaming is the profit engine

The gross box office is a significant figure. Studios split ticket sales with theaters, but they keep more of the money they make in the US than in other countries. According to industry estimates, the studio gets about 50% to 60% of U.S. tickets and 20% to 40% of tickets in many other countries.

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Based on that math, a movie like "Lilo & Stitch," which made about $1.04 billion around the world, could bring Disney back a few hundred million dollars in box office revenue before costs for making and marketing the movie. When you add up the costs of effects, talent, and global marketing, "Jurassic World: Rebirth" (about $869 million) and "A Minecraft Movie" (about $956 million) may look the same on a studio's profit and loss statement.

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Those are still substantial numbers, but they illustrate why a big opening weekend doesn't always translate to a big stock reaction. Theatrical profit is now as important for streaming, licensing, and merchandise as it is for ticket sales.

Netflix Warner Bros acquisition reshapes the 2025 box office landscape

Netflix already has the simplest business model in the media: you pay for a subscription and get ads and content. The company doesn't have to deal with cable bundles or theme parks. Investors keep an eye on a small number of metrics, such as the number of paid members, the churn rate, the growth of the ad tier, the average revenue per user, and the free cash flow.

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Warner's studios, HBO, and HBO Max give Netflix something it has never really had before: a full-scale Hollywood production machine that has been around for a hundred years and a lot of brands. The company says the merger will "significantly increase [its] production capacity in the U.S." and that it will save at least $2 billion to $3 billion a year by the third year.

Netflix still acts like the control case in 2025, before the deal closes. It doesn't depend on the box office, but its shows and original movies are in direct competition with the big movie franchises for awards, time, and attention at the end of the year. The studio behind "Superman" and "The Conjuring" will report to a company whose main focus is streaming by the end of the 2020s because of the pending acquisition.

Disney box office hits led by Disney Lilo and Stitch and Zootopia 2

Disney had two of the year's biggest hits around the world: "Lilo & Stitch" (about $1.04 billion) and "Zootopia 2" (about $918 million). There was also another Marvel movie in the top tier.

According to several reports, it also made more than $5 billion at the global box office this year.

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But for most of 2025, the stock traded more on park results and direct-to-consumer margins than on any one movie. Disney's streaming services, like Disney+ and Hulu, have been getting closer to making money, and management has pointed out that the economics of each subscriber have gotten better. Parks and Experiences continued to be a profitable area with high margins.

Disney still cares a lot about movies. They put characters in Disney+, make toys, and then they show up in rides and shows. But investors have learned that a billion-dollar movie is just one part of a larger system, not a stand-alone catalyst.

Warner Bros A Minecraft Movie boosts slate ahead of Netflix integration

Warner thought of 2025 as a reminder of how strong its properties can be. The company made "A Minecraft Movie," "Superman," "F1: The Movie," and "The Conjuring: Last Rites," all of which were among the top half of movies in the world.

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The studios segment was a bright spot for the company at a time when linear networks were losing ground and its finances were heavily leveraged. Netflix is paying Warner about $82.7 billion for the company, and that strength is a big part of the reason why. WBD shareholders will get cash and Netflix shares worth $27.75 each, but the price has a collar on it.

Zaslav said the deal will "make sure that people all over the world will be able to enjoy the most resonant stories for generations to come."

For people who own WBD stock right now, the story isn't about next year's slate anymore. It's about regulatory risk, when the deal will happen, and how much the remaining Discovery Global Networks company is worth.

Comcast Universal box office performance driven by Jurassic World Rebirth

The NBCUniversal division of Comcast did very well at the box office this year. "Jurassic World: Rebirth" made about $869 million, "How to Train Your Dragon" made $636 million, and "Wicked: For Good" made $441 million.

Peacock made more money and lost less money because it got movies and TV shows from Universal. The company's theme parks also did well, with sales rising by more than 10% in 2025.

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The price of Comcast's stock, on the other hand, usually goes up or down based on trends in broadband and wireless, not new movies. The studios are a very important strategic asset and a big source of intellectual property for investors. However, parks and connectivity are still the main sources of cash.

Paramount Global streaming strategy relies on Mission Impossible momentum

The company said that streaming revenue was going up and more people were signing up for Paramount+ in 2025. TV Media, on the other hand, is made up of linear networks and still had to deal with pressure from affiliates and ads. Management has cut costs and been more careful with how they spend money on content. There has been a lot of talk about deals involving the company.

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Investors are beginning to regard theatrical performance as one indicator among several, rather than the central thesis.

Streaming service profitability becomes the key metric as theatrical revenue softens

The news about Netflix and Warner makes the differences between their business models even clearer.

• Pure play (Netflix): One platform and one main way to make money. When content works, it leads to subscriptions, ad impressions, and pricing power, all of which are easy to see in margins and free cash flow.
• Mixed model (Disney, Comcast, Paramount, and WBD before the deal): There are many parts, and each one has its own cycle. Blockbuster movies help streaming, licensing, consumer goods, and parks, but they also have to deal with people cutting the cord, rising sports rights costs, and, in some cases, a lot of debt.

Not only are movies coming back in 2025, but that's the main point. The company that is buying one of Hollywood's oldest studios doesn't rely on ticket sales at all.

Movie industry future trends center on consolidation, franchises and global audiences

As we move into 2026, investors should keep these things in mind:

• Unit economics for streaming are more important than ever. Ad tiers, churn, and ARPU will make more money than any one opening weekend.
• The M&A menu is based on cash flow and balance sheets. The deal between Netflix and Warner Bros. may prompt Disney, Comcast, and Paramount to consider the degree of consolidation in the industry.
• It is very important to run a franchise. Using too much IP can cause it to burn out, while not using enough IP can cost money. The best operators will be able to balance both theaters and streaming.
• There is a real chance of regulation. The deal between Netflix and Warner still needs to be checked by antitrust and international authorities. What happens next will depend on what happens with it.

The box office numbers for 2025 showed that people will still go to the movies in big groups if the movies are good. The deal between Netflix and Warner Bros. shows that the streaming age isn't all about billion-dollar superheroes. The real question is who owns the libraries, who controls the distribution, and who can turn all that attention into a steady stream of money.