Technology

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Some of Netflix’s competitors are reversing a streaming war tactic by licensing their old TV shows and movies to the streamer—boosting its programming offerings but also potentially squeezing its profit margins, analysts say.

But after Walt Disney, NBCUniversal, Paramount and the then-Time Warner launched their own streaming services, they pulled many of their shows from Netflix to avoid feeding a company that had grown into an arch-competitor.

This summer, Warner Bros Discovery’s HBO network began licensing a handful of older shows to Netflix, including Insecure, Six Feet Under, Ballers, and Band of Brothers.

Analysts at Morgan Stanley said the return of licensing deals was a “long-term positive” for Netflix and would “pad” its lead over competitors in streaming.

Netflix will report results on Wednesday, with investors expected to focus on whether it plans to increase subscription prices and signs of progress on its new advertising tier.

The return of licensing deals has coincided with strikes in Hollywood, which halted production of new shows and are expected to delay TV and movie releases well into next year.

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