On 5 December 2025, Netflix and Warner Bros. Discovery announced that Netflix will acquire Warner Bros. Discovery’s film and television studios, streaming business (including HBO and HBO Max), and the associated content libraries and studios. The deal values the acquired assets at a total enterprise value of approximately $82.7 billion, with an equity value of $72 billion.

The transaction gives each WBD share a price of US$27.75. The deal excludes WBD’s linear cable and global-networks assets; those will be carved out into a separate publicly traded company named “Discovery Global,” expected to spin off by Q3 2026. Netflix expects the acquisition to close in 12–18 months, pending regulatory approval and completion of the spin-off. Since some of the other bidders are “politically connected”, expect another heap of twitterized lawsuits for that.

(Update, 15 hours later: Who called it? Here we go with the Counter offers and lawsuits. https://www.cartoonbrew.com/business/paramount-108-billion-bid-warner-bros-discovery-257437.html)

What the acquisition includes and what stays separate

Under the deal, Netflix acquires Warner Bros. film and television studios, including DC Studios and Warner Bros. Motion Picture Group, HBO and HBO Max with their libraries, Warner Bros. Television, Warner Bros. Games, distribution, licensing, and publishing divisions. Excluded from the acquisition are WBD’s cable-network assets, the linear television and global-networks division will become “Discovery Global” and remain separate. Netflix says it will maintain Warner Bros.’ current operations, including theatrical releases for films.

Why Netflix won the bidding war and valuation

The acquisition follows a competitive bidding process that involved potential buyers such as Paramount Skydance and Comcast. The WBD board concluded that Netflix’s offer was the only binding and complete bid. Netflix’s offer combined cash and stock and included a breakup fee of $5.8 billion in case the deal fails regulatory review, signalling Netflix’s confidence in closing the transaction.

What changes (and what remains uncertain)

Netflix and WBD state the combination will increase global reach, emphasise strong content libraries, and provide Netflix with expanded studio capabilities and production capacity in the United States. The acquisition brings major intellectual property under Netflix’s control including film and TV franchises, libraries, and game divisions.

What remains uncertain is how distribution strategies will evolve. While Netflix claims it will continue theatrical releases for Warner Bros. films, it is unclear whether Netflix will maintain the same release windows for streaming versus theatrical distribution. That may have implications for cinemas, distributors, and production schedules.

Regulatory approval is not yet secured. The deal will likely face scrutiny under competition laws in multiple jurisdictions. There is uncertainty around how the spin-off and separation of Discovery Global will occur, and what assets exactly will end up under that new entity. Because of the scale and complexity, studio artists, VFX houses, post-production facilities, and collaborators should treat any assurances from Netflix or WBD as provisional until closing and integration are complete.

Netflix already consolidating VFX: Eyeline merges Scanline

Earlier in October 2025, Netflix unified its internal visual-effects companies by merging Scanline VFX and Eyeline Studios under the single brand “Eyeline.” This reorganisation brings together decades of cinematic VFX expertise (Scanline) with Eyeline’s virtual-production, volumetric-capture, and AI-driven research under one roof. Netflix said the merger aims to combine “nearly four decades of VFX artistry” with virtual-production and AI-enabled tools to serve global productions. What remains unclear is whether Netflix plans any further downsizing of facilities or consolidation beyond the brand merge. No public statement confirms closures or reductions of studio locations.

Netflix Merges Scanline and Eyeline

Implications for VFX, Post-Production and Content Workflows

For freelancers, vendors, and boutique VFX houses, the consolidation inside Netflix via Eyeline and the larger Warner-Bro acquisition may have mixed effects. On one hand, Netflix now controls a vastly expanded content pipeline, which could mean increased demand for VFX, post-production, and localisation work. On the other hand, Netflix’s unified internal VFX-production pipeline could reduce reliance on external vendors, especially for projects they expect to keep fully in-house.

For post-production, VFX and colour-grading professionals, consolidation of content ownership and VFX capacity under Netflix could lead to fewer independent buyers controlling large budgets. This may impact bargaining power for smaller studios.

Distribution and release-window strategies might change under the new ownership. That could affect production scheduling, pipeline planning, and coordination between VFX houses and distributors. International distribution, licensing, and localisation pipelines may see changes depending on how Netflix reorganises Warner’s global rights business and integrates it into its existing infrastructure.

Conclusion

Netflix’s decision to buy Warner Bros. Discovery and simultaneously restructure its in-house VFX operations suggests a clear push toward vertical integration from production and post to distribution and global rights. For the post-production and VFX community this presents a new landscape: increased capacity and content volume, but potentially decreased vendor diversity and bargaining power.

The post Netflix buys Warner Bros. first appeared on DIGITAL PRODUCTION and was written by Bela Beier.

Netflix has consolidated its visual effects and virtual production divisions, merging Scanline VFX and Eyeline Studios into a single brand, Eyeline. The company confirmed that all existing studio locations will remain operational. According to Netflix, the move unites Scanline’s long-standing expertise in cinematic visual effects with Eyeline’s advances in virtual production and volumetric capture. The reorganisation aims to bring both teams under one creative and technical framework.

Scanline’s Legacy in Simulation and Cinematic VFX

Founded 36 years ago, Scanline VFX built a reputation for large-scale simulation work and complex VFX integration. The company received a Scientific and Technical Academy Award for its proprietary fluid simulation software, Flowline, which has become a production mainstay for photorealistic water and particle effects. Scanline’s recent credits include Stranger Things, Wednesday, Avatar: The Last Airbender, Godzilla x Kong: The New Empire, and Netflix’s The Woman in Cabin 10. The studio also earned a 2025 Emmy Award for Outstanding Special Visual Effects for its work on Andor Season 2.

Eyeline Studios: Virtual Production Meets Research

Launched in 2019, Eyeline Studios focuses on virtual production, volumetric capture, and lighting simulation. Its proprietary Light Dome system replicates real-world lighting with measurable precision, offering filmmakers consistent and reproducible conditions across digital and live-action environments. Eyeline received the Visual Effects Society’s Groundbreaking Technology Award for its volumetric capture stage. The setup was recently used in Wednesday Season 2 to create Christopher Lloyd’s Professor Orloff and has also supported production on Happy Gilmore 2 and the upcoming A House of Dynamite.

Generative AI Enters the Pipeline

Eyeline has also been applying generative AI tools to assist in production workflows, particularly in The Eternaut (El Eternauta), Netflix’s Argentine sci-fi adaptation. Netflix describes these AI-driven tools as supporting creative collaboration and efficiency, though specific implementations have not been detailed publicly. The company has not disclosed which AI systems or models are in use.

Unified Brand, Global Ambition

With both divisions now operating under the Eyeline name, Netflix says the merged entity will combine “nearly four decades of VFX artistry” with “cutting-edge virtual production and AI-enabled tools.” The company’s stated goal is to “pioneer new technologies that enhance creative collaboration and streamline workflows for filmmakers worldwide.” Current and upcoming projects involving Eyeline include Stranger Things Season 5, Wake Up Dead Man: A Knives Out Mystery, The Witcher Seasons 4 and 5, One Piece Season 2, Godzilla x Kong: Supernova, Spider-Man Noir, and Daredevil: Born Again Season 2.

Testing the Promise

While Netflix presents Eyeline as a future-facing production hub, the operational impact for external vendors and production partners remains unclear. Details on how Eyeline will collaborate with outside VFX houses or integrate third-party workflows have not yet been released.

The post Netflix Merges Scanline and Eyeline first appeared on DIGITAL PRODUCTION and was written by Bela Beier.

The Blackmagic URSA Cine 17K is Netflix Approved – Blackmagic Design’s URSA Cine lineup builds directly on the URSA Mini Pro 12K precedents. The 17K version shares the same body as the Cine 12K, swapping in a 65 mm 17K digital sensor and offering interchangeable LPL and Hasselblad mounts while retaining the integrated ND filters, built‑in monitors, and 8 TB media module architecture. The Cine 12K, introduced in April 2024, established the full‑frame large format sensor platform with a staggering 16‑stop dynamic range (claimed) and support for 80 fps in 12K, 144 fps in 8K, and 240 fps in 4K.

Netflix Approval and Capture Protocols

Netflix requires at least 90 percent of a program’s final runtime be captured on approved cameras that meet strict benchmarks for dynamic range, color, detail, signal‑to‑noise ratio, resolution, and workflow compatibility (partnerhelp.netflixstudios.com). The URSA Mini Pro 4.6K G2 and URSA Mini Pro 12K OLPF versions are already on that approved list. The URSA Cine 17K, having passed Netflix’s technical evaluation, joins that roster—even though it’s not yet available for sale.

Netflix’s minimum capture requirements include a resolution of at least 3840 photosites in width, 10‑bit (or higher) codec support, and a data rate of 240 Mbps at 24 fps. Capture must use lightly compressed or uncompressed RAW or intra‑frame 4:2:2 codecs in scene‑referred color space with log transfer functions. Cameras must also support external jamming and accurate timecode metadata. Approved devices provide reliable logging, consistent naming conventions, and professional media that withstands the rigours of extended shoots.

Launched over the years, the broader URSA family spans multiple sensor and resolution formats. It began with the original URSA (4K/4.6K) in 2014, expanded through the Mini, Mini Pro (with interchangeable lens, ND filters, and dual media slots), then advanced to the URSA Mini Pro 12K in July 2020, and subsequently the OLPF variant (approved by Netflix in April 2023). Meanwhile, URSA Broadcast models catered to ENG and studio workflows. The Cine series now reflects Blackmagic’s top range, focusing on large‑format cinematography with high‑resolution capture and professional rig compatibility.

Best Practices for On-Set Netflix Capture

When shooting with Netflix-approved cameras, productions should capture in the native wide-gamut log format (e.g., S‑Log3, LogC, VLog) or RAW, and avoid baking in any looks. RAW remains preferred for metadata flexibility, but high-quality intra-frame codecs like ProRes 4444(XQ), DNxHR 444, or XAVC‑I are acceptable when storage constraints apply .

Monitoring setups should replicate the camera’s capture characteristics, and footage needs to be lapped by framing charts and dead-pixel checks. Use CDL or LUT-based workflows for non-destructive on-set grading, and ensure all monitors are calibrated ahead of runtime . Productions must test any non-approved ‘B‑cam’ systems under real conditions to confirm compatibility, and confirm fallback to approved workflows if necessary.

Availability and Holiday Planning

Despite its Netflix endorsement, the URSA Cine 17K is not yet on the shelves, so professionals hoping to upgrade should not expect immediate availability—perhaps start your Christmas wishlist early. While Blackmagic announces “will be available soon,” no exact ship date has been confirmed.

Testing Reminder

All technical advances, even Netflix-approved models, should be tested thoroughly in your own environment before integrating them into production pipelines. Each project presents unique challenges in logistics, workflow, and image capture—due diligence is essential.

Netflix Partner Help Center (partnerhelp.netflixstudios.com)

The post Blackmagic URSA Cine 17K Slides Into Netflix’s List first appeared on DIGITAL PRODUCTION and was written by Bela Beier.

The FMX 2025 conference, set to run from May 6 to May 9 in Stuttgart, promises a lineup at the forefront of digital production. Two highlights have already been announced, blending the art of visual effects with the transformative potential of artificial intelligence.

Stockholm-based VFX powerhouse Important Looking Pirates (ILP) will take the stage to present their work on Netflix’s adaptation of Ronja Räubertochter. Based on Astrid Lindgren’s beloved children’s book, the series launches on the ARD Mediathek on December 20, with linear broadcasts over Christmas and later streaming availability on Netflix.

ILP’s VFX team, including Production VFX Supervisor Torbjörn Olsson and VFX Supervisor Martin Hernblad, spent two and a half years navigating a gamut of challenges. Among their innovations: strapping iPhones to faces, dressing actors in motion-capture suits, and conjuring CG snow-dwelling, feathered creatures with speaking roles.

Meanwhile, artist and technology expert Martin Nebelong will delve into the intersection of human creativity and generative AI. Eschewing the simplicity of text-based prompts, Nebelong has developed workflows integrating traditional artistic methods—like brushstrokes, 3D sculpting, and animation—into AI-driven production. His exploration aims to regain creative control, which he argues has been diluted by over-reliance on generic AI prompts. FMX participants can expect a demonstration of Nebelong’s techniques, revealing how generative AI can enhance storytelling without sidelining human artistry.

Beyond the presentations, FMX 2025 offers its signature opportunities for networking and innovation. Companies and educational institutions can participate in the Marketplace, Recruiting Hub, and School Campus. The Marketplace showcases the latest technical tools, while the Recruiting Hub connects studios with emerging talent. The School Campus serves as an educational fair where prospective students can meet alumni and faculty from film schools worldwide.

The FMX Boards, available online, outline the guiding vision for 2025. Board members contribute to shaping the program with their insights into industry trends and emerging technologies. As FMX Director David Schäfer aptly put it: navigating the ever-expanding universe of animation, VFX, and interactive media sometimes feels like steering a starship into uncharted galaxies. Tickets and program updates are available on the official FMX website. Early registration is recommended.

The post Ronja Räubertochter Meets Generative AI: FMX 2025 Highlights Unveiled first appeared on DIGITAL PRODUCTION and was written by Bela Beier.

Well, the documentary „Our universe“ has a bigger scope than the west of England, but the VFX House Lux Aeterna is based there – and we got a chance to chat to VFX Supervisor Paul Silcox!

DP: To get a sense of the scope of your project, how many full CG shots did you create for the six episodes? Was there anything you didn‘t simulate?
Paul Silcox: Hi, yes, we did visualise a lot of phenomena but not everything was simulated, where possible we leaned on proceduralism in Houdini to produce the variety of FX. In the end there were nearly 400 full CG shots in the show and nearly 700 shots in total, these were produced over an 18-month period.

DP: How big was the team for this show, and what was your “primary” pipeline?
Paul Silcox: The team for Our universe varied over the production but was generally between 20 and 30. We had a very senior team working FX, Lighting and comp so we were able to deliver beautiful shots effi­ciently. In order to handle the sheer amount of active shots and the massive amounts of data utilised in the show we boosted our IT infrastructure adding 70 High-end render nodes, high bandwidth network hubs and super fast SSD storage. Managing all of this is our bespoke Shotgrid and Deadline management software.
The core of the studio‘s creative output is based around Houdini, Maya and Nuke and this is managed through Shotgrid, though we still work in C4d and After Effects for certain shots or projects. Our renderers of choice
for Our Universe were Arnold, Mantra and Redshift.

DP: Did you use different toolsets for the different shots?
Paul Silcox: Houdini was our go to creative package for a lot of phenomena and this was supported by Maya and Nuke. The power of Houdini to test ideas and play with concepts allowed us to communicate scientific stories in a variety of new and interesting ways.
Our Universe was a dream job as there were so many examples of phenomena that we had to synthesize, from the inside of the cell to the inside of the sun there was always a new creative challenge. The atomic sequences are a great example of the type of collaboration that marked the production – our CG Supervisor created a beautiful sequence visualising the interaction of atomic particles and the FX department was tasked with developing a system that could replicate the look across a variety of shots. The team developed a procedural SDF system in Houdini that was relatively light-weight and art directable and this was used to demonstrate the many atomic interactions that drive the universe.

DP: Did you add any special tools to the Houdini pipeline?
Paul Silcox: Houdini was our primary FX software though there were other packages used for simulation FX. For one sequence we handled a massive SPH dataset computed in SWIFT at Durham University on the Cosma supercomputer. The data arrived in HDF5 format and was converted to a usable format for visualisation in Houdini. We also use MASH in Maya, particles in nuke and we use After Effects with Element 3D.

DP: And then you added particles to everything?
Paul Silcox: Lux Aeterna‘s Comp team did a brilliant job of working with Houdini and Maya environments, simulations and FX and they are always adding a sprinkle of something to a shot, from volumetric lighting to new particles. Our 3D teams worked closely with comp to make sure they had everything necessary in the renders from an AOV point of view and all shots were lit and rendered in ACES colour space to the required delivery spec.

DP: How did you keep an overview of these many, sometimes rather similar shots?
Paul Silcox: Lux Aeterna used Shotgrid to manage the shot delivery and our workflows allowed for there to be a significant number of shots to be live and worked on concurrently. Production was brilliant at managing the reviews through the playlists on shotgrid and for the artists this worked very well. You‘d think that it would be easy to get confused when the differences between shots are subtle but it‘s like the penguins finding their young, once you have worked on a shot you can find it and talk about it instantly no matter how many similar versions you have worked on.

DP: Did you have to develop something from scratch for “Our Universe”?
Paul Silcox: Our Universe presented many challenges and Lux Aeterna responded in a variety of ways developing numerous new workflows, one example was our collaboration with Amazon AWS. We had used online render farms many times before but we had never needed so many hours of rendering in such a short delivery window. We worked closely with the UK and US teams to implement the AWS software and learn the intricacies of working with datacenter infrastructure to add several hundred nodes to our render capacity at peak times.

DP: And speaking of delivery, how long did you (approximately) render per frame?
Paul Silcox: Ha, how long is a piece of string? Let me just say this, there were a significant number of shots with super complex volumes, billions of voxels instanced many times, SSS shots with full frame transmission and scenes with many millions of polygons, all rendered at 4K. A lot of these shots would take 5 hours plus per frame to render all layers so the demand on the render farm was huge.

DP: In comparison to other shows like Blue Whales or 8 Days, what were the difficulties in the pipeline?
Paul Silcox: Our Universe was complex and wide ranging in its scope but the demands are always the same, more power, more storage and more bandwidth. Lux Aeterna has developed a pipeline to handle the complexities of a show like Our Universe and I was proud to see it delivered so efficiently.

DP: There were “pickup” and “inbetween shots” in almost every jump from documentary footage, animals, and the space-pictures – did you have a library for that, or did you create a shot for each?
Paul Silcox: Our artists worked particularly hard on the interstitials creating the timelapse and spatial jump effect that bridged the many sequences. We didn‘t rely on anything except the creative flair and extreme hard work by our dedicated team.

DP: I assume that some shots had “invisible Vfx” as well?
Paul Silcox: There was definitely some cleanup and augmentation as this is always the case for this type of show. Our comp team worked brilliantly to create the continuity in the show though you‘ll have to look hard to find it!

DP: How did you balance between the “Look” and the input from the scientific advisors?
Paul Silcox: Finding the balance between science and entertainment is always a journey, luckily we have experienced and senior creatives with a long history of scientific storytelling having worked on BBC Science shows like ‚Wonders of the Universe‘, ‚Wonders of Life‘ and ‚Human Universe‘, just to name a few. They brought this considerable experience to the show working closely with the showrunner Mike Davies and the brilliant Producer Directors to deliver a cinematic vision and relatable stories to the screen.

DP: What would you do differently if you started at Episode One again?
Paul Silcox: VFX is a dynamic business and so we are always looking forward not back, having said that there are always efficiencies to be found. In an ideal world I would share ALL of our knowledge with our younger selves, even if all it did was bring the render times down.

DP: And what was your favourite shot?
Paul Silcox: Of course, as the supervisor I‘m not allowed to have favourite shots ;). I would say that the first episode was fun as we were right at the beginning of our journey and discovering a look for the programme, it was a really exciting time.

DP: What are you working on now?
Paul Silcox: We are always under such strict rules when it comes to discussing live projects but what I will tell you is that as well as our unscripted slate we are very happy to be working on more scripted productions and as always we are developing new ways to tell stories and continuing to challenge our skills in environment and FX.

The post Our Universe of… Houdini? first appeared on DIGITAL PRODUCTION and was written by Bela Beier.