That's what I don't get, in the rush to grab all their assets they gave up money.
That's what irritates me about everybody making their own streaming service.
Well, I think what's happening there is that the industry is in flux, things are changing, and the corporations aren't sure what business model is going to give them the maximum profits.
The traditional business model they've been using works this way: The studios contracts with a production company or companies to produce a show; the studio sells that show to the network; the network sells ads to commercials that pays for the cost of acquiring the show from the studio; and then the studio (and apparently the network) were licensing the re-run rights to a streaming service (Netflix).
Essentially, what Warner Bros. did when they decided to stop letting the shows they produce for CW stream on Netflix, is, they decided to cut out the middle man. Why license another company to stream your shows when you can stream your shows yourself and get your own subscription revenues?
And if they divest from CW or shut down CW, then the same logic will be at play: Why let a middle man distribute your shows to the country and keep their fee, when you can distribute your shows yourself in your own streaming service and keep the subscription money that way?
The question is whether or not that gambit will actually pay off --
will the studios make more money by relying on their own streaming services? I've argued before that it seems to me that the value of a streaming service to customers comes from the size and variety of the catalog that streaming service offers; people don't care about studio brands per se (with the possible exception of Disney and Marvel), but a studio with a large and diverse catalog on its streamer might do well. I do think HBO Max has a large and diverse enough catalog to do well, so ultimately I get why Warner Bros. might decide to pull the plug on the CW.
Anyway, something to bear in mind is that in terms of getting good press, it might be
better for the B5 Reboot to be an HBO Max Original Series™ than to be branded as the other CW space opera alongside
Pandora. It would probably be seen as more prestigious; and if HBO Max is interested in positioning the B5 Reboot as their answer to
Star Trek on Paramount+ and
The Mandalorian on Disney+, they might be willing to give it a larger budget than the CW would have or could have.