There are concerns that there could be a negative impact on customers if Netflix acquires the streaming and movie studio businesses of Warner Bros. Discovery (WBD). One of the biggest fears is that the merger will drive up prices since Netflix will have less competition. During a Senate hearing today, Netflix co-CEO Ted Sarandos suggested that the merger would have the opposite effect.
Sarandos was speaking at a hearing held by the U.S. Senate Judiciary Committee’s Subcommittee on Antitrust, Competition Policy and Consumer Rights, “Investigating the Competitive Impact of the Proposed Netflix-Warner Bros. Transaction.”
Sarandos aimed to convince the subcommittee that Netflix would not become a monopoly in streaming or film and TV production if regulators allow its acquisition to close. Netflix is the largest subscription video-on-demand (SVOD) provider in terms of subscribers (301.63 million as of January 2025), and WBD is the third (128 million streaming subscribers, which also includes users of HBO Max and, to a lesser extent, Discovery+).
Speaking at today’s hearing, Sarandos said:
Netflix and Warner Bros. both have streaming services, but they are very complementary. In fact, 80 percent of HBO Max subscribers also subscribe to Netflix. We will give consumers more content at lower prices.
During the hearing, Senator Amy Klobuchar (D-Minnesota) asked Sarandos how Netflix can ensure that streaming remains “affordable” after the merger, especially after Netflix issued a price increase in January 2025 despite adding more subscribers.
Sarandos said the streaming industry is still competitive. The executive claimed that Netflix’s previous price increases brought “too much value” to customers.
“We can cancel with one click, so if the consumer says, ‘This is too much for what I’m getting,’ they can cancel with one click,” Sarandos said.
When pressed further on pricing, the executive argued that the merger poses “no concentration risk” and that Netflix is working with the US Justice Department on potential safeguards against greater price increases.
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