Netflix says users can cancel service if HBO Max merger makes it too expensive
There is concern that subscribers might be negatively affected if Netflix acquires Warner Bros. Discovery's (WBD's) streaming and movie studios businesses. One of the biggest fears is that the merger would lead to higher prices due to less competition for Netflix. During a Senate hearing today, Netflix co-CEO Ted Sarandos suggested that the merger would have an opposite effect.
Sarandos was speaking at a hearing held by the US Senate Judiciary Committee's Subcommittee on Antitrust, Competition Policy, and Consumer Rights, Examining the Competitive Impact of the Proposed Netflix-Warner Brothers Transaction."
Sarandos aimed to convince the subcommittee that Netflix wouldn't become a monopoly in streaming or in movie and TV production if regulators allowed its acquisition to close. Netflix is the largest subscription video-on-demand (SVOD) provider by subscribers (301.63 million as of January 2025), and WBD is the third (128 million streaming subscribers, including users of HBO Max and, to a smaller degree, Discovery+).