There is concern that subscribers could be adversely affected if Netflix acquires the streaming businesses of Warner Bros. Discovery and movie studios. Another big fear is that the merger will lead to higher prices due to less competition from Netflix.
During a US Senate hearing on Tuesday, Netflix CEO Ted Sarandos suggested the merger would have a different effect.
Sarandos was speaking at a hearing held by the US Senate Judiciary Committee’s Subcommittee on Antitrust, Competition Policy, and Consumer Rights, “Evaluating the Competitive Impact of the Proposed Netflix-Warner Brothers Transaction.”
Sarandos intended to convince the subcommittee that Netflix would not have a monopoly on streaming or producing movies and TV if regulators allow its acquisition to close. Netflix is the largest video-on-demand provider by subscribers (301.63 million as of January 2025), and Warner Bros. Discovery is third (128 million streaming subscribers, including HBO Max users and, to a lesser extent, Discovery+).
Speaking at the event, Sarandos said: “Netflix and Warner Bros both have streaming services, but they’re very complementary. In fact, 80 percent of HBO Max subscribers also subscribe to Netflix. We’re going to give consumers more content for less money.”
During the hearing, Democratic Senator Amy Klobuchar of Minnesota asked Sarandos how Netflix can ensure that streaming remains “affordable” after the merger, especially after Netflix released the price in January 2025 despite adding more subscribers.
Sarandos said the broadcasting industry is still competitive. The executive said Netflix’s previous price hikes came with a “very large number” of subscribers.
“We cancel with one click, so if a consumer says, ‘That’s more than what I’m getting,’ they can cancel with one click,” Sarandos said.
When pressed further on the prices, the executive argued that the merger does not pose a “risk of torture” and that Netflix is working with the US Department of Justice on possible measures to combat further price increases.
Sarandos said the merger “will create more value for consumers.” However, his view of value is not only about how much subscribers pay to stream but about the quality of the content. According to his figures, which he provided without further details, Netflix subscribers spend an average of 35 cents per hour of content watched, compared to 90 cents for Paramount+.
The figure for Netflix is similar to that provided by MoffettNathanson in January 2025, which found that last quarter, on average, Netflix generated 34 cents in subscription fees per hour of content viewed by each subscriber. At the time, the research firm said Paramount+ averaged 76 cents per hour of content viewed per subscriber.
Reducing Monopoly Concerns
Netflix views Warner as “a competitor and a supplier,” Sarandos said when Republican subcommittee chairman Mike Lee of Utah asked why Netflix wanted to buy WB’s movie studios, according to Variety. The streaming executive said that “Netflix’s history is about adding more” content and choice.
During the hearing, Sarandos argued that broadcasting is a competitive business and pointed to Google, Apple, and Amazon as “deep tech companies trying to get out of the TV business.” He tried to downplay concerns that Netflix might be monopolizing by emphasizing YouTube’s high TV ratings. Nielsen’s tracker The Gauge shows which platforms Americans use the most when using their TVs (as opposed to laptops, tablets, or other devices). In December, it said YouTube, excluding YouTube TV, had more TV viewers (12.7 percent) than any other on-demand video streaming service, including second-place Netflix (9 percent). Sarandos said that Netflix would have a 21 percent share of the streaming market when combined with HBO Max.
