Netflix claims subscribers will get “more content for less” if it buys HBO Max

Amid rising concerns about potential price hikes following its proposed acquisition of Warner Bros. Discovery, Netflix's co-CEO Ted Sarandos addressed the U.S. Senate Judiciary Committee. Sarandos argued that the merger could actually benefit subscribers by providing 'more content for less.' During the hearing focused on the competitive implications of the Netflix-Warner Bros. deal, Sarandos sought to reassure lawmakers and the public that the merger would not lead to a monopoly in the streaming or film production sectors. As the largest subscription video-on-demand provider, Netflix boasts over 301 million subscribers, while Warner Bros. Discovery holds around 128 million, including those from HBO Max and Discovery+. Sarandos highlighted the complementary nature of the two services, noting that a significant 80% of HBO Max subscribers are also Netflix members. He emphasized that the merger would enhance content availability without imposing higher costs on consumers. Addressing questions from Senator Amy Klobuchar about affordability post-merger, Sarandos pointed out that Netflix has historically added value with each price increase. He reassured that the competitive landscape of the streaming industry remains robust, giving subscribers the freedom to cancel their service easily if they feel the value diminishes. In response to further inquiries regarding pricing strategies, Sarandos stated that the merger does not introduce any significant concentration risk and mentioned ongoing discussions with the U.S. Department of Justice about safeguards to prevent excessive price increases.