Netflix Says Warner Bros. Deal Would Lower Costs, Not Raise Prices

Netflix is facing tough questions in Washington over its plan to buy key parts of Warner Bros. Discovery, but the company insists the deal would actually help viewers—not hurt them.

During a US Senate hearing on Tuesday, Ted Sarandos, Netflix’s co-CEO, argued that the proposed merger would not lead to higher prices or less choice for consumers. Instead, he said it would deliver “more content for less.”

The hearing, led by the US Senate Judiciary Committee’s antitrust subcommittee, focused on whether Netflix could become too powerful if it acquires Warner Bros. Discovery’s streaming service HBO Max and its movie studios.

“Still a Competitive Market”

Netflix is already the world’s biggest streaming service, with more than 300 million subscribers. Warner Bros. Discovery ranks third, with about 128 million users across HBO Max and Discovery+. Critics worry that combining the two could reduce competition and push prices higher.

Sarandos pushed back on that idea, saying most HBO Max users already have Netflix anyway.

“About 80 percent of HBO Max subscribers also subscribe to Netflix,” he told lawmakers. “These services are complementary.”

Sen. Amy Klobuchar pressed Sarandos on how Netflix could promise affordability after raising prices earlier this year. Sarandos responded that streaming remains highly competitive and that subscribers can cancel Netflix “with one click” if they feel it’s no longer worth the cost.

Value Over Price

Sarandos also said value isn’t just about monthly fees—it’s about how much content viewers get for their money.

According to Netflix’s internal estimates, subscribers spend about 35 cents per hour of content watched. By comparison, Paramount+ costs viewers closer to 90 cents per hour.

Netflix says the merger would help it invest more in high-quality shows and movies, giving viewers better value overall.

Not a Monopoly, Netflix Says

When Sen. Mike Lee asked why Netflix wants Warner Bros.’ film studios, Sarandos said Netflix views the company as “both a competitor and a supplier.”

He also pointed to major tech rivals like Apple, Amazon, and Google as proof that Netflix isn’t close to dominating the market. Sarandos highlighted YouTube’s massive TV audience, noting that it leads all streaming platforms in US television viewing, according to Nielsen The Gauge.

Even with HBO Max, Sarandos said Netflix would control just 21 percent of the global streaming market.

A High-Stakes Battle

The fight over Warner Bros. Discovery is far from over. Netflix recently revised its offer to an all-cash bid worth about $82.7 billion. Meanwhile, Paramount Skydance has launched a rival bid and is seeking a hostile takeover, even suing Warner Bros. Discovery over its Netflix agreement.

Regulators are expected to closely examine the deal, setting the stage for a lengthy legal and political battle over the future of streaming—and what it means for viewers’ wallets.