Netflix CEO Defends Warner Bros. Buyout

Netflix co-CEO Ted Sarandos addressed concerns regarding the potential acquisition of Warner Bros. Discovery's (WBD) streaming and movie studios during a Senate hearing on February 4, 2026. He asserted that the merger would not lead to a monopoly, but instead provide consumers with more content for less money, as the services are complementary. Sarandos noted that 80 percent of HBO Max subscribers also use Netflix.

Addressing potential price increases, Sarandos stated that the streaming industry remains competitive. He defended past price hikes by emphasizing added value and the ease of cancellation for subscribers. The executive also mentioned ongoing discussions with the US Department of Justice regarding safeguards against further price hikes. He projected that the merger would enhance consumer value by offering content at an average of 35 cents per hour watched, significantly less than competitors like Paramount+.

Sarandos further argued that Netflix views WBD as both a competitor and supplier, aiming to expand content offerings. He pointed to other deep-pocketed tech companies, including Google, Apple, and Amazon, as significant players in the TV business. To illustrate the competitive landscape, he cited Nielsen data showing YouTube's dominant TV viewership, surpassing any single SVOD service. Sarandos calculated that a merged Netflix would hold 21 percent of the SVOD market.

The article also notes ongoing developments in the WBD asset acquisition, mentioning Netflix's amended $72 billion all-cash offer for HBO Max and WB's film studios. Paramount's competing offer and legal actions against WBD were also highlighted, indicating a complex and ongoing negotiation process.