What did Netflix CEO Ted Sarandos say about the Warner Bros. Discovery merger?

Ted Sarandos testified that the merger would not create a monopoly and would offer consumers more content for less money, citing complementary streaming services.

Will the Netflix and Warner Bros. Discovery merger lead to higher prices?

Netflix CEO suggested the merger would provide more value and less cost, though he acknowledged discussions with the DOJ about safeguards against price hikes.

How does Netflix compare to other streaming services in terms of content cost?

Netflix claims subscribers spend an average of 35 cents per hour of content watched, significantly less than competitors like Paramount+.

Home / Business and Economy / Netflix CEO Defends Warner Bros. Buyout

Netflix CEO Defends Warner Bros. Buyout

4 Feb

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Summary

Netflix CEO claims merger would offer more content for less money.
Merger could lead to higher prices, raising antitrust concerns.
Netflix faces competition from tech giants like Google and Apple.

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+.