Netflix’s co-CEO advised lawmakers the corporate’s merger cope with Warner Bros. Discovery received’t damage its clients and mentioned subscribers can ensure that of that.
Talking Tuesday earlier than the Senate Judiciary Subcommittee on Antitrust, Competitors Coverage, and Shopper Rights, Ted Sarandos repeatedly rejected claims that the merger would result in focus within the streaming business if regulators permit it to undergo.
Nonetheless, Sen. Amy Klobuchar (D-Minn.) identified Netflix final 12 months raised costs whereas persevering with so as to add subscribers. In 2025 Netflix raised its lowest-tier plan with advertisements by $1 per 30 days and its two larger tiers, an ordinary plan with no advertisements and its premium plan, by $2.50 and $2, respectively.
Klobuchar mentioned she feared if Netflix acquired Warner Bros. and its streamer HBO Max, the third hottest within the U.S. by subscribers, it might be incentivized to boost costs.
Sarandos pushed again on the concept Netflix would abruptly develop into a nasty deal, saying the corporate has given its subscribers high worth for his or her cash throughout previous worth hikes.
“Whenever we come back and ask for a little more money it’s because we’ve given them a lot more value,” he mentioned.
Beforehand within the listening to, Sarandos claimed Netflix’s costs have gone up slower than competing providers, and that Netflix subscribers spend on common 35 cents per hour of content material they watch on the service.
If at any level, subscribers don’t see the worth in what Netflix is offering them, its clients additionally aren’t tied to Netflix.
“We are a one-click cancel, so if at any point the consumer says, ‘That’s too much for what I’m getting,’ they can just with one click of the button cancel Netflix,” Sarandos mentioned.
A spokesperson for Netflix confirmed shoppers can cancel their subscription with one click on however didn’t remark additional.
Netflix in December mentioned it might purchase Warner Bros., HBO, and HBO Max, in a $72 billion deal it later amended to be paid utterly in money. Cable channels like CNN, TNT, and HGTV is not going to be a part of the acquisition and as a substitute are anticipated to be spun off through the separation of the corporate’s International Linear Networks enterprise, as Discovery International, which is ready to be accomplished by the third quarter of 2026.
Netflix has mentioned the deal will speed up its enterprise by giving its subscribers entry to the big library of Warner Bros. exhibits and films, together with the Harry Potter collection and The Huge Bang Idea.
To make certain, Netflix’s inventory has sunk about 19% because it introduced the merger. Even when the deal goes via, Netflix might be taking a look at a interval of uncertainty and threat, in addition to a doubtlessly small return on its invested capital, wrote Rosenblatt Securities analyst Barton Crockett in a analysis word.
When it comes to content material, Sarandos mentioned the deal will permit Netflix to broaden Warner Bros. content material in addition to Netflix’s personal manufacturing within the U.S., including American jobs.
“[Subscribers] have to really love what they’re watching, and thank goodness we’re doing a good job of that,” he added.
