Netflix co-CEO Ted Sarandos recently testified before the US Senate Judiciary Committee's Subcommittee on Antitrust, Competition Policy, and Consumer Rights, expressing concerns that if Netflix were to acquire Warner Bros. Discovery's streaming and movie studios businesses, it could become too expensive for consumers.
In his testimony, Sarandos downplayed fears of a monopoly, citing YouTube's high TV viewership as an example of how even large companies can remain competitive in the market. He argued that the merger between Netflix and HBO Max would actually create more value for consumers, rather than driving up prices.
To address concerns about affordability, Sarandos stated that Netflix has a "one-click cancel" option, which allows subscribers to easily cancel their service if they feel it's too expensive. He also claimed that the streaming industry is still highly competitive, with companies like Google, Apple, and Amazon vying for market share.
Furthermore, Sarandos pointed out that despite adding more subscribers, Netflix has previously raised prices without negatively affecting consumer affordability. He argued that the merger would "create more value for consumers" by providing a more extensive range of content options.
Sarandos also emphasized that Netflix views Warner Bros. Discovery as both a competitor and a supplier, highlighting the complementary nature of their respective streaming services. According to Sarandos, 80% of HBO Max subscribers also subscribe to Netflix, indicating a mutually beneficial relationship between the two companies.
However, concerns about the potential impact on prices remain a significant issue in the ongoing debate over the proposed merger. As one Democratic senator asked during the hearing, how can Netflix ensure that streaming remains affordable after a merger?
In response, Sarandos stated that he is working with the US Department of Justice to establish guardrails against further price hikes. While the executive acknowledged that some price increases have occurred in the past, he emphasized that these hikes came with significant value for subscribers.
Ultimately, the outcome of this merger and its potential impact on consumer affordability remains uncertain. As Sarandos himself noted during his testimony, consumers can always choose to cancel their service if they feel it's too expensive – a reassuring message for those who worry about the long-term effects of this proposed acquisition.
In his testimony, Sarandos downplayed fears of a monopoly, citing YouTube's high TV viewership as an example of how even large companies can remain competitive in the market. He argued that the merger between Netflix and HBO Max would actually create more value for consumers, rather than driving up prices.
To address concerns about affordability, Sarandos stated that Netflix has a "one-click cancel" option, which allows subscribers to easily cancel their service if they feel it's too expensive. He also claimed that the streaming industry is still highly competitive, with companies like Google, Apple, and Amazon vying for market share.
Furthermore, Sarandos pointed out that despite adding more subscribers, Netflix has previously raised prices without negatively affecting consumer affordability. He argued that the merger would "create more value for consumers" by providing a more extensive range of content options.
Sarandos also emphasized that Netflix views Warner Bros. Discovery as both a competitor and a supplier, highlighting the complementary nature of their respective streaming services. According to Sarandos, 80% of HBO Max subscribers also subscribe to Netflix, indicating a mutually beneficial relationship between the two companies.
However, concerns about the potential impact on prices remain a significant issue in the ongoing debate over the proposed merger. As one Democratic senator asked during the hearing, how can Netflix ensure that streaming remains affordable after a merger?
In response, Sarandos stated that he is working with the US Department of Justice to establish guardrails against further price hikes. While the executive acknowledged that some price increases have occurred in the past, he emphasized that these hikes came with significant value for subscribers.
Ultimately, the outcome of this merger and its potential impact on consumer affordability remains uncertain. As Sarandos himself noted during his testimony, consumers can always choose to cancel their service if they feel it's too expensive – a reassuring message for those who worry about the long-term effects of this proposed acquisition.
. sarandos is like "hey, we're not gonna make u pay more" and then he gives examples of youtube and google and amazon being competitive too. it's all about consumer choice, rite? if u dont wanna pay more, just cancel ur netflix sub 
. but at the same time, its hard 2 argue that having more content options wont increase prices. sarandos seems pretty confident in his plan tho 
, but I'm still worried about the potential price hikes 
. I mean, he mentioned that Netflix already raised prices in the past and nobody seemed to care 
... but that's exactly what's got me concerned 
. 80% of HBO Max subscribers also subscribe to Netflix? That does sound mutually beneficial 
, but how much more will they raise our bills when combined 
... but what if the quality of those shows drops? That's something to consider 
. I guess only time will tell if Netflix can really make this merger work without screwing over consumers 
. And Sarandos' point about 80% of HBO Max subscribers also subscribing to Netflix is pretty interesting 
... like, they're basically best buds in the streaming world 
. But still, some people are gonna be worried about prices going up 
yeah right! he's basically saying that if they merge, they'll just pass on the savings to consumers, but we all know how that works out. the truth is, the more content options you have, the more choice means less control for consumers. and let's be real, warner bros discovery is not like youtube - it's a movie studio! sarandos thinks 80% of hbo max subscribers also subscribe to netflix? that's just some fancy math to make their merger look legit 
Still, I guess it's good to hear that Netflix has a "one-click cancel" option just in case... 