Executives from Netflix and Warner Bros Discovery faced a skeptical Senate panel on Tuesday, defending their proposed $US82.7 billion ($118 billion) media merger. The merger has raised concerns among lawmakers regarding its potential impact on streaming consumers and Hollywood workers. Netflix co-chief executive Ted Sarandos assured the Senate’s antitrust subcommittee that the merger would provide consumers with more content at a lower cost and improve the distribution of Warner Bros’ films.
Sarandos highlighted that a significant portion of HBOMax subscribers also subscribe to Netflix, indicating that consumers commonly utilise multiple streaming services. He stated that the combined entity would only account for about 10 per cent of total viewing time, with YouTube dominating the market. Sarandos explained that the deal would enhance Netflix’s library, enabling it to better compete with major technology rivals such as Amazon Prime and Apple TV. Netflix is a subscription-based streaming service that offers a wide variety of films and television programs. Warner Bros Discovery is a global media and entertainment company that creates and distributes content across various platforms.
Senator Mike Lee, chairing the hearing, voiced concerns that the deal raises “numerous antitrust concerns,” noting that Netflix and Warner Bros compete in streaming content and labour markets. Lee suggested that Netflix might favour direct-to-streaming releases, potentially harming cinemas and aiming to become “one platform to rule them all”. Paramount Skydance declined to participate in the hearing after its chairman and chief executive, David Ellison, rejected an invitation to testify.
The US Justice Department and the European Commission are currently reviewing the Netflix-Warner transaction for potential antitrust issues. Several state attorneys-general, including California, are also expected to conduct reviews of the proposed merger. No final decision was made at the hearing, and further scrutiny is anticipated.
