Netflix is moving ahead with its plan to buy Warner Bros. Discovery’s streaming and studio business, including HBO Max, in a deal worth $82.7 billion. The company claims the merger will lower costs for subscribers and bring more value. Regulators and consumers are not so sure.
Netflix co-CEO Ted Sarandos told US lawmakers that combining Netflix and HBO Max would cut overlap and make operations more efficient. He noted that most HBO Max subscribers already pay for Netflix. He also pointed out that subscribers can easily leave if prices go up, using the “one-click cancel” option.
But Netflix has raised prices several times in recent years. Sarandos defended the increases by comparing the cost per hour of viewing. He claimed Netflix offers content at about 35 cents per hour, while rivals like Paramount+ charge closer to 90 cents.
Lawmakers remain cautious. They worry that fewer competitors could mean higher prices in the long run. The US Department of Justice is reviewing the deal and may add rules to prevent steep hikes.
If approved, the merger would give Netflix about 21 percent of the subscription video market in the US. That still puts it behind YouTube and other tech giants. Meanwhile, Paramount has made a bigger $108.4 billion bid for Warner Bros. Discovery, adding more pressure to the streaming race.
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Netflix insists the deal will benefit viewers. Whether subscribers actually see lower costs after the merger is still uncertain.
