Netflix co-CEO Ted Sarandos has addressed concerns over potential subscription price increases linked to the company’s proposed $72 billion acquisition of Warner Bros. Discovery’s streaming assets, positioning consumer choice and ease of cancellation as key safeguards against market power abuse.
Appearing before the US Senate Judiciary Subcommittee on Antitrust, Sarandos responded to lawmakers’ questions around reduced competition and higher prices if Netflix absorbs major streaming properties such as HBO Max. Senator Amy Klobuchar highlighted Netflix’s history of price hikes and warned that consolidating premium content under one platform could weaken competitive pressure across the streaming ecosystem.
In response, Sarandos emphasised that Netflix’s pricing decisions have consistently been driven by increased investment in content and enhanced value for subscribers. He argued that despite periodic price increases, the platform has continued to grow its subscriber base, suggesting sustained consumer willingness to pay for perceived value. According to Sarandos, Netflix users currently spend an average of approximately 35 cents per hour of content consumed.
A central pillar of Sarandos’ defence was Netflix’s lack of consumer lock-in. He stressed that subscribers can cancel their membership instantly through a “one-click cancel” feature, framing ease of exit as a powerful check against unfair pricing. If consumers feel the service no longer delivers adequate value, he noted, they are free to leave without friction.
Beyond pricing, Sarandos positioned the acquisition as a growth catalyst for the US entertainment industry. He stated that bringing Warner Bros. Discovery’s streaming assets into Netflix’s fold would expand domestic production capacity and support job creation.
The proposed all-cash deal includes Warner Bros. Discovery’s streaming businesses and marquee franchises such as Harry Potter and The Big Bang Theory, while excluding its linear cable networks. As regulatory scrutiny intensifies, Netflix is seeking to frame the acquisition as value-led, consumer-friendly, and growth-oriented rather than anti-competitive.
