Netflix CEO Ted Sarandos isn’t losing sleep over concerns that a proposed merger with Warner Bros. Discovery could lead to higher subscription prices.
Testifying before a U.S. Senate antitrust subcommittee, Sarandos argued that the $82 billion deal would increase value for consumers and that anyone who disagrees can simply cancel their subscription.
Based on social media reactions, subscribers may just opt for the latter.
"Cancel me," says Netflix
Speaking at the U.S. Senate Judiciary Committee’s Subcommittee on Antitrust, Competition Policy, and Consumer Rights on Tuesday, Sarandos argued that Netflix acquiring Warner Bros. Discovery, including its movie studio and HBO Max, is not a monopoly.
"Netflix and Warner Bros. both have streaming services, but they are very complementary," he said. "In fact, 80 percent of HBO Max subscribers also subscribe to Netflix. We will give consumers more content for less."
Content overlap has little to do with whether a merger creates a monopoly. Utah Senator Mike Lee underscored that fact by turning the focus from content to jobs, pointing out that "consolidating two major employers within the same market inevitably has an impact on, and can significantly weaken, competition for that labor."
Of course, another common concern is that the takeover could result in yet more price hikes for Netflix subscriptions. After almost yearly increases over the last few years, standard ad-free watching already costs $17.99 per month for a single household.
Sarandos, however, has a simple solution for dissatisfied customers.
"We are a one-click cancel, so if the consumer says, ‘That’s too much for what I’m getting,’ they can cancel with one click," he said.
That handy one-click cancel option he bragged about comes courtesy of the Biden administration's Federal Trade Commission, which forced companies to adopt those policies in 2024.
Subscribers say they're ready to walk
In response to Sarandos' statement, some Netflix subscribers are ready to follow his advice. Across social media, people threatened to cancel if prices increase again.
"Yeah, I'm happy to cancel and so are most others too," wrote @AnimeReitoNaito on X.
"Planning on it," said u/grdvrs on Reddit. "Was just casually saying last night 'we should cancel Netflix, we don't use it that much and its way too expensive.'"
Much cheaper options do remain for those tired of streaming services, and Sarandos once again inspired folks to mention them.
"These companies had all but beaten piracy for a minute, against all odds really, and now they seem hellbent on bringing it back," said u/ecokumm.
"There's ways to watch their shows for zero dollars and a $30+/month sub for something like Netflix will absolutely get more people to figure out how," predicted u/hardy_83. "Especially since it's pretty easy."
"See ye on the high seas matey," joked u/baker8491.
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