tech
Netflix says users can cancel service if HBO Max merger makes it too expensive
80 percent of HBO Max subscribers subscribe to Netflix, Sarandos tells Senate.
TL;DR
- Netflix co-CEO Ted Sarandos testified before the Senate Judiciary Committee regarding the proposed acquisition of Warner Bros. Discovery (WBD).
- Concerns were raised that the merger would lead to higher prices due to reduced competition.
- Sarandos argued the acquisition would offer consumers more content for less money, as the streaming services are complementary.
- He stated that 80% of HBO Max subscribers also subscribe to Netflix.
- Sarandos highlighted the competitiveness of the streaming market, mentioning tech giants like Google, Apple, and Amazon as rivals.
- He claimed Netflix subscribers spend an average of 35 cents per hour of content watched, compared to 90 cents for Paramount+.
- Netflix's offer for WBD is $72 billion, all-cash, at $27.75 per share, totaling an enterprise value of $82.7 billion.
- Paramount is also seeking to acquire WBD with a $108.4 billion offer.