Netflix leader drops harsh reality check for worried subscribers | Official Website of Louis Velazquez, entrepreneur, finance guy and tech innovator

Nothing has shaken up the streaming industry quite like Netflix’s December announcement that it entered into an agreement to acquire Warner Bros. Discovery (WBD), including its film and television studios, HBO Max and HBO.

Valued at approximately $82.7 billion (equity value of $72.0 billion), the deal was expected to close after the separation of Discovery Global is completed in the third quarter of 2026, according to a Netflix press release.

Netflix’s win came after a round of bids from rivals Paramount Skydance and Comcast. David Ellison’s Paramount Skydance also sued WBD, seeking to force it to disclose financial details of its deal with Netflix, and arguing the superiority of its own $108.4 billion offer for all of WBD.

On January 20, 2025, Netflix amended its original offer to an all-cash $82.7 billion deal to remove stock volatility and speed up the closing process.

The planned merger is drawing significant scrutiny from lawmakers and regulators. In the United States, the Senate Judiciary Committee’s antitrust subcommittee held a hearing on Feb. 3 to examine the implications of the Netflix-Warner Bros. deal.

Major concerns include negative impacts on America’s creative community and the fact that a combined Netflix-Warner Bros. company would control nearly half of the streaming market, potentially resulting in higher subscription prices and fewer consumer choices.

However, during a Senate hearing, Netflix Co-CEO Ted Sarandos argued the opposite, delivering a harsh reality check to worried subscribers.

Netflix’s co-CEO says users can easily cancel if their subscription gets too pricey after a merger with Warner Bros. Discovery.

Miguel Lagoa/Shutterstock

Netflix co-CEO says users can cancel if the service becomes too expensive

Sarandos spoke at a hearing held by the U.S. Senate Judiciary Committee’s Subcommittee on Antitrust, Competition Policy, and Consumer Rights, “Examining the Competitive Impact of the Proposed Netflix-Warner Brothers Transaction.”

The co-CEO tried to convince the subcommittee that Netflix wouldn’t become a monopoly in streaming or in movie and TV production if the merger is allowed, reported Ars Technica.

Sarandos highlighted that Netflix is not only “contributing directly to the American economy,” but also “helping American creators tell more American stories to the rest of the world,” according to the official written testimony.

Netflix is the biggest subscription video-on-demand (SVOD) provider by number of subscribers, with more than 325 million paid users, according to its official Q4 2025 shareholder letter. WBD, on the other hand, ranks third, with 128 million subscribers, including users of HBO Max and Discovery+.

The Netflix co-CEO further highlighted how “about 80% of HBO subscribers in the U.S. also subscribe to Netflix,” arguing they would actually end up with a “meaningful discount” if the two companies combine.

During the hearing, Senator Amy Klobuchar (D-Minn.) asked Sarandos how the streamer can make sure it remains “affordable” after the merger, since Netflix already hiked prices back in January 2025, just after the company’s subscriber base surpassed 300 million.

The Standard Plan without ads increased from $15.59 to $17, the Ad-Supported Plan jumped from $6.99 to $7.99, and the Premium Plan shot up from $22.99 to $24.99 per month.

The executive responded that the previous Netflix price hikes have come with a “lot more value” for subscribers, and then he delivered a harsh reality check for worried subscribers.

“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,” Sarandos said.

Netflix downplays monopoly concerns

In his written testimony, Sarandos highlighted YouTube’s dominance in the market. He noted that within the streaming sector specifically, Netflix currently commands a 19% share of U.S. viewership, a figure that would climb to approximately 20% following the Warner Bros. acquisition.

“That is not dominance in any meaningful economic sense, particularly in a dynamic industry where switching costs are low and consumers switch services easily — and frequently,” he explained.

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During the hearing, Sarandos also noted heightened competition in the streaming world, pointing to Google, Apple, and Amazon as “deep-pocketed tech companies trying to run away with the TV business.”

What might happen next remains a huge unknown, as Paramount is still seeking a hostile takeover. Ars Technica’s Scharon Harding explains that “we’re in the midst of what’s expected to be a long series of arguments as Netflix and Paramount Skydance attempt to own WBD’s assets.”

Netflix and WBD already collaborate to bring more TV shows to Netflix

Meanwhile, even though the pending merger between two entertainment giants won’t be finalized until the end of the year or in the first half of 2027, if it gets completed at all, the two companies are already heavily collaborating.

Warner Bros. is sending a huge number of its most popular shows (both old and new) over to Netflix already, “suggesting that as the corporate machinery gears up for a merger, Netflix is already providing a home to these shows,” reported What’s on Netflix.

Warner Bros. TV shows added to Netflix U.S. in January 2026:

“Teen Titans”
“Found”
“The Lying Game”
“Rizzoli & Isles”
“Southland”
“Veronica Mars”
“Prodigal Son”
“Falling Skies”
“The Following”
“11.22.63”

Warner Bros. TV shows to be added to Netflix U.S. in February:

“Suburgatory”
“Night Court”
“Search Party”
“What I Like About You”

A number of other Warner Bros. shows landed on Netflix in 2025. This means you don’t have to wait for the merger to access some cool content from Warner Bros. through Netflix.

Additionally, these moves, and executives’ testimony, suggest that the two entertainment companies are eager to finalize the deal. If that happens, Netflix subscribers will definitely see more high-quality content.

But will the streamer hike prices?

It should be expected, as the service would largely expand its top-tier content, and more value always costs more, right?

And if you don’t like it, the co-CEO says you can cancel.