Consolidation always comes with consequences. In December 2025, Netflix and Warner Bros. Discovery confirmed a landmark deal in entertainment history: Netflix agreed to acquire Warner Bros.’ film and television studios, HBO Max, and related assets in an $82.7 billion transaction. Fans immediately buzzed on social media and forums: What happens to the content we love? Will Netflix raise subscription prices? Do we need to pay more for HBO-level content? Viewers wondered whether their favorite shows would stay.

Recently, Netflix co-CEO Ted Sarandos took the unusual step of addressing these doubts publicly, not on a corporate call but before the U.S. Senate. 

On February 3, 2026, Sarandos appeared before the Senate Judiciary Subcommittee on Antitrust, Competition Policy and Consumer Rights to defend the proposed Warner Bros. merger. He tackled concerns about competition, jobs, theatrical releases, and consumer costs. When Senator Amy Klobuchar pressed him on whether the merger could lead to “Netflix subscription fees skyrocketing,” Sarandos was very clear. 

“I think we can only raise the price if the consumer sees the value. We are a one-click cancel. So, if at any point the consumer says ‘That’s too much for what I’m getting,’ they could just, with one click of the button, cancel Netflix.” Ted Sarandos answered the Senate. 

He leaned on market competition and historical pricing discipline. Netflix faces competition not just from Disney and Prime Video but from platforms such as YouTube, making unilateral price jumps risky. He emphasized the added value the combined content libraries could bring, arguing the merged entity could offer more content for less.

While this response aimed to soothe cost fears, his framing also implicitly says subscribers bear the ultimate check on price hikes, a stance that some industry observers found striking given Netflix’s history of raising prices.

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And that tension leads to a bigger question: what, exactly, brought Netflix’s top executive before the Senate in the first place?

Ted Sarandos’ Senate appearance was not solely about pricing. Lawmakers questioned him intensely about competition, culture, and the public interest. The deal would give Netflix control over HBO and Warner’s theatrical distribution, a seismic shift in Hollywood’s competitive landscape. And regulators are scrutinizing whether such consolidation could disadvantage rivals or labor markets. 

Beyond antitrust concerns, Missouri Senator Josh Hawley challenged Sarandos over the nature of Netflix’s content, alleging that children’s programming heavily “promotes transgender ideology.” Sarandos pushed back, calling the data cited “inaccurate” and asserting that Netflix has no political agenda of any kind, while underscoring that the platform offers parental controls and a wide range of diverse programming, according to Fox Business. 

Sarandos also addressed theatrical windows, pledging to maintain a 45-day theatrical exclusivity for Warner Bros. films, a key issue for filmmakers, theaters, and industry guilds wary that the merger might erode traditional release models.

In a negotiation this massive, questions about price, content, and cultural influence are inevitable. As regulatory review continues, Netflix fans and critics alike are watching closely.

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 What do you think Netflix should do to win over subscribers post-merger? Share your thoughts!