"Netflix to Consumers: You're Protected; Cancel at Any Time."
At a hearing of the US Senate Judiciary Committee, Netflix co-CEO Ted Sarandos offered a reassuring message for subscribers who worry that an impending merger with Warner Bros. Discovery's streaming and movie studios businesses could lead to higher prices due to less competition.
In response to concerns about prices, Sarandos stated that consumers can always cancel their services if they find it too expensive, regardless of whether Netflix acquires the streaming and movie studios businesses. He emphasized that the company is committed to providing value for its subscribers.
According to Sarandos, 80% of HBO Max subscribers also subscribe to Netflix, making them complementary services rather than competitors. He claimed that combining their resources would provide more content options for less money, which he defined as "adding more and more" content.
While some lawmakers have raised concerns about a potential monopoly due to the size of the companies involved, Sarandos downplayed these worries by pointing out that there are other streaming services competing in the market. He compared Netflix's offer to acquiring YouTube TV at an estimated 21% market share, rather than seeking to dominate.
The proposed deal has yet to be finalized; however, with Sarandos emphasizing customer protection and the ability for consumers to cancel their subscription plans at any time, fans of the service can hold onto hope that this acquisition will not result in increased prices.
At a hearing of the US Senate Judiciary Committee, Netflix co-CEO Ted Sarandos offered a reassuring message for subscribers who worry that an impending merger with Warner Bros. Discovery's streaming and movie studios businesses could lead to higher prices due to less competition.
In response to concerns about prices, Sarandos stated that consumers can always cancel their services if they find it too expensive, regardless of whether Netflix acquires the streaming and movie studios businesses. He emphasized that the company is committed to providing value for its subscribers.
According to Sarandos, 80% of HBO Max subscribers also subscribe to Netflix, making them complementary services rather than competitors. He claimed that combining their resources would provide more content options for less money, which he defined as "adding more and more" content.
While some lawmakers have raised concerns about a potential monopoly due to the size of the companies involved, Sarandos downplayed these worries by pointing out that there are other streaming services competing in the market. He compared Netflix's offer to acquiring YouTube TV at an estimated 21% market share, rather than seeking to dominate.
The proposed deal has yet to be finalized; however, with Sarandos emphasizing customer protection and the ability for consumers to cancel their subscription plans at any time, fans of the service can hold onto hope that this acquisition will not result in increased prices.