Ted Sarandos, co-CEO of Discovery. The executive emphasized that the operation would bring more content to subscribers without necessarily increasing costs. Ele highlighted the possibility of easy cancellation if users consider the service expensive.
The hearing took place on Subcomissão of Antitruste of Comitê Judiciário of Senado, on February 3, 2026. Senadores questioned possible impacts on prices and competition in the streaming market. Sarandos argued that the merger would benefit consumers with a greater offer of securities.
The deal, valued at around $82.7 billion, includes the integration of HBO Max into the Netflix platform. The operation still depends on regulatory approval in the Estados Unidos. Netflix changed the proposal to full payment in cash at the beginning of the year.
Ted Sarandos main statements
Sarandos stated that 80% of HBO Max subscribers already have a subscription to Netflix. Essa overlap demonstrates that services are complementary and not direct competitors in many cases. Integration would allow us to offer more options without significant duplication.
The executive promised that the acquisition would result in more content for less cost to users. Ele reinforced that previous adjustments by Netflix added real value to subscriptions. The company remains committed to improving the subscriber experience.
Highlighted cancellation option
Sarandos mentioned the one-click cancellation system available on the platform. Essa tool allows users to discontinue service quickly if they deem the price inappropriate. The measure reinforces the company’s confidence in customer satisfaction.
He explained that Netflix works with Departamento of Justiça to establish protections against excessive increases. Essas safeguards aim to guarantee benefits to consumers after the deal is concluded. The approach seeks to reassure regulators about negative impacts.
Senators’ concerns about prices
Senator Amy Klobuchar questioned how Netflix would maintain affordable subscriptions after the merger. Ela cited recent adjustments to the platform despite user growth. Sarandos responded that past increases brought more value in content.
Other parliamentarians expressed doubts about market concentration. Eles pointed out risks of reduced competition between streaming platforms. The discussion focused on consumer protection in a consolidating sector.
Bipartisan senators expressed skepticism about the promised benefits. Eles highlighted the need for detailed analysis by Departamento of Justiça. The debate reflected general concerns about mergers in digital entertainment.
Arguments against monopoly
Sarandos rejected accusations that Netflix seeks total market dominance. Ele argued that the sector remains highly competitive with the presence of technological giants. Empresas like Google, Apple and Amazon invest heavily in audiovisual content.
The executive cited YouTube as the largest video platform in terms of television audience. Essa comparison positions Netflix far from any effective monopoly. Ele projected the company would have about 21% of the SVOD market after the acquisition.
Sarandos described the Warner Bros. as a simultaneous supplier and competitor. The operation would strengthen American entertainment production. Ele committed to maintaining investments in the acquired studios.
Netflix offers the lowest cost per hour served among the main services. The Esse indicator, at 35 cents per hour, compares favorably with rivals like the Paramount. The data reinforces the efficiency of the platform for users.
Details of the announced agreement
The deal was revealed in December 2025 with an initial value of US$82.7 billion. Netflix revised terms in January 2026 to all-cash offering. Essa change accelerated the process and increased certainty for Warner shareholders.
The acquisition covers film studios, HBO and the HBO Max platform. Netflix has committed to preserving theatrical windows for Warner releases. Filmes will remain in theaters for at least 45 days before streaming.
The operation separates the streaming and studio divisions of Warner Bros. Discovery. The rest of the company will remain independent with a focus on other areas. Completion is scheduled for the third quarter of 2026, subject to approvals.
The proposal faces competition from a hostile bid from Paramount. Essa rival seeks total control of Warner Bros. Discovery for higher value. The dispute intensifies regulatory scrutiny over consolidation in the sector.
Competition in the streaming market
The streaming market has multiple large players competing for consumer attention. Plataformas like Disney+, Prime Video and Apple TV+ invest billions annually in original productions. Essa dynamics maintains constant pressure for innovation and quality.
- YouTube’s presence in television views surpasses traditional paid services.
- Tech giants have the financial resources for aggressive expansion.
- Netflix maintains leadership with 301 million global subscribers.
- HBO Max reports around 128 million users ahead of potential integration.
- Cost per hour assisted favors efficient models such as the Netflix.
Consolidation does not eliminate established rivals in digital entertainment. Serviços free with ads gain ground among price-sensitive audiences. Previous fragmentation of content has driven multiple subscriptions among households.
Next regulatory steps
Departamento of Justiça conducts in-depth review of Netflix’s proposal. Analistas point to antitrust concerns as the main obstacle to approval. The company negotiates terms to mitigate risks identified by regulators.
Senators emphasized protections for workers and content creators. Sarandos ensured maintenance of operations at the Warner studios. The promise includes creating American jobs in the entertainment sector.
Comparison with previous mergers
Cases such as the acquisition of Activision Blizzard by Microsoft serve as a reference in the debate. Naquele process, initial promises contrasted with later readjustments in Game Pass. Parlamentares use the example to question Netflix’s commitments.
Other operations in the sector have faced similar scrutiny over final prices. Consolidation tends to concentrate bargaining power with producers. Reguladores seek a balance between scale and healthy competition.
