Netflix says users can cancel service if HBO Max merger makes it too expensive

"There is concern that subscribers might be negatively affected if Netflix acquires Warner Bros. Discovery's (WBD's) streaming and movie studios businesses. One of the biggest fears is that the merger would lead to higher prices due to Netflix having less competition. During a Senate hearing today, Netflix co-CEO Ted Sarandos suggested that the merger would have an opposite effect."

"Netflix and Warner Bros. both have streaming services, but they are very complementary. In fact, 80 percent of HBO Max subscribers also subscribe to Netflix. We will give consumers more content for less."

"Sarandos said the streaming industry is still competitive. The executive claimed that previous Netflix price hikes have come with 'a lot more value' for 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 asserts the proposed acquisition of Warner Bros. Discovery's streaming and movie studios businesses would expand complementary offerings and lower consumer costs. Netflix reports 301.63 million subscribers as of January 2025; Warner Bros. Discovery accounts for about 128 million streaming subscribers including HBO Max and Discovery+. The company highlights that roughly 80 percent of HBO Max subscribers also subscribe to Netflix and promises more content for less. Netflix characterizes the streaming market as competitive, states past price increases delivered more value, and emphasizes one-click cancellation as consumer protection. Concerns remain that reduced competition could still drive higher prices.

Read at Ars Technica