Netflix defends Warner Bros deal as senators question competition and content

New Delhi: Netflix co-chief executive Ted Sarandos faced intense scrutiny from US lawmakers as he appeared before the Senate subcommittee on antitrust, competition policy, and consumer rights over the streamer’s proposed $82.7 billion acquisition of Warner Bros Discovery.

Opening the hearing, subcommittee chair Senator Mike Lee warned that the deal could fundamentally reshape the competitive landscape. “The merged firm would have both the incentive and the ability to put rivals at a disadvantage,” Lee said, adding that the acquisition could “further entrench Netflix’s dominance” by eliminating competition from HBO Max.

Sarandos, however, framed the merger as essential in an increasingly crowded streaming market. “With WBD, we’re going to create more economic growth and more value for consumers,” he said.

“We will give consumers more content for less. We’re buying a company that has assets we do not, and we will keep investing in Warner Bros.”

Concerns around job losses, a familiar fallout of past media mergers, featured prominently in the questioning. Acknowledging industry scepticism, Sarandos said that “most media mergers have fared poorly” but insisted that this deal would be different. “This media merger will be different from any of the others because we actually need these people.”

Responding to a question from Democratic senator Adam Schiff on layoffs, Sarandos sought to reassure employees across the industry. “We’re going to operate the Warner Bros studio largely as it is today,” he said.

The hearing also veered sharply into cultural and political territory. Republican senator Josh Hawley questioned Sarandos on Netflix’s programming choices, saying he reviews the platform’s content for his children because “I don’t have confidence in what’s on your platform.” Hawley alleged that “an enormous amount of your children’s programming has this ideology in it”, asking, “Why is it that so much of Netflix content for children promotes a transgender ideology?”

Sarandos rejected the charge, stating that “Netflix programming has no agenda of any kind,” and added, “We feature a wide variety of stories and programs to meet a wide variety of tastes.”

Hawley remained unconvinced. “My concern is that you don’t share my values or that of many American parents,” he said. “I think we ought to be concerned about what content you’re promoting.”

That line of attack was echoed by Senator Eric Schmitt, who accused Netflix of ideological bias and said, “The overwhelming majority of your stuff is overwhelmingly woke.” Sarandos pushed back again, saying, “We have no political agenda. We have a great deal of programming on Netflix, left, right and centre.”

Beyond content and competition, lawmakers also questioned the political context surrounding the deal. Senator Cory Booker raised concerns about executive influence and regulatory fairness, noting, “I do not trust this administration in their evaluations.” Booker also criticised the absence of Paramount Skydance CEO David Ellison from the hearing, saying, “The absence of having Paramount Skydance here is frustrating.”

Pressed about his interactions with former president Donald Trump, Sarandos acknowledged that he had met him “a few times”, adding that while the discussions were largely about the entertainment industry, “of course he asked how the deal is going.”

Sarandos defended the engagement, saying, “I think the president, from my experience, has been nothing but interested in protecting and creating American jobs.”

Despite mounting criticism from anti-monopoly groups and lawmakers on both sides of the aisle, Sarandos expressed confidence in the regulatory process. He said the review “will be run on the merits” of the Department of Justice.

The acquisition, announced in early December and later revised to an all-cash offer, remains under intense scrutiny from US and international regulators as Netflix seeks to reshape the future of the global entertainment business.