While Sarandos faced a few questions regarding the deal\u2019s impact to consumers \u2014 he argued \u201cwe will give consumers more content for less,\u201d pointing out that 80% of HBO Max subscribers also have a Netflix subscription \u2014 as well as the effect on competition in Hollywood.<\/b>
\nTed Sarandos walked into a Senate antitrust hearing on Tuesday to ostensibly assuage any competition concerns with the streaming giant\u2019s $87 billion deal to buy Warner Bros. What ended up happening was a largely meandering two-hour grievance fest that saw multiple Senators focus on anything but how Netflix buying the storied studio would impact Hollywood writ large.
While Sarandos faced a few questions regarding the deal\u2019s impact to consumers \u2014 he argued, \u201cwe will give consumers more content for less,\u201d pointing out that 80% of HBO Max subscribers also have Netflix subscriptions \u2014 as well as the effect on competition in Hollywood.
In one memorable moment, Sarandos argued that after the deal they\u2019ll still have separate teams for HBO and Netflix to bid for content. That prompted Sen. Peter Welch to respond bluntly: \u201cIt\u2019s hard for me to understand that if there are fewer buyers it\u2019s going to result in more content.\u201d
In his opening remarks, Sarandos previewed one of the main arguments Netflix will give regulators during what\u2019s expected to be a lengthy and bruising approval process: They need to scale up to compete with \u201cdeep-pocketed tech companies trying to run away with the TV business,\u201d like YouTube and Amazon. (We don\u2019t need to point out the irony of a Netflix exec using that line.)
But the majority of the hearing saw Sarandos defend Netflix\u2019s content from accusations of promoting a transgender ideology to children with zero parental safeguards, for being \u201cthe wokest content in the history of the world,\u201d and for employing former Obama official Susan Rice on its board. (P6H told you recently on how the streamer\u2019s deal with the Obamas has drawn the ire of President Trump.)
Senator Ted Cruz summed up his argument that consumers cannot \u201cfeel even remotely confident that if this merger happens, the combined entity would not simply be a propaganda outlet pushing one particular political view with much greater market power than you have now.\u201d
Sarandos was also asked if he agreed with Billie Eilish\u2019s quote that, \u201cno one is illegal on stolen land\u201d at the Grammys, to which he replied that he has \u201cno idea of the history of land.\u201d
Despite the visible discomfort that Sarandos showed throughout the hearing, we\u2019re willing to bet that Netflix would much rather have had this session focused on programming content and Grammy quotes than the actual antitrust implications of Netflix buying one of its biggest streaming competitors, and reducing the number of independently owned major studios.<\/p>\n