Netflix pitches HBO Max bundle to ease regulatory concerns

Netflix is pitching regulators on a bundled Netflix and HBO Max offering that would cost less than subscribing to the services separately as part of its approximately $70 billion bid for Warner Bros Discovery’s studio and streaming assetstribune.

The streaming giant aims to address regulatory concerns that merging two major platforms could limit consumer choice and raise prices, though sources say most HBO Max subscribers already have Netflix, limiting the deal’s market share impacttribune.

Netflix faces mounting political opposition, including warnings from Rep. Darrell Issa that the deal would give the company excessive control over Hollywood, while rival bidder Paramount Skydance has complained the sales process appears “tilted and unfair” in Netflix’s favortribune.

Netflix Pitches Bundled HBO Max Service to Regulators in Warner Bros Bid

Netflix has told Warner Bros Discovery and regulators that combining its streaming service with HBO Max would benefit consumers by lowering costs through bundled pricing, according to sources familiar with the proposal reported this week. The argument is designed to address potential regulatory concerns that merging two major streaming platforms could limit consumer choice and raise prices.tribune

In recent discussions with Warner Bros Discovery, Netflix said a combined offering would cost less than subscribing to the two services separately, sources told Reuters. The two services are not currently offered as a bundle by either company. Netflix submitted a mostly cash offer valued at approximately $70 billion for Warner Bros Discovery’s studio and streaming operations following a December 1 deadline for second-round binding bids.reuters

Political Headwinds Mount

The streaming giant has emerged as the frontrunner in the bidding war but faces mounting political opposition. Senior White House officials held a closed-door meeting approximately ten days ago to discuss antitrust concerns about whether the deal would give Netflix “too much power over Hollywood,” according to sources. If Netflix wins the bid, the deal could trigger a sweeping, multiyear investigation by the Department of Justice’s antitrust division led by Trump appointee Gail Slater.yahoo

Rep. Darrell Issa sent a letter to Attorney General Pam Bondi and DOJ antitrust chief Gail Slater warning that Netflix already “wields unequaled market power” and that combining with HBO Max would push the entity to about 30 percent of the streaming market. The deal would merge Netflix’s 300 million subscribers with HBO Max’s 128 million, though sources familiar with the matter said most HBO Max subscribers already have Netflix, limiting the deal’s impact on market share.247wallst

Competitive Landscape

Netflix competes against bids from Paramount Skydance and Comcast. Paramount Skydance is the only bidder seeking to acquire all of Warner Bros Discovery, including its cable networks, while Netflix and Comcast are focused solely on the studio and streaming assets. Paramount Skydance sent a letter to Warner Bros Discovery CEO David Zaslav on Monday complaining the sales process appears “tilted and unfair” and favors Netflix. Sources told the New York Post that Netflix CEO Ted Sarandos and Zaslav share a close relationship.247wallst