Netflix’s Sarandos: Our Rivals Are ‘Deep-Pocketed Tech Companies Trying to Run Away With the TV Business’
Netflix co-CEO Ted Sarandos defended the streamer’s $83 billion Warner Bros. deal during testimony to the Senate Judiciary’s subcommittee on antitrust, competition policy, and consumer rights on Tuesday.
The pending acquisition has raised concerns among lawmakers on both sides of the political aisle about Netflix’s dominance in the streaming market, as well as the potential impact to consumer prices, jobs in Hollywood and the theatrical business.
In his opening statement, Sarandos argued that the deal would “strengthen the American entertainment industry, preserve choice and value for consumers and create opportunities for creators.”
He touted more than 155,000 American jobs created by Netflix productions and said that $225 billion has been contributed to the U.S. economy. He also committed to maintain the 45-day theatrical window and also looked to reframe the competition conversation around pressure from the likes of YouTube.
“TV and film have never been more competitive than they are today, and this deal will not change that. Our goal is to win the moment of truth. That’s when Americans sit on their couch, pick up the remote control and decide what to watch. That’s where we compete today,” Sarandos said. “Consumers can easily choose between broadcast and cable, like CBS and so many other networks and streamers like Netflix, Disney+, HBO Max, Peacock, Paramount+, Tubi. That also includes deep pocketed tech companies who are trying to run away with the television business. Companies like Google’s YouTube, Amazon Prime Video and Apple.”
Sarandos pointed to YouTube’s dominance in TV viewership tracked by Nielsen as well as their NFL rights, exclusive deal with the Oscars and a deal with the BBC to produce original programming.
“Some of their creators have bigger budgets than typical Hollywood television shows. YouTube is not just cat videos anymore. YouTube is TV,” Sarandos added. “This explains why Netflix, with all of our success, are only about 9% of TV viewing time in the in the US. With Warner Brothers, we will be about 10%.
Despite being the industry leader with 325 million subscribers, Sarandos also noted that the overlap between Netflix and HBO Max is around 80%.
“This deal keeps one of the most iconic Hollywood Studios healthy and competitive,” Sarandos concluded. “Warner and Netflix together will create value for consumers, more opportunities for the creative community, and more American jobs.”
More to come….
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