Netflix, Warner Bros Discovery combo seen lowering costs for consumers, sources say
Netflix opens new tab proposed acquisition of Warner Bros Discovery's (WBD.O), opens new tab studios and streaming unit is expected to reduce streaming costs for consumers by bundling Netflix and HBO Max, according to two people familiar with the proposal, News.Az reports, citing Reuters.
In recent talks with Warner Bros Discovery, Netflix said the potential combination of its streaming service with HBO Max would benefit consumers by lowering the cost of a bundled offering, the sources familiar with the discussions told Reuters. They requested anonymity to discuss confidential negotiations.
Netflix’s argument seeks to address potential regulatory concerns that combining one of the nation’s leading subscription video streaming services with a top rival would reduce consumer choice and raise prices, the sources said. The services are not currently offered as a bundle by either company.
Warner Bros Discovery has been exploring a sale of all or part of its business, which includes film and television studios, cable networks such as HBO and CNN, and the HBO Max streaming service.
Reuters reported in October that Netflix was actively exploring a bid for Warner Bros Discovery's studio and streaming business, a tie-up that was seen as potentially reshaping the streaming landscape. Now, by framing the acquisition as pro-consumer, Netflix aims to build a case that the deal should withstand a potential regulatory challenge, according to the sources.
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