Netflix Could Be Making Streaming Cheaper For Everyone

Netflix CEO Ted Sarandos has claimed that the company's proposed acquisition of Warner Bros. Discovery would make streaming cheaper and more efficient.

The streamer has offered WBD an all-cash bid of 83% for its acquision, which would include Warner Bros. subsidiaries such as HBO Max. The bid has been accepted by WBD, meaning the company will be bought out later this year unless rival studio Paramount can counter and disrupt the shareholders. But what does this mean for Netflix prices?

Netflix & HBO Could Become A Cheaper Combined Package

If you're paying for Netflix and HBO Max, it seems very likely that the acquisition could end up saving you some money. During a US Senate hearing on Tuesday, Sarandos promised that Netflix will give "more content for less" following the deal.

It's unclear whether this means that HBO's content will simply be moving to Netflix, or if there's going to be a combined subscription that gives access to both catalogues for a reduced price, but consumers shouldn't have to pay for both services at full price anymore.

Netflix is already the leading streaming service in the business, with over 300 million subscribers across the world. The company has faced harsh criticism over recent years for repeatedly raising subscription prices and introducing ad-free tiers, so a combined package could bring the streamer back to an affordable level for many users.

Sarandos claims that 80% of HBO Max subscribers also pay for Netflix, so bringing the two packages together is a mutually beneficial decision for everyone. Additionally, the acquisiton would give Netflix the funds to invests in higher-quality shows and movies, rather than both companies having half as much money.

Crucially, Netflix's acquisition of WBD isn't finalized yet. Not only is Paramount looking to launch a hostile takeover bid and employ their own stakeholders on WBD's board, but the proposal also has to pass through heavy regulation from the U.S. Senate.