Netflix’s push to swallow Warner Bros Discovery landed squarely in the hot seat on Tuesday, with U.S. senators pressing the company’s leadership on whether the proposed mega-deal would shrink competition and reshape Hollywood on Netflix’s terms.
At a Senate antitrust hearing, Netflix co-CEO Ted Sarandos appeared alongside Warner Bros’ chief strategy officer Bruce Campbell to answer pointed questions about the planned $82.7 billion acquisition. Lawmakers made clear they may not have the power to block the deal outright, but they intend to scrutinize how it could ripple through the entertainment ecosystem—from subscription prices to job opportunities for creatives.
The session was led by Senator Mike Lee of Utah, who warned that merging two entertainment heavyweights could narrow choices in the crowded streaming landscape. He raised concerns that fewer platforms could mean fewer jobs for writers, actors and production crews, while also giving Netflix greater leverage to steer major films away from theaters and limit rivals’ access to blockbuster franchises.
At one point, Lee accused Netflix of chasing dominance. The ambition, he suggested, was nothing short of becoming the single platform audiences rely on for everything.
The deal is already under review by the U.S. Department of Justice, which is also weighing a rival—and hostile—offer from Paramount Skydance. Both suitors are eyeing Warner Bros’ prized studios, deep content vault, and globally recognized franchises such as Game of Thrones, Harry Potter, and DC Comics’ superheroes.
Paramount Skydance has argued its proposal would face fewer regulatory hurdles, but Warner Bros has repeatedly turned it down, wary of the heavy debt such a transaction could create. The Paramount bid has also drawn political attention, given the company’s leadership ties to influential figures close to the White House.
Skepticism about the Netflix deal cut across party lines during the hearing. Senator Cory Booker questioned whether political considerations could influence the government’s review, referencing public remarks suggesting presidential involvement. Sarandos responded cautiously, saying he was unaware of any such role.
Netflix, for its part, has leaned on viewing data showing that YouTube commands more TV screen time in the U.S. than any single streaming service. Critics counter that regulators are likely to focus on a narrower market—paid subscription streaming—rather than lumping together vastly different platforms.
That distinction came into sharp focus when senators challenged Sarandos on comparing Netflix’s professionally produced shows with YouTube’s largely ad-supported content. Sarandos acknowledged that detailed viewing breakdowns for YouTube are not publicly available, but insisted the competition for viewers’ attention is unforgiving.
Time spent watching one service, he said, inevitably comes at the expense of another.
As regulators continue their review, the hearing underscored a central question hanging over the proposed merger: whether it represents the next evolution of entertainment—or a step toward a more tightly controlled streaming world.
