Disney CEO Says Warner Bros. Deal Could Give Netflix ‘Pricing Leverage’ 

Disney CEO Bob Iger has weighed in on Netflix’s bid to acquire Warner Bros. Discovery. Speaking in a recent interview, Iger said regulators would need to consider how such a large deal might affect subscription costs, consumers, and the overall media market.

Bob Iger says Netflix Warner Bros. deal ‘might not necessarily be healthy’ for consumers 

Disney CEO Bob Iger has voiced reservations about the newly announced licensing arrangement between Netflix and Warner Bros in an interview on CNBC’s Squawk Box. The executive suggested that this collaboration could carry significant implications for both industry competition and consumers. 

According to Iger, one of the primary issues regulators should examine is how the acquisition could influence consumer costs. He explained, “Will one company end up with pricing leverage that might be considered a negative or damaging to the consumer? And with a significant amount of streaming subscriptions across the world, really, does that ultimately give Netflix pricing leverage over the consumer that it might not necessarily be healthy?” (via Variety)

The Disney CEO also emphasized that any review of the deal should also account for its industry impact. According to him, regulators would need to assess potential consequences for “the creative community” as well as for the entire film and television ecosystem.

Iger avoided commenting on whether a merged Netflix and Warner Bros. organization would pose new challenge to Disney. When asked if such a deal would make Netflix a “more serious competitor,” he replied, “I’d rather not say anything more than I have said.” Commenting on the battle between Netflix and Paramount Skydance, he said, “It’s nice to be an observer and not a participant in this.”

Netflix announced its 82.7 billion dollar proposal on December 5, which includes Warner Bros. studios and HBO Max. The situation grew more complicated earlier this week when Paramount Skydance countered with a hostile takeover attempt valued at 108 billion dollars.

Source: Comingsoon.net