Netflix's Ted Sarandos grilled in Senate hearing

Netflix Inc. Co-Chief Executive Ted Sarandos pledged nether oath to support a 45-day theatrical model for Warner Bros. films during a Senate subcommittee proceeding Tuesday.

Sarandos besides tried to dampen concerns astir imaginable occupation losses and U.S. accumulation declines related to the companies’ projected multibillion-dollar deal.

During a two-hour proceeding earlier the Senate Subcommittee connected Antitrust, Competition Policy and Consumer Rights, Sarandos told lawmakers the projected merger would not tally afoul of antitrust concerns and would, instead, “strengthen the American amusement industry.”

About 80% of HBO Max subscribers besides person Netflix subscriptions, which helium said showed the 2 services were “complementary.” Netflix besides plans to summation its movie and tv accumulation spending to $26 cardinal this year, with a bulk of that happening successful the U.S., helium said.

“We are doubling down, adjacent arsenic overmuch of the manufacture has pulled back,” Sarandos said, according to a written transcript of his opening remarks. “With this deal, we’re going to increase, not reduce, accumulation investments going forward, supported by a stronger combined concern and equilibrium sheet.”

Sarandos was joined astatine the proceeding by Warner Bros. Discovery Chief Revenue and Strategy Officer Bruce Campbell.

When asked by Sen. Adam Schiff (D-Calif.) whether senators should expect a “round of layoffs” oregon user terms increases arsenic a effect of the deal, Campbell said no. He pointed to Netflix’s deficiency of comparable movie and TV studios, oregon the organisation infrastructure that Warner Bros. has.

“We believe, based connected our discussions with them successful the dialog process, that they’re not lone going to support those operations intact, successful fact, they’re going to put successful those operations and put successful continued production, including connected our tons successful Burbank and elsewhere,” Campbell said.

Paramount Chief Executive David Ellison was besides invited to look arsenic a witness, but declined due to the fact that helium did not judge it would beryllium utile oregon adjuvant since the company’s bid for Warner had been rejected, Sen. Cory Booker (D-N.J.) said during the hearing. Ellison did, however, conscionable with him and different senators privately to reply questions, Booker said.

Sarandos besides tried to assuage concerns astir the deal’s imaginable effect connected theatrical distribution.

“I cognize I’ve earned immoderate skepticism implicit determination implicit the years connected this due to the fact that I was talking a batch astir Netflix’s concern model, which was antithetic from that,” helium said. “We didn’t ain a theatrical distributor before. We bash now, and a large one.”

When asked if the 45-day model would beryllium “self-enforced,” Sarandos agreed, saying that was an manufacture standard. He did, however, enactment the wide caveat that “routinely, movies that underperform, the model moves a small bit” but is inactive referred to arsenic a 45-day window.

And successful a motion of the increasing relation authorities has played successful the cognition of the deal, Sarandos tried to sidestep questions from Republican senators astir perceived “woke” contented connected the streaming platform, arsenic good arsenic inquiries from Booker astir President Trump’s engagement successful the merger. Trump antecedently said helium “would beryllium involved” successful his administration’s determination to o.k. immoderate deal.

The proceeding comes conscionable 2 months aft Netflix prevailed successful a hotly contested bidding warfare for Warner Bros. The $72-billion woody would dramatically reshape the Hollywood scenery and springiness the streamer power implicit Warner Bros.’ storied Burbank movie and TV studios, its lot, HBO and HBO Max.

Netflix besides agreed to instrumentality connected much than $10 cardinal successful Warner Bros. debt, pushing the endeavor worth of the transaction to $82.7 billion.

But Paramount has continued to prosecute the company, warring to get each of Warner Bros. Discovery, including its cablegram networks.

The company, led by Ellison, has made a nonstop entreaty to Warner shareholders to tender their shares successful enactment of a Paramount deal. A deadline for that connection was precocious extended to Feb. 20.

Paramount has besides filed proxy materials to inquire Warner shareholders to cull the Netflix woody astatine an upcoming shareholders meeting.