Netflix: Public will gain from WB deal

Netflix’s proposed acquisition of Warner Bros Discovery's 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.

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The Netflix logo and an advertisement for Stranger Things on the Netflix offices in Los Angeles on Tuesday.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.