NETFLIX PITCHES BUNDLE WITH HBO MAX AS “PRO-CONSUMER”

Netflix is telling regulators and counterparties that its proposed acquisition of Warner Bros Discovery's studios and streaming unit would lower streaming bills for many households by paving the way for a discounted Netflix-HBO Max bundle, according to people familiar with the talks.

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In recent discussions with Warner Bros Discovery, Netflix has argued that combining one of the largest subscription video services with a major rival could be presented as a benefit to customers if the companies package their offerings at a lower price than two separate subscriptions, the sources said. They added that the services are not currently bundled by either company.

The positioning is central to how Netflix is preparing for scrutiny in Washington and from competition authorities. A tie-up between Netflix and the owner of HBO, CNN and one of Hollywood's most storied studios would immediately draw questions over market power and content concentration. By emphasizing the potential for cheaper bundles rather than higher prices, Netflix is building an early narrative that the combination should not be seen as a conventional consolidation that reduces choice.

Warner Bros Discovery has been evaluating strategic options, including the sale of all or parts of its business, as it wrestles with debt, a shifting TV landscape and the capital demands of streaming. Its portfolio includes the HBO Max streaming service, the Warner Bros film and television studios, cable channels such as HBO and CNN, and a deep library that spans DC Comics titles and long-running franchises. Netflix has submitted a mostly cash offer for the studios-and-streaming package, according to earlier reporting, and remains one of several bidders vying for the assets. The negotiations are confidential, and both Netflix and Warner Bros Discovery have declined to comment publicly.

BIDDING WAR PITS NETFLIX AGAINST PARAMOUNT SKYDANCE AND COMCAST