In particularly tense moments during a congressional hearing on Tuesday, a handful of Senate Republicans grilled Netflix co-CEO Ted Sarandos on the streaming platform’s “woke” content as the executive tried making the case for his company’s merger with Warner Bros. Discovery.
Sen. Josh Hawley (R-MO) directly asked Sarandos about Netflix’s promotion of transgender ideology in children’s programming, claiming nearly half of such shows contain such content.
“Netflix has no political agenda of any kind,” Sarandos answered, later saying the accusations were “inaccurate” and that Netflix has “millions of hours of children’s programming.”
Sen. Eric Schmitt (R-MO) raised the same point while alleging Netflix demonstrates political bias based on its employees’ past donations toward the Democratic Party. Over 99% of employee contributions went toward Democrats during the 2024 election cycle, according to reports.
Sen. Ashley Moody (R-FL) questioned Sarandos on overly sexualized content in “Cuties,” a particularly controversial film released by Netflix in 2020 that depicted young girls in a twerking dance crew.
Sarandos repeatedly defended his company while answering questions about cultural issues, which were beside the point of the antitrust hearing.
Sen. Mike Lee (R-UT), chairman of the Senate Judiciary Committee’s antitrust subcommittee, held the public hearing Tuesday afternoon to hear directly from executives of the two merging parties.
Sarandos was joined on the witness stand by Warner Bros. Chief Revenue and Strategy Officer Bruce Campbell, who likewise tried to sell the pending merger to senators.
Antitrust experts are increasingly voicing their opposition to the heavily scrutinized deal.
University of Utah economics professor Hal Singer penned an essay in December, explaining why the deal should be blocked by federal antitrust enforcers. He argues the merger would further consolidate market power in the subscription video-on-demand space, thereby reducing competition.
“It certainly raises the traditional concerns of a horizontal merger,” Singer told the Washington Examiner, referencing the combination of two companies in the same industry. “You got the No. 1 and No. 4 [streaming services] in an industry combining. That should set off alarm bells.”
Sarandos maintains the deal is vertical, not horizontal, because Warner Bros. has assets that Netflix doesn’t currently have. To Sarandos’s point, Campbell said Netflix doesn’t have the same “type of film studio and film distribution infrastructure” as Warner Bros.
The Department of Justice, particularly its Antitrust Division, and the Federal Trade Commission are the bodies with the power to approve the merger. Neither has commented on the deal yet.
President Donald Trump said he would be involved in the regulatory process and suggested he opposes Netflix in its quest to purchase Warner Bros.
Singer said he believes that while Lee may be trying to prompt the DOJ toward taking action, the department’s ultimate decision to challenge the merger likely won’t be influenced by the hearing.
A recent report from the Digital Progress Institute warned that the “unlawful” and “anticompetitive” merger will impose higher streaming prices for consumers, which the think tank argued is why the deal should be blocked by federal regulators.
The report was co-authored by DPI President Joel Thayer, who aligns with Trump’s policy goals, and former Colorado Rep. Ken Buck, a vocal GOP Trump critic for almost a decade in Congress.
Paramount Skydance is actively pursuing a hostile takeover of Warner Bros. as the up-for-sale studio sticks with the bid made by Netflix. As of now, it is unlikely Paramount’s efforts will be successful.
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A hypothetical Paramount-Warner Bros. acquisition would also present antitrust concerns, but their combined market share wouldn’t be as big compared to the deal with Netflix. Paramount+ is the fifth-largest streaming service globally, whereas Netflix tops the streaming market. HBO Max and Discovery+, the streaming services owned by Warner Bros., rest in fourth place.
Paramount CEO David Ellison declined an invitation from Sen. Cory Booker (D-NJ), ranking member of the antitrust panel, to Tuesday’s hearing. Booker called Ellison’s absence “frustrating.”