Bob Iger Warns of Netflix's Potential Impact on Streaming Prices

Disney CEO Bob Iger has expressed significant concerns regarding the potential acquisition of Warner Bros. Discovery by Netflix. In an interview with CNBC, he emphasized the need for regulators to carefully consider the ramifications for consumers, particularly regarding pricing leverage.

Iger questioned whether a merger could negatively impact pricing dynamics in the streaming market, which could ultimately harm consumers. He also highlighted the potential adverse effects on theaters, which operate on thin margins and rely on partnerships with studios to monetize films effectively.

Iger stated, 'If I were a regulator looking at this combination, I'd look at a few things... Will one company end up with pricing leverage that might be considered a negative or damaging to the consumer?' While Netflix CEO Ted Sarandos reassured that a merger would not destroy the value of theatrical releases, Iger’s apprehensions reflect broader anxieties within the industry about consolidation and its impact on the media ecosystem.

Disney has yet to decide whether it will formally address the Netflix-Warner Bros. deal with regulators.