Disney CEO Warns of Streaming Market Risks from Netflix-Warner Bros. Merger

Disney CEO Bob Iger has expressed serious concerns over the potential merger between Netflix and Warner Bros. Discovery, warning that it could create pricing dangers for consumers. In an interview with CNBC, Iger emphasized the need for regulators to closely examine the merger's impact on consumer pricing leverage, questioning whether such a union would be detrimental to consumers.

He highlighted that giving a significant theatrical film producer to a streaming service could harm theaters, which operate on thin margins and depend on successful interactions with film companies to monetize effectively.

Iger noted Disney's history with a strong box office, mentioning that the company has released 33 billion-dollar films in the last 20 years, underscoring the importance of protecting the health of the theatrical business.

Meanwhile, Netflix CEO Ted Sarandos has stated that if the merger goes through, his company would remain committed to releasing Warner Bros. films in the same manner as before. Iger also indicated that Disney has not yet decided whether to formally advocate for or against the merger to regulators and refrained from commenting on whether Netflix would become a significant competitor to Disney if the acquisition proceeds.

This comes as Paramount has made a higher hostile takeover bid for Warner Bros., which the company is currently considering. The outcome of the Netflix-Warner Bros. deal remains uncertain as discussions continue.