Bob Iger: Netflix-WB Deal Could Provide Streamer with Excessive Pricing Power

Disney CEO Bob Iger recently commented on Netflix’s potential deal with Warner Bros., suggesting it may give the streaming giant some pricing leverage that could have negative effects on consumers. Speaking on CNBC’s “Squawk Box,” Iger highlighted possible regulatory concerns with Netflix’s proposed $83 billion acquisition of Warner Bros.’ film and TV studios and HBO Max.

From a regulatory standpoint, Iger indicated that the impact on consumers should be a primary consideration. He raised concerns about one company gaining pricing power that could be detrimental to consumers. With a significant number of streaming subscriptions globally, there is a possibility that Netflix could have an unhealthy level of pricing leverage over consumers.

Iger emphasized the importance of evaluating the implications on the creative community and the television and film ecosystem as a whole. He pointed out that movie theaters, which distribute Disney films worldwide, operate on narrow profit margins and depend on volume and audience engagement to thrive.

While Iger has not taken a definitive stance on whether Disney will support or oppose the Netflix-Warner Bros. deal, he emphasized the need to consider the potential repercussions for consumers, the creative industry, and the entertainment ecosystem as a whole.