OPINION:
For decades, America’s economic consensus has rested on a simple idea: Markets work best when consumers have real choices and the government avoids picking winners and losers. That principle should guide evaluation of the proposed Netflix-Warner Bros. Discovery merger.
Skepticism toward large corporate deals is understandable and often healthy, but reflexive opposition isn’t policy. The real question is whether this transaction benefits consumers, strengthens U.S. competitiveness and respects the free market without unnecessary political interference. On balance, it does all three.
Start with the consumer experience. Streaming was supposed to simplify entertainment and lower costs. Instead, households now juggle multiple subscriptions, rising prices and fragmented platforms just to watch the content they want.
A Netflix-Warner Bros. combination would bring two complementary libraries together, giving consumers more content in fewer places and creating opportunities for lower-cost bundles. Today, more than 75% of HBO Max subscribers already pay for Netflix, effectively paying twice for related content. A combined offering would deliver more value for less.
Scale matters in a capital‑intensive industry. Production, licensing and marketing costs add up quickly. Netflix currently licenses Warner Bros. content; eliminating those internal transactions would free up resources to invest directly in new movies and shows rather than middlemen. This efficiency is how competitive markets deliver better outcomes for consumers.
Critics argue that consolidation inevitably raises prices, but that assumption ignores today’s entertainment landscape. Even after a merger, the combined company would face intense competition from Amazon Prime Video, Apple TV+, Disney+, Peacock, Paramount+ and fast‑growing, ad‑supported platforms. Add social media platforms that command enormous viewer attention, and it becomes clear that no single company controls this market.
There’s also a strong case for American workers and local economies. Warner Bros. remains a major employer and creative engine supporting tens of thousands of jobs nationwide. Netflix has a proven record of U.S. investment, including nearly $1 billion in production infrastructure in New Mexico. Combined scale and sustained demand for content mean more production, not less.
Finally, we should consider the global context. Entertainment is a strategic industry, and foreign competitors are expanding rapidly. Blocking this deal wouldn’t protect consumers; it would weaken American companies competing on a global stage. That outcome is the opposite of putting America first.
RYAN COSTELLO
Former member of Congress, Pennsylvania’s 6th Congressional District (2015-2019)
Malvern, Pennsylvania
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