Netflix tells users to cancel if costs rise after HBO Max merge

Netflix Co CEO Ted Sarandos has defended the company’s recent price increases while addressing concerns about affordability during a high profile Senate hearing in Washington. The comments were delivered on February 3, 2026 at the Dirksen Senate Office Building during a session held by the Senate Judiciary Committee Subcommittee on Antitrust, Competition Policy and Consumer Rights.

Lawmakers questioned Sarandos on whether a proposed deal involving Warner Bros Discovery assets could place further pressure on household budgets. The streaming executive argued that Netflix continues to operate in a competitive environment and said that previous price rises had been paired with expanded content investment and platform upgrades. When pressed by Senator Amy Klobuchar on how Netflix plans to keep subscriptions affordable, Sarandos replied, "We are a one click cancel, so if the consumer says that is too much for what I am getting, they can cancel with one click."

The remark was intended to underline Netflix’s position that customers retain control over their spending. Sarandos also stated that the company is in active discussions with the US Department of Justice regarding safeguards tied to pricing policies should the merger move forward. He insisted that the transaction would not create dangerous market concentration and would allow Netflix to offer a wider range of films and series under one platform.

During the hearing, Sarandos highlighted data showing a large overlap between Netflix and HBO Max audiences. He told senators that around eighty percent of HBO Max subscribers already hold a Netflix account, suggesting that combined services would not force customers into paying for duplicate subscriptions. He further pointed to strong competition from technology giants and digital video platforms, arguing that streaming viewers continue to have multiple choices when deciding where to spend their money.

The price debate follows Netflix’s January 2025 subscription increase, which drew attention across the entertainment industry. At the time, the company reported continued growth in subscriber numbers despite the adjustment. Sarandos used this as evidence that customers still view Netflix as a strong value option when compared with rival services.

Regulatory scrutiny remains intense as lawmakers examine how future pricing decisions could affect families already facing rising living costs. Officials confirmed that further hearings and reviews will take place before any final decision is made on the proposed transaction.