Netflix (NFLX) has made the case that bundling its service with Warner Bros Discovery’s (WBD) HBO Max would lower costs for consumers, two people familiar with the streaming giant’s proposal told Reuters.
According to Netflix (NFLX), the proposed streaming bundle could cost less than individual subscriptions to either services.
This pitch is aimed at addressing potential regulatory concerns that combining the two streaming platforms would reduce consumer choice and raise prices.
Netflix (NFLX) reportedly submitted a mostly cash offer for Warner Bros. Discovery’s (WBD) streaming and studio business.
If its bid is successful, the deal would significantly expand Netflix’s (NFLX) movie and television library.
But combining the two streaming services may not radically expand its market share as most HBO Max customers also subscribe to Netflix, sources told Reuters.