When a company starts preemptively telling customers they're free to cancel, you know the messaging is going great.
Netflix is attempting to sell its proposed acquisition of HBO Max to subscribers and regulators with a pitch that can be summarized as: "Don't worry, you can always leave." According to Ars Technica, the streaming giant is arguing that the merger will actually deliver more content for less money, while simultaneously acknowledging that if prices do rise, well, the cancel button is right there.
It's the corporate equivalent of saying "No pressure!" while very obviously applying pressure.
Let's be clear about what's happening here. Netflix wants to absorb HBO Max—home to Succession, the DC library, Christopher Nolan's films, and basically everything that makes Warner Bros. Discovery relevant in streaming. It's a massive consolidation play that would create an even more dominant player in an already consolidated market.
And yes, in theory, combining libraries could mean subscribers pay for one service instead of two. But when has consolidation in the entertainment industry ever led to lower prices? Disney bought Fox and prices went up. Discovery merged with Warner Media and started deleting shows from existence to save on residuals. The pattern is clear.
Netflix's defensive messaging reveals they know this. They're aware that subscribers are already price-sensitive—hence the piracy boom we're seeing (see: our lead story). They understand that stacking another price increase on top of the recent password-sharing crackdown could be the breaking point for millions of users.
