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Ted Sarandos Goes to Washington: What Matters as Netflix’s Chief Spars With Skeptical Lawmakers

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Ted Sarandos Goes to Washington: What Matters as Netflix’s Chief Spars With Skeptical Lawmakers


Inside the Capitol Building on Tuesday during Ted Sarandos’ appearance before the U.S. Senate’s antitrust subcommittee sat the Monopoly man, complete with a white mustache, top hat and red bowtie. The message, shared by some consumers and large swaths of Hollywood, to lawmakers was unmistakable: Netflix is poised to become an entertainment behemoth if it’s allowed to complete a $82.7 billion deal for Warner Bros. and HBO.

Just ahead of him was a cadre of Warner Bros. Discovery executives and lawyers in attendance to observe Sarandos’ testimony on the impact of the merger. The battle for the company will almost surely be fought in court, but the hearing turned into something of a legal session, with both Democratic and Republican senators pressing the executive on finer points of the acquisition as they relate to antitrust laws. Of specific interest was the market Netflix operates in, who it competes against and concerns that another media megamerger could undercut labor — key issues that may decide the fate of the deal if the Justice Department sues.

Sarandos appeared confident but friendly and answered questions directly, though he hedged when asked whether he would commit to restoring “full residuals.”

“It’s a very complicated answer,” Sarandos replied. His performance saw Netflix stock remain relatively flat as it continues to decline since the announcement of the deal.

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He pushed a narrative that Netflix buying Warner Bros. will help save a storied Hollywood studio from the “deep-pocked tech companies trying to run away with the TV business.” Those tech firms, he said, are Netflix’s true competitors, name-checking YouTube at several points during his testimony. “YouTube is not just cat videos anymore,” he explained. “YouTube is TV.”

That message was echoed by Warner Bros. Discovery chief revenue officer Bruce Campbell, who went a step further in arguing that Netflix can’t be pigeonholed to film and TV. “Consumers are experiencing a flood of options, including expanded social media platforms, digital and interactive games, and dozens of other entertainment options that compete for consumers’ interest and attention,” he said in his opening remarks.

Sen. Mike Lee (R-UT), chairman of the subcommittee, immediately zeroed in on the issue, saying that YouTube doesn’t produce original content and that the Google-owned company is “not in the same business.”

“They are a subscription service that has ad free and subscriptions options. It’s the exact same content,” Sarandos replied. “When we talk about competition, we’re competing for the same viewers, the same ad dollars and, sometimes, it’s the exact same programming.” The executive referenced the box office success of indie pic Iron Lung from Mark Fischbach (aka Markiplier) of YouTube gaming fame. The movie made nearly $17.9 million domestically and $21 million globally over the Jan. 30-Feb. 1 weekend.

“I’m struggling to grasp how it’s the same exact content,” Lee replied.

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Sarandos didn’t back down, responding that half of all YouTube engagement happens in the living room on the TV. “It’s a zero sum game,” he said. “If you’re watching YouTube, you’re not watching HBO. You’re not watching Netflix.”

If it does get to court, the biggest battleground will be defining the market in which Netflix is a competitor. The company will look to define it as broadly as possible, likely arguing that it competes against the YouTubes and TikToks of the world. By Netflix’s thinking, it’s a competition for time and attention rather than for viewers solely looking to watch movies and TV shows.

The Justice Department, meanwhile, will look to keep the confines of the fight to streaming. A Netflix, Warner Bros. Discovery rollup would give the combined company more than 30 percent of the streaming market according to some measures, a key threshold typically viewed as problematic under antitrust law. Still, it’s a far cry from the 50 percent marketshare benchmark that triggers a presumption of monopoly power by the courts.

At several points in the hearing, Sarandos stressed that Netflix has roughly 9 percent of total TV viewing, behind YouTube and Disney. Sen. Ted Cruz (R-TX) challenged the assertion. “That’s defining the market how you want,” he said. “In the streaming market, what percent do you have of the market.”

Sarandos shot back, “For us, that would be a fantasy construct.”

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When only including streaming services, Netflix accounts for roughly 19 percent of viewing. That figure would increase to around 21 percent if it’s allowed to purchase Warner Bros.

Another avenue the government could pursue to block the deal is a monopsony theory, or whether the combined company would have too much power over creators and talent. Sarandos and Campbell were the only streaming executives who testified, but they were treated as stand-ins for the entire media and entertainment industries, which have seen significant consolidation over the last two decades, slowly whittling away at labor’s leverage.

In a sharp exchange, Sen. Josh Hawley (R-Mo.) asked Sarandos to commit to restoring “full residuals.” Sarandos, appearing slightly flustered, said it’s “very complicated” and that “we prepay,” to which Hawley interjected to say “that’s usually a way of saying no.”

Netflix said in a statement it already pays residuals. “According to the WGA, residuals have reached an all time high of $493.9M (up 5% from ‘20 to ‘23) — streaming accounts for ~45%, of which the lions’ share comes from Netflix,” it said.

Sen. Peter Welch (D-VT) pressed Sarandos, who committed to a 45-day theatrical window, on the fewer paths creators will have for the acquisition of their content with one less company in play.

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Sarandos said Netflix has multiple purchasing arms within the company, including for family, comedy and drama content. “You can pitch to all three teams,” he explained. “One may pass and one may take it.” If the deal is greenlit, the executive said buying entities within Warner Bros. and Netflix will remain independent.

Some of the most aggressive questions came from Sen. Eric Schmitt (R-MO), who pressed Sarandos and Campbell on the companies “promoting DEI and wokeness” while pointing to content that portray vikings and Cleopatra as Black — content that some conservatives have used as examples of Hollywood pushing a political agenda. “Why in the world would we give the seal of approval to make you the largest behemoth in the planet related to content,” he said. “It seems as though you’ve engaged in not only creating content but the wokest content in the history of the world.”

Sarandos asserted that Netflix caters to all viewers, who are an even 40% split of conservatives and liberals.

One notable person absent from the hearing: Paramount CEO David Ellison, who met with lawmakers privately but declined to make an appearance as he pursues a hostile bid for all of Warner Bros. Discovery, according to Booker. The lawmaker said he has “serious concerns” with Paramount’s involvement in the deal due to allegations of “political favoritism” by President Donald Trump.

“Does that strike you as improper,” Booker asked Campbell, referencing Ellison’s meeting with Trump, after which a deal was reached to resolve a lawsuit over a 60 Minutes interview with former vice president Kamala Harris.

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“It was unusual, yes,” Campbell said.



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Caps Fall in Montreal, 6-2 | Washington Capitals

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Caps Fall in Montreal, 6-2 | Washington Capitals


Cole Caufield scored in the first minute of the first period and added another goal later in the frame, sparking the Montreal Canadiens to a 6-2 win over the Capitals on Saturday night at Bell Centre.

Washington entered the game with a modest three-game winning streak and six wins in its last seven games. Although they were able to briefly draw even with the Habs after Caufield’s opening salvo, Caufield and the Canadiens responded quickly and the Caps found themselves chasing the game for the remainder of the night.

“I didn’t mind some of the things that we did tonight,” says Caps coach Spencer Carbery. “I thought we created enough offensively, we just made way too many catastrophic mistakes to be able to sustain that.”

In the first minute of the game, Caufield blocked a Jakob Chychrun point shot, tore off on the resulting breakaway and beat Charlie Lindgren for a 1-0 lead for the Canadiens, half a minute into the contest. Lindgren was making his first start since Jan. 29, following a short stint on injured reserve for a lower body injury he sustained in that game.

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After the two teams traded unsuccessful power plays, the Caps pulled even in the back half of the first. With traffic in front, Declan Chisholm let a shot fly from the left point. The puck hit Anthony Beauvillier and bounded right to Alex Ovechkin, who had an easy tap-in for career goal No. 920 at 13:16 of the first.

But Montreal came right back to regain the lead 63 seconds later, scoring a goal similar to the one Ovechkin just scored.

From the left point, Canadiens defenseman Jayden Struble put a shot toward the net. It came to Nick Suzuki on the goal line, and the Habs captain pushed it cross crease for Caufield to tap it home from the opposite post at 14:19.

Less than two minutes later, Lindgren made a dazzling glove save to thwart Caufield’s hat trick bid.

Midway through the middle period, Montreal went on the power play again. Although the Caps were able to kill the penalty, the Habs added to their lead seconds after the kill was completed; Mike Matheson skated down  a gaping lane in the middle of the ice and beat Lindgren from the slot to make it a 3-1 game at 12:22.

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Minutes later, Montreal netminder Jakub Dobes made a big stop on Aliaksei Protas from the right circle, and Suzuki grabbed the puck and took off in the opposite direction. From down low on the right side, he fed Kirby Dach in the slot, and Dach’s one-timer made it 4-1 for the Canadiens at 16:34 of the second.

In the waning seconds of the second, Dobes made one of his best stops of the night on Beauvillier, enabling the Canadiens to carry a three-goal lead into the third.

Those two quick goals in the back half of the second took some wind out of the Caps, who were playing their third game in four nights following the three-week Olympic break.

“We kill off a penalty, and then we end up going down 3-1right after the penalty,” says Caps center Nic Dowd. “Those are challenging to give up, right? You do a good job [on the kill], it’s a 2-1 game, and then all of a sudden, before you blink, it’s 4-1 and then the game gets away from you.

“And they defended well tonight; It’s tough to score goals in this League, and you go into the third period, and you’ve got to score three. You saw that [Friday] night when we played Vegas; they were able to score two, but it’s tough to get that third one. I think we have to manage situations a little bit better. It’s a 2-1 game on a back-to-back, we just kill a penalty off, or maybe we just have a power play – whatever it is – we have to manage that, especially in an arena like this, where the crowd gets into it on nothing plays. They can really sway momentum – and in a good way – for their home team.

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“We just have to understand that if we don’t have our legs in certain situations, because of travel, it’s back-to-back or whatever, we really have to key into the details of the game and not let things get away from us quickly.

With 7:28 left in the third, Ovechkin netted his second of the game – and the fifth goal he has scored in this building this season – on a nice feed from Dylan Strome to pull the Caps within two goals of the Habs, who have coughed up some late leads this season.

But Montreal salted the game away with a pair of late empty-net goals from Suzuki and Jake Evans, respectively.

In winning six of their previous seven games, the Caps had been playing with a lead most of the time. But playing from behind virtually all night against a good team in a tough building is a tall task under any circumstances. And it was exactly that for the Caps on this night.

“They score on the first shift,” says Strome. “Obviously, Saturday night in Montreal is as good and as loud as it gets. They just got a fortunate bounce; puck was off Caulfield’s leg, and a perfect bounce for a breakaway. It’s just one of those things where we got down early and now they kind of fed off the momentum of the crowd.

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“But I still think our game is in a good spot, and we’ve just got to keep stacking wins. Obviously, we’ve played more games than everyone so we’re going to need some help, but we’ve just got to keep stacking wins. It’s tough on the back-to-back in Montreal, but we’ll find a way to bounce back on Tuesday [vs. Utah at home] and then go from there.”



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The Fallout From the Epstein Files

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The Fallout From the Epstein Files


The Department of Justice is facing scrutiny this week after it was revealed that records involving President Trump were missing from the public release of the Epstein files. On Washington Week With The Atlantic, panelists joined to discuss the ensuing political fallout for the Trump administration, and more.

“The key thing to remember about the Epstein story is that it is a case that has been mishandled for decades. The reason that we’re hearing about this now and why it’s exploding into public view is because, for the first time, Republicans in Congress and Democrats in Congress were willing to openly defy their leadership and call for the release of these files,” Sarah Fitzpatrick, a staff writer at The Atlantic, said last night. “That has never been done before, and I think it really is changing the political landscape in ways that we’re still just starting to learn.”

“What’s been so striking is how many of those very same Republicans who were calling for the release of those files, who had promised to get to the bottom of them, are now saying things that are just the opposite,” Stephen Hayes, the editor of The Dispatch, argued.

Joining guest moderator Vivian Salama, a staff writer at The Atlantic, to discuss this and more: Andrew Desiderio, a senior congressional reporter at Punchbowl News; Fitzpatrick; Hayes; and Tarini Parti, a White House reporter at The Wall Street Journal.

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Watch the full episode here.



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Man charged with shooting co-worker in Washington Heights

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Man charged with shooting co-worker in Washington Heights


A 26-year-old man had an argument with a co-worker before allegedly fatally shooting the colleague in Washington Heights, prosecutors said Friday.

Bobby Martin, who was charged with first-degree murder Thursday, made his first appearance Friday in Cook County court.

Martin, is accused of killing his co-worker, Antoine Alexander, 32, in a parking lot at 9411 S Ashland Ave about 3:30 p.m. on Tuesday, according to Chicago police.

Prosecutors said Martin and Alexander worked together at an armed security company and got into a verbal altercation inside the guard shack on Tuesday afternoon. During the altercation, prosecutors said Alexander removed his bullet proof vest and threw it to the ground. A witness, another co-worker, then told the defendant and the victim to take the altercation outside.

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After stepping outside, the defendant pulled his firearm and fired one shot into the victims abdomen, prosecutors said. The victim’s firearm was holstered at the time of the argument and the shooting. The defendant fled the scene and came into contact with another co-worker, whom he told that he had just shot Alexander.

Alexander was then taken to Advocate Christ Medical Center in Oak Lawn, where he was pronounced dead.

Martin was arrested by authorities three blocks from his home approximately 20 minutes after the shooting, prosecutors said.

Martin was detained and will appear in court again on March 17, authorities said.

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