Washington
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.
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.
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.”
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.
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.
“It was unusual, yes,” Campbell said.
An 18-year-old who was shot and wounded in Northwest D.C.’s Tenleytown neighborhood on Thursday afternoon has died, authorities say.
Brady Flowers Jr., of Southwest, was the victim, police said in an update Saturday.
Flowers was found shot in the 4500 block of Wisconsin Avenue NW, behind the CVS store. Jackson-Reed High School and American University are nearby.
Flowers was rushed to a hospital with life-threatening injuries and pronounced dead a day later, police said.
Police said 10-15 teens were seen running after the gunshots.
An investigation is underway. Anyone with potentially relevant information is asked to contact police.
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Washington
Governor Moore Continues “Delivering for Maryland” Tour in Washington County, Highlighting Transportation Infrastructure, Economic Development, and Early Childhood Education
Updated:
ANNAPOLIS, MD — Governor Wes Moore today continued his statewide “Delivering for Maryland” tour with a series of engagements in Washington County, highlighting vital investments in local transportation infrastructure, manufacturing job growth, and early childhood education. The governor emphasized state contributions to modernize the Hagerstown Regional Airport, toured the state-of-the-art Hitachi Rail facility, and celebrated the opening of a new child care center in the South End of Hagerstown funded by the administration’s historic ENOUGH Initiative.
“From investing $1.5 million to update Hagerstown Regional Airport’s aging control tower to supporting 1,300 jobs at Hitachi Rail, the Moore-Miller administration is delivering for Hagerstown, Washington County, and Western Maryland,” said Gov. Moore. “Through our administration’s ENOUGH Initiative partnerships and investments, we’ve tripled child care capacity in the South End of Hagerstown — because no parents should be forced to pick between staying in the workforce or securing quality care for their kids.”
The governor began the day at the Hagerstown Regional Airport, touring the Air Traffic Control Tower and airport grounds. During the visit, Governor Moore highlighted the State’s $1.5 million Fiscal Year 2027 investment to complete the design for a critical replacement of the airport’s aging air traffic control facility. As a primary airport in the Maryland Aviation System Plan, the Hagerstown Regional Airport is a vital economic engine for Washington County, supporting more than 1,800 jobs and generating over $140 million in local business revenue.
Following the airport tour, Governor Moore visited the Hitachi Rail STS facility alongside Congresswoman April McClain Delaney, Senator Mike McKay, Senator Paul Corderman and state transportation leaders. The governor toured the factory floor and rode a test train to observe the manufacturing process. Opened in September 2025 with the support of a $1.6 million state conditional loan, the 307,000-square-foot, carbon-neutral facility is a $100 million capital investment by Hitachi. The factory supports 1,300 jobs — including 460 newly created jobs — and is actively manufacturing railcars for both the Maryland Transit Administration and the Washington Metropolitan Area Transit Authority.
“Hitachi Rail has built a cutting-edge model for advanced manufacturing here in Western Maryland which is focused on delivering clean, safe, efficient regional transportation across our state and the rest of the country,” said Congresswoman April McClain Delaney. “This facility is powered by Maryland’s second-to-none workforce and world-class innovation environment. I’m proud to work with Governor Moore and our public, private, and philanthropic partners to drive global investment that supports jobs and economic growth along our I-270 Tech Corridor.”
Governor Moore concluded the day at the Children’s Learning and Empowerment Center in the South End of Hagerstown, where he met with parents, children, and community leaders. During the visit, the Governor highlighted the administration’s ENOUGH Initiative, which provided critical support for the center’s opening. The new facility is a major win for the community, tripling local childcare capacity with 24 new slots and generating six new early childhood education jobs.
The Children’s Learning and Empowerment Center’s opening was accelerated by a $100,000 investment from San Mar Family & Community Services, the ENOUGH grantee in Hagerstown. ENOUGH grant funding was also supplemented by a $100,000 philanthropic contribution from the Bainum Family Foundation — a member of the ENOUGH Alliance — to complete necessary facility upgrades. The center’s completion underscores the strength of the ENOUGH Initiative’s public-private partnerships to deliver on community priorities and work towards ending child poverty.
Governor Moore’s visit to Washington County follows the third stop of his “Delivering for Maryland” tour in Montgomery County, where he marked a historic milestone by installing the final segment of rail for the Purple Line. This installation completes the 16.2-mile light rail corridor connecting Bethesda and New Carrollton, with passenger service expected to begin in late 2027. The governor also visited Max’s Best Ice Cream in Bethesda, a local business dedicated to creating meaningful employment opportunities for individuals with intellectual and developmental disabilities through the Best Buddies Jobs program.
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A man charged with attacking the White House Correspondents’ Association dinner is seeking to disqualify top justice department officials from direct involvement in prosecuting him because they could be considered victims or witnesses in the case, creating a potential conflict of interest.
The acting attorney general, Todd Blanche, and US attorney Jeanine Pirro were attending the 25 April event at the Washington Hilton hotel when Cole Tomas Allen allegedly ran through a security checkpoint and fired a shotgun at a Secret Service officer.
In a court filing late on Thursday, Allen’s attorneys argued that it created at least the appearance of a conflict of interest for Blanche and Pirro to be making any prosecutorial decisions in the case.
“As this case proceeds closer to trial, the country and the world will continue to wonder – how can the American justice system permit a victim to prosecute a criminal defendant in a case involving them?” defense attorneys Eugene Ohm and Tezira Abe wrote.
Ohm and Abe, who are assistant federal public defenders, suggested that the appointment of a special prosecutor might be warranted. They urged US district judge Trevor McFadden, a Trump nominee assigned to Allen’s case, to disqualify Pirro, Blanche and possibly other justice department officials from direct involvement in the investigation and prosecution.
“Both heard gunshots, which presumably forced them to duck below the tables with the rest of the occupants. They were quickly evacuated. Shortly thereafter, they learned that law enforcement believed the target was certain administration officials,” Ohm and Abe wrote.
Pirro said her office would respond to the defense lawyers’ arguments in its own court filing.
“We will not tolerate people who come to the District of Columbia to engage in antidemocratic acts of political violence; and we will prosecute all such acts to the fullest extent of the law,” Pirro said in a statement.
Allen is scheduled to be arraigned on Monday on further charges in an indictment handed up Tuesday by a grand jury in Washington.
The charges include attempting to assassinate Donald Trump, who is a longtime friend of Pirro. Blanche served as a personal attorney for Trump before joining the justice department last year. Blanche, through a spokesperson, referred a request for comment to Pirro’s office. Allen, 31, of Torrance, California, is also charged with assaulting a federal officer with a deadly weapon and two additional firearms counts.
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