Netflix price hikes draw fresh antitrust pressure in Washington
Advocacy groups are urging federal officials to examine Netflix as analysts expect another strong earnings report from the streaming giant.
By Sal Moretti · Money Reporter
3 min read
Netflix is heading into earnings season with Wall Street cheering and Washington sharpening its knives.
Analysts expect the streaming company to beat second-quarter estimates, according to MarketWatch columnist Kenneth Rapoza, with consensus forecasts calling for annualized revenue growth of 13.5% to $12.57 billion. Operating margin is expected to rise to 32.6%, a figure investors are watching closely.
That profitability is also fueling a political fight. Demand Progress Education Fund says Netflix’s standard package has climbed 29% since the start of 2025, according to an April letter the group sent to the Federal Trade Commission and the Justice Department’s antitrust division.
Netflix raised its standard ad-free plan in late March to $19.99 a month from $17.99, MarketWatch reported. Rapoza wrote that the extra $2 per subscriber largely flows into operating profit because the platform, content library and servers are already in place.
Billboard van takes aim at Netflix
Demand Progress Education Fund launched a Washington, D.C., campaign on July 7 featuring a black Mercedes-Benz van carrying the message: “Netflix is a monopoly,” according to the group.
In its letter to federal regulators, Demand Progress Education Fund asked the FTC and DOJ to examine whether Netflix is using its position in subscription video streaming in ways that hurt consumers, creators and competition.
The letter’s co-signers include the Open Markets Institute, a Washington-based anti-monopoly advocacy and research group, and the Writers Guild, according to MarketWatch. The guild also opposed Netflix’s failed effort to buy Warner Bros. Discovery.
MarketWatch reported that it is unclear whether the FTC is conducting a meaningful investigation of Netflix after the company dropped the Warner Bros. bid. During the Justice Department’s review of that proposed deal, investigators reportedly looked beyond the merger itself and examined questions about Netflix’s influence over filmmakers and content suppliers.
Politicians are watching
Netflix co-CEO Ted Sarandos appeared at a Senate Judiciary Committee hearing in February tied to the Warner Bros. deal, according to MarketWatch. Rapoza reported that the company faced pressure from figures across party lines, including Republican Sen. Ted Cruz of Texas and Democratic Sen. Elizabeth Warren of Massachusetts.
Rapoza also cited California Democrat Adam Schiff and other lawmakers as being concerned about Netflix expanding deeper into studio operations.
The company’s acquisition plans remain a point of interest for investors. Netflix co-CEO Greg Peters said in October that the company was not looking for acquisitions, according to The Hollywood Reporter. MarketWatch reported that Netflix submitted its Warner Bros. bid about a month later.
Variety has reported that media-business journalists say Netflix is not currently looking for another deal. Rapoza wrote that investors may still ask Sarandos on the earnings call whether future acquisitions remain possible.
Subscriber patience is being tested
Hudson Labs, an AI-driven financial research firm in Toronto, predicts Netflix will keep growing and retaining subscribers, according to MarketWatch.
There are signs of irritation among customers. A survey by the Bull Moose Project, an anti-monopoly and fair-trade advocacy group, found that 44% of Netflix subscribers are considering canceling, MarketWatch reported. The same survey found that one-third of respondents did not know prices had increased.
The Wall Street Journal reported on July 9 that Netflix subscriber engagement was showing some signs of strain.
For now, Netflix remains a favorite among analysts. The fight over its prices and market power is shifting from living rooms to regulators, and the next earnings call may show how much room the company still has to raise more revenue from each subscriber.
This story draws on original reporting from MarketWatch.