After 'Google reason' to buy Warner Bros, Netflix co-CEO Ted Sarandos now warns: 'Instagram is coming' as he…

Netflix co-CEO Ted Sarandos is painting an increasingly crowded picture of the streaming battlefield—one where Instagram poses as much threat as traditional studios—as he works to convince regulators and investors that his company's $83 billion Warner Bros Discovery takeover won't stifle competition.

"Instagram is coming next," Sarandos declared during Netflix's Tuesday earnings call, pointing to Meta's recent launch of a Reels app for TV sets. The warning came as part of a broader argument that Netflix faces fiercer competition than ever, not just from streaming rivals but from social media giants, big tech platforms, and traditional broadcasters all converging on living room screens.

YouTube isn't just cat videos anymore, Netflix argues

Sarandos specifically called out YouTube's transformation from user-generated content hub to full-fledged entertainment destination. "YouTube has full-length films, new episodes of scripted and unscripted TV shows. They have NFL football games. They have the Oscars. The BBC is going to be producing original content for YouTube soon. They are TV," he said.

The framing feels carefully calibrated for regulatory scrutiny. Netflix revealed it now commands 325 million subscribers but wants authorities to see a company under siege rather than a consolidating giant. Sarandos noted that networks simulcast major events across linear and streaming, Amazon owns MGM, and Apple competes for Emmys—all evidence of blurred boundaries in what he calls an "even wider set of options that include streaming, broadcast, cable, gaming, social media, big tech video platforms."

Netflix shifts to all-cash offer as Paramount circles

The competitive narrative comes as Netflix pivots to a pure $27.75-per-share cash offer for Warner Bros Discovery, eliminating the stock component that became problematic after Netflix shares dropped. The move counters Paramount's hostile $30-per-share bid and should accelerate the path to a shareholder vote by April.

Instagram's Reels already generates $50 billion annually in advertising revenue, underscoring why Netflix sees Meta's TV push as legitimate competition. For a company asking regulators to approve its biggest acquisition ever, the message is clear: approve this deal because the real threat isn't Netflix getting too big—it's everyone else already competing for the same screen space.