James Cameron has expressed serious concerns about Netflix’s proposed acquisition of Warner Bros.’ studio and streaming operations, warning that the deal could lead to significant job losses, disrupt theatrical film distribution, and damage the U.S. film export market. His warning came in a letter sent last week to Senator Mike Lee, chair of the Senate subcommittee on antitrust, which was recently obtained by CNBC.
Cameron Highlights Potential Impact on Theatrical Films and Jobs
In the letter, the Avatar director emphasized his dedication to theatrical cinema and cautioned against the merger’s effects on this sector. He stated,
“I believe strongly that the proposed sale of Warner Brothers Discovery to Netflix will be disastrous for the theatrical motion picture business that I have dedicated my life’s work to,”
and added,
“Of course, my films all play in the downstream video markets as well, but my first love is the cinema.”
Cameron predicted that consolidation under Netflix would result in the closure of theaters and the reduction of big-budget films like his own projects. He warned,
“Theaters will close. Fewer films will be made. The job losses will spiral.”
Conflict Between Netflix’s Model and Traditional Movie Industry
The filmmaker pointed out that Netflix’s business approach fundamentally clashes with the traditional theatrical film production and exhibition sectors, which currently employ hundreds of thousands of Americans. He wrote,
“The business model of Netflix is directly at odds with the theatrical film production and exhibition business, which employs hundreds of thousands of Americans,”
further explaining that this also conflicts with the Warner Brothers movie division’s established operations.
Senator Mike Lee Responds to Industry Concerns
Senator Mike Lee acknowledged the feedback he has received from actors, directors, and other stakeholders regarding the Netflix-Warner merger. In response, he said,
“We have received outreach from actors, directors, and other interested parties about the proposed Netflix and Warner Brothers merger, and I share many of their concerns. I look forward to holding a follow-up hearing to further address these issues.”
Cameron Warns of Possible Decline in U.S. Film Leadership Abroad
Besides domestic impacts, Cameron expressed concern over the international consequences of the merger. He argued that the U.S. risks losing its position as a global leader in the film industry, stating,
“The U.S. may no longer lead in auto or steel manufacturing, but it is still the world leader in movies. That will change for the worse.”
