Famed director James Cameron sends scathing letter to antitrust lawmaker over Netflix-WBD deal

Legendary “Titanic” director James Cameron is likening the theatrical expertise to a “sinking ship” if Netflix acquires Warner Bros. Discovery’s movie studio.

Cameron penned a letter to Sen. Mike Lee, R-Utah, final week, which was obtained by CNBC, by which he argues Netflix’s proposed acquisition of WBD’s studio and streaming belongings could lead on to large job losses in Hollywood, basically alter the theatrical panorama within the U.S. and negatively affect considered one of America’s largest export sectors.

Lee chairs the Senate subcommittee on antitrust, aggressive coverage and shopper rights, which met in early February to talk about the potential affect of the Netflix-Warner Bros. transaction. Cameron despatched his letter within the days following the listening to, throughout which Netflix co-CEO Ted Sarandos and WBD govt Bruce Campbell testified.

“I consider strongly that the proposed sale of Warner Brothers Discovery to Netflix will likely be disastrous for the theatrical movement image enterprise that I’ve devoted my life’s work to,” Cameron wrote to Lee. “In fact, my movies all play within the downstream video markets as properly, however my past love is the cinema.”

Cameron has been vocal in his opposition to the proposed tie-up, and his considerations echo these of the broader filmmaking trade, which typically sees combos of film studios leading to fewer releases and fewer work. Cameron’s letter to Lee, which has not been beforehand reported, escalates his considerations to the lawmakers who might doubtlessly stand in the best way of Netflix finishing its acquisition.

“We’ve got obtained outreach from actors, administrators, and different events concerning the proposed Netflix and Warner Brothers merger, and I share lots of their considerations,” Lee stated in a press release. “I look ahead to holding a follow-up listening to to additional tackle these points.”

In response to a request for remark, a Netflix consultant pointed to Netflix’s written testimony and Sarandos’ feedback through the listening to earlier this month.

In its written testimony, Netflix outlined its investments within the movie and TV manufacturing trade and its affect on the general U.S. financial system, together with $20 billion in deliberate movie and TV spend in 2026, a majority of which it stated will likely be spent in America. 

“With this deal, we’re going to improve, not cut back, manufacturing investments going ahead, supported by a stronger mixed enterprise and steadiness sheet,” Netflix stated, noting its manufacturing services, reminiscent of in New Mexico and an upcoming New Jersey-based studio. 

Because the deal’s announcement, Netflix’s high brass has constantly voiced their perception that the deal wouldn’t solely win regulatory approval, however can be good for the media trade.

Throughout a current earnings name, Sarandos referred to as the deal “pro-consumer … pro-innovation, pro-worker.”

He has stated on a number of events that the addition of WBD’s studio would protect jobs — whilst layoffs roil the media ecosystem — and has stated the belongings would carry new companies underneath Netflix’s umbrella.

“We’re going to want these groups, these people which have intensive expertise and experience. We would like them to keep on and run these enterprise,” Sarandos stated. “So we’re increasing content material creation, not collapsing it on this transaction.”

As well as to considerations particular to filmmakers and throughout the theater trade, the proposed Netflix-WBD transaction has woke up different regulatory questions. 

Specifically, critics have raised alarm about bringing collectively two of the highest world streaming providers – Netflix with 325 million world subscribers and WBD’s HBO Max with 128 million as of Sept. 30. Lawmakers have already questioned how a merger of these providers would affect customers and costs.

Paramount Skydance has leveraged a few of the similar arguments in its try to unseat Netflix and purchase the whole thing of WBD by way of a hostile tender provide.

Sarandos and co-CEO Greg Peters have argued competitors for viewers contains varied platforms – from conventional TV to streaming providers to social media platforms like YouTube – making Netflix a small a part of the ecosystem.

Cameron, who has pioneered the creation of latest filming applied sciences throughout his decades-long profession, together with 3D manufacturing methods, superior visible results and high-frame-rate show, famous that theatrical exhibition has been a crucial a part of his “inventive imaginative and prescient.”

He additionally highlighted earlier feedback by Sarandos calling film theaters “an outdated idea” and an “outmoded thought,” as well as to feedback telling buyers that “driving people to a theater is simply not our enterprise.”

“The enterprise mannequin of Netflix is straight at odds with the theatrical movie manufacturing and exhibition enterprise, which employs a whole lot of hundreds of Individuals,” Cameron wrote. “It’s due to this fact straight at odds with the enterprise mannequin of the Warner Brothers film division, one of many few remaining main film studios.”

Cameron famous that WBD releases round 15 theatrical movies a yr, quantity that movie show operators depend on at a time when manufacturing has shrunk and shopper habits have shifted.

He additionally steered that the merger would “take away shopper selection by decreasing the variety of characteristic movement photos which might be made” in addition to “limit the alternatives of film-makers in search of studios to spend money on their tasks, which is able to in flip cut back jobs.”

Cameron touched on current commerce coverage shifts by the Trump administration which have sought to shield U.S. exports. President Donald Trump has greater than as soon as floated the thought of tariffs to shield Hollywood.

“The US could now not lead in auto or metal manufacturing, however it’s nonetheless the world chief in motion pictures,” Cameron stated. Underneath a Netflix-WBD merger, “That may change for the more serious.”

Cameron additionally questioned whether or not Netflix would honor verbal commitments its executives have made round future theatrical releases, together with how lengthy they’d play in theaters and what number of theaters they’d play in.

In its written testimony from earlier this month, Netflix stated it plans to put Warner Bros. movies in theaters with 45-day home windows and would proceed to make use of these workers, since “we do not have these sorts of staff at Netflix as we speak.”

“We aren’t buying these wonderful belongings to shut them down, however to construct them up,” in accordance to the testimony.

Nonetheless, Cameron questioned whether or not these commitments would maintain.

“Their pledge to help theatrical releases (a enterprise basically at odds with their core enterprise mannequin) is probably going to evaporate in a couple of years,” he stated.

“As soon as they personal a significant film studio, that’s irrevocable,” he added. “That ship has sailed (as I like to say, aware that I directed ‘Titanic.’ I’m very acquainted not solely with ships that sail, but additionally those who sink. And the theatrical expertise of films might change into a sinking ship.)”