In a letter to US Senator Mike Lee, veteran Hollywood filmmaker James Cameron has argued against Netflix’s planned acquisition of Warner Bros., one of the world’s largest film studios. Cameron, the director of blockbuster films like Avatar, Titanic and The Terminator, has said the acquisition would be ‘disastrous’ for the film business.
James Cameron warns against Netflix acquisition of Warner Bros.
In his letter to Senator Lee, who is chairman of the Senate Subcommittee on Antitrust, James Cameron predicted that if the planned acquisition goes through it would be a disastrous situation for the film production business in the US and around the world.
“I strongly believe that the proposed sale of Warner Bros. Discovery to Netflix would be devastating to the theatrical motion picture business to which I have dedicated my life. Of course, all of my films also play in downstream video markets, but my first love is cinema,” Cameron wrote in the letter, quoted by Variety.
James Cameron is one of the most successful filmmakers in history, having delivered four billion-dollar hits in addition to the iconic Terminator franchise. He warned that a decline in big-budget film production would have widespread consequences. In the letter, the filmmaker warned, “Theatres will close. Fewer films will be made. Jobs will be lost.”
Netflix, the world’s largest streaming service, has long had a streaming-first business model, which Cameron argues conflicts with the traditional theatrical system. According to Variety, he wrote, “Netflix’s business model is in direct contradiction with the theatrical film production and exhibition business, which employs hundreds of thousands of Americans. So it is also in direct contradiction with the business model of the Warner Bros. movie division, one of the few remaining major film studios.”
The filmmaker also said that the export of American films abroad, which has made Hollywood the cultural center of filmmaking worldwide, would also suffer. He argued, “America may no longer be the leader in auto or steel manufacturing, but it is still the world leader in movies. This will change for the worse.”
Senator Lee responded
Senator Lee addressed the veteran filmmaker’s concerns in a statement. “We have received outreach from actors, directors, and other interested parties regarding the proposed Netflix and Warner Bros. merger, and I share many of their concerns. I look forward to holding a follow-up hearing to further address these issues.”
Netflix eases the fear
In recent weeks, Netflix has addressed such concerns from Hollywood stakeholders. Netflix co-CEO Ted Sarandos said his company’s acquisition of Warner Bros. Discovery will bring more movies to theaters. Sarandos said in an interview on Bloomberg TV that the merger of Netflix and Warner Bros. is “better for theaters” because Netflix will be able to take its movies and release them in theaters using the distribution network created by Warner Bros.