James Cameron sounds alarm about Netflix-WBD deal in letter to lawmakers

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In a letter to Sen. Mike Lee (R-Utah), Cameron argued that allowing Netflix to acquire the studio would be devastating for movie theaters, weaken a key cog in the Hollywood machine and lead to significant job losses.

The Feb. 10 letter amplifies concerns from lawmakers and the Justice Department that potential sales would result in fewer films being released in theaters. The government’s main focus has been Netflix’s dominance in streaming, but if Netflix were to acquire the company, Warner Bros. There’s also pressure on what’s going to happen in the movie.

Cameron nodded to previous comments from Netflix CEO Ted Sarandos, who called movie theaters an “outdated concept” and an “outdated idea.”

“Netflix’s business model is in direct conflict with the theatrical film production and exhibition business that employs hundreds of thousands of Americans,” he wrote. letterFirst published by CNBC. “Therefore, this directly conflicts with the business model of the film division of Warner Bros., one of the few major motion picture studios.”

Warner Bros. releases approximately 15 movies in theaters each year. Cameron and others in Hollywood are concerned that Netflix will lower that number. “Redirecting the output of this production to streaming would be a major blow to the exhibition community (theater owners and thousands of employees) at a critical time,” the letter states.

If movie theaters lose business, the entire industry will suffer, Cameron says. “If the market contracts further and tentpoles are no longer given the green light, many jobs will be lost,” he wrote. He added, “Theaters will close. Film production will also decline. Service providers like VFX companies will close. Job losses will skyrocket.”

Testifying before the Senate Subcommittee on Antitrust earlier this month, Sarandos promised a 45-day theatrical window when lawmakers asked about the deal’s impact on theaters.

Color Cameron is skeptical. He argues that Netflix will likely change course within a few years because theatrical releases fundamentally conflict with Netflix’s business model. The letter reads, “What’s the point of this deal? What administration will hold them accountable as the promise of a theatrical release slowly sunsets? But once you own a major motion picture studio, there’s no turning back. That ship has sailed.”

Cameron also revealed that Sarandos had signed a contract with Warner Bros. He said the pledge is meaningless unless it specifies the number of theaters the film will be shown in. “Netflix only had a few theatrical releases, and only then did it come under pressure from big-name filmmakers,” he wrote. “But these typically play in a significant number of theaters, most of them for the Academy Awards. These releases do not represent the best part of the exhibition business.”

Cameron sees Netflix’s acquisition of Warner Bros. as a bad deal both for consumers, who will see fewer movies, and for filmmakers, who will see fewer options for studios interested in investing in their projects. One avenue the government could pursue to block the deal is monopoly theory, or whether the merged company would have too much power over creators and talent.

Cameron wrote: “I am just a humble film farmer,” he says, “and I feel that my future creativity and productivity are being directly threatened by this proposed sale.”

In an interview last year the town In the podcast, Cameron supported the David Ellison-led company’s bid to acquire Warner Bros. “I think Paramount is the best choice,” he said. “Netflix is ​​going to be a disaster. Sorry, Ted, but oh no. Sarandos has gone on record saying the theatrical film is dead. ‘Theatrical is dead.’ Quote, don’t quote.”