Canadian filmmaker James Cameron poses throughout a photocall for the opening of the exhibition entitled ‘The Artwork of James Cameron’ on the Cinematheque Francaise in Paris on April 3, 2024.
Stephane De Sakutin | AFP | Getty Pictures
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 property might result in huge job losses in Hollywood, essentially alter the theatrical panorama within the U.S. and negatively affect one in all America’s largest export sectors.
Lee chairs the Senate subcommittee on antitrust, aggressive coverage and shopper rights, which met in early February to debate 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 imagine strongly that the proposed sale of Warner Brothers Discovery to Netflix might 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 effectively, however my old flame is the cinema.”
Cameron has been vocal in his opposition to the proposed tie-up, and his issues echo these of the broader filmmaking business, which usually sees mixtures of film studios leading to fewer releases and fewer work. Cameron’s letter to Lee, which has not been beforehand reported, escalates his issues to the lawmakers who might doubtlessly stand in the way in which of Netflix finishing its acquisition.
“We have now obtained outreach from actors, administrators, and different events concerning the proposed Netflix and Warner Brothers merger, and I share lots of their issues,” Lee mentioned in a press release. “I sit up for holding a follow-up listening to to additional handle these points.”
In response to a request for remark, a Netflix consultant pointed to Netflix’s written testimony and Sarandos’ feedback throughout the listening to earlier this month.
In its written testimony, Netflix outlined its investments within the movie and TV manufacturing business 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 mentioned might be spent in America.
“With this deal, we will enhance, not cut back, manufacturing investments going ahead, supported by a stronger mixed enterprise and stability sheet,” Netflix mentioned, noting its manufacturing services, similar to in New Mexico and an upcoming New Jersey-based studio.
Because the deal’s announcement, Netflix’s prime brass has constantly voiced their perception that the deal wouldn’t solely win regulatory approval, however could be good for the media business.
Throughout a current earnings name, Sarandos referred to as the deal “pro-consumer … pro-innovation, pro-worker.”
He has mentioned on a number of events that the addition of WBD’s studio would protect jobs — whilst layoffs roil the media ecosystem — and has mentioned the property would deliver new companies beneath Netflix’s umbrella.
“We will want these groups, these people which have intensive expertise and experience. We wish them to remain on and run these enterprise,” Sarandos mentioned. “So we’re increasing content material creation, not collapsing it on this transaction.”
Along with issues particular to filmmakers and throughout the theater business, the proposed Netflix-WBD transaction has woke up different regulatory questions.
Specifically, critics have raised alarm about bringing collectively two of the highest international streaming companies – Netflix with 325 million international subscribers and WBD’s HBO Max with 128 million as of Sept. 30. Lawmakers have already questioned how a merger of these companies would affect shoppers and costs.
Paramount Skydance has leveraged a few of the identical arguments in its try to unseat Netflix and purchase everything of WBD by a hostile tender supply.
Sarandos and co-CEO Greg Peters have argued competitors for viewers consists of varied platforms – from conventional TV to streaming companies to social media platforms like YouTube – making Netflix a small a part of the ecosystem.
Theatrical shifts
Cameron, who has pioneered the creation of recent 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 “artistic imaginative and prescient.”
He additionally highlighted earlier feedback by Sarandos calling film theaters “an outdated idea” and an “outmoded thought,” along with 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 tons of of 1000’s of People,” 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 lowering the variety of characteristic movement photos which can be made” in addition to “prohibit the alternatives of film-makers on the lookout for studios to spend money on their tasks, which can in flip cut back jobs.”
Cameron touched on current commerce coverage shifts by the Trump administration which have sought to guard U.S. exports. President Donald Trump has greater than as soon as floated the thought of tariffs to guard Hollywood.
“The US might now not lead in auto or metal manufacturing, however it’s nonetheless the world chief in films,” Cameron mentioned. Underneath a Netflix-WBD merger, “That may change for the more severe.”
Cameron additionally questioned whether or not Netflix would honor verbal commitments its executives have made round future theatrical releases, together with how lengthy they might play in theaters and what number of theaters they might play in.
In its written testimony from earlier this month, Netflix mentioned it plans to place Warner Bros. movies in theaters with 45-day home windows and would proceed to make use of these staff, since “we do not have these sorts of staff at Netflix at this time.”
“We’re not buying these superb property to close them down, however to construct them up,” in keeping with the testimony.
Nonetheless, Cameron questioned whether or not these commitments would maintain.
“Their pledge to assist theatrical releases (a enterprise essentially at odds with their core enterprise mannequin) is more likely to evaporate in a couple of years,” he mentioned.
“As soon as they personal a serious film studio, that’s irrevocable,” he added. “That ship has sailed (as I wish to say, aware that I directed ‘Titanic.’ I’m very acquainted not solely with ships that sail, but in addition those who sink. And the theatrical expertise of flicks might turn into a sinking ship.)”
