Unnamed Hollywood producers lobby against Netflix-Warner Bros. merger
What's the story
A group of anonymous Hollywood producers has sent an open letter to the US Congress, warning of a potential "economic and institutional meltdown" if Netflix's acquisition of Warner Bros. Discovery goes through. The letter, signed by "concerned feature film producers," was sent on Thursday to members of both parties in Congress, per Variety. The group chose to remain anonymous due to fear of retaliation from Netflix, which is a major buyer and distributor in the industry.
Concerns raised
Producers fear Netflix could 'destroy' theatrical film marketplace
The letter outlines three major concerns, one of which is that Netflix could "destroy" the theatrical film marketplace by reducing/eliminating the time Warner Bros. films spend in theaters before moving to a combined Netflix-HBO Max streaming platform. A source told Variety earlier on Thursday that Netflix's current proposal includes a theatrical window as short as two weeks before transitioning to streaming. However, another insider involved in the deal process denied this claim, stating that the periods would be longer.
Market impact
Producers argue Netflix's influence could lower theatrical movie standards
The producers further argued that Netflix's influence could lead to a decrease in licensing fees paid for post-theatrical windows. They stated that Netflix would "effectively hold a noose around the theatrical marketplace," using its market power to shrink the footprint of theatrical movies. The letter also highlighted Ted Sarandos, co-CEO of Netflix, has repeatedly emphasized that the company's business model does not rely on movie theaters.
Call to action
Producers urge Congress to scrutinize potential Netflix-WBD deal
The letter concludes by urging members of the House and Senate to publicly oppose the acquisition and subject it to "the highest level of antitrust scrutiny." The producers argue that the stakes involved in this deal could impact millions of jobs and a cherished art form. Rival bidders Comcast and Paramount have strong theatrical distribution channels, with Paramount promising to keep Warner Bros. as a standalone company producing at least 14 films for theaters each year.