James Cameron warns Netflix-Warner Bros. merger would be 'disastrous'
What's the story
Hollywood director James Cameron has voiced his concerns over the potential acquisition of Warner Bros.'s studio and streaming businesses by Netflix. In a letter to Senator Mike Lee, chair of the Senate subcommittee on antitrust, Cameron argued that such a deal could lead to massive job losses, alter the theatrical landscape, and negatively impact film exports. The letter, originally sent last week, was recently obtained by CNBC.
Job losses
'Theaters will close, fewer films will be made'
Cameron, known for his work on the big-screen spectacle Avatar franchise, expressed his strong opposition to the proposed sale. He wrote, "I believe strongly that the proposed sale of Warner Brothers Discovery to Netflix will be disastrous for the theatrical motion picture business that I have dedicated my life's work to." "Theaters will close. Fewer films will be made. The job losses will spiral," he further warned.
Business clash
'Directly at odds with theatrical film production'
Cameron further stressed that Netflix's business model is "directly at odds with the theatrical film production and exhibition business." He noted that this sector "employs hundreds of thousands of Americans," making the Netflix takeover incompatible with Warner Bros.'s movie division. "It is therefore directly at odds with the business model of the Warner Brothers movie division, one of the few remaining major movie studios," he wrote.
Film exports
'US is still the world leader in movies'
Cameron also warned that a merger between Netflix and Warner Bros. could harm Hollywood film exports. He wrote, "The US may no longer lead in auto or steel manufacturing, but it is still the world leader in movies." "That will change for the worse," he added. In response to Cameron's letter, Lee acknowledged receiving outreach from various stakeholders about the proposed merger and expressed his intention to hold a follow-up hearing on these issues.