Canadian film director James Cameron poses at the opening photocall for the exhibition titled “The Art of James Cameron” at the Cinémathèque Française in Paris on April 3, 2024.
Stefan de Saktin | AFP | Getty Images
Legendary “Titanic” director James Cameron compares the theatrical experience to “a sinking ship.” Netflix get Warner Brothers Discovery movie studio.
Cameron wrote a letter last week to Sen. Mike Leigh (R-Utah), obtained by CNBC, in which he argues that Netflix’s proposed acquisition of WBD’s studio and streaming assets could lead to massive job losses in Hollywood, fundamentally change the U.S. theatrical landscape and negatively impact one of the nation’s largest export sectors.
Lee chairs the Senate Subcommittee on Antitrust, Competition Policy, and Consumer Rights, which met in early February to discuss the potential impact of the Netflix-Warner Bros. deal. Prime Minister Cameron sent a letter days after the hearing, in which Netflix co-CEO Ted Sarandos and WBD executive Bruce Campbell gave evidence.
“I strongly believe that the proposed sale of Warner Bros. Discovery to Netflix would have dire consequences for the theatrical film business to which I have dedicated my life’s work,” Cameron said in a letter to Lee. “Of course, all my films are also shown in the downstream video market, but my first love is cinema.”
Prime Minister David Cameron has been vocal in his opposition to the proposed partnership, and his concerns echo those of the wider filmmaking industry, which generally sees studio consolidation as resulting in fewer releases and fewer films. Cameron’s previously unreported letter to Lee further escalates concerns about MPs potentially standing in the way of Netflix completing the deal.
“I have been hearing from actors, directors, and other stakeholders regarding the proposed merger between Netflix and Warner Bros., and I share many of their concerns,” Lee said in a statement. “We look forward to holding a follow-up hearing to further address these issues.”
In response to a request for comment, a Netflix representative pointed to Netflix’s written testimony and Sarandos’ comments at a hearing earlier this month.
In written testimony, Netflix outlined its investments in the film and television production industry and the impact on the overall U.S. economy, including $20 billion in film and television spending planned for 2026, the majority of which will be spent in the United States.
“With this deal, we are supported by a stronger combined business and balance sheet, and we intend to continue to invest more in production, not less,” Netflix said, referring to its production facilities, including studios in New Mexico and New Jersey.
Since the deal was announced, Netflix executives have consistently expressed their belief that the deal will not only win regulatory approval, but will also be good for the media industry.
During a recent earnings call, Sarandos called the partnership “pro-consumer, pro-innovation, pro-worker.”
He has said multiple times in the past that the addition of WBD’s studios will preserve jobs even as layoffs disrupt the media ecosystem, and that the assets will bring new business to Netflix’s fold.
“We’re going to need a team, people with a lot of experience and expertise. We want them to stay and run the business,” Sarandos said. “That’s why we’re expanding content production, not scaling back, with this transaction.”
In addition to concerns specific to filmmakers and the theater industry as a whole, the proposed Netflix and WBD deal also raises other regulatory questions.
Critics, in particular, are wary of merging two of the world’s top streaming services: Netflix, which had 325 million subscribers worldwide as of Sept. 30, and WBD’s HBO Max, which had 128 million subscribers. Lawmakers are already questioning how the integration of these services will affect consumers and prices.
paramount skydance used some of the same arguments in trying to oust Netflix and acquire all of WBD through a hostile tender offer.
Sarandos and co-CEO Greg Peters argue that the competition for viewers includes a variety of platforms, from traditional TV to streaming services to social media platforms like YouTube, and Netflix is just one part of the ecosystem.
theater shift
Cameron, who has pioneered the creation of new cinematography techniques during his decades-long career, including 3D production systems, advanced visual effects and high frame rate displays, said the theatrical exhibition is an important part of his “creative vision.”
He also highlighted Sarandos’ past comments calling movie theaters an “outdated concept” and “outdated idea,” as well as his telling investors that “it’s not our job to get people to the theaters.”
“Netflix’s business model is in direct opposition to the theatrical film production and screening business, which employs hundreds of thousands of Americans,” Cameron said. “This is therefore in direct conflict with the business model of the film division of Warner Bros., one of the few major film studios in existence.”
Cameron pointed out that WBD releases around 15 theatrical films a year, a volume that theater operators rely on at a time when production is down and consumer habits are changing.
He also suggested that the merger would not only “reduce the number of feature films produced and reduce choice for consumers,” it would also “restrict options for filmmakers looking for studios to invest in their projects, which in turn would reduce jobs.”
Prime Minister Cameron touched on the Trump administration’s recent shift in trade policy to protect U.S. exports. President Donald Trump has floated the idea of imposing tariffs to protect Hollywood more than once.
“The United States may no longer be the world leader in automobiles or steel manufacturing, but we are still the world leader in film,” said Prime Minister David Cameron. With the merger of Netflix and WBD, “things will change for the worse.”
Cameron also questioned whether Netflix would honor verbal commitments made by executives regarding future theatrical releases, including how long the film would be in theaters and how many theaters it would be shown in.
In written testimony earlier this month, Netflix said it plans to bring Warner Bros. movies to theaters over a 45-day period and will continue to hire those employees because “Netflix currently does not have those types of workers.”
“We’re not acquiring these amazing assets to close, we’re acquiring them to build,” according to testimony.
Still, Prime Minister David Cameron doubted whether those commitments would be kept.
“Their commitment to supporting theatrical release (a business that is fundamentally inconsistent with their core business model) is likely to disappear within a few years,” he said.
“Once you own a major movie studio, you can’t take it back,” he added. “That ship has sailed. (I say this, keeping in mind that I directed Titanic. I know not only ships that sail, but ships that sink. And the theatrical experience of a movie can be a sinking ship.)”
