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 final week to Sen. Mike Lee, R-Utah, that 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, basically alter the theatrical panorama within the U.S. and negatively have an effect on considered one of America’s largest export sectors.
Lee chairs the Senate subcommittee on antitrust, aggressive coverage and client rights, which held a listening to on Feb. 3 to debate the potential influence of the Netflix-Warner Bros. transaction. Cameron despatched his letter after the listening to, throughout which Netflix co-CEO Ted Sarandos and WBD government Bruce Campbell testified.
“I consider strongly that the proposed sale of Warner Brothers Discovery to Netflix shall 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 past love is the cinema.”
Cameron has been vocal in his opposition to the proposed tie-up, and his issues echo these of the broader filmmaking trade, 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 best way of Netflix finishing its acquisition.
“We’ve got obtained outreach from actors, administrators, and different events concerning the proposed Netflix and Warner Brothers merger, and I share a lot of their issues,” Lee stated in a press release. “I sit up for holding a follow-up listening to to additional deal with 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.
In its written testimony, Netflix outlined its investments within the movie and TV manufacturing trade and its influence on the general U.S. economic system, together with $20 billion in deliberate movie and TV spend in 2026, a majority of which it stated shall be spent in America.
“With this deal, we’ll improve, not cut back, manufacturing investments going ahead, supported by a stronger mixed enterprise and steadiness sheet,” Netflix stated, noting its manufacturing amenities, corresponding to one in New Mexico and an upcoming New Jersey-based studio.
Because the deal’s announcement, Netflix’s prime brass have persistently voiced their perception that the deal wouldn’t solely win regulatory approval however can be good for the media trade.
Throughout a latest earnings name, Sarandos referred to as the deal “pro-consumer … pro-innovation, pro-worker.”
He has stated on a number of events that the addition of WBD’s studio would protect jobs — whilst layoffs roil the media ecosystem — and has stated the property would carry new companies below Netflix’s umbrella.
“We will want these groups, these people which have intensive expertise and experience. We would like them to remain on and run these enterprise,” Sarandos stated. “So we’re increasing content material creation, not collapsing it on this transaction.”
Along with issues particular to filmmakers and throughout the theater trade, the proposed Netflix-WBD transaction has woke up different regulatory questions.
Particularly, 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 have an effect on customers and costs.
Paramount Skydance has leveraged a number of the similar arguments in its try to unseat Netflix and purchase the whole lot of WBD via a hostile tender supply.
Sarandos and co-CEO Greg Peters have argued that competitors for viewers contains varied platforms — from conventional TV to streaming companies to social media platforms corresponding to 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 decadeslong profession, together with 3D manufacturing programs, superior visible results and high-frame-rate show, famous that theatrical exhibition has been a important a part of his “inventive imaginative and prescient.”
He additionally highlighted earlier feedback by Sarandos calling film theaters “an outdated idea” and an “outmoded thought,” along with feedback telling traders 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 a whole lot of hundreds of People,” Cameron wrote. “It’s subsequently 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 client habits have shifted.
He additionally prompt that the merger would “take away client alternative by decreasing the variety of function movement footage which can be made” in addition to “limit the alternatives of film-makers on the lookout for studios to spend money on their initiatives, which can in flip cut back jobs.”
Cameron touched on latest 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 concept of tariffs to guard Hollywood.
“The US might not lead in auto or metal manufacturing, however it’s nonetheless the world chief in films,” Cameron stated. Underneath a Netflix-WBD merger, “That can change for the more serious.”
Cameron additionally questioned whether or not Netflix would honor verbal commitments its executives have made round future theatrical releases, together with how lengthy they’d play in theaters and what number of theaters they’d play in.
In its written testimony from earlier this month, Netflix stated 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 employees at Netflix right now.”
“We’re not buying these superb property to close them down, however to construct them up,” in response to the testimony.
Nonetheless, Cameron questioned whether or not these commitments would maintain.
“Their pledge to help theatrical releases (a enterprise basically at odds with their core enterprise mannequin) is more likely to evaporate in a number of years,” he stated.
“As soon as they personal a significant film studio, that’s irrevocable,” he added. “That ship has sailed (as I wish to say, conscious that I directed ‘Titanic.’ I’m very acquainted not solely with ships that sail, but in addition people who sink. And the theatrical expertise of films might turn into a sinking ship.)”
