The proposed merger between Netflix and Warner Bros. has sparked heated debate in Hollywood, with renowned filmmaker James Cameron recently entering the fray. In a letter to Republican Senator Mike Lee of Utah, Cameron expressed his strong opposition to the merger, citing three main arguments against it.
Cameron’s first argument is that the merger would significantly harm the cinema industry, as Netflix‘s business model is directly at odds with the theatrical film production and exhibition business. He noted that Netflix co-CEO Ted Sarandos has called cinemas “an outdated concept” and that the company’s commitment to maintaining a theatrical window for releases for 17 days is “ridiculously short” compared to historic norms. Additionally, Cameron argued that if Netflix acquires Warner Bros. and pushes more of its films to streaming instead of theatrical release, it would result in movie theaters having fewer films to show, ultimately hurting theater chains, their employees, and local communities.
Cameron’s second argument is that the merger would likely result in fewer motion pictures being made, which would dramatically impact those who work in the film industry, from production assistants to visual effects artists to caterers. He noted that big-budget films like Avatar employ thousands of people for up to four years and that these types of job-creating films are highly dependent on a healthy exhibition community. If such films are no longer green-lit due to the market contracting further, Cameron warned that many jobs would be lost, theaters would close, and service providers such as visual effects companies would go out of business.
Cameron’s third argument is that the Netflix–Warner Bros. deal would hurt America’s soft power and cultural impact across the globe. He noted that the US is still the world leader in movies, but this would change for the worse if the merger goes through. At a time when the US trade deficit is a major concern, one of America’s largest export sectors would be negatively impacted, Cameron wrote.
The outcome of the proposed merger is still far from certain, with Paramount Skydance launching a hostile bid for Warner Bros. that would also include Discovery Global. Any final agreement would need to be approved by regulators. Meanwhile, Netflix‘s stock price has taken a beating since the proposed merger was announced in December, dropping 23% from $100 per share to $77 per share. In contrast, shares of Warner Bros. Discovery have jumped over 16% in the same timeframe.
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