In a letter to American Senator Mike Lee, veteran Hollywood filmmaker James Cameron has argued against Netflix‘s planned acquisition of Warner Bros, one of the biggest movie studios in the world. Cameron, director of blockbusters like Avatar, Titanic, and The Terminator, has said that the acquisition would be ‘disastrous’ for the movie business.
James Cameron warns against Netflix’s acquisition of Warner Bros
In his letter to Senator Lee, who is the chair of the Senate subcommittee on antitrust, James Cameron predicts a doom-like scenario for filmmaking business in the US and worldwide if the planned acquisition comes through.
“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. Of course, my films all play in the downstream video markets as well, but my first love is the cinema,” Cameron wrote in the letter, as quoted by Variety.
James Cameron is one of the most successful filmmakers in history, having given four billion-dollar hits, apart from the iconic Terminator franchise. He has cautioned that a contraction in big-budget film production would have sweeping consequences. “Theaters will close. Fewer films will be made. The job losses will spiral,” warned the filmmaker in the letter.
Netflix, the world’s largest streaming service, has long had a streaming-first business model, which Cameron argues conflicts with the traditional theatrical system. “The business model of Netflix is directly at odds with the theatrical film production and exhibition business, which employs hundreds of thousands of Americans. 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, according to Variety.
The filmmaker also said that the export of American films overseas, which has made Hollywood the cultural centre of filmmaking worldwide, will also suffer. “The U.S. 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 contended.
Senator Lee responds
Senator Lee addressed the veteran filmmaker’s concerns in a statement. “We have received outreach from actors, directors, and other interested parties about the proposed Netflix and Warner Bros. merger, and I share many of their concerns. I look forward to holding a follow-up hearing to further address these issues.”
Netflix plays down fears
In recent weeks, Netflix has addressed such concerns from Hollywood stakeholders. Ted Sarandos, co-chief executive officer of Netflix, said his company’s acquisition of Warner Bros. Discovery will lead to more films in theaters. A merger of Netflix and Warner Bros. is “better for theaters” because Netflix will be able to take its films and put them in cinemas using the distribution network that Warner Bros. has built, Sarandos said in an interview on Bloomberg TV.
