James Cameron sends scathing letter to antitrust lawmaker
Canadian filmmaker James Cameron poses during a photo shoot for the opening of the exhibition titled ‘The Art of James Cameron’ at the Cinematheque Francaise in Paris on April 3, 2024.
Stephane De Sakutin | AFP | Getty Images
Legendary “Titanic” director James Cameron likens the theater experience to a “sinking ship” netflix buys Warner Bros. Discovery’s movie studio
Cameron wrote a letter Senator Mike Lee R-Utah, obtained by CNBC last week, argues that Netflix’s proposed acquisition of WBD’s studio and streaming assets could lead to massive job losses in Hollywood, fundamentally change the theatrical landscape in the U.S. and negatively impact one of America’s largest export industries.
Lee chairs the Senate subcommittee on antitrust, competition policy and consumer rights. early february Netflix-Warner Bros. to discuss the potential impact of the process. Cameron sent his letter in the days after the incident. hearingNetflix co-CEO Ted Sarandos and WBD executive Bruce Campbell testified.
“I strongly believe that the proposed sale of Warner Brothers Discovery to Netflix would be disastrous for the motion picture industry to which I have devoted my life’s work,” Cameron wrote to Lee. “Of course, all of my films also play in the sub-video markets, but my first love is cinema.”
Cameron has been outspoken in his opposition to the proposed merger, and his concerns echo those of the broader film production industry, which often results in mergers of movie studios. fewer versions and less work. Cameron’s previously unreported letter to Lee raises concerns about MPs who could potentially stand in the way of Netflix completing its acquisition.
“We have received support from actors, directors and other interested parties regarding the proposed Netflix and Warner Brothers merger, and I share many of their concerns,” Lee said in a statement. “I 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 the following statement from Netflix: written statement and Sarandos’ comments at the hearing earlier this month.
In its written statement, Netflix outlined its investments in the film and TV production industry and its impact on the overall US economy, including a planned $20 billion in film and TV spending in 2026, the bulk of which will be spent in America.
“With this agreement, we will increase, rather than reduce, production investments going forward, supported by a stronger combination of business and balance sheet,” Netflix said, noting production facilities in New Mexico and a recent New Jersey-based studio.
Since the deal was announced, Netflix’s top brass have consistently expressed their belief that the deal will not only gain regulatory approval but also be good for the media industry.
During a recent earnings call, Sarandos called the deal “pro-consumer…pro-innovation, pro-worker.”
He has said multiple times that adding the WBD studio would preserve jobs and bring assets under the Netflix umbrella even as layoffs rock the media ecosystem.
“We’re going to need these teams, these people with extensive experience and expertise. We want them to stay and run these businesses,” Sarandos said. he said. “So we’re not narrowing down content creation in this process, we’re broadening it.”
The proposed Netflix-WBD transaction has raised other regulatory questions, as well as concerns specific to filmmakers and the theater industry.
Critics were particularly alarmed about the bundling of two of the top global streaming services: Netflix, which had 325 million global subscribers as of Sept. 30, and WBD’s HBO Max, which had 128 million subscribers. Lawmakers have already questioned how the consolidation of these services would affect consumers and prices.
Paramount Skydance He used some of the same arguments in his attempt to unseat Netflix and acquire all of WBD in a hostile tender offer.
Sarandos and co-CEO Greg Peters argued that competition for viewers includes a variety of platforms, from traditional TV to streaming services to social media platforms like YouTube, making Netflix a small part of the ecosystem.
Theatrical shifts
Cameron, who has pioneered the creation of new film technologies including 3D production systems, advanced visual effects and high frame-rate display throughout his decades-long career, has stated that the theatrical exhibition was a critical part of his “creative vision.”
He also highlighted Sarandos’ previous comments in which he called movie theaters an “outdated concept” and an “outdated idea,” as well as comments telling investors that “it’s not our job to take people to the movies.”
“Netflix’s business model is in direct conflict with the motion picture production and exhibition business that employs hundreds of thousands of Americans,” Cameron wrote. “So this is in direct conflict with the business model of the Warner Brothers film division, one of the few remaining major film studios.”
Cameron stated that WBD releases approximately 15 feature films a year, a volume that cinema operators rely on at a time when production is decreasing and consumer habits are changing.
He also suggested that the merger would “eliminate consumer choice by reducing the number of feature films made” and would “limit the options of filmmakers seeking studios to invest in their projects, which would reduce employment.”
Cameron touched on the Trump administration’s recent trade policy changes aimed at protecting US exports. President Donald Trump has repeatedly floated the idea of tariffs to protect Hollywood.
“The United States may no longer be the leader in automobile or steel production, but it is still the world leader in movies,” Cameron said. “This is going to change for the worse” under the Netflix-WBD merger.
Cameron also questioned whether Netflix’s executives would honor verbal commitments they’ve made about future theatrical releases, including how long they’ll play in theaters and how many theaters they’ll play in.
Netflix stated in its written statement earlier this month that Warner Bros. He said that he planned to show his films in theaters for 45 days and that he would continue to employ these employees “since we do not have such employees at Netflix today.”
“We are acquiring these magnificent assets not to close them down, but to rebuild them,” according to the statement.
Still, Cameron questioned whether these commitments would stand.
“Commitments to supporting theatrical releases (a business that is fundamentally at odds with their core business model) will likely evaporate within a few years,” he said.
“Once they own a major movie studio, that can’t be undone,” he added. “That ship has sailed (As I like to say, aware that I directed ‘Titanic’. I am very familiar not only with ships that sail, but also with those who sail) to throw. And the theatrical experience of movies can become a sinking ship.)”
