James Cameron sends scathing letter to antitrust regulator

Legendary director of “Titanic” James Cameron likened the theatrical experience to a “sinking ship.” Netflix acquires Warner Bros. Discovery Film studio.

Cameron wrote a letter to Sen. Mike Lee, R-Utah, last week, which was obtained by CNBC, arguing that Netflix’s proposed acquisition of WBD Studios and streaming assets could lead to massive job losses in Hollywood, radically alter the U.S. theatrical landscape and negatively impact one of America’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. Cameron sent his letter in the days following the hearing, during which Netflix co-CEO Ted Sarandos and WBD CEO Bruce Campbell testified.

“I strongly believe that the proposed sale of Warner Brothers Discovery to Netflix would be disastrous for the theatrical film industry to which I have devoted my life’s work,” Cameron wrote to Lee. “Of course, all my films are released on video markets as well, but my first love is cinema.”

Cameron has been vocal in his opposition to the proposed partnership, and his concerns reflect those of the broader film industry, which generally sees combinations of film studios resulting in fewer releases and less work. Cameron’s letter to Lee, which was not previously reported, escalates his concerns to lawmakers who might stand in the way of Netflix completing the acquisition.

In particular, critics have raised alarm over the combination of two of the top global streaming services – Netflix with 325 million global subscribers and WBD’s HBO Max with 128 million as of September 30. Lawmakers have already asked how consolidating these services will impact consumers and prices.

“We have received communications from actors, directors, and other interested parties regarding the proposed merger between Netflix and Warner Brothers, 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 Netflix’s written testimony and Sarandos’ comments during the hearing earlier this month.

In its written testimony, Netflix outlined its investments in the film and television production industry and their impact on the U.S. economy overall, including $20 billion in film and television spending planned in 2026, most of which it said will be spent in America.

“With this deal, we will increase, not reduce, future production investments, supported by combined businesses and a stronger balance sheet,” Netflix said, referring to its own production facilities, such as in New Mexico and an upcoming studio in New Jersey.

Since the deal was announced, senior Netflix officials have consistently expressed their belief that the deal will not only win regulatory approval, but will be beneficial to the media industry.

During a recent earnings call, Sarandos described the deal as “pro-consumer… pro-innovation, pro-worker.”

He has said on multiple occasions that adding the WBD studio would preserve jobs — even at a time when layoffs are roiling the media ecosystem — and said the assets would bring new businesses under the Netflix umbrella.

“We’re going to need those teams, those people with extensive experience and expertise. We want them to stay and run that business,” Sarandos said. “So we’re expanding content creation, not collapsing it into this deal.”

In addition to concerns specific to filmmakers and across the theater industry, the proposed deal between Netflix and WBD raises other regulatory questions.

In particular, critics have raised alarm over the combination of two of the top global streaming services – Netflix with 325 million global subscribers and WBD’s HBO Max with 128 million as of September 30. Lawmakers have already asked how consolidating these services will impact consumers and prices.

Paramount Skydance It leveraged some of the same arguments in its attempt to unseat Netflix and buy out WBD outright through a hostile tender offer.

Sarandos and co-CEO Greg Peters argued that competition for viewers cuts across different platforms — from traditional TV to streaming services to social media platforms like YouTube — making Netflix a small part of the ecosystem.

Cameron, who pioneered new filming techniques during his decades-long career, including 3D production systems, advanced visual effects and high frame rate projection, noted that theatrical presentation was a crucial part of his “creative vision.”

He also highlighted previous comments by Sarandos calling movie theaters an “outdated concept” and “an outdated idea,” as well as comments telling investors that “moving people to the theater is none of our business.”

“Netflix’s business model is in direct opposition to the theatrical film and exhibition production business, which employs hundreds of thousands of Americans,” Cameron wrote. “So it goes directly against the business model of Warner Bros. Film Division, one of the few remaining major film studios.”

WBD releases about 15 theatrical films a year, a volume that movie theater operators rely on at a time when productions are shrinking and consumer habits are changing, Cameron noted.

He also suggested that a merger would “remove consumer choice by reducing the number of motion pictures produced” as well as “restricting the options of filmmakers looking for studios to invest in their projects, which in turn would reduce jobs.”

Cameron touched on the Trump administration’s recent trade policy shifts that sought to protect American exports. President Donald Trump has more than once floated the idea of ​​tariffs to protect Hollywood.

“The United States may no longer be a leader in automobiles or steel, but it is still the world leader in filmmaking,” Cameron said. Under the Netflix-WBD merger, “that will change for the worse.”

Cameron also questioned whether Netflix would honor verbal commitments made by its executives about future theatrical releases, including how long they will play in theaters and how many theaters they will play in.

In its written testimony earlier this month, Netflix said it plans to show Warner Bros. films in its own right. In theaters with 45-day windows, she will continue to employ those employees, because “we don’t have those kinds of workers at Netflix today.”

“We are acquiring these amazing assets not to close them, but to build them,” the testimony said.

However, Cameron doubted whether these commitments would hold up.

“Their pledge to support theatrical releases (an act that is fundamentally at odds with their core business model) will likely evaporate within a few years,” he said.

“Once they have a big movie studio, it’s irreversible,” he added. “That ship has sailed (as I like to say, considering I directed ‘Titanic’. I’m familiar with not only ships that sail, but those that sail). pelvis. The theatrical movie experience can become a sinking ship.)”