James Cameron sends scathing letter to antitrust lawmaker

Legendary “Titanic” director James Cameron compares the theatrical experience to a “sinking ship” if Netflix acquires Warner Bros. Discovery movie studio.

Cameron wrote a letter last week to Sen. Mike Lee, R-Utah, which was obtained by CNBC, in which he argues that Netflix’s proposed acquisition of WBD’s studio and streaming assets could lead to massive job losses in Hollywood, fundamentally alter the theatrical landscape in the United States and negatively impact one of the United States’ 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. transaction. Cameron sent his letter in the days after the hearing, in which Netflix co-CEO Ted Sarandos and WBD head Bruce Campbell testified.

“I firmly believe that the proposed sale of Warner Brothers Discovery to Netflix will be disastrous for the motion picture industry to which I have devoted my entire life,” Cameron wrote to Lee. “Of course, my films are also released in downstream video markets, but my first love is cinema.”

Cameron has been vocal about his opposition to the proposed tie-up, and his concerns echo those of the film industry as a whole, which generally sees movie studio combinations as resulting in fewer releases and less work. Cameron’s letter to Lee, which has not been previously reported, raises concerns with lawmakers that could potentially prevent Netflix from completing its acquisition.

“We have received information 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 overall U.S. economy, including $20 billion in planned spending on film and television in 2026, the majority of which it said will be spent in America.

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

Since the deal was announced, Netflix’s top executives have consistently expressed their belief that the deal would not only gain regulatory approval, but also be beneficial to the media industry.

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

He has repeatedly said the addition of WBD’s studio would preserve jobs — even as layoffs upend the media ecosystem — and said the assets would bring new businesses under the Netflix umbrella.

“We’re going to need these teams, these people who have a wealth of experience and expertise. We want them to stay and run these companies,” Sarandos said. “So we are expanding content creation, not removing it in this transaction.”

In addition to the specific concerns of filmmakers and the theater industry as a whole, the proposed Netflix-WBD transaction has aroused other regulatory questions.

In particular, critics have alarmed the merger of two of the world’s leading streaming services – Netflix with 325 million subscribers worldwide and WBD’s HBO Max with 128 million as of September 30. Lawmakers have already questioned what impact a merger of these services would have on consumers and prices.

Paramount Skydance exploited some of the same arguments in its attempt to unseat Netflix and purchase all of WBD through a hostile takeover bid.

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

Cameron, who pioneered the creation of new filmmaking technologies during his decades-long career, including 3D production systems, advanced visual effects and high frame rate display, noted that theatrical exposure has been a vital part of his “creative vision.”

He also pointed to Sarandos’ previous comments calling movie theaters an “outdated concept” and an “outdated idea,” in addition to comments telling investors that “driving people to the movies is just not our business.”

“Netflix’s business model is directly at odds with the theatrical film production and exhibition industry, which employs hundreds of thousands of Americans,” Cameron wrote. “This is therefore directly at odds with the business model of the motion picture division of Warner Brothers, one of the few remaining major movie studios.”

Cameron noted that WBD releases about 15 films theatrically a year, a volume that movie theater operators are counting on in an era when production has declined and consumption habits have changed.

He also suggested that the merger would “remove consumer choice by reducing the number of feature films made” and “restrict the choices of filmmakers looking for studios to invest in their projects, resulting in fewer jobs.”

Cameron discussed the Trump administration’s recent trade policy changes aimed at protecting U.S. 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 manufacturing, but it remains the world leader in the cinema,” Cameron said. Under a Netflix-WBD merger, “this will change for the worse.”

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

In written testimony earlier this month, Netflix said it plans to place Warner Bros. in theaters with 45-day windows and that it would continue to employ those employees, because “we don’t have those kinds of workers at Netflix today.”

“We are not acquiring these incredible assets to close them, but to develop them,” according to the testimony.

Cameron nevertheless wonders whether these commitments will be kept.

“Their commitment to supporting theatrical releases (an activity fundamentally at odds with their core business model) is likely to evaporate in a few years,” he said.

“Once they own a big movie studio, it’s irrevocable,” he added. “This ship has sailed (as I like to say, knowing that I directed “Titanic”). I know very well not only the ships that sail, but also those that to flow. And the theatrical experience of movies could become a sinking ship.)”