Congressional Hearing on Media and National Security

On Tuesday, Congress is set to convene a hearing that stretches beyond the realm of Hollywood. The stakes are high, involving American jobs, media control, and national security. If Ronald Reagan were still around, he would likely advise citizens to pay careful attention to this hearing. Reagan, after all, recognized how integral culture, narratives, and media are in the battle of ideas, particularly against foreign adversaries looking to erode free societies from within.

Lawmakers will discuss whether U.S. media giants like Netflix and Warner Bros. Discovery should be allowed to thrive—or if governmental actions will hinder their growth during a time when international powers are leveraging media and culture for influence.

This matter resonates with ordinary Americans as media has evolved from mere entertainment into a tool that shapes public opinion, promotes American values, and counters authoritarian narratives. If U.S. companies falter, foreign governments, notably China, may rush to take their place.

The outcome of the hearing could significantly influence the future of American storytelling, determining whether it remains independent or increasingly susceptible to foreign influences.

Proposed Merger Implications

At the heart of the conversation is the proposed merger between Netflix and Warner Bros. Discovery, a move that should not be dismissed as merely a corporate transaction. This merger has immediate implications for American employment, film production, and the U.S. position in the global information arena.

For over a century, American film and television have propagated values of freedom, creativity, and expression globally. This cultural reach stands as a crucial strategic advantage for the U.S., but it faces legitimate threats today.

The entertainment sector employs hundreds of thousands in well-paying roles—ranging from writers to engineers—in states like California, Georgia, New Mexico, Texas, and New Jersey.

Recently, Netflix invested $1 billion in building a new production facility at the former Fort Monmouth Army Base in New Jersey. This project is projected to generate over 5,000 high-wage jobs, transforming a former military site into a hub for American production and innovation—yet, such investments rely on the ability of these companies to maintain stability and scale.

Streaming is a capital-intensive business. As companies become weaker or fragmented, production can slow, leading to fewer opportunities and job losses. Scale fosters stability, which in turn protects and creates jobs.

Strategic National Asset

Merging Netflix and Warner Bros. Discovery could forge a more robust American company, capable of ongoing investment in domestic productions. This would translate into increased projects within the U.S. and further investments like the one at Fort Monmouth.

Moreover, Hollywood serves as more than just a business; it’s a significant national asset. American movies and television shows influence how the world perceives the U.S., acting as a counter to authoritarian propaganda.

China recognizes this power. It carefully regulates its media while financially backing state-supported platforms in other countries.

For example, “Top Gun: Maverick” became a global hit, yet China barred its theatrical release due to a small patch on Tom Cruise’s flight jacket depicting the Taiwanese flag. This serves as a striking illustration of how political compliance is a price of entry into that lucrative market.

Challenges of Foreign Investment

Concerns persist regarding foreign funding in the U.S. media landscape and the related risks to national security. Some proposals may consolidate the current five major studios into four, concentrating power, inflating costs, and limiting consumer options. History shows that such consolidation often results in layoffs instead of innovation.

Additionally, reports indicate that some acquisition proposals include backing from foreign governments, amounting to $24 billion, raising further concerns about influence and manipulation.

While I’m not a fan of excessive regulation, there are laws in place designed to safeguard American interests from foreign interference. It’s important to note that significant investment from the Middle East isn’t merely philanthropy.

In today’s environment, influence equates to power. If American content diminishes, other narratives will fill that gap, often shaped by authoritarian regimes.

Foreign governments aren’t pouring billions into U.S. media for mere entertainment; they pursue influence and narrative control, which presents a direct national security threat.

To clarify, I have critiqued Netflix in the past, particularly regarding its programming choices, and have no intention of softening that stance. Also, I do not hold any stock in Netflix, Warner Bros. Discovery, or any other companies mentioned.

This isn’t about defending corporations—it’s about safeguarding American creativity, employment, and strategic interests, especially when cultural influence intertwines with national security.

The Netflix and Warner Bros. Discovery merger doesn’t eliminate competition; the streaming market remains fiercely competitive. The deal would simply enable American companies to operate on a larger scale against tech giants and state-supported foreign entities.

Ronald Reagan understood that cultural influence was crucial for national power, a truth that still holds today. America cannot afford to undermine one of its most potent tools in a global contest increasingly shaped by foreign powers.

This merger might only serve to reinforce that power.