Academy Award-Winning Filmmaker Warns of Cinema’s Future

James Cameron, the celebrated filmmaker known for his Academy Award-winning works, has reached out to Senator Mike Lee (R-Utah) with a concerning message: the purchase of Warner Bros. Discovery by Netflix could be detrimental to the film industry.

In a letter acquired by CNBC, Cameron expressed his fears to Lee, who chairs the Senate antitrust subcommittee. He warned that if Netflix’s acquisition goes through, it could threaten the very existence of movie theaters and lead to significant job losses in the sector.

“I genuinely believe that allowing Netflix to take over Warner Bros. Discovery would be a devastating blow to the theatrical film business that I’ve dedicated my life to,” Cameron stated. While he acknowledged that his films also reach audiences through various video platforms, he emphasized that his passion lies with cinema.

He highlighted that his productions provide jobs for thousands, and the closures of theaters could lead to a cascading effect of job losses.

“Theaters will close their doors. Fewer films will be produced. This would create a vicious cycle of unemployment,” Cameron added.

He elaborated, stating that Netflix’s business model conflicts directly with traditional theatrical filmmaking, which supports hundreds of thousands of American jobs. “This presents a significant clash with Warner Bros.’ film division, one of the few remaining major studios,” he insisted.

Furthermore, Cameron expressed his concern that such a merger could undermine the United States’ status as a global leader in the film industry. “Although we may not dominate automobile or steel production anymore, the U.S. still leads in film. That could change for the worse,” he wrote.

Senator Lee mentioned that he has heard from various industry professionals regarding the merger and shares many of their worries. He plans to continue discussions to address these concerns.

Ted Sarandos, in his comments during the Senate session, argued that the Netflix-Warner Bros. deal would actually enhance the entertainment sector, preserve consumer options, and provide increased opportunities for creators. He claimed that Netflix has created 155,000 jobs nationwide and contributed substantially to the U.S. economy over the past ten years.

Lee noted on Friday that he has submitted additional inquiries to both Netflix and Warner Bros.

Sarandos assured that Netflix respects Warner Bros.’ operations and intends to keep the studio running as usual, pointing out that it brings unique assets to the table. By combining their content libraries, they could offer more value to customers, he said, highlighting that a significant portion of HBO Max subscribers also have Netflix accounts.

He added that Netflix faces stiff competition from tech giants looking to enter the television market, including YouTube, Apple, and Amazon’s Prime Video. He provided data showing that Netflix’s share of U.S. TV viewership was around 9%, which, when combined with HBO Max’s, amounts to about 10%. In the broader landscape of premium streaming services, Netflix holds about 18% of the U.S. market, while HBO Max trails with about 3%, leading to a combined market share of around 21%.