Filmmaker James Cameron is urging lawmakers to take a closer look at Netflix's proposed acquisition of Warner Bros.' studio and streaming businesses, warning that such a deal could upend the theatrical movie business and ripple across the broader entertainment economy.

In a letter sent last week to Sen. Mike Lee, chair of the Senate subcommittee on antitrust, the director of "Avatar" argued that the merger would fundamentally clash with the traditional film model. The correspondence was later obtained by CNBC.

Cameron wrote that he believes "strongly that the proposed sale of Warner Brothers Discovery to Netflix will be disastrous for the theatrical motion picture business that I have dedicated my life's work to."

While acknowledging that his own films eventually reach home audiences, he added, "Of course, my films all play in the downstream video markets as well, but my first love is the cinema."

Cameron predicted that a contraction in large-scale productions, the kind of tentpoles that often anchor theatrical release calendars, would have sweeping consequences. If fewer big-budget films are made, he warned, "Theaters will close. Fewer films will be made. The job losses will spiral."

He also argued that Netflix's streaming-first approach conflicts with the core structure of traditional studios.

In the letter, Cameron wrote that "The business model of Netflix is directly at odds with the theatrical film production and exhibition business, which employs hundreds of thousands of Americans."

He continued, "It is therefore directly at odds with the business model of the Warner Brothers movie division, one of the few remaining major movie studios."

His concerns extend beyond domestic exhibition. Cameron contended that American film exports, long a dominant force globally, could weaken under a merged streaming-driven entity. "The U.S. may no longer lead in auto or steel manufacturing, but it is still the world leader in movies," he wrote. "That will change for the worse."

Senator Mike Lee Responds

Lee acknowledged receiving outreach from members of the entertainment industry regarding the proposed transaction.

In a statement, he said, "We have received outreach from actors, directors, and other interested parties about the proposed Netflix and Warner Brothers merger, and I share many of their concerns."

He added, "I look forward to holding a follow-up hearing to further address these issues."

Tags
James Cameron, Netflix, Warner Bros.