James Cameron has sounded the alarm about the reported negotiations to sell the studio and streaming assets of Warner Bros. Discovery to Netflix. According to him, the potential merger would be ‘disastrous’ to the theatrical filmmaking business.
In his letter to US Senator Mike Lee, the chairman of the subcommittee on antitrust, James Cameron stated that the sale of the studio and streaming assets of Warner Bros. Discovery to Netflix would alter the theatrical filmmaking business that has been the hallmark of the film business for over a century.
The core concern: The theatrical vs. streaming business
“I believe 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,” Cameron wrote in the letter. “Of course, my films all play in the downstream video markets as well, but my first love is the cinema.”
James Cameron states that the Netflix model, which enters the streaming and home entertainment markets, goes fundamentally at cross-purposes with the theatrical model. The Warner Bros. studio, which possesses one of the last of the big studio pipelines, thrives on big-budget films. “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 wrote. “It is therefore directly at odds with the business model of the Warner Brothers movie division, one of the few remaining major movie studios. The U.S. may no longer lead in auto or steel manufacturing, but it is still the world leader in movies. That will change for the worse.”
When the big-budget films are reduced in number, a ripple effect will be felt throughout the industry, including the closure of theaters, the production of fewer films, and the resulting layoff of workers in the theatrical, production, marketing, and worldwide distribution arms of the movie industry.
The filmmaker, whose films are big-budget productions such as Avatar and Titanic, also took the point of view of America’s cultural exports. James Cameron states that while America may not be ahead of other countries in terms of industries such as steel or automobile manufacturing, it still remains at the top in terms of films, which could be compromised in the near future.
Senator Lee has also made a statement regarding this matter, which shows that lawmakers are aware of communications from filmmakers regarding their concerns on the matter.
