Renowned filmmaker James Cameron has urged the U.S. Senate Antitrust Subcommittee to intervene in the acquisition battle for Warner Bros. Discovery, opposing Netflix’s bid to purchase the Hollywood studio. In a letter addressed to Subcommittee Chair Senator Mike Lee, Cameron expressed concerns over the potential negative impact of the deal, warning that it could jeopardize the traditional movie theater experience.
Warner Bros. Discovery recently announced plans to reopen discussions with Paramount Skydance following a temporary waiver from Netflix. While Paramount aims to secure a comprehensive takeover, encompassing studios, streaming assets, and cable networks like CNN, Netflix is primarily interested in acquiring Warner Bros.’ streaming and movie studio assets, including HBO, HBO Max, Warner Bros. Film and TV Studios, and DC Studios.
The proposed acquisitions by both Netflix and Paramount have raised significant competition issues within the industry. Netflix’s bid seeks to merge Warner Bros.’ television and motion picture divisions into its library and production arm, potentially consolidating a substantial portion of TV and film content under its control. In contrast, Paramount’s bid, supported in part by Larry Ellison, could lead to media consolidation concerns if successful, as it would grant control over CBS News and CNN.
For moviegoers who cherish the theatrical experience, the outcome of these acquisitions could impact how and when films are released. While Netflix has pledged to continue theatrical distribution and maintain a 45-day release window for Warner Bros. Discovery films, Paramount has committed to honoring traditional release windows and plans to release over 30 films in theaters.
Regarding the streaming landscape, the implications of these mergers remain uncertain. In Canada, Warner Bros. Discovery currently licenses HBO content to Crave, a streaming platform owned by Bell Media. The potential mergers could alter existing streaming agreements and impact the availability of content for Canadian customers subscribed to services like Netflix, Paramount+, and Crave.
As discussions progress, job security within the industry is a key concern. Industry unions, including the Directors Guild of America (DGA), are closely monitoring the situation. DGA President Christopher Nolan has emphasized the potential for job losses and consolidation resulting from the mergers, highlighting the need for transparency on how these changes will affect industry workers.
The issue of media consolidation has emerged as a contentious point in the acquisition talks. Democratic Senator Elizabeth Warren has raised antitrust concerns, labeling Paramount’s bid as a threat to competition and consumer choice, while also criticizing Netflix’s proposed deal as a potential monopoly in the streaming market. California Attorney General Rob Bonta has echoed calls for antitrust enforcement to safeguard consumer interests and promote market competition.
Approval for any deal would be subject to regulatory scrutiny from the Federal Communications Commission and state antitrust regulators. The outcome of these acquisitions could significantly reshape the entertainment industry landscape, impacting various stakeholders from filmmakers and theater operators to streaming service subscribers.