Renowned filmmaker James Cameron has expressed his concerns regarding the ongoing corporate struggle for Warner Bros. Discovery. Cameron has urged the U.S. Senate Antitrust Subcommittee, led by Republican Sen. Mike Lee, to intervene and prevent Netflix’s proposed acquisition of the esteemed Hollywood studio.
In a letter obtained by CNBC, the director of “Titanic” warned that the potential acquisition by Netflix could have disastrous consequences, particularly impacting the traditional theatrical experience of watching movies. Warner Bros. Discovery recently announced its decision to reopen discussions with Paramount Skydance following a brief waiver from Netflix, allowing time for further exploration of Paramount’s competing offer.
Netflix aims to acquire the streaming and movie studio assets of Warner Bros. Discovery, which encompass entities like HBO, HBO Max, Warner Bros. Film and TV Studios, and DC Studios. On the other hand, Paramount, which initiated a hostile takeover bid for Warner Bros. last year, seeks a comprehensive acquisition that includes the studios, streaming assets, and cable networks like CNN.
Both proposed deals have sparked concerns about market competition and potential reshaping of the media landscape. Netflix’s bid would integrate Warner Bros.’ television and motion picture divisions, including HBO Max and DC Studios, into its library and production arm, consolidating a substantial portion of TV and film content under its control.
Paramount’s bid, partially supported by Larry Ellison, father of Paramount CEO David Ellison, could result in the Ellisons gaining control over CBS News and CNN, raising apprehensions about media consolidation. The implications of these acquisitions for moviegoers are significant, with Netflix and Paramount offering varying approaches to theatrical releases and streaming distribution.
For fans of the traditional theater experience, both companies have assured a commitment to maintaining theatrical release windows, with Netflix pledging a 45-day window for Warner Bros. Discovery films. Paramount plans to release over 30 films in theaters and uphold traditional release windows, potentially impacting the industry’s reliance on box-office revenues.
Regarding streaming services, the impact of a merger on existing arrangements, such as Warner Bros. Discovery licensing HBO content to platforms like Crave in Canada, remains uncertain. The consolidation could lead to a concentration of content on platforms like Netflix or Paramount+.
The potential effects on jobs within the industry are also under scrutiny, with industry unions monitoring the situation closely. The Directors Guild of America (DGA) president Christopher Nolan has engaged in discussions with both companies to understand the implications for members, highlighting concerns about job losses and consolidation resulting from the mergers.
The issue of media consolidation has become a focal point of debate surrounding these deals, with political figures like Democratic Sen. Elizabeth Warren raising concerns about antitrust implications and the impact on consumer choices and market competition. The regulatory approval process for any deal would involve assessments by the Federal Communications Commission and state antitrust regulators to ensure compliance with antitrust laws and safeguard consumer interests.