James Cameron has written a letter to voice his concerns about Netflix's proposed acquisition of Warner Bros.
The Titanic filmmaker wrote a letter to Senator Mike Lee, the chair of the Senate subcommittee on antitrust, competitive policy and consumer rights, on 10 February, warning that the theatrical experience could become "a sinking ship" if the streaming service was allowed to buy the movie studio.
In his letter, Cameron argued that the merger would cause huge job losses, change the theatrical landscape and reduce the number of movies made per year.
"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. Of course, my films all play in the downstream video markets as well, but my first love is the cinema," he wrote in the letter obtained by CNBC, noting that he believes in the big screen experience.
"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."
Predicting what would happen if big-budget blockbusters like Avatar stopped being made, Cameron added, "Many jobs will be lost. Theaters will close... The job losses will spiral."
The Terminator 2: Judgment Day director also took aim at Netflix CEO Ted Sarandos's pledge to release movies in cinemas for at least 17 days. Cameron insisted that 17 days is "ridiculously short", argued that Netflix only exhibits their films in "a token number of theaters" to qualify for awards, and warned that the pledge is "likely to evaporate" within a few years.
On a more personal note, Cameron stated that his own creativity and productivity could be "directly threatened" by the proposed deal.
Addressing Cameron's letter, Lee told CNBC, "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. I look forward to holding a follow-up hearing to further address these issues."
Netflix announced their intention to acquire Warner Bros. Discovery in a mega-deal valued at $82.7 billion in December.
