A group of anonymous top Hollywood filmmakers has emailed an open letter to U.S. Congress members, urging them to block Netflix's potential acquisition of Warner Bros. Discovery due to fears it would harm the theatrical film industry. The letter highlights concerns over shortened theatrical release windows and reduced market competition. Netflix and Warner Bros. Discovery have declined to comment on the matter.
Background on the Acquisition Effort
Netflix is reportedly pursuing the acquisition of Warner Bros. Discovery, a move that has sparked significant industry concern. The anonymous letter, sent on Thursday to bipartisan members of Congress, comes from a collective identifying as 'concerned feature film producers.' A well-placed source confirmed to Variety that the group includes prominent filmmakers, who chose anonymity to avoid potential retaliation from Netflix's market influence.
Key Concerns Raised
The producers outline three main worries in the letter. First, they argue that a Netflix-WBD merger could 'destroy' the theatrical marketplace by drastically reducing the time films spend in theaters before streaming on a combined Netflix-HBO Max platform. Sources indicate Netflix's proposal might limit theatrical exclusivity to as little as two weeks, though another insider disputes this, claiming longer periods are planned.
Second, the group warns that Netflix would gain excessive market power, described as holding 'a noose around the theatrical marketplace,' potentially lowering licensing fees for post-theatrical distribution. They reference Netflix co-CEO Ted Sarandos' 2023 earnings call statement: 'Driving folks to a theater is just not our business.'
Rival bidders like Comcast and Paramount offer alternatives; Paramount has committed to maintaining Warner Bros. as a standalone entity producing at least 14 theatrical films annually.
Call to Action
The letter urges Congress to publicly oppose the deal and apply the 'highest level of antitrust scrutiny,' emphasizing risks to millions of jobs and the film art form. More developments are expected as the situation unfolds.