Netflix’s deal to buy Warner Bros. sparks fierce criticism from Hollywood directors, producers and lawmakers over competition and the future of cinema.
WASHINGTON: Netflix faced fierce criticism on Friday over its blockbuster deal to acquire Warner Bros.
The streaming giant is already viewed as a pariah in some Hollywood circles for disrupting traditional industry practices.
As Netflix emerged as the likely winning bidder for the storied studio, Hollywood’s elite launched an aggressive campaign.
“Titanic” director James Cameron called the buyout a “disaster,” according to trade magazine Variety.
A group of prominent producers are lobbying Congress to oppose the deal, warning Netflix would hold a “noose around the theatrical marketplace.”
“I could not think of a more effective way to reduce competition in Hollywood than selling WBD to Netflix,” former Warner Bros. CEO Jason Kilar wrote on X.
At the center of Hollywood’s ire is Netflix co-CEO Ted Sarandos, who has declared the era of moviegoers flocking to theaters is over.
Sarandos acknowledged surprise over the acquisition but pledged to maintain Warner Bros.’ theatrical releases.
Variety captured the industry’s alarm with a front-page headline asking: “Is Netflix Trying to Buy Warner Bros. or Kill It?”
Michael O’Leary, CEO of exhibition trade association Cinema United, warned theaters would close and jobs would be lost.
The backlash extended beyond Hollywood as Netflix shares plunged more than 3%.
The Information branded the deal an “$82.7 Billion Blunder” by a management team that has rarely put a foot wrong.
Antitrust concerns loom large, with Netflix poised to control an even greater share of the entertainment industry.
Bipartisan opposition has emerged in Washington, with US Senator Elizabeth Warren warning the deal could force higher prices and fewer choices.
Republican Senator Mike Lee said the acquisition “should send alarms to antitrust enforcers around the world.”
The deal’s biggest loser may be Warner Bros. competitor Paramount Skydance, owned by billionaire Larry Ellison.
Ellison’s son David runs Paramount and may lobby the White House directly to block the merger.
Paramount had sought to buy Warner Bros. in its entirety, including cable networks being spun off separately.
In a letter to Warner’s board, Paramount accused it of running an unfair process that favored Netflix.
