James Cameron Warns Netflix-Warner Bros. Deal Could ‘Devastate’ Theatrical Film Industry

Oscar-winning director James Cameron is sounding the alarm over a potential merger between Netflix and Warner Bros. Discovery, warning that it could reshape — and seriously damage — the traditional movie business.

In a letter sent last week to Senator Mike Lee, who chairs the Senate subcommittee on antitrust, Cameron argued that if Netflix succeeds in acquiring Warner Bros.’ studio and streaming operations, the consequences for Hollywood could be severe. The letter was later obtained by CNBC.

“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,” Cameron wrote. “Of course, my films all play in the downstream video markets as well, but my first love is the cinema.”

Fear of Theater Closures and Job Losses

Cameron, best known for directing global box office hits like Avatar and Titanic, warned that a merger could reduce the number of big-budget movies made specifically for theaters.

If that happens, he predicts a ripple effect:

• Fewer blockbuster films

• Theater closures

• Major job losses across the industry

“Theaters will close. Fewer films will be made. The job losses will spiral,” he wrote.

Cameron also argued that Netflix’s streaming-first business model clashes with the traditional studio system that prioritizes theatrical releases before movies move to streaming platforms.

“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 said.

Warner Bros. has long been one of Hollywood’s major studios producing theatrical releases. Cameron suggested that under Netflix ownership, that model could fundamentally change.

Political Concerns and Possible Hearing

Sen. Mike Lee responded publicly, saying he has heard from actors, directors and other industry figures about the proposed deal.

“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,” Lee said. He added that he looks forward to holding a follow-up hearing to address the issues.

The proposed deal could face scrutiny from lawmakers and federal regulators, especially if concerns grow about market dominance and the impact on competition.

Impact on America’s Film Exports

Cameron also warned that the merger could hurt one of America’s strongest global industries: movies.

“The U.S. may no longer lead in auto or steel manufacturing, but it is still the world leader in movies. That will change for the worse,” he wrote.

Hollywood films are one of the country’s biggest cultural exports, generating billions in international box office revenue and supporting thousands of jobs both at home and abroad.

What Happens Next?

The potential acquisition has not yet been finalized, and regulators would likely review it closely if it moves forward. For now, Cameron’s letter highlights growing tension between streaming giants and the traditional theatrical model — a debate that has intensified in recent years as audience habits shift.

At the heart of it all is a fundamental question: Can streaming and theaters thrive together, or will one ultimately dominate the future of film?