A-List Celebrities Urge Congress to Block Netflix-WBD Merger
A coalition of prominent filmmakers and industry stakeholders has expressed grave concerns to Congress over Netflix’s attempted acquisition of Warner Bros. Discovery. Through an open letter sent to congressional members from both parties, this group, which identifies as “concerned feature film producers,” warns of potential disruption in Hollywood’s economy and institutions if the merger proceeds.
Concerns Raised in the Open Letter
The letter, dispatched via email, remains unsigned to protect the identities of the producers, who fear repercussions due to Netflix’s significant market influence. Despite the lack of commentary from Netflix and Warner Bros. Discovery, inside sources have indicated the involvement of notable figures in the film industry.
Theatrical Film Market Risks
- Filmmakers outlined several key issues regarding the merger, particularly its potential to harm the theatrical film market.
- The warning highlights that Netflix could rapidly diminish the window that Warner Bros. films play in theaters, impacting their revenue.
- The reported proposal from Netflix suggested a mere two-week exclusivity period for films before streaming on Netflix or HBO Max, although others have disputed this claim.
Comparison with Other Bidders
In contrast, rival bidders like Comcast and Paramount have made commitments to maintain robust theatrical releases. Paramount has specifically vowed to operate Warner Bros. as an independent entity that will produce a minimum of 14 films annually for theaters.
Market Power and Licensing Fees
The coalition argues that Netflix’s influence would “effectively hold a noose around the theatrical marketplace.” They believe this could lead to a significant reduction in movie theater revenues and lower licensing fees for films shown after their theatrical run.
Call for Antitrust Scrutiny
Additionally, the letter references statements made by Ted Sarandos, co-CEO of Netflix, who has previously asserted that the company’s business model does not prioritize movie theaters. The filmmakers implore Congress to take a strong stance against the merger, advocating for thorough antitrust scrutiny to protect both employment and this vital art form.
The stakes involved, according to the producers, are monumental, impacting millions of jobs and the future of cinematic arts. The message is clear: the potential Netflix-WBD merger calls for serious examination from legislators.
