Some big names in Hollywood are battling over what the future of cinema and movie streaming will look like amid major acquisition proposals floating around. In the background, a surprising character has entered the mix: Utah Sen. Mike Lee.
In a letter sent to Lee last week, director James Cameron slammed Netflix’s efforts to purchase Warner Bros. Discovery’s film studio, decrying the potential transaction as detrimental to the film business. Cameron specifically addressed Lee in his position as chairman of the Senate subcommittee on antitrust, competitive policy, and consumer rights after he held a hearing on Feb. 3 about the potential impact of Netflix acquiring the film production company.
“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, according to CNBC. “Of course, my films all play in the downstream video markets as well, but my first love is the cinema.”
Cameron argued that the acquisition would contribute to the decline of movie theaters due to Netflix’s model of prioritizing the release of films directly to an online streaming service. That could lead to the disappearance of big cinematic releases in theaters, Cameron argues, and therefore lead to a major cut in jobs across the film industry.
In his role as subcommittee chairman, Lee has already been tasked with reviewing the potential acquisition to ensure it doesn’t create a monopoly of sorts or reduce competition in the film industry.
But Cameron’s concerns were met with some skepticism from other Hollywood stars, who questioned whether the film industry should be doing more to prevent other kinds of acquisitions they say pose similar threats.
Actor Mark Ruffalo challenged Cameron’s stance in a post on social media, pressing the director on whether he would similarly oppose mergers regardless of who the potential buyer is.
“So … the next question to Mr. Cameron should be this … ’Are you also against the monopolization that a Paramount acquisition would create? Or is it just that of Netflix?’” Ruffalo wrote. “I think the answer would be very interesting for the film community to hear and one that should be asked immediately. Is Mike Lee against the Paramount sale as well? Is he as concerned about that as he is the Netflix sale?”
Ruffalo does not appear to explicitly oppose the proposed merger by Netflix, but instead has challenged Cameron to disclose whether his concerns are specifically with the streaming service acquiring Warner Bros. or if he’d still have reservations if another large studio sought to purchase the company — over concerns of possible monopolistic consolidation.
Ruffalo later clarified his position to say the proposed acquisitions should raise questions about how to improve the film industry rather than consolidating it under few umbrellas.
“Instead of what one is better than the other what we should be addressing is how either of these are good for the business, for making good movies with diverse points of view and making sure our business continues to work for the many and not the few,” he wrote.
In essence, Ruffalo argued Cameron and Lee should apply the same scrutiny across the board when it comes to these acquisitions rather than just toward streaming services.
Lee acknowledged he holds many of the same concerns as film directors such as Cameron, and said he would hold future hearings to further investigate.
“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 in a statement.
Lee has since sent follow-up questions to the heads of Netflix and Warner Bros. after the initial hearing earlier this month, pressing the companies on concerns of competition, standards of quality, pricing models, and more.
The companies are expected to reply as early as this week.