A consortium of influential industry figures has raised serious alarms over the potential economic implications of Netflix’s bid to acquire Warner Bros. Discovery, sending an open letter to Congress detailing their concerns. The letter, sent anonymously and unsigned by a group identifying themselves as “concerned feature film producers,” highlights the risks of an unprecedented institutional collapse in Hollywood should the acquisition go through.
The communication reached members of Congress from both parties, capturing the urgency of the situation as the producers expressed fear of retaliation due to Netflix’s substantial market influence. Both Netflix and Warner Bros. Discovery declined to comment on the letter.
Inside sources confirmed that the group comprises several well-known filmmakers, and their letter articulates three primary concerns about the acquisition’s fallout. One critical point raised is the threat to the theatrical film marketplace, with the producers arguing that Netflix could undermine it by either shortening or eliminating the traditional theatrical window. They indicated that Netflix’s proposal could allow Warner Bros. films to move to streaming as quickly as two weeks after their theatrical release. While some insiders disputed this, claiming longer windows would be in place, it underscores the volatility of the proposed deal.
The letter further asserts that Netflix’s dominance in the market could effectively tighten a grip on theatrical releases, diminishing the number of films shown in theaters and subsequently reducing licensing fees paid during post-theatrical periods. The producers’ worry is that Netflix’s model, which has been consistently articulated by co-CEO Ted Sarandos, views theaters as ancillary rather than central to its business strategy—a sentiment Sarandos reiterated in a recent earnings call.
The letter urges Congress to take action, calling for a public stance against the acquisition and recommending that it undergo thorough antitrust scrutiny. The producers emphasize that the implications of the deal stretch beyond corporate interests, warning that it could jeopardize millions of jobs and threaten the integrity of a cherished art form within the industry.
