James Cameron shares his bit on Netflix's acquisition of Warner Bros.

James Cameron has publicly raised alarm over Netflix’s reported bid to acquire the studio and streaming businesses of Warner Bros. Discovery, warning that such a deal could seriously damage the theatrical film industry and lead to widespread job losses.

In a letter sent last week to US Senator Mike Lee, which was later obtained by CNBC, the filmmaker argued that a Netflix takeover would fundamentally disrupt how big-budget films are made and shown.

Cameron, whose career has been built around large-scale cinema releases, said the proposal threatens the very foundations of theatrical filmmaking.

“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.”

He went on to warn that a shrinking commitment to theatrical releases would have a knock-on effect across the industry. 

According to Cameron, fewer large productions would mean cinemas shutting their doors and thousands of jobs disappearing. 

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

Cameron also took aim at Netflix’s business model, arguing that it clashes directly with the traditional studio system. 

“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 wrote, adding that this puts it at odds with Warner Bros.’ long-established movie division.

Beyond domestic concerns, Cameron suggested the impact could be felt globally, particularly when it comes to film exports. 

He argued that Hollywood’s position as a world leader in cinema is at risk if major studios move further away from theatrical releases. 

“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.

Senator Lee responded to Cameron’s letter with a statement acknowledging the concerns being raised within the industry. 

“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, adding that he plans to hold a follow-up hearing to explore the issue further.

Cameron’s intervention adds to the growing debate around consolidation in Hollywood, as filmmakers and lawmakers weigh the future of cinemas, jobs and America’s influence in the global film market.