Anonymous A-Listers Lobby Congress Against Netflix-WBD Acquisition: ‘A Noose Around The Theatrical Marketplace’

A collective of top-tier Hollywood industry insiders has issued an urgent open letter to Congress, raising alarms over Netflix’s proposed acquisition of Warner Bros. Discovery (WBD). The group, which prefers to remain anonymous due to concerns over backlash from the streaming giant, argues that the deal would fundamentally disrupt the delicate balance of the theatrical film marketplace.

The letter, sent Thursday via email to members of Congress across both political parties, expresses grave concerns that the acquisition would trigger an economic and institutional crisis in Hollywood. The unnamed producers say they are not afraid of speaking out but are worried about retaliation, given Netflix’s immense power as both a buyer and distributor of films.

At the core of their objections is the potential for Netflix to decimate the traditional model of theatrical film releases. According to insiders, Netflix’s proposal would drastically reduce the window for Warner Bros. films to play exclusively in theaters, with some estimates suggesting a release window as short as two weeks before debuting on a combined Netflix-HBO Max streaming platform.

While Netflix has neither confirmed nor denied the specifics of the proposal, other sources have denied reports that the theatrical exclusivity would be as short as two weeks, insisting the period would be longer. Regardless of the details, industry insiders argue that Netflix’s growing dominance in the streaming space would inevitably harm the theatrical industry.

A ‘Noose Around The Theatrical Marketplace’

The letter sent to Congress warns that Netflix’s acquisition of WBD would have far-reaching consequences for the future of cinema. The anonymous group of producers asserts that Netflix’s size and market influence would enable the company to hold a figurative “noose” around the theatrical marketplace, reducing the number of films released in theaters and pushing down the licensing fees paid by streaming platforms for films released after their theatrical runs.

“With the power to reduce or eliminate theatrical windows, Netflix could effectively rewrite the rules of film distribution, making the traditional movie theater model unsustainable,” the letter states. “This acquisition poses an existential threat to the livelihood of movie theaters and the broader film ecosystem.”

Such concerns come as Netflix continues to expand its presence in the film and television industry. The company has repeatedly underscored its stance that the theatrical model does not align with its business strategy, most notably through statements from Netflix co-CEO Ted Sarandos. In a 2023 earnings call, Sarandos reiterated, “Driving folks to a theater is just not our business.”

The letter points out that despite this stance, the Netflix-WBD deal could undermine decades of progress in the theatrical space, not only by reducing the number of films that would go to theaters but also by skewing market dynamics in favor of the streaming giant.

A Call for Antitrust Scrutiny

In their final appeal, the anonymous group urges lawmakers to apply the “highest level of antitrust scrutiny” to the proposed merger. They emphasize that the stakes are high, involving not just the economic futures of thousands of workers in Hollywood, but the preservation of a cherished art form. The letter stresses that the deal would not just affect film studios and distributors, but also countless jobs tied to film production, marketing, and exhibition.

The call for increased antitrust scrutiny is particularly significant in light of Netflix’s dominance in the streaming market. With an estimated 240 million subscribers worldwide, the company’s vast influence already puts it in direct competition with traditional entertainment outlets. The potential merger with WBD could further consolidate power in the hands of a single corporation, further diminishing competition and potentially leading to higher consumer prices.

Industry Reactions and Rival Bidders

While the anonymous group’s letter paints a bleak picture for Hollywood’s future, rival bidders for Warner Bros. Discovery, such as Comcast and Paramount, have pushed back on similar concerns. Both companies are committed to preserving Warner Bros. as a standalone entity, with Paramount promising to maintain a minimum of 14 theatrical releases per year for the studio.

Paramount, in particular, has stated that its commitment to theatrical releases would ensure that Warner Bros. continues to serve the cinema-going public, regardless of which company ultimately acquires the studio. These counterarguments, however, have done little to quell the fears of those who feel that Netflix’s model could irrevocably alter the industry’s landscape.

As the merger talks continue, the open letter serves as a rallying cry for those who fear that the consolidation of power in the entertainment industry could lead to the demise of the theatrical film as we know it. Hollywood’s future—at least in terms of how films are distributed and enjoyed by audiences—may depend on whether Congress decides to intervene.