Hollywood Sounds Alarm as Industry Leaders Urge Congress to Block Netflix’s Bid for Warner Bros. Discovery

A group of well-known film producers has quietly reached out to Congress with a warning about what could happen if Netflix ends up buying Warner Bros. Discovery. Their message, shared in an email first reported by Variety, says Hollywood could face a major economic and creative breakdown if the deal goes through.

The producers called themselves “concerned feature film producers” and chose not to sign their names.

They said they were staying anonymous because they feared Netflix might retaliate, since it is such a powerful buyer and distributor. Variety confirmed through a trusted source that the group includes several high-profile filmmakers. Both Netflix and Warner Bros. Discovery declined to comment.

According to Variety, the letter tells Congress that Netflix could damage the theatrical movie business if it takes control of Warner Bros. The biggest worry is the theatrical window.

Variety reported earlier that insiders believe Netflix would shrink Warner Bros.’ theatrical exclusivity to around two weeks before moving films to a combined Netflix–HBO Max service. Another person close to the negotiations denied that and said the window would be longer. Rival bidders like Comcast and Paramount have their own strong theatrical operations, and Paramount has said it would keep Warner Bros. as a separate business and release at least 14 movies in theaters each year.

The producers wrote that Netflix would “effectively hold a noose around the theatrical marketplace,” saying it could limit the amount of time movies play in theaters and push down what studios earn from later licensing deals. They also pointed to comments from Netflix co-CEO Ted Sarandos, who has repeatedly said theaters are not part of Netflix’s main strategy. In one example, he said in a 2023 earnings call, “Driving folks to a theater is just not our business.”

Their letter ends by urging lawmakers to speak out against the possible deal and give it the strongest antitrust review possible. They wrote that millions of jobs and a meaningful part of American culture are on the line.

Around the same time, CNBC reported that Paramount Skydance raised its own concerns about the sales process at Warner Bros. Discovery.

In a letter reviewed by CNBC, Paramount’s lawyers told CEO David Zaslav that the process did not seem fair and appeared to be favoring one buyer. The Quinn Emanuel attorneys wrote, “It has become increasingly clear, through media reporting and otherwise, that WBD appears to have abandoned the semblance and reality of a fair transaction process… and embarked on a myopic process with a predetermined outcome that favors a single bidder.” They added, “We specifically request and expect this letter will be shared and discussed with the full board of directors of WBD.”

CNBC reported that Warner Bros. Discovery appears to be leaning toward Netflix’s offer. Sources told CNBC that Netflix proposed a mostly cash deal and is currently seen as the lead bidder based on how the company is reviewing the offers. Paramount and Comcast have also submitted second-round bids.

This pressure from filmmakers, studios and competitors shows how tense and uncertain the situation has become, with many in the industry worried about how much change a Netflix takeover could bring.

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