Hollywood producers warn Congress over Netflix-Warner Bros. Discovery deal

Hollywood producers urge Congress to scrutinize Netflix’s Warner Bros. Discovery acquisition

According to Variety, a coalition of prominent but unnamed feature film producers has sent an urgent letter to members of Congress warning that Netflix’s proposed acquisition of Warner Bros. Discovery could destabilize Hollywood’s theatrical market.

The letter, sent Thursday from a group identifying themselves only as “concerned feature film producers,” emphasizes that its members chose anonymity not out of fear, but due to concerns about retaliation from the powerful streaming giant. Netflix and Warner Bros. Discovery declined to comment.

The communication outlines three main areas of concern, with the most prominent focusing on the potential impact on theatrical distribution.

According to sources familiar with the deal, Netflix could significantly shorten the window between a film’s theatrical release and its availability on streaming, with some reports suggesting an exclusive theatrical run as brief as two weeks.

Critics argue that such a strategy could diminish box office revenues, reduce the number of films released in theaters, and lower post-theatrical licensing fees.

The producers’ letter cites past comments by Netflix co-CEO Ted Sarandos, in which he emphasized that the company’s business model does not prioritize theatrical audiences, reinforcing their fears that streaming could overshadow traditional cinema.

Rival bidders, including Paramount and Comcast, have pledged to maintain longer theatrical windows and to continue producing a robust slate of films for theaters.

Paramount, for example, has promised to produce at least 14 films annually for theatrical release.

The letter concludes with a call for Congress to subject the acquisition to heightened antitrust scrutiny and to publicly address the potential consequences for Hollywood jobs, culture, and the theatrical film industry.

The group warned that failure to act could allow Netflix to wield outsized influence over how films are distributed and experienced, effectively “holding a noose around the theatrical marketplace.”

As negotiations continue, the letter adds a new layer of political and public scrutiny to an already high-profile media merger, highlighting the tension between streaming dominance and the preservation of traditional theatrical film practices.