Netflix Won Hollywood’s Biggest Prize

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Netflix faced fierce criticism on Friday over its blockbuster deal to acquire Warner Bros., the storied Hollywood studio.

The streaming giant is already viewed as a pariah in some Hollywood circles, largely due to its reluctance to release content in theaters and its disruption of traditional industry practices.

As Netflix emerged as the likely winning bidder for Warner Bros. — the studio behind “Casablanca,” the “Harry Potter” movies and “Friends” — Hollywood’s elite launched an aggressive campaign against the acquisition.

“Titanic” director James Cameron called the buyout a “disaster,” while a group of prominent producers are lobbying Congress to oppose the deal, according to trade magazine Variety.

In a letter to lawmakers, the anonymous filmmakers warned that Netflix would “effectively hold a noose around the theatrical marketplace,” further damaging a Hollywood ecosystem already strained by audiences’ shift from theaters and TV to streaming.

“I could not think of a more effective way to reduce competition in Hollywood than selling WBD to Netflix,” Warner’s former CEO Jason Kilar wrote on X.

At the center of Hollywood’s ire is Netflix co-CEO Ted Sarandos, who has declared that the era of moviegoers flocking to theaters is over.

During an analyst call Friday, Sarandos acknowledged surprise over the acquisition but pledged to maintain Warner Bros.’ theatrical releases and preserve the HBO Max brand.

Many industry veterans consider theatrical releases essential to cinema’s appeal and prestige — a stark contrast to streaming content consumed on home sofas or on mobile devices.

Variety captured the industry’s alarm with a front-page headline asking: “Is Netflix Trying to Buy Warner Bros. or Kill It?”

Michael O’Leary, CEO of Cinema United, the world’s largest exhibition trade association, warned: “Netflix’s success is television, not movies on the big screen. Theaters will close, communities will suffer, jobs will be lost.”

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