Backlash ignited by Netflix's acquisition of Warner Bros.

Netflix encountered intense criticism on Friday following its major move to acquire Warner Bros., the iconic Hollywood studio. The streaming powerhouse is already controversial in Hollywood circles due to its limited theatrical releases and its disruption of conventional entertainment industry norms.

As Netflix emerged as the front-runner to acquire Warner Bros.home to classics like "Casablanca," the "Harry Potter" series, and "Friends"industry insiders mounted a vocal opposition campaign. Prominent director James Cameron described the acquisition as a "catastrophe," while several leading producers are lobbying Congress to challenge the deal. Anonymous filmmakers cautioned legislators that Netflix could "strangle the theatrical market," further destabilizing an industry already impacted by shifts from theaters and traditional TV to streaming platforms.

Jason Kilar, former CEO of Warner, criticized the acquisition on social media, stating that it was "the surest way to diminish competition in Hollywood." Much of the criticism targets Netflix co-CEO Ted Sarandos, who has publicly declared that the era of mass theater attendance is over.

During an analyst call, Sarandos expressed surprise at the deal but promised to continue Warner Bros.' theatrical releases and maintain the HBO Max brand. Industry veterans emphasize that theatrical releases remain vital for cinemas prestige, contrasting sharply with content consumed primarily at home or on mobile devices.

Michael O'Leary, CEO of Cinema United, the worlds largest exhibitors association, warned: "Netflix excels in television, not big-screen movies. Theaters could shut, communities could lose cultural hubs, and jobs may vanish."

The backlash also reached financial markets. Netflix shares dropped over three percent after the announcement, and tech publication The Information labeled the $82.7 billion acquisition a "major misstep" by a management team known for careful strategy. Antitrust scrutiny is growing, as Netflix stands to dominate an even larger portion of the entertainment landscape.

Bipartisan concern has emerged in Washington. Senator Elizabeth Warren highlighted potential risks of higher prices, reduced viewing choices, and threats to American workers. Earlier, Republican Senator Mike Lee warned that the deal "should trigger global antitrust investigations."

Paramount Skydance, a competitor led by David Ellison, may be the acquisitions biggest loser. Unlike Netflix, Paramount had aimed to acquire all of Warner Bros., including cable channels CNN, TNT, and TBS, which are now being divested. Paramount criticized Warner Bros. Discovery for conducting a process favoring Netflix in a letter to the studio's board, signaling frustration over losing the bidding war.

Author: Ava Mitchell