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

The streaming giant is already viewed as a pariah in parts of the industry due to its reluctance to release films in cinemas and its disruption of long-standing production and distribution practices.

As Netflix emerged as the likely winning bidder for Warner Bros. — the studio behind classics such as "Casablanca" and global franchises including "Harry Potter" and "Friends" — prominent Hollywood figures launched an aggressive campaign against the acquisition.

"Titanic" director James Cameron called the buyout a "disaster," while a group of producers has been lobbying Congress to oppose the deal, according to trade publication Variety.

In a letter to lawmakers, the filmmakers warned that Netflix would "effectively hold a noose around the theatrical marketplace," further destabilising an ecosystem already strained by audiences’ shift from cinemas and broadcast television to streaming platforms.

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

'Blunder'

At the centre of the backlash is Netflix co-CEO Ted Sarandos, who has long argued that the era of mass audiences flocking to theatres is largely over.

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

For many industry veterans, cinema releases remain essential to film culture and prestige — a sharp contrast to streaming content consumed at home or on mobile devices.

Variety summed up industry fears with a 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. Theatres will close, communities will suffer, jobs will be lost."

The criticism extended beyond Hollywood.

Netflix shares fell more than three percent after the announcement, while technology publication The Information labelled the deal an "$82.7 Billion Blunder."

Antitrust concerns quickly surfaced in Washington. Democratic Senator Elizabeth Warren said the merger "could force you into higher prices, fewer choices, and may put American workers at risk."

Republican Senator Mike Lee had earlier warned that the acquisition "should send alarms to antitrust enforcers."

The deal also leaves rival studio Paramount Skydance as a major loser.

Owned by Larry Ellison, a close ally of US President Donald Trump, Paramount accused Warner Bros. Discovery of running an unfair process favouring Netflix after losing out on its own bid.