A powerful coalition of state attorneys general is sounding the alarm over a massive proposed merger between Netflix and Warner Brothers, arguing the deal could effectively dismantle the American film industry as we know it.
Tennessee Attorney General Jonathan Skrmetti joined a group of eleven top state legal officials on February 24 in a formal letter to U.S. Attorney General Pamela Bondi and the Department of Justice, demanding a rigorous antitrust investigation into the transaction.
The bipartisan group warns that combining these two media giants would lead to “undue market concentration that stifles competition.”
According to the letter, the merger would likely result in “higher prices, lower reliability, and less innovation” for a sector that remains one of America’s most significant cultural exports.
The attorneys general specifically noted that the deal could create a “vertical foreclosure of content library inputs,” essentially giving Netflix a monopoly-like grip on high-quality programming that currently fuels rival services like HBO Max.
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The pushback centers largely on the survival of traditional cinema. While Warner Brothers has long relied on exclusive theatrical windows to release its blockbusters, Netflix leadership has historically been dismissive of the big screen.
The letter quotes James Cameron, who noted that the Netflix CEO “has called movie theaters ‘an outdated concept’ and an ‘outmoded idea.’”
Officials fear that if Netflix absorbs Warner Brothers, the traditional theatrical model will be abandoned, devastating theater owners and the “tens of thousands of employees” who are still finding their footing after the pandemic and recent labor strikes.
Attorney General Skrmetti was particularly blunt about the risks to the creative economy and the quality of entertainment reaching living rooms.
“This merger threatens to devastate movie and television production and abandon America’s enduring legacy as the dominant force in global cinema,” Skrmetti said. He further cautioned that the sheer market power of a combined Netflix and Warner Brothers “will lead to an inundation of cheap slop and the death of the movie theater industry.”
The legal challenge isn’t just coming from the states. The letter highlights that private plaintiffs have already filed suit in the Eastern District of California under the Clayton Act, alleging the merger would “substantially lessen competition or create a monopoly.”
Industry groups are also weighing in with dire predictions; Cinema United, a trade group representing chains like AMC and Regal, has labeled the prospect of the merger “culturally catastrophic.”
The states joining Tennessee in the letter include Nebraska, Montana, Alabama, Alaska, Iowa, Kansas, North Dakota, South Carolina, West Virginia, and Utah.
These officials are urging the DOJ to use the full weight of the Clayton Act to ensure the United States remains “the world leader in movies” rather than allowing a single entity to become “the one platform to rule them all.”
For now, Skrmetti says Tennessee is actively “exploring options to protect Tennessee consumers and creators” as the federal review begins.
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