James Cameron has raised concerns over Netflix’s reported bid to acquire Warner Bros. Discovery, warning that the deal could severely damage the theatrical film industry and result in widespread job losses.

In a letter sent last week to US Senator Mike Lee, obtained by CNBC, Cameron argued that a Netflix takeover would disrupt the production and release of big-budget films.

The filmmaker, known for large-scale cinema releases, said the proposal threatens the foundations of theatrical filmmaking.

“I believe strongly that the proposed sale of Warner Bros. Discovery to Netflix will be disastrous for the theatrical motion picture business that I have dedicated my life’s work to,” Cameron wrote.

He added that while his films also appear on video platforms, “my first love is the cinema.”

Cameron warned that a reduced focus on theatrical releases could lead to fewer major films being produced, cinema closures, and significant job losses across the industry.

He described Netflix’s business model as being at odds with traditional studio operations, which support hundreds of thousands of American jobs.

He also highlighted potential global consequences, suggesting that Hollywood’s position as a world leader in cinema could be weakened if major studios prioritise streaming over theatrical releases.

“The US may no longer lead in auto or steel manufacturing, but it is still the world leader in movies. That will change for the worse,” he wrote.

Senator Lee acknowledged industry concerns, noting that he had received input from actors, directors, and other stakeholders.

He said a follow-up hearing would be held to examine the issue further.

Cameron’s intervention adds to ongoing debates about consolidation in Hollywood and the future of cinema, employment, and America’s influence in global filmmaking.