Washington, D.C. — As scrutiny of Netflix’s bid to acquire Warner Bros. Discovery ratchets up, the American Economic Liberties Project, along with a coalition of film industry, consumer advocacy, and anti-monopoly organizations recently sent a letter urging state attorneys general from across the country to block the Netflix-Warner Bros. Discovery deal — and reject alternative bids that would consolidate the media and entertainment industry.

“The Trump Administration has shown it is willing to allow powerful companies to circumvent federal antitrust enforcement if they flatter President Trump and hire well-connected lobbyists. As Netflix, Warner Bros. Discovery, and Paramount executives attempt to execute this playbook and make end-runs around federal enforcers, it is crucial that state attorneys general use their independent authority to protect their constituents from illegal consolidation of power in the media and entertainment industry,” said Phillip Berenbroick, Senior Strategist for Policy and Advocacy at the American Economic Liberties Project. “The harms of this merger, whether by Netflix or other suitors like Paramount and Comcast, would affect households in every state, harming consumers with higher prices and fewer choices, hitting film and media production hard, and threatening to close down cinemas across the country. Given this administration’s aggressive attempts to stifle critical speech, this consolidation of media power is also a direct threat to democracy. State attorneys general have both the authority and the obligation to stop this before the damage becomes permanent.”

“While Netflix is justifying the deal by claiming it must acquire Warner Bros. Discovery to ‘compete’ with platforms like YouTube and TikTok, that argument is inconsistent with both antitrust law and economic reality,” said Ashley Nowicki, Policy Analyst at the American Economic Liberties Project. “Subscription streaming services for premium film and television content operate in a distinct market, and antitrust law does not permit illegal consolidation simply because a company wants to be larger to compete. Courts have repeatedly rejected ‘merge-to-compete’ arguments where the result would be fewer competitors, less choice, and greater concentration of power.”

The letter details how a Netflix-Warner Bros. deal would further entrench Netflix’s dominance in subscription streaming by removing a major head-to-head competitor, given that Netflix is the largest streaming service and WBD is the fourth. Such a transaction would also significantly reduce competition for creative labor across film and TV, weakening bargaining leverage for writers, actors, directors, crews, and independent producers. The deal would give Netflix control over a major studio and vast IP, allowing it to control what content gets made, how it is distributed, and whether it is licensed to third parties. This would give a single company enormous, outsized control over what media is viewed and consumed by a large section of the American public. Importantly, this deal would accelerate the decline of an iconic American tradition, the movie theater, given Netflix’s significant incentive to prioritize streaming-first releases and shorten—or eliminate—theatrical release windows.

The coalition is urging the state enforcers to reject the deal, given that they have independent authority to act under federal antitrust law. Such a deal would directly impact communities across the country, giving state attorneys general a clear prerogative to act in their state’s best interest. Subscription streaming is a household cost borne by residents in every state and a merger that reduces major competitors is a classic consumer protection case state attorneys general can act on. Film and TV production, post-production, venues, and theaters are employers and tax-base drivers in many states. When market power rises, layoffs and reduced output hit communities — and state revenues — directly. Independent theaters are small businesses operating under state commercial ecosystems; if licensing terms tighten or windows shrink, closures ripple through downtown corridors.

The full list of signers on the letter includes the American Economic Liberties Project, Center for Journalism and Liberty at Open Markets Institute, Public Knowledge, International Documentary Association, Future of Film Coalition, Groundwork Collaborative, and Art House Convergence.

Read the letter in full here.

Learn more about Economic Liberties here.

###

The American Economic Liberties Project works to ensure America’s system of commerce is structured to advance, rather than undermine, economic liberty, fair commerce, and a secure, inclusive democracy. Economic Liberties believes true economic liberty means entrepreneurs and businesses large and small succeed on the merits of their ideas and hard work; commerce empowers consumers, workers, farmers, and engineers instead of subjecting them to discrimination and abuse from financiers and monopolists; international trade arrangements that promote balanced trade and benefit workers, farmers and small businesses; and wealth is broadly distributed to support equitable political power.