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In a letter from CAA president Richard Lovett to WarnerMedia CEO Jason Kilar, the

agency calls the deal a violation of "trust and boundary."

"Your determination to release our clients’ movies on HBO Max at the same time as in
theaters effectively torpedoes the theatrical release and dramatically harms our clients’
ability to earn backend compensation, which they negotiated for, expected, and have
every right to protect," the CAA letter from its leadership team read. (Deadline first
reported the letter.)

The note added: "The bottom line is that you are trying to take advantage of our clients
to benefit your company."

The missive echoes sentiment in some corners of the industry from partners who were
blindsided by the Dec. 3 reveal by WarnerMedia's Kilar and Warner Bros. chief Ann
Sarnoff that tentpole films like In the Heights, Godzilla vs. Kong, Dune and The Matrix
4  will go straight to streaming on the same day as the titles hit theaters.
On Dec. 8, a letter signed by Directors Guild of America national executive director
Russell Hollander was sent to Sarnoff expressing concerns about how films will be
valued in the deal. The 18,000-member guild was the first of Hollywood's unions to
weigh in on the plan.
AMC, the world's largest theater chain, has already signaled its displeasure to the
WarnerMedia plan, which will kick off when Wonder Woman 1984 hits theaters Dec. 25
and debuts on HBO Max the same day. (Cineworld, the owner of Regal Cinemas, issued
a more cautious reply Dec. 4, saying that it hopes Warner Bros. "will look to reach an
agreement about the proper window and terms that will work for both sides.")
And Warners' Tenet helmer Christopher Nolan hasn't held back his opinion during his
press tour for his spy thriller's home entertainment release. Nolan told The Hollywood
Reporter on Dec. 7 that the plan makes "no economic sense, and even the most casual
Wall Street investor can see the difference between disruption and dysfunction."

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