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[Moderators: Something appears broken on the site: When attempting to comment via an iPad, the keyboard never appears. I had to switch to an iPhone. Both are running the latest version of iOS 12.]
I'm an Academy member.
1. No one is being "excluded." The proposed rule change is about fairness. Netflix and services that are primarily about streaming have an unfair advantage over traditional film studios because the streamed films are potentially seen early by millions of viewers in their homes, whereas traditional studios' films are first shown in theaters before eventually streaming later. (In fact to be eligible for an Oscar, a film must be shown in a commercial theater for at least one week.)
The proposed change would simply require that Netflix, et al, show their films in theaters only (at first), just like other movie studios. It merely evens the playing field.
2. The Justice Department has literally NO jurisdiction here, and they know it (which is why this letter was leaked, instead of published by the government, which is the norm).
Justice Department officials are reportedly mortified that they've been required to stoop to such petty nonsense. This laughable "warning" was clearly requested by the president, who has on numerous occasions attempted to "stick it" to companies or organizations with whom he has a personal grudge.