DALLAS, Texas — A high-profile Hollywood merger plan encountered unexpected turbulence this week as independent theater owners issued a warning to federal regulators , just as a new player moved to challenge the deal.

The Independent Cinema Alliance (ICA), which represents about 5,000 independently operated screens across the U.S. and Canada, said the proposed sale of Warner Bros. to Netflix could significantly shrink the number of films available to theaters and limit consumer choice. The group urged the Department of Justice to scrutinize the transaction closely, calling it a potential blow to communities that rely on steady theatrical releases.

“Netflix has made its position clear for years,” ICA Executive Director Frank Rash said. “It is built to serve consumers who watch content

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