Netflix has recently made headlines with its acquisition of Warner Bros. Discovery for over $80 billion. Following this significant move, CEO Ted Sarandos addressed concerns regarding the future of theatrical releases, particularly in light of his previous comments about the cinema model being “outdated” and “not consumer-friendly.” This raised questions among fans about whether anticipated titles, such as Dune: Part Three, would bypass theaters in favor of streaming.
During a recent earnings call, Sarandos, along with co-CEO Greg Peters, reassured stakeholders that Netflix intends to maintain the current theatrical distribution practices of Warner Bros. He stated, “In this transaction, we pick up three businesses we’re not currently in, so we have no redundancies currently. One of them is a motion picture studio with a theatrical distribution machine. We’re deeply committed to releasing those movies exactly the way they would release those movies today.”
This commitment signals Netflix’s intent to preserve the existing framework of theatrical releases, easing the concerns of fans who feared the decline of the cinema experience. Yet, experts suggest that changes may still be on the horizon, particularly in terms of shortening theatrical windows. Netflix has already experimented with this approach for some of its recent releases, such as A House of Dynamite and Wake Up Dead Man: A Knives Out Mystery.
Sarandos elaborated, “All three of these new businesses, we want to keep operating largely as they are. The theatrical business — we talked a lot about in the past about wanting to do it, because we’ve never been in that business. When this deal closes, we are in that business. And we’re going to do it.” He emphasized that the successful releases Warner Bros. has seen recently, including Minecraft, Superman, and Sinners, would continue to follow the same theatrical distribution model the studio has employed.
The acquisition of Warner Bros. comes at a time when competition in the entertainment sector is intense. Paramount, a strong contender for the acquisition, has reportedly made a counteroffer exceeding $100 billion. While it remains unclear if this offer will gain traction, Paramount has affirmed its dedication to theatrical releases, making it an appealing alternative for Warner Bros. should negotiations continue.
As Netflix integrates Warner Bros. into its operations, the entertainment landscape is poised for evolution. The decisions made in the coming months will likely shape the future of both streaming and theatrical experiences. For now, Sarandos’ affirmations provide a measure of reassurance to fans and industry stakeholders alike, indicating that the cinema experience will retain its significance in the era of streaming.
As the deal progresses, attention will shift to how Netflix balances its streaming-heavy model with the traditional theatrical releases that have defined Warner Bros. and its legacy in the film industry. The outcomes of these discussions will undoubtedly have lasting implications for audiences and the broader entertainment market.
