European Cinema Owners Association Objects to Netflix and Warner Bros. Major Agreement

The European cinema trade organization UNIC has voiced strong opposition to Netflixs proposed $82.7 billion acquisition of Warner Bros., warning that the deal could negatively impact movie theaters across the continent.

In a statement released shortly after the acquisition plans were announced, UNIC highlighted what it described as a double risk: a potential decrease in film production and fewer releases being available for theatrical screenings.

UNIC emphasized the crucial role films play in sustaining cinemas, stating, Movie theaters depend entirely on a steady supply of films to remain viable. To attract diverse audiences successfully, this content must be consistent, varied, and supported by exclusive release periods and effective marketing. According to the organization, the Netflix-Warner Bros. deal fails to meet these essential requirements.

Laura Houlgatte, UNICs CEO, warned that the loss of a major studio would likely result in fewer films for theaters, lower revenue, and a rise in cinema closures and job losses. She added that Netflix has repeatedly demonstrated a lack of commitment to the theatrical model, noting that the streaming giant typically releases only a few films in cinemas, often for a limited time and primarily to pursue awards, depriving theaters of meaningful exclusivity.

Netflix, however, stated that it plans to maintain Warner Bros. current operations, including theatrical releases, though it did not provide detailed plans. The company framed the acquisition as an opportunity for filmmakers to access Warner Bros. iconic franchises and extensive library, combined with Netflixs global reach, creating new possibilities for storytelling and audience engagement.

Phil Clapp, President of UNIC and Chief Executive of the UK Cinema Association, stressed that regulators must consider the acquisitions potential consequences for movie theaters and the wider public. He warned that any reduction in content diversity and quality, along with potential theater closures and job losses, could severely affect Europes cultural landscape.

UNIC represents exhibitors in 39 European territories, covering 43,500 screens.

Author: Sophia Brooks