French Cinema CEO Discusses WBD-Netflix Deal While Executives at Red Sea Film Festival Reflect: "You Can't Have It Both Ways"

Last week, reports suggested that Saudi Arabia was involved in a Paramount-Skydance effort to purchase Warner Bros Discovery. However, Netflix ultimately secured the studio with a $72 billion bid, a topic that drew attention during the Red Sea Film Festival on Saturday.

During a panel on Futureproofing Our Industry at the festival, moderated by David Taghioff of Library Pictures International, international executives shared their perspectives on the acquisition. Gaetan Bruel, president of Frances National Cinema Centre (CNC), voiced clear concerns regarding Netflixs new ownership of WBD.

France has had a complex relationship with Netflix, which is bound by a 15-month window to invest in local films and is largely excluded from Cannes Film Festival competition due to the festivals requirement for theatrical releases.

I speak from the theatrical perspective, Bruel explained. Exhibitors in the U.S., France, and worldwide are worried that this acquisition could decrease the number of films released in cinemas, similar to what happened after Disney acquired Fox.

He highlighted two major issues: Netflixs historically ambivalent stance toward theatrical releases and the sharp decline in cinema attendance. In 2019, we sold 8 billion tickets globally. Last year, that fell to under 5 billion, a 40% drop, he noted.

Bruel acknowledged that Netflix has engaged with cinemas, but largely as a marketing tool to gain prestige, media attention, and community engagement, rather than supporting the theatrical business with sufficient exclusivity and windowing.

Releasing a film like Frankenstein for just one week in U.S. theaters does not sustain cinemas in this challenging period, he said. Bruel referenced Ted Sarandos comment that release windows would eventually become more consumer-friendly, but emphasized the need for changes that also support exhibitors. As the English saying goes, you cannot have your cake and eat it.

He concluded that while the Netflix acquisition might reduce the total number of films released, it could also bring the streamer closer to the theatrical ecosystem, which might benefit cinemas in the long term.

Author: Zoe Harrison