How Netflix's purchase of Warner Bros. will impact the film industry

The recent announcement of Netflix purchasing Warner Bros., one of Hollywoods most historic studios, signals potential major changes for the entertainment landscape and the future of cinema. As a key player among the traditional big five studios, the century-old Warner Bros. plays a central role in theatrical releases. Currently, the studio holds three of the top five domestic box office hits, including A Minecraft Movie, Superman, and Sinners, along with the Oscar front-runner, One Battle After Another.

Theater Releases Under Netflix Ownership

Questions abound regarding how Netflixs ownership will reshape Warner Bros. approach to theaters. The acquisition is expected to take 12 to 18 months to finalize, during which operations will largely remain unchanged. Netflix co-CEO Ted Sarandos emphasized support for the theatrical release cycle, while also suggesting that lengthy exclusive theater windows may not serve consumer interests.

Traditionally, films enjoyed a 90-day exclusive run in theaters, but the pandemic and streaming trends have shortened this period, often leaving the decision on a film-by-film basis. Netflix has occasionally released movies theatrically, usually briefly before streaming, either for awards eligibility or as a nod to filmmakers. Recent examples include Guillermo del Toros Frankenstein, Kathryn Bigelows A House of Dynamite, and Noah Baumbachs Jay Kelly. Theaters like AMC and Regal resisted Netflix releases until 2022, when the success of Glass Onion encouraged wider distribution.

Earlier this year, KPop Demon Hunters led box office earnings with nearly $20 million from a one-week run two months after streaming debut. Netflix also owns theaters, such as the Paris Theater in New York and the Egyptian Theatre in Los Angeles.

Upcoming Warner Bros. Projects

Warner Bros. has a robust lineup for 2026, including Margot Robbies Wuthering Heights in February, Supergirl in June, Practical Magic 2 in September, Alejandro Irritus untitled Tom Cruise film in October, and Denis Villeneuves Dune: Part Three in December. 2027 will see sequels to Superman, A Minecraft Movie, and The Batman. The studio aims for 12 to 14 releases annually across its divisions: Warner Bros. Pictures, DC Studios, New Line Cinema, and Warner Bros. Animation.

Impact on Movie Theaters

The exact effects on cinemas depend on the acquisition details. Cinema United CEO Michael OLeary described the deal as a potential unprecedented threat to global theatrical exhibition, urging regulators to assess consumer and industry impacts carefully. The domestic box office has yet to fully recover post-pandemic, reaching $11 billion annually before 2020, with only 2023 surpassing $9 billion, largely due to Warner Bros. Barbie.

Reactions from Top Filmmakers

Warner Bros. has long been a preferred studio for acclaimed directors, releasing projects from Paul Thomas Anderson, Ryan Coogler, and James Gunn. Other key collaborators include Denis Villeneuve, Clint Eastwood, and Todd Phillips. The future involvement of these filmmakers may hinge on the continuation of significant theatrical releases. The studios decision in 2021 to release films simultaneously on HBO Max and in theaters caused friction with Christopher Nolan, who has since partnered with Universal for future projects.

Future of HBO Max and Netflix

Whether HBO Max and Netflix will merge remains uncertain. The platforms may continue as separate services with potential bundling options. Netflix stated that adding HBO content will expand its catalog, providing members more high-quality selections and optimized subscription plans.

Author: Natalie Monroe