Ted Sarandos affirms Netflix's commitment to Warner Bros. theatrical releases despite Cinema Trade Group calling merger an "unprecedented threat"

Netflix co-CEO Ted Sarandos emphasized the companys continued support for theatrical releases following its announcement to acquire Warner Bros. This year weve brought around 30 films to theaters, so were not against the theatrical experience, Sarandos said during a call with Wall Street analysts. He clarified that Netflixs main concern has been lengthy exclusive theatrical windows, which the company believes are not consumer-friendly.

Theaters, including AMC, are advocating for a 30 to 45-day window to boost attendance, a practice that declined during the pandemic. Major theater chains frequently avoid screening Netflix films if these windows are shortened.

The proposed merger has sparked anxiety within the film exhibition community. Cinema United, the largest trade group for movie theaters, released a statement criticizing the acquisition. Netflixs acquisition of Warner Bros. represents an unprecedented threat to theaters globally, said Cinema United President Michael OLeary. He warned that the deal could negatively affect theaters ranging from large chains to small independent cinemas, urging regulators to consider the potential consequences for audiences and the broader entertainment industry.

Industry analysts estimate that if Warner Bros. traditionally robust theatrical releases shift to Netflixs streaming-first model, up to 25% of the annual U.S. box office could be at risk. Currently, Netflix only gives a small selection of its films a limited theatrical run.

Following the $72 billion deal including Warner Bros. Studios, HBO, and HBO Max, Sarandos reassured that existing theatrical plans would remain intact. Nothing planned for theatrical release through Warner Bros. will change, and Netflix films will continue with their occasional short theatrical runs. Over time, we aim to make windowing more consumer-friendly and meet audiences where they are, he said.

Author: Jackson Miller