The Potential Impact of Netflix Acquiring Warner Bros. on Movie Theaters

Back in 2010, Time Warner's CEO Jeff Bewkes famously dismissed Netflix as a minor player, joking, "It's a little bit like, is the Albanian army going to take over the world? I don't think so." Fast forward fifteen years, and Netflix has grown into a formidable force, now on the verge of possibly acquiring Warner Bros. Discovery.

The news of Netflix leading the charge to buy Warner Bros. sparked immediate uncertainty in Hollywood, with many questioning the implications for the already struggling studio system and the theater industry. For those who cherish the big-screen experience, Netflix's rise as a dominant studio owner seems potentially alarming.

Netflix moved quickly to frame the narrative in its favor, issuing a press release outlining plans to acquire one of Hollywood's oldest and most respected studios. While the announcement highlighted benefits like "more choice, more opportunities, more value" and long-term business growth, it offered only a single sentence about theatrical releases: "Netflix expects to maintain Warner Bros.' current operations and build on its strengths, including theatrical releases for films."

This vague commitment leaves many questions unanswered. How many films will actually reach theaters? Which titles will be prioritized? And can audiences trust that Netflix will genuinely support theatrical distribution?

Despite Netflix's assurances, skepticism is widespread. Even with an estimated $80 billion acquisition, the companys history of prioritizing streaming over theaters raises doubts about whether the traditional moviegoing model will survive. Netflix's CEO Ted Sarandos addressed concerns during an investor call, emphasizing that the company isnt opposed to theaters but hopes to shorten exclusive theatrical windows, making films available to audiences faster through streaming.

In practice, this could mean that blockbuster releases, such as a new "Superman" movie, might only enjoy a brief two-week theatrical run before appearing online. For filmmakers and theater operators, this shift could fundamentally alter the cinematic landscape.

Major theater chains, like AMC, have historically resisted showing Netflix originals due to limited theatrical windows. With Warner Bros. extensive film library potentially controlled by Netflix, the number of films released in theaters annually could drop dramatically. For example, Warner Bros. released 15 films in theaters in 2025 alone, including franchises like DC Universe titles, auteur-driven projects, and popular franchises such as "The Conjuring" and "Minecraft." Losing access to these films would be a serious blow to theaters.

As streaming increasingly dominates the release model, even high-profile theatrical events, like potential new "Lord of the Rings" installments, could shift to Netflix platforms within weeks. The future of traditional movie theaters may hinge on whether audiences and studios adapt to this rapidly changing landscape.

Author: Logan Reeves