Theater Owners Criticize 'Unprecedented Threat' to Movie Industry with Netflix's Potential Acquisition of Warner Bros.

Cinema operators have expressed strong concern over Netflixs successful bid to acquire Warner Bros. Discovery, describing the potential deal as a serious threat to the movie theater industry. Cinema United, the largest global trade association representing over 30,000 screens, publicly opposed the acquisition on Thursday evening.

Netflixs proposed takeover of Warner Bros. presents an extraordinary challenge for theaters worldwide, said Michael OLeary, President and CEO of Cinema United. The consequences could be felt from the largest cinema chains to single-screen theaters in small towns across the U.S. and beyond.

OLeary emphasized that while Cinema United supports initiatives that encourage movie production and offer audiences more opportunities to visit theaters, Netflixs current business model does not align with traditional theatrical exhibition. Their approach is fundamentally at odds with the theater experience, he added.

He urged regulators to carefully review the details of the acquisition, highlighting potential negative effects on moviegoers, exhibitors, and the broader entertainment industry.

The association warned that Netflixs acquisition of Warner Bros. Discovery could threaten up to 25% of the annual U.S. box office, as the streaming platform typically releases only a limited number of films in theaters, sending most directly to streaming.

Netflixs expertise lies in television, not big-screen cinema. Supporting theaters requires a substantial lineup of films, proper marketing, and meaningful theatrical exclusivity. Occasional, limited releases to qualify for awards do not equate to a commitment to theaters, OLeary stated.

He also highlighted the wider economic and cultural role of movie theaters, noting that local theaters help drive additional spending in surrounding businesses. Every dollar spent at a theater generates roughly $1.50 in nearby restaurants, shops, and transport. Reducing theatrical releases threatens communities, jobs, and local economies, he said.

The warning comes shortly after reports emerged that Warner Bros. Discovery is moving forward with exclusive negotiations with Netflix. Sources familiar with the matter indicated that Netflix has offered $30 per share for the studio and streaming assets, including a $5 billion break-up fee matching terms from a competing Paramount bid.

Author: Connor Blake