Netflix CEO Addresses Theatrical Releases After Warner Bros. Acquisition

Netflix CEO Ted Sarandos has clarified the company’s approach to theatrical releases following its recent acquisition of Warner Bros. Discovery. The acquisition, which took place last weekend and is valued at over $80 billion, raised questions among fans regarding the future of cinema releases for major films such as Dune: Part Three.

In a conference call with investors, Sarandos, alongside Netflix co-CEO Greg Peters, emphasized that the streaming giant is committed to maintaining Warner Bros.’ existing theatrical distribution model. “In this transaction, we pick up three businesses we’re not currently in, so we have no redundancies currently. One of them is a motion picture studio with a theatrical distribution machine. We’re deeply committed to releasing those movies exactly the way they would release those movies today,” Sarandos stated.

These remarks aim to reassure audiences concerned that Netflix might prioritize streaming over traditional cinema experiences. Sarandos noted that Warner Bros. will continue to operate its theatrical business as before, despite potential adjustments in release strategies.

While the immediate plans appear stable, industry analysts anticipate changes in the length of theatrical windows. Netflix has been experimenting with shorter release periods for some of its recent titles, including A House of Dynamite and Wake Up Dead Man: A Knives Out Mystery. The future handling of theatrical releases will likely reflect a blend of both the traditional cinema model and Netflix’s streaming preferences.

Looking ahead, Sarandos remarked, “All three of these new businesses, we want to keep operating largely as they are. When this deal closes, we are in that business. And we’re going to do it.” He highlighted that films performing well in theaters, such as Minecraft, Superman, and Weapons, would still be premiered in cinemas as per Warner Bros.’ established practices.

The acquisition of Warner Bros. was particularly competitive, with Paramount initially viewed as a leading contender. Reports emerged that Paramount had made a counteroffer exceeding $100 billion in an effort to secure the deal. While it is unclear whether this offer will gain traction, Paramount remains committed to its strategy of releasing films in theaters, which could enhance its appeal if it successfully acquires Warner Bros.

As the landscape of film distribution continues to evolve, the integration of Warner Bros. into Netflix’s operations marks a significant shift in how cinematic content may be delivered to audiences. The full implications of this acquisition will unfold in the coming months as both companies navigate their new partnership.