On Friday, Netflix revealed its intention to acquire Warner Bros. for $82.7 billion. The deal, subject to the approval of the United States Securities and Exchange Commission (SEC), encompasses Warner Bros. film and television studios, along with HBO and HBO Max. Additionally, Netflix will acquire the Warner Bros. catalogue, which includes significant franchises such as DC and the Monsterverse. The effect on Warner Bros. films’ theatrical releases once they come under Netflix’s control is yet to be determined.
The positive aspect: Warner Bros. theatrical releases will continue for the time being. The upcoming Dune sequel will not be streamed right away. According to the SEC filing and a statement from Netflix and Warner Bros. Discovery, “Netflix anticipates preserving Warner Bros.’ existing operations and enhancing its strengths, including theatrical releases for films.” Variety indicates that Warner Bros. has agreements for theatrical releases up until 2029, and Bloomberg emphasizes that ongoing theatrical releases were a crucial factor in Netflix’s acquisition proposal.
The negative aspect: Those Warner Bros. theatrical releases might become shorter. Netflix CEO Ted Sarandos has suggested that theatrical runs for Warner Bros. films could be reduced, akin to Netflix’s limited releases. “It’s not like we have this opposition to movies in theaters,” Sarandos mentioned, as reported by Variety. “My pushback has been mostly in the context of the lengthy exclusive windows, which we don’t really consider consumer-friendly.” He also noted that these windows would adapt to become more consumer-friendly over time.
On Dec. 4, Variety disclosed that unnamed Hollywood A-listers are advocating to Congress regarding the acquisition, with theatrical releases being a primary concern. Sources informed Variety that Netflix’s proposal included theatrical windows as brief as two weeks prior to streaming, although another source refuted this claim, indicating that longer release durations are preferred. Netflix’s current strategy for its films features shorter release periods in select theaters, with titles such as Frankenstein or Wake Up Dead Man: A Knives Out Mystery absent from major chains like AMC or Regal.
Netflix is set to broaden its theatrical releases in 2025, with KPop Demon Hunters and the Stranger Things Season 5 finale receiving showings in AMC and Regal theaters. However, these engagements are restricted to two to three days, as Netflix emphasizes streaming exclusivity.