Netflix CEO Ted Sarandos has clarified the company’s plans for theatrical releases following its recent acquisition of Warner Bros. Discovery for over $80 billion. This move has raised questions about the future of cinemas and the distribution model for blockbuster films. Fans have speculated whether major upcoming titles, such as Dune: Part Three, would bypass theaters altogether in favor of direct streaming.
In a Wall Street call with co-CEO Greg Peters, Sarandos addressed these concerns, emphasizing Netflix’s commitment to maintaining the traditional theatrical model for Warner Bros. “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.
The comments aim to reassure audiences that Netflix intends to preserve the theatrical experience, despite its reputation for prioritizing streaming. While this assurance may comfort moviegoers, some industry analysts anticipate potential changes in distribution strategies, including shorter theatrical windows. This shift has already been trialed with recent Netflix releases like A House of Dynamite and Wake Up Dead Man: A Knives Out Mystery.
Sarandos further elaborated, “All three of these new businesses, we want to keep operating largely as they are. The theatrical business — we talked a lot about in the past about wanting to do it because we’ve never been in that business. When this deal closes, we are in that business. And we’re going to do it.” He added that successful films from Warner Bros. like Minecraft, Superman, and Weapons would be released through theaters as previously established, but under the Warner Bros. operating entity.
In a competitive landscape, Paramount has also made headlines by reportedly offering more than $100 billion to acquire Warner Bros., raising the stakes in the industry. Paramount’s commitment to continuing theatrical releases positions it as a strong contender in the eyes of consumers and investors alike.
The evolving dynamics of the film industry raise important questions about the future of theatrical distribution and streaming. As Netflix integrates Warner Bros. into its operations, audiences will be watching closely to see how this merger influences the cinematic landscape.
