Netflix CEO Addresses Theatrical Release Concerns After Acquisition

Netflix CEO Ted Sarandos has addressed industry concerns regarding the company’s approach to theatrical releases following its acquisition of Warner Bros. Discovery. The announcement of Netflix’s successful bid, reportedly valued at over $80 billion, prompted speculation about the future of the movie theater model, particularly in light of Sarandos’ previous comments labeling it as “outdated” and “not consumer-friendly.”

In a recent earnings call, Sarandos, alongside Netflix co-CEO Greg Peters, clarified the company’s intentions regarding the theatrical distribution of films produced by Warner Bros. He emphasized that Netflix is committed to maintaining the current operational model of Warner Bros., particularly in relation to theatrical releases. “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 commitment to preserving the existing theatrical distribution strategy is likely to reassure fans concerned about the future of high-profile films, such as Dune: Part Three. While Sarandos confirmed that Netflix plans to operate Warner Bros. as it has been, he acknowledged that some changes might occur. It is plausible that Netflix will shorten theatrical windows, a practice it has already tested with some recent releases, including A House of Dynamite and Wake Up Dead Man: A Knives Out Mystery.

Sarandos elaborated on the strategic rationale behind the acquisition, noting that the films produced by Warner Bros. in the past year, such as Superman and Weapons, would have benefitted from the same theatrical release model that Netflix now plans to uphold. He stated, “We didn’t buy this company to destroy that value.”

In the competitive landscape of Hollywood, the acquisition has sparked further interest, particularly from Paramount, which was previously considered a frontrunner for Warner Bros. Paramount has made headlines by reportedly offering more than $100 billion in an attempt to secure the studio, though the seriousness of this offer remains uncertain. Paramount has also pledged to continue theatrical releases if it successfully acquires Warner Bros., which may enhance its attractiveness compared to Netflix.

As the entertainment industry continues to evolve, the implications of Netflix’s acquisition and Sarandos’ statements will be closely monitored by both fans and industry insiders. With the future of theatrical releases at a pivotal juncture, the coming months will reveal how Netflix integrates Warner Bros.’ rich legacy into its streaming-focused business model.