French Cinema Leader Discusses WBD-Netflix Deal as Red Sea Film Festival Executives Reflect: Finding Balance in the Industry
A week ago, Saudi Arabia reportedly participated in a bid led by Paramount Skydance to acquire Warner Bros Discovery. However, that ambition was thwarted on Friday when Netflix emerged victorious with a $72 billion offer.
The acquisition became a focal point of discussion during the Red Sea Film Festival on Saturday, particularly during a panel titled “Futureproofing our Industry.” The panel, moderated by David Taghioff of Library Pictures International, featured international executives who shared their insights on the deal.
Gaëtan Bruel, president of France’s National Cinema Centre (CNC), expressed concern regarding Netflix’s ownership of Warner Bros Discovery. He noted the uneasy relationship between France and the streaming service, which operates under a 15-month window agreement in exchange for increased investment in local films. Furthermore, Netflix is effectively barred from competing at the Cannes Film Festival, which exclusively accepts films with guaranteed theatrical releases.
Bruel stated, “I’ll make my comment from the theatrical point of view because as you know there are thousands of exhibitors in the U.S., France, across the world who are expressing deep concern about the potential consequences of this acquisition.”
He highlighted fears that the deal could lead to a reduction in theatrical releases, drawing comparisons to the impact of Disney’s acquisition of Fox. “The fear they express is that it might reduce the number of films for theatrical release which is exactly what happened,” he remarked.
Bruel elaborated on two additional aggravating factors: Netflix’s historically ambivalent stance toward cinema and the significant decline in theatrical attendance. He noted that worldwide ticket sales dropped from 8 billion in 2019 to less than 5 billion last year, a decline of 40%.
While acknowledging that Netflix has embraced theatrical releases as a marketing strategy, he criticized the company’s approach. “But I wouldn’t say that Netflix so far has given the theatrical business what it truly needs to navigate this moment of crisis, which is a minimal windowing system, a minimal exclusivity,” Bruel said.
He raised concerns over limited theatrical runs, questioning how theaters can survive if titles like Frankenstein receive merely a one-week release. He referenced a comment made by Netflix’s co-CEO Ted Sarandos after the acquisition, in which Sarandos indicated an evolution toward more consumer-friendly windows.
Bruel countered this perspective, suggesting, “I think we should ask in return, what about making the cinema windows more exhibitors friendly so that they can just keep existing and doing what they do.”
He argued that for the industry to thrive, it must consider the needs of cinemas, emphasizing a dual focus on content variety and minimal exclusivity. In closing, Bruel expressed skepticism about the acquisition’s impact on film output, cautioning that it may lead to a diminished slate. Yet, he also acknowledged that it might bring Netflix closer to the theatrical ecosystem, which could ultimately be beneficial.
