Ted Sarandos Affirms Netflix’s Support for Warner Bros. Theatrical Releases Amid Concerns Over Merger
Netflix co-CEO Ted Sarandos addressed concerns surrounding the company’s recent $82.7 billion acquisition of Warner Bros. during a call with Wall Street. “We’ve released about 30 films into theaters this year, so it’s not like we have this opposition to movies in theaters,” he stated.
Sarandos expressed reservations regarding long exclusive theatrical windows, suggesting they are not consumer-friendly. As major cinema chains like AMC are striving to restore a 30 to 45-day release window to boost post-COVID attendance, Netflix’s approach has raised eyebrows. Many of the largest chains often decline to screen Netflix films that do not align with traditional release schedules.
The recent merger has sparked anxiety within the entertainment industry, particularly among movie theaters, due to Netflix’s propensity for shorter release windows. Cinema United, the industry’s leading trade group, released a statement strongly opposing the acquisition: “The proposed acquisition of Warner Bros. by Netflix poses an unprecedented threat to the global exhibition business.”
Michael O’Leary, President and CEO of Cinema United, emphasized the potential repercussions of this deal. “The negative impact of this acquisition will affect theatres from the biggest circuits to one-screen independents in small towns in the United States and around the world,” he said.
O’Leary further articulated Cinema United’s mission, stating, “We stand ready to support industry changes that lead to increased movie production and give consumers more opportunities to enjoy a day at the local theatre. But Netflix’s stated business model does not support theatrical exhibition. Regulators must look closely at the specifics of this proposed transaction and understand the negative impact it will have on consumers, exhibition, and the entertainment industry.” The merger could jeopardize up to 25% of the annual domestic box office if Warner Bros. films traditionally given robust theatrical releases were to disappear from theaters.
In his comments, Sarandos reassured stakeholders that the acquisition would not fundamentally alter Netflix’s approach to movies. “I wouldn’t look at this as a change in approach for Netflix movies or Warner movies,” he said. “I think over time the windows will evolve to be much more consumer-friendly to meet the audience where they are.” He added that films planned for theatrical release by Warner Bros. will continue as expected, while Netflix films will follow their established pathways, including some with brief theatrical runs.
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