Netflix news: Streaming giant ‘deeply committed’ to Warner Bros. cinema releases

Netflix co-CEO Ted Sarandos has looked to quash fears that the streaming giant will disrupt the cinema industry with its acquisition of Warner Bros. 

The streaming platform has long been against theatrical windows, but claims are being made that its Warner Bros. deal represents a shift. 

Film News Blitz’s Dan Lawrence takes a look at what has been said.

Netflix wants in on cinemas

Throughout its history, Netflix has been a streaming-first platform, with a scant percentage of its films releasing in theatres, and even then, not for very long at all, before a quick release in people’s living rooms, on their laptops, and on their phones. 

That’s why many cried out in anguish when Netflix confirmed it was purchasing Warner Bros. and HBO in an $80 billion-plus deal.

The fear was that Netflix could pull Warner’s releases out of cinemas, or at least significantly reduce them.

This would be a grim reaper knocking situation for the cinema industry. 

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However, speaking at the UBS Global Media and Communications conference, shortly after Paramount’s hostile bid for Warner Bros. took place, Sarandos said (via Variety), “We didn’t buy this company to destroy that value. 

“We’re deeply committed to releasing [Warner Bros.] movies exactly the way they release those movies today…..If we did this deal 24 months ago, all those movies we saw this year do so well at the box office for Warner Bros., would have been released in the same way in theaters, talking about Minecraft, Superman, Weapons, Sinners, all those movies. 

“With the Warner Bros. operating entity, we think it’s really important the way that they create and the way that they drive value.”

Netflix’s position is to get in on the cinema distribution market via a fully-fledged historical working business model, like Warner Bros.

This strategy, if it plays out, helps Netflix maintain its position as a streaming-first platform, while absorbing a treasure trove of intellectual property and taking huge box office earnings without tarnishing its own brand or that of its new acquisition. 

When it comes to the box office, Netflix will have been supremely impressed by the run Warner Bros. has conjured in 2025, setting a North American record of seven consecutive films opening at over $40 million. 

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That’s a revenue stream Netflix wants in on with this acquisition.

Talking of acquisitions, Netflix is confident it will get its deal done, even with Paramount offering more to take on the entire Warner Bros. Discovery enterprise. 

That competition, plus fears of anti-competition, threatening jobs, etc, have been dismissed by Netflix.

“[Paramount’s] move was entirely expected,” Sarandos said. 

“We have a deal done, and we are incredibly happy with the deal. 

“We think it’s great for our shareholders. It’s great for consumers. 

“We think it’s a great way to create and protect jobs in the entertainment industry. We’re super confident we’re going to get it across the line and finish.”

‘The Rest is Entertainment’ could be right about Netflix and Warner Bros.

Netflix’s chiefs want to maintain the Warner Bros. status quo, or so it would seem.

Maintaining theatrical releases is one thing, but also using the Warner Bros. TV studio to continue selling content to rival streamers and networks, alongside Netflix and HBO/HBO Max. 

So, cinema lovers and fans of the premium content on HBO Max should hold Netflix to account in the hope that things won’t be disrupted too harshly. 

The words that Sarandos said echo the thoughts of famed television producer, host, and The Rest is Entertainment podcast co-host, Richard Osman.

Of the Warner Bros. Netflix deal, Osman said, “There is an argument that what Netflix are doing here is not consolidation. It's not bringing everything inside the castle. It's diversification. 

“It's understanding that there are other markets to be in and there are other ways of doing business that Netflix don't do. 

“And so buying Warner Brothers, keeping HBO Max as its own standalone thing, keeping a lot of those brands as standalone, still selling Friends off to different places rather than keeping it all in-house. 

“There's an argument that Netflix is future-proofing itself by buying a business, which it then allows to continue to run in the same way that it's doing now.”

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