Netflix Says Warner Bros. Acquisition Would Put ‘More’ Movies In Theaters
Topline
Netflix co-CEO Ted Sarandos said Thursday its potential acquisition of Warner Bros. would lead to “even more” films released in theaters, his latest attempt to assuage fears from cinema chains and operators who remain doubtful Netflix will uphold traditional theatrical release strategies.
Ted Sarandos said Netflix acquiring Warner Bros. would lead to “more” movies released in theaters. (Photo by Monica Schipper/WireImage)
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Key Facts
Sarandos, in an interview on Bloomberg TV on Thursday afternoon, said Netflix acquiring Warner Bros. would lead to “even more of an outcome of high-quality films in theaters” after marrying Netflix’s film production capabilities with an established theatrical distribution entity.
Sarandos, who had previously committed to maintaining a 45-day exclusive theatrical release window for Warner Bros. films, also said the company would “take some of the Netflix films and put them through that as well.”
Netflix has previously put its own movies in theaters just for short theatrical runs, often to qualify for awards, and Deadline noted last month Sarandos had committed to maintaining the 45-day theatrical release window for Warner Bros. films without addressing how Netflix movies would be released.
Sarandos questioned Parmount’s competing bid, saying its planned theatrical release strategy of 30 movies in theaters per year would be unattainable (Warner Bros. typically releases 12 to 14 movies per year, Variety reportedwhile Paramount is looking to boost its eight annual releases to 15 by 2026).
Why Are Cinema Chains Still Wary Of Netflix’s Bid?
Cinemark CEO Sean Gamble said Wednesday he is “apprehensive” about Netflix’s Warner Bros. bid. He said Netflix’s commitment to keep movies in theaters for 45 days is “some element of encouragement,” but questioned “how contradictory they now are to many of the other disparaging remarks that” the company has made about theaters over the years, citing comments Sarandos made last year that theatrical distribution is “outdated.” Cinema Uniteda trade organization representing theater owners, has vocally opposed Netflix’s bid since it was announced and told lawmakers earlier this month such a deal would be “economically and culturally catastrophic: fewer theatres, shorter windows, less revenue, fewer jobs across the national and global entertainment industry, and fewer movies for consumers to see in theatres.”
Key Background
Warner Bros. reopened talks with Paramount on Tuesday after Netflix granted a seven-day waiver, which Warner Bros. said would allow it to discuss “deficiencies” and “clarify certain terms” of the Paramount bid. Sarandos told CNBC earlier this week Netflix granted the waiver to give shareholders clarity, accusing Paramount of “making a ton of noise, flooding the zone with confusion for shareholders.” Paramount called Warner Bros.’ week-long reopening of talks “unusual,” but said it is “prepared to engage in good faith and constructive discussions.” Paramount had offered $30 per share for the entirety of Warner Bros. Discovery—unlike the Netflix bid, which is just for the Warner Bros. studio and not Discovery—but Warner Bros. said a Paramount representative had said it would offer up to $31 per share if talks reopened.
Surprising Fact
Billionaire filmmaker James Cameron, behind “Titanic” and the “Avatar” franchise, sent a letter to Sen. Mike Lee, R-Utah, last week, which CNBC obtained Thursday, slamming Netflix’s proposed acquisition of Warner Bros. The deal could lead to mass job losses, Cameron argued, calling it “disastrous for the theatrical motion picture business that I have dedicated my life’s work to.” Cameron cited Sarandos’ prior comments that theaters are “outdated” and called Netflix “directly at odds with the theatrical production and exhibition business.”
Further Reading
Famed director James Cameron sends scathing letter to antitrust lawmaker over Netflix-WBD deal (CNBC)
