Cinemas on Edge: Netflix’s Warner Bros. Deal Sparks Concern for Theatrical Industry – Screen Realm
Movie theater owners are in shock after Netflix announced its plan to buy Warner Bros. for $82.7 billion—a move many believe could upend the entire cinema industry. The deal, which still needs approval from regulators, has already stirred anxiety among exhibitors who rely heavily on Warner Bros.’ yearly lineup of 12–14 major film releases.
Stacey Spikes, co-founder of MoviePass, captured the mood perfectly: “The world just shifted on its axis.”
Why Theater Owners Are Worried
Many cinema chains fear that if Netflix controls Warner Bros., they’ll receive fewer movies to show—especially big blockbusters that drive most ticket sales.
Chris Randleman from Flix Brewhouse didn’t hold back:
“Hopefully the deal gets killed so Warners can be sold to a better entity.”
He also urged Hollywood talent to speak up, saying the industry’s creative power could influence what happens next.
Netflix’s Theatrical Promise—But With Caveats
Netflix insists it will continue to release movies in theaters.
But Netflix co-CEO Ted Sarandos hinted that theatrical windows would “evolve” to be more consumer-friendly—a statement that alarmed filmmakers.
Why? Because “evolving” usually means shorter gaps between a movie’s theatrical release and its streaming debut.
One A-list director summed up the worry:
“Netflix wants to put movies in theaters for one to two weeks and then straight to streaming.”
Shorter Release Windows Could Hurt Everyone
During COVID, many studios shrank the traditional 90-day theatrical window to just weeks. If Netflix shortens it even further, exhibitors say the financial damage could be serious.
Regal Entertainment CEO Eduardo Acuna warned:
- Lower box office revenue
- Potential theater closures
- Job losses
- Fewer options for moviegoers
- Harm to local businesses
His message was clear: “Ultimately, consumers would be worse off.”
Some Theaters See a Silver Lining
Not everyone is panicking.
Tim Richards from Vue Entertainment believes Netflix might actually realize the financial value of longer theatrical runs—especially when handling mega-franchises like Batman, Harry Potter, The Lord of the Rings, and “Barbie-level” blockbusters.
His view:
“Once they see billion-dollar box office returns, they’ll understand our model makes them money.”
A Tough Time for Cinema
The industry was already facing a shortage of strong films even before this deal. With Fox gone after its Disney merger and studios reducing film output, exhibitors have fewer movies to draw audiences.
Warner Bros., however, has been performing exceptionally well:
- Seven films opened above $40 million this year
- Hits include “Sinners,” “A Minecraft Movie,” “Superman,” and “Weapons”
Losing a powerhouse like this worries theater chains deeply.
Netflix’s History With Theaters
Sarandos pointed out that Netflix has released 30 films in theaters, though most were limited runs designed for awards qualification, not mass audiences.
Interestingly, Netflix takes only 35% of ticket sales, far less than the 50%–60% typical studios demand—something exhibitors actually appreciate.
The Debt Factor
With Netflix taking on massive debt to acquire Warner Bros., some believe the company might embrace theatrical revenue more seriously.
Chris Randleman summarized the mixed feelings:
“I hate this and want it to not happen, but I’m not in full freakout mode… Ticket sales can help pay for that $80 billion investment.”
#NetflixDeal #WarnerBros #MovieTheaters #HollywoodNews #EntertainmentIndustry