The fallout from the $82.7 billion acquisition of Warner Bros. by Netflix extends far beyond streaming subscriptions, raising a massive question mark over the future of the cinema experience. While Netflix is committed to acquiring Warner Bros.’ prestigious film studio and its valuable theatrical slate, the company’s long-standing skepticism toward long, exclusive theater runs has created a direct conflict with the global exhibition industry.
According to Variety, Netflix co-CEO Ted Sarandos insisted that the company has no “opposition to movies in theaters” but made it clear that the traditional release model is due for a fundamental change. For moviegoers and theater owners alike, the key takeaway is that while the big screen may not disappear, the time window between a film’s theatrical debut and its arrival on the Netflix platform is about to shrink considerably.
The Promise of Theaters and the Looming Window Shift
The initial fear that Netflix would simply send all Warner Bros. blockbusters straight to streaming was immediately addressed by the company. In a statement accompanying the announcement, Netflix confirmed that it “expects to maintain Warner Bros.’ current operations and build on its strengths, including theatrical releases for films.”
Sarandos further noted on an investor call that the company plans to honor the existing film life cycle that starts in the movie theater. This assurance provides an immediate cushion against the fear that major Warner Bros. titles would bypass the big screen entirely, confirming that the commitment to theatrical distribution remains—at least for now.
However, while the support for theaters is promised, the terms of that support are poised to “evolve.” Sarandos was emphatic that the current system of long, exclusive theater runs is unsustainable. The co-CEO made it clear that release windows will “evolve to be much more consumer friendly, to be able to meet the audience where they are quicker.” Netflix’s primary objective is to bring first-run movies to its members as swiftly as possible, as that is what their subscribers pay for. That means the traditional 75- to 90-day exclusive theatrical window is now on the chopping block, setting the stage for Warner Bros. films to appear on Netflix far sooner than ever before.
Such aggressive pursuit of a shorter window has made the exhibition industry highly skeptical. Variety reported that the Cinema United President and CEO, Michael O’Leary, called the acquisition an “unprecedented threat to the global exhibition business.” Theater owners fear that the dramatic shortening of the release window will train consumers to wait just a few weeks for a film to hit streaming, thereby reducing box office revenue and damaging the business viability of countless local cinemas worldwide. O’Leary’s concern is that regulators must look closely at the deal because Netflix’s business model does not inherently support theatrical exhibition.
The most likely outcome, therefore, is that the theatrical run will transition from being an exclusive window to being an initial preview or event intended to maximize initial hype and revenue. While the biggest films will still open on the big screen, the time before they land on Netflix will likely be measured in weeks, not months. The change, which Netflix insists is necessary for the consumer, effectively subordinates the theatrical experience to the streaming service’s primary goal of providing immediate, exclusive content to its massive global subscriber base.
