“We’ve released about 30 films into theaters this year, so it’s not like we have this opposition to movies in theaters,” said Netflix co-CEO Ted Sarandos on a call with Wall Street fresh off clinching a mega deal to acquire Warner Bros.
“My pushback has been mostly in the fact of the long, exclusive windows, which we don’t really think are that consumer friendly,” he said. AMC and other chains are looking to reestablish a 30 or 45-day window to energize moviegoing that dwindled during Covid. The biggest chains often won’t run Netflix films with truncated windows.
The entertainment community and movie theaters in particular have been immensely jittery at this corporate combination given the streamer’s short windows if any as they cater to their streaming audience. Exhibition’s biggest trade group, Cinema United, came out with a blunt statement this morning opposing the merger, saying. “The proposed acquisition of Warner Bros. by Netflix poses an unprecedented threat to the global exhibition business.”
“The negative impact of this acquisition will impact theatres from the biggest circuits to one-screen independents in small towns in the United States and around the world,” said Cinema United President and CEO Michael O’Leary.
“Cinema United stands 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. In fact, it is the opposite. 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.” This mega-deal between Netflix and Warner Bros. would risk removing 25% of the annual domestic box office if films that are traditionally given a robust theatrical release by Warner Bros. disappear from theatres. Netflix currently grants only a handful of their films a token theatrical release and the overwhelming.”
In his comments today, after announcing the $72 billion acquisition of Warner Bros. Studios, HBO and HBO Max, Sarandos said, “I wouldn’t look at this as a change in approach for Netflix movies or Warner movies, for that matter. I think over time the windows will evolve to be much more consumer friendly … to meet the audience where they are … all those things we’d like to do. But I’d say that right now you should count on everything that has planned on going to the theaters through Warner Bros. will continue to go to the theaters through Warner Bros. And Netflix movies will take the same [path] as they have — which is some of them do have a short run in the theater beforehand.”
MORE