Netflix is buying the iconic Warner Bros. movie studio as part of its mega-deal for Warner Bros. Discovery‘s streaming and studios business. Does that mean Netflix will start putting its movies in theaters for long, exclusive runs?
The answer is no, according to Netflix co-CEO Ted Sarandos.
Sarandos said Netflix plans to continue to put Warner Bros. movies in theaters if and when the deal closes. But he said Netflix, which won the streaming wars by delivering entertainment to people in their homes, will continue its practice of short runs for its movies in theaters.
On a call with investors Friday to discuss the deal, Sarandos said Netflix doesn’t have an opposition to movie theaters but that his “pushback has been mostly in the fact that the long, exclusive windows” aren’t “consumer-friendly.”
Sarandos added that he thinks over time, theatrical windows will continue to shrink so they become available faster to people via streaming.
Netflix’s stance has at times created tension with big-name talent who want the prestige and audience experience of the big screen.
News of the Warner Bros. deal drew opposition from the movie theater trade org Cinema United, which said the proposed acquisition would pose an “unprecedented threat” to the theatrical industry and hurt theatergoers and the entertainment industry. Cinema United said the deal 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 theaters.”
As to whether Netflix will adopt WBD’s model of licensing its movies and shows to competing media companies, Sarandos shot down that idea. He said Netflix plans for Warner Bros. to keep producing for third parties, but Netflix doesn’t plan to change its own model.
“We’ve not produced for third parties,” he said. “They do, and they’re quite successful at it. And we want to keep that successful business operation. Netflix doesn’t plan to have any change in that model.”
Bottom line: Netflix is doing what it has to do to get Warner’s prized HBO and studio assets, but it’s not fundamentally abandoning the model that’s made it a success.
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