What Netflix’s acquisition of Warner Bros could mean for the future of cinema

DCM Editorial Summary: This story has been independently rewritten and summarised for DCM readers to highlight key developments relevant to the region. Original reporting by Economic Times, click this post to read the original article.

Netflix’s acquisition of Warner Bros., one of Hollywood’s oldest studios, signals significant changes in the entertainment landscape and the future of cinema. Warner Bros., a key player in the movie theatre industry with a history spanning 102 years, currently has three of the top five highest-grossing films in the U.S., including “A Minecraft Movie.” The deal raises various questions about how Netflix’s ownership will impact Warner Bros.’ operations, particularly regarding its theatrical releases and compliance with antitrust regulations.

While Netflix co-CEO Ted Sarandos has assured that Warner Bros. will maintain a theatrical release strategy, he indicated a potential shift away from long exclusive windows, which may not favor consumers. The pandemic has already altered traditional theatrical release patterns, reducing the standard theatrical window from 90 days to around 45 days, with decisions made on a film-by-film basis. Netflix has previously faced challenges in getting its films shown in major chains, though recent successes have opened up new opportunities.

Warner Bros. has an exciting lineup of films set for release in 2026 and beyond, including titles like “Wuthering Heights” and “Dune: Part Three.” The studio aims for 12 to 14 annual releases across its various labels. However, industry experts express concerns about the potential negative impact on movie theatres and the global exhibition business, especially as the industry continues to recover from pandemic-related challenges.

The reaction of top filmmakers remains uncertain, as many have valued Warner Bros. for its commitment to theatrical releases. Past controversies, such as simultaneous releases on HBO Max, have already strained relationships with some directors. Additionally, it’s unclear whether HBO Max and Netflix will merge into a single service or remain separate, although Netflix has suggested that incorporating HBO content could enhance its offerings for subscribers.