Netflix-Warner Bros. deal could harm Indian cinema ecosystem: Multiplex Association
What's the story
The Multiplex Association of India (MAI) has raised concerns about Netflix's proposed takeover of Warner Bros. Discovery, warning that it could harm the availability of theatrical content. The industry body, which represents multiplex chains nationwide, said that placing a major studio under a streaming giant could create competitive and economic challenges for India's theatrical market.
Statement
'Warner Bros. has historically been a key partner...'
Kamal Gianchandani, president of MAI, said, "The Indian theatrical market thrives on choice, scale, and cultural diversity." "Warner Bros. has historically been a key partner to Indian cinemas, contributing consistently to our release calendar with successful global and local titles." The organization emphasized that Indian cinemas serve as cultural hubs and economic drivers, supporting millions of jobs across sectors such as production, distribution, exhibition, and food and beverage services, among others.
Criticism
MAI criticized Netflix's stance on theatrical distribution
MAI also criticized Netflix's historical stance on big screen distribution, pointing out the streamer's limited commitment to cinema-first release strategies. Gianchandani said, "Netflix has consistently made it clear through its limited and highly restrictive approach to theatrical releases that it does not believe in the cinema-first model." He warned that if the acquisition goes through, there could be a significant reduction in high-quality content for cinemas and shortened or non-existent theatrical windows.
Future course
MAI plans to raise concerns with regulatory authorities
MAI warned that such outcomes would hurt limit consumer choice, exhibitor revenues, and undermine the broader cinema industry infrastructure in India. The association has said it will raise these concerns with regulatory authorities both domestically and internationally. Established in 2002 under the Federation of Indian Chambers of Commerce and Industry, MAI represents over 11 cinema chains operating more than 550 multiplexes with around 3,000 screens across India.
Market impact
Deal could strengthen Netflix's position in India
Analysts believe the deal will strengthen Netflix's position and market share in the Indian over-the-top (OTT) market. Karan Taurani, EVP of Elara Capital, said the acquisition could make Netflix the platform with the strongest recall for movies, originals, and global TV content. It could also enable Netflix to boost its average revenue per user (ARPU) in a price-sensitive market like India by providing a broader content slate and an expanded catalog.
Deal
Know more about the massive deal
On Friday, Netflix said in a statement that "they have entered into a definitive agreement under which Netflix will acquire Warner Bros., including its film and television studios, HBO Max and HBO." "The cash and stock transaction is valued at $27.75 per WBD share, with a total enterprise value of approximately $82.7 billion (equity value of $72.0 billion)." "This acquisition brings together two pioneering entertainment businesses, combining Netflix's innovation, global reach and best-in-class streaming service with Warner Bros.' [storytelling legacy]."