Netflix to release Warner Bros movies theatrically for 45 days
What's the story
Netflix co-CEO Ted Sarandos has reiterated the streaming giant's commitment to Warner Bros's theatrical movie business. In a recent interview with The New York Times, he said that if the proposed acquisition of Warner Bros Discovery (WBD) proceeds, Netflix will continue releasing the studio's films in theaters with a 45-day window. "We're competitive people; we want to win. I want to win opening weekend. I want to win box office."
Business insights
Sarandos highlighted Warner Bros's profitable theatrical business
Sarandos also revealed that Netflix executives were surprised by the profitability of Warner Bros.' theatrical business. He said, "The general economics of the theatrical business were more positive than we had seen and we had modeled for ourselves." "It's a healthy, profitable business for them." The statement comes amid industry backlash over Netflix's proposed $83 billion acquisition of Warner Bros's television and film studios, along with HBO Max.
Backlash response
Sarandos addressed industry backlash and clarified Netflix's stance
Sarandos acknowledged the backlash against Netflix's proposed acquisition, stating it was expected. He said, "I think it was a lot of loud voices, but not necessarily a lot of them." "A lot of it was folks who questioned, rightfully so, our intent with theatrical because we hadn't said anything about it." He also clarified that Netflix isn't anti-theater per se; the decision to stay out of that business was due to their streaming business performing well.
Strategic moves
Netflix's strategy for Warner Bros and recent deal with Sony
As part of Netflix's plan to keep Warner Bros studio operations separate, the company had earlier said it would continue releasing Warner Bros movies in theaters. However, Sarandos did not dismiss concerns about the deal, telling analysts that release windows would eventually shrink to become "much more consumer-friendly." Meanwhile, on Thursday, Netflix announced a renewed multiyear movie output deal with Sony Pictures Entertainment worth over $7 billion over multiple years.