Netflix–Warner Bros Deal Set to Reshape Hollywood
Netflix’s acquisition of Warner Bros, a historic player in Hollywood, signals significant changes for the entertainment landscape and the future of cinema. As one of the remaining big five studios, the 102-year-old Warner Bros stands as a cornerstone of the movie theatre business. The studio currently holds three of the top five earning films domestically, with A Minecraft Movie leading in first place, followed by Superman and Sinners, and the Oscar frontrunner, One Battle After Another. Numerous questions remain unanswered regarding the potential impact of ownership by a streaming giant on Warner Bros. It remains uncertain whether it will withstand antitrust scrutiny, and if it does, the specifics are still unclear. Yes, but it may also undergo changes. Initially, it will take a minimum of 12 to 18 months for the deal to be finalized, and in the meantime, moviegoers can anticipate a continuation of business as usual. Netflix co-CEO Ted Sarandos stated on Friday that they will maintain their support for a life cycle that begins in the movie theatre for Warner Bros films. However, he also remarked that he believes long exclusive windows are not in the best interest of consumers. As streaming gained prominence, particularly during the pandemic, studios explored various theatrical windows. Historically, a 90-day theatrical window was the norm; however, it has now shifted to approximately 45 days, often determined on a film-by-film basis.
Netflix does release certain films in theaters, but typically only for a few weeks prior to their availability on streaming. At times, this serves to meet the criteria for awards eligibility, while at other moments, it acts as a gesture towards leading filmmakers. This year, the notable releases featured Guillermo del Toro’s Frankenstein, Kathryn Bigelow’s A House of Dynamite, and Noah Baumbach’s Jay Kelly. Major chains such as AMC and Regal had declined to program Netflix releases until 2022, when the excitement surrounding the Knives Out film Glass Onion contributed to breaking the impasse. Earlier this year, KPop Demon Hunters unofficially topped the box office charts, earning nearly $20 million from a one-weekend run in theatres two full months after it debuted on the streamer. Netflix owns and operates several movie theatres, including the Paris Theater in New York and the Egyptian Theatre in Los Angeles. The studio has a varied lineup of films anticipated for 2026, featuring notable titles such as the Margot Robbie-led Wuthering Heights in February, Supergirl in June, Practical Magic 2 in September, Alejandro Inarritu’s untitled Tom Cruise movie in October, and Denis Villeneuve’s Dune: Part Three in December. Upcoming films slated for 2027 feature sequels to Superman, a Minecraft Movie, and The Batman. Earlier this year, the company stated its target was 12 to 14 releases annually across its four main labels: Warner Bros Pictures, DC Studios, New Line Cinema, and Warner Bros Animation.
Much of this hinges on the specifics, yet Cinema United president and CEO Michael O’Leary remarked just hours before the announcement that it represented an unprecedented threat to the global exhibition business. He added: “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.” Theatrical exhibition has yet to make a complete recovery since the pandemic. Prior to 2020, the yearly domestic box office consistently exceeded $11 billion. Since then, it has only exceeded $9 billion on one occasion, in 2023, largely propelled by Barbie, a release from Warner Bros. While it may be premature to draw conclusions, Warner Bros. has consistently positioned itself as a leading destination for esteemed filmmakers, having this year unveiled works from Paul Thomas Anderson, Ryan Coogler, and James Gunn. Other longstanding relationships include Villeneuve, who has “Dune: Part Three” coming next year, Clint Eastwood, and Todd Phillips. Much likely hinges on whether robust theatrical releases will be upheld; many of these filmmakers are vocal champions of the theatrical experience and may not remain if it changes. The studio’s controversial decision to release films simultaneously in theatres and on HBO Max in 2021 during the pandemic resulted in a rift with Christopher Nolan. After collaborating on eight major films with the company, including the Dark Knight trilogy, he chose to partner with Universal for his next two projects, Oppenheimer and next year’s The Odyssey.
That remains ambiguous. If the two platforms continue to operate as distinct subscriptions, there could be opportunities for bundling, similar to the arrangement between Disney and Hulu. Netflix on Friday stated that the inclusion of HBO and HBO Max programming will provide its members with an expanded selection of high-quality titles to choose from and enhance its plans for consumers. The Warner Bros. library of films features timeless classics such as Casablanca and Citizen Kane, alongside the beloved Harry Potter series.
